Left: Ms. Dai , Functional Chemicals Division 1
Primarily responsible for the development of new markets for Caprolactone-related products. Actively expanding into global markets including Europe and America.

Right: Ms. Li ,Chemicals Division 2
Mainly responsible for the Japanese market for Caprolactone-related products. Handles sales through existing routes such as paints and resins.

——Could you tell us about the Caprolactone products that HighChem handles?

Li  ε-Caprolactone is a very simple chemical structure called a ‘monomer’. By adding various functional groups (groups of atoms or bond patterns that characterize the properties and reactions of organic compounds), it can have various functions.

Its main uses are for paints and resins, and PCL Polyol and PCL (Polycaprolactone) are its derivatives.


Li   It is a type of polyol used in the manufacture of polyurethane.

Among them, PCL Polyol has high durability and is easy to process, so there is a wide demand for it in polyurethane resins. It is used in paints, coatings, adhesives, cable sheaths, and films, and due to its high wear resistance and water resistance, it is also used in ski wear and raincoats. Also, because of its high durability, there is demand for it as an automotive application, such as car coating agents and films.


Li  PCL (Polycaprolactone) is a biodegradable plastic. In Europe and America, it is used for disposable cups and straws.

Dai While there are few other biodegradable plastics that are marine degradable, PCL (Polycaprolactone) is characterized by its ability to decompose in the sea.

Li  That’s right. Its adoption is progressing in environmentally conscious Europe.

——Could you also tell us about the supplier, Hunan Juren Chemical New Material Technology Co., Ltd. (hereafter referred to as Juren Chemical)?

Li  A few years ago, there was a problem with the ε-Caprolactone supplier, and the supply stopped. At that time, our branch in China found Juren Chemical. At that time, the company’s production capacity was about 5,000 tons per year, so it was difficult to supply to markets outside of China. However, last year, they rapidly expanded their production capacity to about 10 times that, up to 55,000 tons. In line with this, HighChem and Juren Chemical concluded a sales agency contract in Japan.


——Suddenly launching a plant with ten times the production capacity is really amazing, isn’t it?

Dai The market for ε-Caprolactone used to be about 40,000 tons, so the amount circulating in the market has doubled. Also, with this increase in production, Juren Chemical has emerged as a top player in Caprolactone-related products.

Li  There are about two reasons why Juren Chemical expanded its production capacity. The first is to maintain a stable supply of Caprolactone-related products. This product is very difficult and dangerous to manufacture, so there are few players worldwide, and there were also problems with the aging of equipment for existing manufacturers. On the other hand, there were many voices hoping for a stable supply of Caprolactone-related products, which are expected to have a certain demand in the future. In response to this, Juren Chemical developed a technology that is safer than before, and established a production system that is ten times the conventional one.


The second is the high technical strength of Juren Chemical. The company has a research institute, and many researchers and engineers who have obtained doctorate degrees belong to it. As a result, they are actively developing new uses that are not limited to conventional uses. Since they can now supply twice the amount of the previous market, if you think simply, it will be oversupplied with only existing uses.

Dai　One of the new uses they have developed is charging cables for EVs.  Now, in China, EV cars such as BYD and Tesla are rapidly spreading, and along with that, the development of charging infrastructure is also progressing. PCL Polyol, which can maintain a stable performance even under high pressure, has few changes over time and high durability, was chosen and adopted as a component of the charging cable.

When we heard that, we were really surprised that, “There was such a use!”


——Last year, you announced a partnership with Juren Chemical. What initiatives will HighChem take in the future?

Li  In the Japanese market, we are developing new trading partners in the field of paints and polyurethane resins. The strength of Juren Chemical is its overwhelming production capacity, which is comparable to the world share. When the company transitions to a stable production system in the future, we will be introducing it to paint manufacturers and others so that we can provide price benefits, and we are in the process of having them evaluate the performance.


——How about the development of the global market for Caprolactone-related products?

Dai Yes, we are thinking of developing markets mainly in Europe and America.

For Europe, we have been working with AI Japan, which joined our group last year, to develop the market for Caprolactone-related products.

Also, for the United States, we are digging up new demand in collaboration with the staff of our U.S. branch. We are also considering exhibiting at trade shows in the U.S. within this year.

Looking globally, the market for Caprolactone-related products, centered on polyols, is definitely growing, so we want to continue to seize opportunities.