DL Chemical’s Cariflex to build $384 million latex plant in Singapore

South Korea’s DL Chemical Co., a unit of the petrochemical-to-construction conglomerate DL Group, said on Thursday it is spending 500 billion won ($384 million) to build the world’s largest polyisoprene rubber latex plant in Singapore.

The plant, to be built on 6 hectares of land on Jurong Island, Singapore, will also become Singapore's first polyisoprene latex factory.

Cariflex Pte. Ltd., DL Chemical’s Singaporean affiliate, said it broke ground on the latex plant on Thursday, with the aim to have it operating by the second half of 2024.

The plant is expected to increase Cariflex’s global polyisoprene latex production capacity by over 50%, the company said. 

Cariflex's polyisoprene rubber latex is a synthetic, water-based polymer latex, suitable for a wide range of high-value applications. The company produces specialty synthetic rubber and latex for medical materials such as surgical gloves, condoms and rubber stoppers.

CARIFLEX TO PLAY A KEY ROLE IN DL’S GLOBAL EXPANSION

DL Chemical purchased Singapore-based Cariflex Pte, a core unit of US chemical manufacturer Kraton Corp., for $530 million in 2020 – its first cross-border acquisition.

DL Chemical is the world’s largest maker of polybutene (PB), a raw material for lubricants, adhesives and electrical insulators. DL also produces polyethylene used in packaging film, plastic bags and laminates.

In the first quarter of this year, the company posted 68 billion won in sales, up 36% from the year-earlier period.

“Cariflex will play a key role in DL Chemical’s global expansion,” said DL Chemical Vice Chairman Kim Jong-hyun.

Write to Ik-Hwan Kim at lovepen@hankyung.com
In-Soo Nam edited this article.