Hanwha Corporation is making a major investment in its nitric acid business. It will significantly increase production from its current 120,000 tons to 520,000 tons within two years. This will also pave the way for the company to shift its focus to precision chemicals, such as semiconductor cleaning agents, which have seen increased interest since Japan's export restrictions.

Hanwha Global announced on the 19th that it will invest a total of KRW 190 billion by 2023 to build a nitric acid plant in the Yeosu Industrial Complex in South Jeolla Province.

Upon completion of the plant, Hanwha's nitric acid production will increase by 400,000 tons, significantly increasing its total production to 520,000 tons. Of this, 390,000 tons will be used not only for internal consumption but also as a material for semiconductor and display deposition and cleaning.

A Hanwha official stated, “This is not simply about increasing production, but also laying the foundation for a leap forward as a precision chemical company.”

Meanwhile, on March 30, Hanwha Solutions announced plans to invest 160 billion won to build a plant that will produce 180,000 tons of DNT per year.

To produce 180,000 tons of DNT, 130,000 tons of nitric acid are required per year. DNT, produced by the chemical reaction of nitric acid and toluene, is the raw material for TDI, which is used in the manufacture of polyurethane for furniture upholstery and automobile seats.

With this investment, Hanwha and Hanwha Solutions will be able to build a nitric acid value chain linking nitric acid, DNT, and TDI, thereby increasing profitability. Going forward, they plan to also produce high-performance composite materials utilizing nitric acid.

Nitric acid is widely used across all industries, and its demand as a raw material for advanced industries has been increasing recently.

The global nitric acid market reached approximately 75 million tons last year, worth $24 billion (approximately 27 trillion won).

In the future, Hanwha plans to actively target Asian markets, including China and Thailand, beyond the domestic nitric acid and nitric acid derivatives market.