The Arkema Daikin Advanced Fluorochemicals Co., Ltd. (ADAF) has begun operation in Changshu, Jiangsu province, China. The joint venture company of Arkema S.A., Colombes, France, and Daikin Industries, Ltd., Osaka, Japan, has recently started full-scale production in China of HFC-125.
HFC-125 is a fluorocarbon essential in generating new refrigerants for non-ozone-depletion HFC refrigerants such as R404A, R407C, and R410A. Compliance with the Montreal Protocol requires a 75% reduction of HCFC in 2010 compared from 1989 in the U.S., so the demand for these refrigerants to replace HCFC-22 is increasing. Demand in China is also on the rise, as air conditioners exported to the U.S must switch to the new HFC refrigerants.
Additionally, Arkema/Daikin sources say, regulations limiting HCFC-22 in developing countries will likely be brought forward, spurring additional demand of HFC-125 in China and Southeast Asia.
"The startup of production in ADAF meet the needs of the increasing demand [for R125] and we are confident that the air conditioning manufacturers and other customers will feel assured of their supply chain" comments Guntaro Kawamura, senior executive officer, director, and board member, Daikin Industries, Ltd.
"The startup of the Changshu R125 plant falls in line with our strategy to serve our customers in Asia, a growth region in which China is a major player in the manufacture of air-conditioning equipment. Following the launch of R32 in the United States in 2007, this latest development confirms Arkema's commitment to investing in the production of new generation components poised to replace HCFCs" says Pierre Chanoine, Group President of Arkema's fluorochemicals business unit.
Arkema and Daikin have established Daikin Arkema Refrigerants Asia, Ltd. (DAR) based in Hong Kong, China, as the refrigerant provider for customer’s in Asia and Oceania areas, excluding Japan.
Refrigerants including HFC-125 will be sold globally in Asia and Oceania through DAR, and also in Japan, Europe, and the U.S through Daikin and Arkema. By taking advantage of the increased production, DAR will expand sales to areas such as Thailand, Guanzhou China, North China, and plan to more than double the sales in China and Asia compared to the current sales turnover by 2015.