PVP Demand increased rapidly

Polyvinyl pyrrolidone (PVP) is an important fine chemical
product with excellent property, extensive application and high
added value. It is extensively used in pharmaceuticals, wine
brewing, beverages, daily-used chemicals, pigments, coatings,
textiles, paper making, oil recovery, photosensitive materials
and electronics.

Production

China started the PVP production and application rather late,
but the development is fast. More and more producers have been
established in recent years. With the successful development and
application dissemination of the gama-butyrolactone production
through the atmospheric and vacuum vapor-phase hydrogenation of
maleic anhydride and the dehydrocyclization of 1,4-butanediol,
in particular, the output of gama-butyrolactone has increased
constantly and a raw material guarantee has been provided to the
PVP production.
   The capacity of PVP in China was around 3.5 thousand t/a in
2004 and the output was around 2 thousand tons. The operating
rate is not high mainly because PVP producers in China have small
scale and high production cost.
   Major PVP producers in China include Henan Boai Kaiyuan Fine
Chemical Plant, Shandong Shengli Oilfield Dongsheng Xinghua
Chemical Co., Ltd. and Beijing Tsinghua Yongchang Fine Chemical
Plant.
   In 1987 Henan Yuyuan Co., Ltd. and Zhejiang Research
Institute of Chemical Industry undertook a major research
project of the state during the Seventh Five-year Plan period
(1986-1990) and transformed the lab test achievement in the PVP
synthesis made by Zhejiang Research Institute of Chemical
Industry into pilot production. The method for the PVP synthesis
with gama-butyrolactone and ethanolamine as raw materials was
developed. The first PVP series production line in China with
a capacity of 205 t/a was constructed in the early 1990s.
   In 2003 Henan Boai Kaiyuan Fine Chemical Plant and Jiaozuo
Kaiyuan Pharmaceutical Factory established Boai New kaiyuan
Pharmacy Co., Ltd. through system renovation. The company can
produce industrial-grade PVP, pharmaceutical-grade PVP, PVP-I
(PVP/iodine complex) and CAP resin (N-vinyl-2-pyrrolidone (NVP)
/vinyl acetate copolymer). The capacity of leading products
including industrial-grade PVP and pharmaceutical-grade PVP has
been expanded to 1 500 t/a. The company has become a fine chemical
production base in Henan.
   Shandong Shengli Oilfield Dongsheng Xinghua Chemical Co.,
Ltd. is a company specialized in the development, production and
marketing of PVP series products. It has constructed a 1 thousand
t/a PVP plant and a technology application dissemination center
in Dongying, Shandong province and also set up a PVP sales
company in Shanghai. The company has already put more than 20
PVP varieties into market. Products used in the pharmaceutical
sector mainly include PVP-K, PVP-P, PVP-A and PVP-I.
   Beijing Tsinghua Yongchang Fine Chemical Plant was jointly
established by Tsinghua University and Henan Chemical Industry
Department. At the beginning of 1995 the plant constructed a PVP
experimental unit. After several years' efforts the capacity of
the experimental unit reached around 100 t/a in 1999. A 500 t/a
PVP unit has been constructed on the basis of the experimental
unit.
   Jiaozuo Yuanhai Fine Chemical Co., Ltd. constructed a 2
thousand t/a PVP production unit in 2005. Leading products
include NVP, PVP-K, PVP-P and PVP-I.
   Besides, Nanjing Jinlong Chemical Factory, Huzhou Zhanwang
Pharmaceutical Co., Ltd. and Tianjin East China Reagent Plant
also produce small amounts of PVP.

Rapid demand growth

The consumption of PVP in China was around 5.8 thousand tons in
2004. Great quantities of PVP are imported to bridge the gap in
the domestic market. The consumption distribution of PVP in
China is basically similar to foreign countries. In 2004 the
consumption proportion was around 53.3% for the daily-use
chemical sector, 17.8% for the pharmaceutical sector, 22.2% for
the wine-brewing and beverage sector and 6.7% for other sectors.

(1) Daily-use chemical sector

In the early 1990s China developed daily-use chemicals such as
styling gels, shampoos and make-up lotions made of PVP and its
copolymerized products. Shanghai Johnson Co., Ltd., Shanghai
Xiafei Cosmetics Co., Ltd., and many daily-use chemical plants
in Beijing, Tianjin, Guangdong province, Wuhan, Shandong
province and Hebei province also use PVP and CAP resin to produce
styling gels, mousses and hair-care and make-up articles.
Products are sold very well in the domestic market.
   With the improvement of people's living standard and life
quality, there is a high demand of medium and high-grade
daily-use chemicals such as shampoos, hair conditioners and
make-up lotions and the demand of PVP will therefore increase
considerably.

(2) Pharmaceutical sector

The application of PVP in the pharmaceutical sector already has
a history of nearly 20 years in China. The major variety in use
is PVP-I. PVP-I is a complex of PVP and iodine. It is an important
disinfectant fungicide with low toxicity, high effect and slow
release. It is extensively used in surgical operations to
prevent post-operation infection and various inflammations.
PVP-I has achieved rapid dissemination and development in China
in recent years. Major producers include Tianjin Lights Medical
Supply Co., Ltd., Shanghai Holdfine Biotechnology Co., Ltd.,
Hangzhou Longfeng Medical & Health-Care Goods Co., Ltd.,
Guangzhou Baiyunshan Pharmaceutical Factory and Hangzhou Mutian
Industrial Co., Ltd.
   Besides, PVP series products, cellulose derivatives and
acrylic series products are regarded as the 3 major medical
synthetic materials today. They are extensively used in binders,
co-precipitants, co-solvents, dispersing stabilizers, eye
ointment assistants and capsule flow aids. Some domestic
pharmaceutical producers such as Shanghai Squibb Pharmaceutical
Co., Ltd., Wuxi Sino-Swed Pharmaceutical Co., Ltd.,
Xian-Janssen Pharmaceutical Co., Ltd., Tianjin Lisheng
Pharmaceutical Co., Ltd. and Hangzhou Minsheng Pharmaceutical
Group Co., Ltd. have already used PVP in drug formulations and
achieved satisfactory results.

(3) Wine-brewing and beverage sector

In the wine-brewing and beverage sector PVP is mainly used as
clarifier and stabilizer in the beer production. Insoluble PVP
series products have been used in large beer producers. For
example, large beer producers in Beijing, Shanghai, Hangzhou,
Sichuan province, Changchun, Hefei and Changsha have all used
PVP or PVP-P as beer clarifier. Based on an addition amount of
0.1 - 0.2g/L, the demand of PVP in large and medium beer producers
alone will be almost 1 thousand tons a year. PVP-P also has unique
effect in liquors and wines. Beijing Wine Factory uses PVP-P to
treat wine products and achieved very satisfactory results.
There is therefore also a market potential for the application
of PVP in liquors and wines.

(4) Other sectors

In polymers, PVP is used as dispersant, stabilizer, emulsifier
and thickener. It is also used in coatings, pigments, inks,
polymer synthesis and processing, detergents, adhesives,
photosensitive materials, textile dyeing/printing, oil
recovery mud, acidification fracturing, papermaking and
pesticides.
   The price of pharmaceutical-grade PVP in Ch