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Sabic SK Nexlene Targets POE, POP Expansion by 2024

Solar panels, new mobility, footwear, and advanced packaging products are among target markets for the new capacity.

Stephen Moore

August 24, 2022

2 Min Read
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Holding up the agreement are (left) Kim Doo-Gyum, Mayor of Ulsan Metropolitan City, South Korea; and Sami Al-Osaimi, Vice President of PE & Sales, Sabic, and Board Chairman for SSNC.Image courtesy of Sabic

Sabic and its partner SK geo centric (SKGC) have announced their intent to expand capacity for polyolefin elastomers and plastomers (POEs/POPs) and metallocene low-linear-density (LLD) PE at their joint venture Sabic SK Nexlene Co. (SSNC). The new capacity, due to come on stream at Ulsan, South Korea, in the second quarter of 2024, targets applications in solar panel encapsulation, automotive, footwear, and flexible packaging.

The largest market for POEs traditionally has been impact modification of polypropylene (PP) in automotive components such as bumpers and instrument panels. Solar panel encapsulation has only emerged as a key application for POEs in the past several years, as makers discovered its superior insulating properties for certain module types. Adoption was also accelerated by a shortage of traditional EVA encapsulant grades, with prices spiking in 2021 and making POEs more cost competitive.

In the base scenario, market watcher MLT Analytics expected POEs' share of the solar module encapsulant market to grow from 12% in 2020 to 27% in 2030 based on its proprietary market modeling. A disruptive factor, however, could be the market entry of several homegrown Chinese players expected to emerge in 2024 and beyond who may be content with lower pricing levels, which could further boost market share. Other suppliers of POE encapsulant grades include Dow Chemical, Mitsui Chemicals, and LG Chemical.

Sami Al-Osaimi, Vice President of PE & Sales, Sabic, and Board Chairman for SSNC said, “We have identified a strong trend toward customized and high-performance polyolefins, especially metallocene polyethylene materials, in several important new technology markets.” He added, “Our Cohere POP, Supeer mLLDPE, and Fortify POE polymers are ideally positioned to meet the needs of our global customers for enhanced toughness, flexibility, elasticity, heat-sealing properties, and optical properties, amongst others. The KNC plant capacity increase will provide the operational efficiency to boost the growth of these Nexlene-based materials. At the same time, it will give us a significant competitive edge to strengthen the market penetration of our brands.”

The innovative Nexlene technology combines a bimodal solution process with a proprietary metallocene catalyst to yield state-of-the-art ethylene copolymers with tailored molecular weight distribution and modality.

Sabic and SKGC market mLLDPE and POE/POP products independently through their own brands. Sabic’s portfolio includes Fortify POE, Cohere POP, and Supeer mLLDPE. SKGC’s brands are Supreme POEs and POPs, and Smart mLLDPEs/mMDPEs.

 

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Holding up the agreement are (left) Kim Doo-Gyum, Mayor of Ulsan Metropolitan City, South Korea and Sami Al-Osaimi, Vice President of PE & Sales, Sabic, and Board Chairman for SSNC.

 

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Kim Doo-Gyum, Mayor of Ulsan Metropolitan City, South Korea (left) and Sami Al-Osaimi, Vice President of PE & Sales, Sabic, and Board Chairman for SSNC (right). Image: Sabic

 

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Kim Doo-Gyum, Mayor of Ulsan Metropolitan City, South Korea (left) and Sami Al-Osaimi, Vice President of PE & Sales, Sabic, and Board Chairman for SSNC (right). Image: Sabic

About the Author

Stephen Moore

Stephen has been with PlasticsToday and its preceding publications Modern Plastics and Injection Molding since 1992, throughout this time based in the Asia Pacific region, including stints in Japan, Australia, and his current location Singapore. His current beat focuses on automotive. Stephen is an avid folding bicycle rider, often taking his bike on overseas business trips, and is a proud dachshund owner.

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