North America Chlorinated Paraffin Market to Grow Substantially Due to Acquisitions Like That of Qualice LLC by Lockhart Chemical Co.

Chlorinated paraffin is a complex compound of polychlorinated n-alkanes synthesized by reaction between unbranched paraffin compound and chlorine gas with UV light acting as a catalyst. Chlorinated paraffins are colorless or yellowish in color depending on the chlorine content and chain length. Chlorinated paraffins are widely used in different types of industrial applications; they are used as additives in manufacturing of paints, adhesives, coatings, and sealants. Chlorinated paraffins are also extensively used as flame retardants and plasticizers.

Forecast Analysis

As per a report by Research Dive, the North America chlorinated paraffin market is expected to reach a revenue of $748 million in the 2018–2025 timeframe, thereby growing at a stunning CAGR of 2.7% by 2025. The huge growth that is being witnessed in the North America PVC industry is expected to be the primary growth driver of the North America chlorinated paraffin market in the forecast period. Along with this, technological advancements in the manufacturing of chlorinated paraffin products along with increasing demand for PVC products such as tubes, pipes, cables, etc. are predicted to push the market forward in the estimated period. Growing disposable income of people in the countries of North America is anticipated to create numerous growth opportunities for the North America chlorinated paraffin market in the forecast period.

By country, the North America chlorinated paraffin market is segmented across countries such as US, Canada, and Mexico. Some prominent market players include Ajinomoto Fine-Techno, JSC Kaustik, Caffaro Industries, Petroleum Additives, Dover Chemical, Pioneer Americas, INOVYN ChlorVinyls, Ferro Corporation, and many others.

Significant Market Developments

The key players of the North America chlorinated paraffin market are adopting various business strategies such as partnerships, mergers & acquisitions, and launches to gain a leading position in the market, thus helping the market to flourish. For instance:

In May 2021, Lockhart Chemical Co., a US-based manufacturer of metalworking fluid additives, announced the acquisition of Qualice LLC, a North Carolina-based additive manufacturer. This acquisition is expected to help Lockhart to increase its presence in the North America region and cater to the industrial demands of this region in a better way.

In November 2021, Ravago Chemicals North America, an Orlando-based chemical distributor, and Dover Chemical Corporation, a US-based manufacturer of alkylphenols and chlorinated alkanes, announced a partnership in the form of a national distribution agreement. This partnership will help both the partnering companies immensely as they will be able to pool their resources and distribute their finished products all over the region in a much better way.