DL Chemical, the world's leading corporation in high value-added petrochemical products such as polybutene (PB), is expanding rapidly through active mergers and acquisitions (M&A). This strategy combines the technology accumulated over the past 30 years in PB with core technologies possessed by foreign companies to enhance competitiveness in the specialty sector.

In 2020, DL Chemical made a 620 billion won investment to acquire the Cariflex business unit from the U.S. chemical corporation Kraton. Cariflex is the only manufacturer in the world to produce anionic catalyst-based synthetic rubber and latex. The polyisoprene synthetic rubber used in surgical gloves is produced in the highest quantity globally by Cariflex.

DL Chemicals acquires the Cariflex division of Krehalon, the number one material for surgical gloves, in 2020. The photo shows the Cariflex factory in Singapore, which started operations last year. /Courtesy of DL Chemicals

Cariflex's products are evaluated to have fewer impurities and higher transparency than those of competitors. The main product, polyisoprene latex, has been validated in terms of quality and safety in the demanding medical supplies material market, and is sold not only for surgical gloves but also for other high-value medical supply materials such as vial stoppers.

Two years after acquiring Cariflex, in 2022, DL Chemical also acquired its parent company, Kraton. Kraton's flagship product, Styrenic Block Copolymer (SBC), holds the number one market share in the U.S. and Europe. SBC is a material that Kraton was the first in the world to create, used in adhesives, medical supply materials, automotive interiors, and 5G communication cables.

Surgical gloves made from materials produced by Cariflex. /Courtesy of DL Chemicals

DL Chemical invested approximately 480 billion won to construct a new polyisoprene latex plant for Cariflex at its chemical complex in Jurong Island, Singapore, which began operations in November of last year. The new facility, with a size of 61,000 square meters (approximately 18,400 pyeong), is the largest polyisoprene latex production facility in the world. This investment facilitates easier product supply to key customers in Southeast Asia and is expected to be advantageous in gaining synergies with the research facility in Malaysia.

A DL Chemical official noted, "With the establishment of the Cariflex plant in Singapore, we have secured a solid market share lead in the medical supplies material market. We will accelerate the transition to a specialty business structure focused on high-value products."