Hanwha Chemical has launched a pilot production of superabsorbent polymers, a material commonly used for baby diapers, according to a news provider.

There are speculations in the market that Hanwha Chemical has currently carried out trial production of 1,600 tons of SAP using raw materials from China in its factory in Yeosu, South Jeolla Province.

A gram of SAP can absorb up to 500 grams of liquid, and is widely used for materials such as diapers and sanitary napkins.

SAP is expected to be a lucrative industry as countries such as China and India achieve higher economic growth and demand for baby diapers increase.

The news outlet reported that Hanwha Chemical is looking into the SAP industry, but is hesitant on mass-production due to the difficulty of obtaining acrylic acid, its base material.

To obtain acrylic acid, Hanwha must either purchase them from LG Chem, the only company in Korea producing SAP and acrylic acid, or import from China or Japan.

Hanwha is reluctant to buy from a rival company, but is also wary of the quality of Chinese-manufactured acrylic acid, as well as fearing potential customer avoidance, according to speculations.

The global market size for acrylic acid was 4.9 million tons, and SAP was 2.3 million tons in 2014. The industries are expected to grow 5 percent and 6.5 percent, respectively, by 2020.

By Sang Youn-joo (sangyj@heraldcorp.com)