The Formaldehyde Process Chain
Formaldehyde is produced from methanol (a natural gas derivative) using a catalytic oxidation process. Thirteen companies in the United States and six companies in Canada produce formaldehyde; three companies (Hexion, Celanese, and Dynea) have formaldehyde plants in both the United States and Canada. At the end of 2003, there were a total of 40 formaldehyde production sites in the United States and 11 in Canada.
Formaldehyde plants typically are located close to where the chemical is consumed in order to reduce transportation costs. Thus, it is common to find these plants in all parts of the country and, indeed, the world.
Production of formaldehyde in the United States in 2003 amounted to 4.33 million metric tons; production in Canada amounted to 775,000 metric tons. Formaldehyde is classified as an “organic chemical intermediate.” Formaldehyde ranks as the fifth largest volume product in this class in the United States, according to the United States International Trade Commission and American Chemistry Council. Using the market price of formaldehyde in 2003 as a yardstick, the U.S. value of formaldehyde production was $1.5 billion. However, this measure does not account for the considerable and diverse value-added products that are derived from formaldehyde.
To understand the economic importance of formaldehyde, we must trace each of these derivatives to their ultimate end use in the economy. This is a complicated and detailed process. We summarize below how four major sectors of the economy depend on the products of formaldehyde chemistry.
- Residential Construction: These products include the crucial adhesives used for making products like plywood, sheathing and cladding, asphalt shingles, cabinets and cabinet doors, floors, furniture and paneling; other applications include laminated countertops and flooring systems, plumbing mechanisms, paints and varnishes, electrical boxes and outlets, and bedding;
- Automobiles: These products can be found in molded under-the-hood components due to their ability to withstand high temperatures, in exterior primer and clear coat paints for their durability and gloss retention, in tire cord adhesives, in brake pads, and in critical fuel system components;
- Civillian and Military Aircraft: These products can be found in landing gear components, lubricants that can withstand both extreme hot and cold temperatures, brake pads, and door and window insulation; and
- Health Care Applications: These products are used widely for vaccine manufacturing, as an active ingredient in anti-infective drugs, for hard-gel capsule manufacturing, in pharmaceutical research (especially proteomics and genomics research), and as a denaturant for ribonucleic acid analysis.
