Caustic soda, also known as sodium hydroxide, is an alkaline inorganic chemical that’s used in a wide variety of industries. It’s a crucial building block for many items, including plastics and pharmaceuticals.
It’s produced by electrolysis of sodium chloride solutions using one of two production cell types – membrane or diaphragm. Major consumers include the pulp and paper, detergent, alumina, oil and gas, textile, and chemical industries.
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AkzoNobel
AkzoNobel is a major player in the global chemicals industry, with operations in more than 80 countries and an annual turnover of EUR 8.5 billion. It makes products like chlorine, caustic soda, and polymer additives.
Its products are found in a wide range of industries and are used by businesses of all sizes around the world. Its primary focus is on making paints and coatings, but it also manufactures salt, fibers, and other chemicals.
The company is known for its high quality and long-term partnerships with customers. Its chemicals division has a market share of nearly 40 percent and has achieved strong growth.
In the mid-1990s, the firm started to reduce its emphasis on low-profit commodities like salt and fibers in favor of higher-margin paint and coatings. During this period, the company made a number of critical acquisitions.
Several of these were based in Europe, such as a German paint and rayon manufacturer and a UK man-made fiber company. The firm also merged with Nobel Industries, a Swedish paint and specialty chemical firm.
With these mergers, the company was able to diversify its portfolio and become more profitable. In fact, profits increased to record levels in 1994 and 1995, though they remained weak in 1996 and 1997 as the company lost some of its pharmaceutical business due to health concerns about the oral contraceptives Marvelon and Mercilon.
It has been reported that AkzoNobel plans to invest in a new chlor-alkali plant in Rotterdam, the Netherlands, and a new membrane electrolysis plant in Frankfurt, Germany, to increase production. It will also implement a system called “e-flex,” which allows the plant to adjust its output in response to electricity supply changes. It will use compact heat exchangers from Alfa Laval, which are designed to save energy.
Fengtai
The Fengtai Company manufactures caustic soda in a range of solid forms. These include flakes, pearls, and granules as well as caustic soda pellets. It also offers a liquid caustic soda that can be used for a variety of applications.
A chemical compound that can be produced by passing an electrical current through brine (common salt dissolved in water), caustic soda is also known as sodium hydroxide. It’s a versatile product that can be used in a number of ways, from cleaning to water treatment.
It’s a popular ingredient in soap and other household products, but it also has an unexpected use in the production of pharmaceuticals. It’s important in the manufacturing of blood thinners and cholesterol medications, among other things.
Several other industries can benefit from the use of caustic soda, including papermaking and food packaging. It’s a common ingredient in many of these products, and is an essential component for maintaining a stable pH in water, which can help to prevent bacteria growth.
In addition, the compound can be used to create sodium hypochlorite, a disinfectant that kills bacteria. It’s also a key ingredient in making aluminum.
Another company that makes caustic soda flakes is Solvay, a Belgian-born international chemical company. It focuses on three business segments: Materials, Chemicals, and Solutions.
Its chlor-alkali chemicals division produces caustic soda and vinyl compounds. It’s one of the largest producers in the world of caustic soda, and it sells it in both solid and liquid forms. Its sales of caustic soda account for 5% of its revenue. Its product portfolio includes a wide array of products, including caustic soda, PVC, chlorine, and other chemicals. Its production facilities are based in Jarrie, France.
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Arkema
Arkema, a French chemical company, makes caustic soda. They also make other corrosive chemicals like chlorine and hydrogen peroxide, which are used in a variety of industries.
They have a number of plants around the world that produce different types of chemicals. The Crosby plant in Texas, for example, makes organic peroxides, which are used in plastic. However, the plant caught fire Thursday and employees were evacuated.
The company is facing a rough time, and the production cutbacks it is making at its plants will lead to a decline in earnings. But CEO Thierry Le Henaff says the company is doing everything it can to survive.
He says the key is modest acquisitions and expanding into Asia. In addition, the company is working on new products.
While Arkema is undergoing a major transformation, they have also been working on reducing their environmental impact. They are currently trying to do this by lowering their water consumption and improving the way they process materials.
It is also pursuing a strategic rebalancing of its activities to achieve complementary geographic positions between Asia and the rest of the world, Europe, and North America.
The market for caustic soda in the United States saw an increase in prices last quarter. This was due to supply shortages and disruptions in China, the main importer of the product.
Dow Chemical
Caustic soda is a corrosive, acidic substance used in chemical pulping and to clean and sanitize surfaces. It can also be used as a base for various laboratory tests such as titrations.
The major producers of caustic soda include the xinjiang zhongtai, Dow Chemical Company, OxyChem, and PPG. These companies use a chloralkali process to produce sodium hydroxide. The chemical is available in various grades, strengths, and volumes.
To produce caustic soda, sodium chloride (NaCl) is electrolyzed to produce sodium hydroxide (NaOH), along with hydrogen and chlorine gas as byproducts. The sodium hydroxide is then reacted with water to form an acidic and corrosive liquid.
In addition, caustic soda is often added to other chemicals in order to improve their performance and efficiency. In particular, caustic soda is a popular additive to soaps and detergents.
It is also used in water treatment and wastewater sanitization. Moreover, caustic soda is widely used in the wine industry to prevent corrosion by organic acids on winery floors and other surfaces.
However, caustic soda has been the subject of controversy in recent years due to concerns about dioxin exposure. Several environmental organizations have filed lawsuits against the chemical manufacturer over its contamination of waterways and air at its Midland, Michigan, facility.
In July 2011, the EPA and DOJ announced that Dow had agreed to pay a $2.5 million fine to settle alleged violations of the Clean Air Act's National Emissions Standards for Hazardous Air Pollutants (NESHAP) at its Midland facility. According to the EPA, Dow's violations were a result of a "flagrant disregard" for NESHAP requirements in numerous process units at the Midland site. These violations were identified through testing, leak detection, monitoring, and recordkeeping.
OxyChem
Occidental Chemical Corporation (OxyChem) manufactures chlorine and sodium hydroxide, a vital building block in thousands of products essential to our modern lives. OxyChem is a leading producer of life-enhancing chemistry, producing facilities in the United States, Canada and Latin America.
The company’s ethylene cracker in Ingleside, Texas is the world’s second-largest ethylene cracker capacity with a 1.2 billion pound-per-year capacity. It is also the largest cracker in North America, and its ethylene production helps OxyChem meet customer demand for the PVC resins it manufactures.
Chlorine and Sodium Hydroxide
The US chlor-alkali industry has faced setbacks from extreme weather and operational issues in the past two years, limiting output and driving down prices. The domestic pull for lower overall volume availability has pushed down prices in global markets, where much of the chlorine goes to produce polyvinyl chloride and caustic soda.
Those rates are still low, but they have begun to recover from sluggish demand in 2019 and 2020. During a quarterly call with investors in August, CFO Robert Peterson said he expects strong demand for both products through 2021, largely driven by robust homebuilding growth and an uptick in the recovery from the COVID-19 pandemic.
He told analysts he was looking to outdistance some of his chlor-alkali facilities by raising their capacity for higher-value caustic soda. He highlighted refurbishment of precised US Gulf Coast chlor-alkali units, which will move them from diaphragm-grade caustic soda to membrane-grade production.
The new membrane-grade caustic soda will be more pure, containing less salt and iron than the diaphragm-grade. It will be used for a wide range of applications, including metal plating and coatings. It is also used as a chemical cleaner and is a component in batteries.
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