Hanwha Solutions, XDI Localization... Achieving Independence from Japanese Materials

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Solutions, an eco-friendly energy and materials company, has succeeded in domestic production of xylene diisocyanate (XDI), a high value-added chemical material. The company developed its own technology over several years to produce commercially a high-performance optical lens material that had been exclusively supplied by Japanese companies.

Hanwha Solutions announced on the 10th that it started commercial production of high-purity XDI at its Yeosu plant in Jeollanam-do this month. The production capacity of the Yeosu plant is 1,200 tons per year. Accordingly, Hanwha Solutions became the world's second XDI producer after Japan's Mitsui Chemicals (annual capacity 5,000 tons).

XDI is a type of isocyanate compound, which is a main raw material for polyurethane. In particular, high-purity XDI with a purity of over 99.5% is a high value-added material priced about 10 times higher than general isocyanates. It has excellent transparency and refractivity, and is mainly used as a raw material for premium optical lenses that are about 30% thinner and clearer than conventional lenses. As the number of high value-added products using XDI increases, demand is rapidly growing.

Domestic optical lens manufacturers are expected to be able to secure high-quality raw materials stably as Hanwha Solutions succeeded in domestic production of high-purity XDI this time. Until now, they had difficulties in securing XDI due to Mitsui Chemicals' market monopoly.

A Hanwha Solutions official said, "We plan to actively collaborate with the domestic optical lens industry to fully launch the new business of 'Vision Care' (high-performance optical lens) materials."

Hanwha Solutions plans to expand its XDI customer base starting from the optical materials sector. The applications are broad, including flexible displays used in foldable phones, which are attracting attention as next-generation smartphones, OCA (optically clear adhesive films) for foldable phone display panels, premium inks, coatings, eco-friendly food packaging adhesives, and electronic product packaging films.

Hanwha Solutions has recently been commercializing high value-added products it independently developed, such as the eco-friendly plasticizer ECO-DEHCH and industrial adhesive petroleum resin. The process know-how accumulated in the general-purpose business and active R&D investments are bearing fruit. High-purity XDI also originated from Hanwha Solutions' core product, TDI manufacturing capabilities.

A Hanwha Solutions official said, "With this commercial production of XDI, we expect to contribute to the expansion of high value-added parts businesses of domestic small and medium-sized enterprises," adding, "We will continue to actively pursue domestic production of materials in line with the government's policy to foster materials, parts, and equipment."

This content was produced with the assistance of AI translation services.