On September 17, 2007, Evonik Industries of Germany launched a joint project in China to build a facility for producing methyl methacrylate (MMA) and acrylate special products within the Shanghai Chemical Industry Zone. This investment marked a significant step in expanding the region's chemical infrastructure. The plant, with a total investment of 250 million euros ($347 million), is designed to produce 100,000 tons per year of MMA, methacrylic acid, butyl methacrylate, and PMMA (polymethyl methacrylate, commonly known as acrylic glass). Expected to be completed by mid-2009, this project represents the third major foreign investment in large-scale MMA production in China in recent years. The increasing presence of global chemical giants in the Chinese MMA market signals that competition will intensify in the coming years.
The demand for MMA has been growing rapidly worldwide, with an annual growth rate of around 6%, outpacing global GDP growth. To meet this rising demand, two new world-scale MMA facilities, each with a capacity of 100,000 tons per year, are needed. In Asia, the growth rate is even higher, ranging from 7% to 8%, while North America sees about 3% to 4% growth, and Western Europe remains at 1% to 2%. China, however, stands out with an impressive 15% annual growth in MMA demand, making it the fastest-growing market globally.
Driven by strong demand, the domestic MMA market has drawn attention from both local and international players. For example, Shanghai Luite International Co., Ltd. started its 100,000-ton/year MMA plant in July 2005, and Japan’s Mitsubishi established a 90,000-ton/year facility in Huizhou, Guangdong, which began operations in July 2006. By 2006, there were five major MMA manufacturers in China, with a combined capacity of 298,000 tons per year. Additionally, over 500 smaller companies were involved in MMA production, contributing more than 120,000 tons annually. These small producers are mostly located in East, South, and North China, often operating as private or township enterprises, and they rely heavily on imported raw materials.
The market has seen a surge in demand since 2005, with production and sales booming and product shortages becoming common. Prices have steadily risen, reflecting the tight supply situation. In 2000, China’s apparent MMA consumption was 118,600 tons, which nearly doubled to 249,000 tons by 2006. Imports increased significantly from 19,500 tons in 1997 to 84,000 tons in 2004. However, after the completion of the Shanghai Lucite plant in 2005 and Mitsubishi’s facility in 2006, domestic production surged, leading to a sharp decline in imports to just 35,000 tons in 2006. This improvement in self-sufficiency—from 57.4% in 2004 to 97.6% in 2006—showed the sector’s rapid development.
Looking ahead, the demand for MMA is expected to grow further, especially in the PMMA sector, which is seeing strong growth in applications like light guide plates for LCDs and advertising signs. In 2006, China had over 300 PMMA manufacturers, but most operated in the low-end market, focusing on items such as advertising boards, lamps, and household goods. High-purity PMMA used in optical discs and TV screens is still underdeveloped in China, though the potential for growth is huge, especially with the expansion of the advertising, furniture, construction, and IT industries.
MMA applications have also diversified beyond traditional PMMA casting plates. Over the years, the material has found use in surface coatings, adhesives, ACR and MBS resins, textile pulp, medical polymers, leather additives, and composite plastics. Innovations include temperature-resistant, anti-static, and high-impact PMMA variants, as well as specialized thick and hollow PMMA cores used in optical fibers. These developments show that the application scope of MMA continues to expand.
Currently, MMA consumption is concentrated in East, South, and North China, while large-scale production facilities are mainly located in the north, creating an imbalance between northern production and southern demand. This leads to higher logistics costs. Foreign investors, on the other hand, tend to focus on downstream industries in the east and south, reducing their transportation expenses. As a result, domestic manufacturers must focus on cost reduction and quality improvement to remain competitive.
Despite the progress, the development of MMA application areas in China is still limited. Most products are basic, with low technology content and minimal added value. Other downstream products are in early stages, with limited output and narrow application scopes. Consequently, China continues to import many MMA-based products annually. To address this, manufacturers should collaborate with research institutions to develop high-value-added, high-tech downstream products, such as specialty PMMA, aiming for product diversification, specialization, and continuous quality improvements.
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