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Oxea to Increase Supply of Carboxylic Acid

Oxea is all set to increase the supply of carboxylic acid in the short to medium term to meet growing global demand. The chemical manufacturer is evaluating various strategies for production sites globally.

United States: Oxea has revealed plans to increase the supply of carboxylic acid in the short to medium term to meet growing global demand. For this purpose, the company has started evaluating several strategic options for production sites worldwide to meet increasing market demand.

Carboxylic acid is a key ingredient for synthetic lubricants production. It is also used to enhance feed hygiene or as building blocks for antibiotic-free feed additives.

The global commercial business director for acids and esters value chain of Oxea claimed that the market segments in which customers use carboxylic acids are likely to offer exciting development opportunities. Isononanoic acid, for example, is an important component in the production of high-performance synthetic lubricants for environmentally friendly refrigeration systems.

Due to stringent environmental protocols and regulatory requirements, the demand for synthetic lubricants is rapidly growing worldwide. Oxea being one of the worldwide market leaders for synthetic carboxylic acids offers a broad and differentiated product portfolio. To further support the growth customers, the company analyses the markets and includes its development in the production planning.

Oxea executive vice-president for global operations commented that the market for carboxylic acids is an important part of Oxea’s business. The strong demand has encouraged the company to invest in the strategic expansion of the production capacities for carboxylic acids. With investments, the company supports market growth, and be able to reliably supply the customers.

Oxea is a producer of oxo intermediates and oxo derivatives such as alcohols, polyols, carboxylic acids, specialty esters, and amines.

These products are used in the production of coatings, lubricants, cosmetics and pharmaceutical products, flavorings and fragrances, printing inks and plastics.

According to TechSci Research, the move is expected to have a positive impact on the growth of the organic acids market globally. Vigorously expanding various downstream industries, rising demand from food & beverage sectors coupled with growing demand for natural and eco-friendly additives is expected to drive the growth of Organic acids market in the coming years. Moreover, increasing organic acid production facilities and emerging application of distinct types of organic acid in various downstream industries are the major factors fueling consumption of organic acids, globally. Growth in global organic acid market can also be attributed to rise in demand for natural food additives and preservatives in cosmetics, drugs, beverages and other end use industries.

According to the recently published report by TechSci Research, “Global Organic Acid Market, By Type (Acetic Acid, Citric Acid, Formic Acid and Lactic Acid), By End Uses (Industrial, Food & Beverage, etc.), By Region (Asia-Pacific, North America, Europe, etc.), Competition Forecast and Opportunities, 2012-2026”, The global organic acid market stood at $ 6.94 billion in 2016, and is projected to grow at a CAGR of 6.11% in value terms to reach $ 12.54 billion by the end of 2026, on the back of rising demand for natural and environmentally acceptable additives and rapid growth in food & beverage processing industry across the globe. Organic acid are organic compounds and have various functional properties, thus, these acids are widely use in various downstream industries. Increasing consumer awareness regarding diseases caused by chemical additives and preservatives in cosmetic and food products and growing demand for natural and organic compounds are expected to propel consumption of organic acids in various end use industry across the globe.

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