Published on Jun 4, 2018 In 2014-15, lack of IP protection brought the value of commoditized photoinitiators to an all time low. Struggling manufacturing companies consolidating their business in response. After this consolidation and new Chinese environmental regulation, only a handful of producers making Diphenylphosphinic Chloride (DPPC) – a precursor needed for TPO and TPO-L – were left. A similar issue happened with PI 1173 with isobutyric acid as the precursor, and with ITX where Tiophenol is a key ingredient.

1. The 2017-2018 Photoinitiator Shortage
How does it Impact on the
Global Printing Supply Chain?
03/06/2018
Sorpol Market Intelligence report
Written by: Guy Soreq
Email: Guy@sorpol.com

2. Beijing air on a 2005-day after rain (left) and a smoggy day (right)
Production of Chemicals in China
in the Last Decades
A major contributor to China’s rapid double digit
growth in the last five decades has been a lack of
constraints and oversight, allowing illegally
polluting factories to continue running. Reports
estimated that 760,000 Chinese citizens die every
year from effects of air pollution.
Models wearing masks in front of a mask-clad audience in
Nanjing, Jiangsu province Photo: REUTERS
In one case (2013), the state media ran a
sponsored article claiming that haze has been
responsible for:
• Unifying people
• Making people funnier as smog jokes
proliferate
• Making citizen more immune to missile
attacks
Sorpol Market Intelligence report
Written by: Guy Soreq
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Source: China Central Television (CCTV)-
http://view.news.qq.com/a/20131209/012073.htm
Source: World Bank and SEPA-
http://news.bbc.co.uk/2/hi/asia-pacific/6265098.stm

3. “Speed up the construction of a system of ecological
civilization” - China’s President Xi Jinping
As more technology-based businesses emerged
to fund China’s growth, the Chinese government
declared pollution its biggest threat.
Workers drain sewage from a leaking tank at a copper mine
in southeastern China. Photo: Reuters
Additionally, polluters are now facing an
unprecedented level of public exposure.
A chemical plant explosion in the Lianyungang
Province killed 2 workers and injured 7. In
response, a CCTV show exposed another factory
owner for dumping toxic waste into a nearby
stream.
A Chinese Reality show exposing a polluting factory in
Lianyungang Province
The Ministry of Ecology and Environment is
cracking down on illegal plants. In the last year
(2017), inspectors were sent to 30 provinces.
Officials in 80,000 factories were reprimanded,
fined, or charged.
Sorpol Market Intelligence report
Written by: Guy Soreq
Email: Guy@sorpol.com

4. General Trends in the RadCure Market
Demand for high-performance photochemically
produced polymers has grown immensely in the
last decade.
RadCure technology is found in micro‐electronic
devices, coatings, adhesives, inks, printing plates,
optical waveguides, medicine and 3D Printing.
LED Curing and Inkjet Printing are growing trends
in the RadCure market, and rely heavily on
photoinitiators such as TPO, 819, 184, 1173 and
ITX.
The IP for many of these photoinitiators was
previously held by Ciba. In 2009, BASF purchased
Ciba. Ciba’s photoinitiator segment has now been
sold to IGM Resins.
The IP protection for Ciba’s core products is no
longer in place.
Photoinitiator 2013 2014 2018 2023
184 5,480 6,400 11,993 18,033
369 535 550 762 1,146
500 580 330 457 688
651 50 50 75 113
907 2,300 2,750 3,811 5,731
1173 5,700 7,450 13,960 20,992
2959 285 50 534 803
Active amine 1,700 960 1,330 2,001
BP 400 6,200 8,592 12,920
DETX 400 450 624 938
ITX 1,360 1,480 600 1,500
Liquid BP 200 200 301 452
Other 530 2,964 4,108 6,177
PBZ 1,460 800 1,109 1,667
TPO 2,450 1,850 4,591 10,066
Total 23,430 32,234 54,299 84,809
Export out of China 12,600 17,335 29,201 45,609
Value ( ,000 USD) 468,600 644,680 1,085,976 1,696,181
Estimated production volumes in China per
Photoinitiator, Past Present and Future (Units: Tons)
Source: RadTech China & Internal assessment
Sorpol Market Intelligence report
Written by: Guy Soreq
Email: Guy@sorpol.com

5. The 2017-2018 Photoinitiator Shortage
After this consolidation and new Chinese
environmental regulation, only a handful of
producers making Diphenylphosphinic Chloride
DPPC – a precursor needed for TPO and TPO-L –
were left.
A similar issue happened with PI 1173 with
isobutyric acid as the precursor, and with ITX
where Tiophenol is a key ingredient.
In 2014-15, lack of IP protection brought the value
of commoditized photoinitiators to an all time
low. Struggling manufacturing companies
consolidating their business in response.
DCPP TPO
Isobutyric
Acid 1173
Tiophenol ITX
Precursor Photoinitiator
Industry M&A’s during this time:
• IHT - Bought by IGM
• Runtec - Bought By Jiuri
• Lamberty - Bought by IGM
• CIBA (PI segment) - Bought by IGM
• IGM - Bought by Astorg
Sorpol Market Intelligence report
Written by: Guy Soreq
Email: Guy@sorpol.com
DPPC

6. EuPIA Blames Geopolitics and REACH-
Related Issues as Causes for the Crisis
On May 4th 2018, The European Printing Ink
Association (EuPIA) issued a warning regarding
a “potential shortage of photoinitiators.”
Sorpol Market Intelligence report
Written by: Guy Soreq
Email: Guy@sorpol.com

7. “Waiting is painful. Forgetting is painful. But not knowing
which to do is the worse kind of suffering.” Paulo Coelho
No one really knows how long this shortage will last. A large producer estimates that the
market will stabilize by the beginning of 2019…However, even after the crisis clears it will
take time for companies to rebuild their stock. For now, we know that the supply chain is
heavily impacted, and will continue to be impacted for some time.
Sorpol Market Intelligence report
Written by: Guy Soreq
Email: Guy@sorpol.com