Demand for TEDA Increases Steadily

By Yu Jing

Triethylene diamine (TEDA) is an important intermediate and
organic chemical raw material. It is used as catalyst for PU
(polyurethane) foam production, catalyst for ethylene
polymerization and also in the production of coatings and
plastics. Its derivatives can be used in the production of
petroleum additives, corrosion inhibitors and emulsifiers.

  1   Production and consumption in foreign countries

Major TEDA producers in the world today include APCI of the
United States, BASF and Bayer of Germany and Tosoh of Japan. The
world's production capacity is around 50 thousand t/a, and the
output is around 40 thousand tons.
   APCI of the United States has been providing amine catalysts
and TEDA to the world PU market for many years and is also
important as a leading supplier in the global TEDA and PU
markets.
   Consumption of PU is quite large in foreign countries.
Consumption of TEDA as an important catalyst is therefore also
quite large. According to statistics, the consumption of PU in
the United States, Japan and Western Europe was 3.086 million
tons in 1995. The consumption of TEDA used in PU foaming agents
was 20 thousand tons in 1995 and around 40 thousand tons in 2005.
   With the rapid consumption growth of PU, the consumption of
TEDA will increase constantly. It is expected that worldwide
demand for TEDA will reach 50 thousand tons in 2010 and 70
thousand tons in 2015.

  2  Market in China

    (1) Production

PU foam plastics in China have developed rapidly in recent years.
The output of PU foam plastics reached 1.20 million tons in 2005,
consuming around 8 thousand tons of TEDA. With the constant
expansion of application sectors, the demand for TEDA will
increase further.
   Major TEDA producers in China include Changzhou Shanfeng
Chemical Co., Ltd., Air Products Shanfeng, Zhejiang Jiangshan
Chemical Co., Ltd. and Henan Xinxiang Jujing Chemical Co., Ltd.
The total capacity is around 5 thousand t/a. The output of TEDA
in Changzhou Shanfeng Chemical Co., Ltd. is nearly 500 tons a
year. The output of PU in China has grown rapidly in recent years.
The production of TEDA cannot meet the domestic demand, so
imports remain necessary.
   Shanghai Research Institute of Chemical Industry, Taiyuan
University of Technology and East China University of Science
& Technology are conducting research and development of TEDA and
process technologies for PU synthesis. The research and
modification of TEDA composite catalysts is also being
conducted.
   APCI of the United States and Changzhou Shanfeng Chemical Co.,
Ltd. jointly established Air Products Shanfeng in May 2005 to
provide TEDA to the fast-developing PU market in China. (CCR2005,
No.16) The head office and the production plant of the new
company are located in Changzhou of Jiangsu province. APCI of
the United States holds the major equity and undertakes
operation and management.
   The project is a part of the long-term development strategy
of APCI in China. The company intends to further expand the TEDA
market in China through capacity expansion. APCI will continue
to provide its leading production and processing technologies
to the Changzhou plant to ensure the plant to produce products
in conformity with environmental protection requirements.

    (2) Consumption and projection

TEDA in China is mainly used in the production of PU flexible
foams. Around 80% of PU flexible foams use TEDA as catalyst. The
consumption of TEDA foaming catalyst in China has grown rapidly
in recent years. The proportion of TEDA added as PU foaming
catalyst is usually 0.5%-2%. According to the analysis made by
experts, the average proportion of TEDA added as PU foaming agent
is around 0.9% in China. The increase of population and income
in China has promoted the development of the PU foam market.
Flexible PU foam sheets (for furniture, carpet backing and
vehicle seats) and shoe soles have become the major end market.
   The consumption of PU in China is increasing at an annual rate
of 10%. As China has become a global manufacturing center, the
demand for PU in the region still has huge potential and will
continue its rapid growth.
   The rapid development of the PU sector will surely boost TEDA
consumption. The Ministry of Construction of China is
formulating a standard for heat-insulation materials to be used
in construction. A new development opportunity will open to the
PU sector and the demand for TEDA will increase. It is expected
that consumption of TEDA in China will reach 18 thousand tons
in 2010 and 22 thousand tons in 2015.
   For many years TEDA used in Chinese companies has mainly been
imported from abroad. The import price is still around RMB110
000 per ton today. The selling price of domestic products is
RMB60 000-80 000 per ton. It is estimated that the price of TEDA
will stay at RMB65 000-100 000 per ton in the next few years.
   The investment necessary for the construction of a 1 thousand
t/a TEDA project is around RMB55 million and the total investment
is around RMB62.43 million. Based on a selling price of RMB70
000 per ton, the annual sales revenue will be RMB70 million and
the annual total profit will be RMB23.69 million. TEDA is
therefore a product with a high margin.