To Become No. 2 EVA Producer in Korea
Hyundai Oilbank will start producing ethylene vinyl acetate (EVA), a raw material for solar cells, from the second half of 2021.
Hyundai Chemical, a subsidiary of Hyundai Oilbank, has decided to produce 180,000 tons of EVA annually at its chemical complex in Daesan, South Chungcheong Province. The complex is scheduled to go into operation in the second half of 2021.
A drop in the refining margin and oil refining demand has led the company to diversify its business portfolio through investment in the non-oil refining sector. Initially, the complex was not planning to produce EVA. However, as demand for EVA has increased significantly recently, the company has decided to convert some of its low-density polyethylene (LDPE) facilities for EVA production.
EVA is a synthetic resin mixed with ethylene and vinyl acetate. EVA with low VA content is used for production of footwear and film, while EVA with high VA content is used to produce solar cell sheets, the core of solar power generation, or coating.
EVA prices have been rising sharply since the second half of 2020. It jumped from an average of US$1,172 per ton in the second quarter to US$1,360 in the third quarter and further to US$1,998 in the fourth quarter. It is currently traded at US$2,375 per ton. The EVA market is expected to grow by more than 30 percent from four million tons in 2020 to 5.25 million tons in 2025.
Hanwha Total is the largest EVA producer in Korea with an annual production capacity of 380,000 tons. The company is followed by Hanwha Solutions (166,000 tons), LG Chem (140,000 tons), and Lotte Chemical (90,000 tons). If Hyundai Oilbank starts full-scale production, it will quickly become the second-largest EVA company in Korea after Hanwha Total.