- Capacity for Oxsoft GPO (DOTP) will increase by 50,000 metric tons by Q4/2015.
- A Memorandum of Understanding has been signed with a third party for joint production.
- DOTP is a general-purpose plasticizer used in construction, automotive, and flooring.
- Oxea is the largest European producer of 2-Ethylhexanol, a key raw material for DOTP.
Capacity Expansion
To meet the increasing customer demand, Oxea plans to boost its European capacity for Oxsoft GPO (Dioctyl Terephthalate - DOTP) by 50,000 metric tons by Q4/2015. This expansion is part of a strategic move to address the growing market for phthalate-free plasticizers.
Joint Production Agreement
Oxea has signed a Memorandum of Understanding with a third party to establish joint production of DOTP. This collaboration aims to enhance production capabilities and ensure a steady supply of the plasticizer to meet market needs.
Market Dynamics
The European market for phthalate-free plasticizers is expanding rapidly. DOTP, as a replacement for Dioctyl Phthalate and Diisononyl Phthalate, is experiencing significant growth. This trend necessitates careful capacity planning to keep up with demand.
Raw Material Integration
Oxea's integration into key raw materials for DOTP production is a critical advantage. The company is the largest European producer of 2-Ethylhexanol, the main raw material for DOTP. This backward integration ensures a reliable supply chain and the ability to meet high demand levels.
