In order to cope with
the expanding MMA market over the globe, various countries come out with
different solutions to satisfy the demand for their own countries. For
instance, Asia Pacific, representing the largest market for MMA, consists
numerous manufacturers in producing MMA to suffice the enormous demand within
the regions. Within Japan alone, there were several companies, such as
Mitsubishi Gas Chemical, Sumitomo Chemical, Asahi Kasei, Kuraray, were
considered as the top manufacturers in global market. Besides Japan, countries
within the region of Asia Pacific including Taiwan, South Korea, and China were
having their own manufacturers which were the major players within the market
as well. For instance, Farmosa Plastics and Kaohsiang Monomer Company from
Taiwan, LG MMA Corp and Lotte Chemical Corporation from Korea, as well as
Shandong Hongxu Chemical and Zhejiang Longxin Chemical from China (Intense
Research, 2018). The overall production of Asia Pacific was not only able to provide
self-sufficient of MMA for themselves, but also capable in exporting additional
MMA to other countries.
While in Europe, the suppliers within the regions were still unable to
fulfill the highly demand. Despite the factory of manufacturing MMA in Europe
was operated well accordingly, Europe was remained as a net importer of MMA
from overseas, mainly Asia (ICIS NEWS, 2017). Therefore, the MMA market in
Europe was adversely affected by the production of MMA in Asia.
Similar as Asia Pacific, Americas becomes one of the major producer of
MMA in order to overcome the excessive demand of MMA within the countries. However,
in consequence of the impact of Hurricane Harvey on 28th of August
2017, the low production rate of factories in America had significantly
affected the supply of the MMA in US (Borica, 2017).
In order to increase the capacity
of MMA, Saudi Arabia was introduced into the global MMA market in year 2016. As
shown in Figure 1.5.3, middle east had successfully become one of the major MMA
producer in the world. In the year of 2017, middle east itself was able to
produce 340,000 tonnes annually (ICIS Chemical Business, 2016). The main company
involved in the market of middle east was known as Saudi Methacrylates Company
(SAMAC), which was a joint venture of Mitsubishi Rayon Corporation (MRC) and
Saudi Basic Industries Corporation (SABIC).
The company was located in Al-Jubail, Saudi Arabia and currently was the
biggest MMA plant in the world. The plant itself was able to manufacture
250,000 tons of MMA monomer and 40,000 tons of PMMA annually. The main purpose
of SAMAC was used in supplying MMA for growing emerging markets of nearby
countries such as Eastern Europe, India, the Middle East, Africa, and others (Mitsubishi
Chemical Holdings Corporation, 2014).
Despite all the solutions including increasing production capacity or
introducing new factories, the problems of unprecedented price increases and
global supply issues were still unable to be resolved.