Why is Luxi Chemical expanding propionic acid capacity when global competition is already intense?

Why is Luxi Chemical expanding propionic acid capacity when global competition is already intense?
Luxi's Phase II propionic acid project will lift its capacity to 200,000 tons per year, making it the world's largest single producer and roughly 32% of global capacity of 630,000 tons. The rationale is vertical integration: Luxi already runs coal-to-methanol, MTO and syngas chains that feed propionic acid production, giving it a cost edge over standalone players. Downstream demand supports the bet, with pesticide intermediates and food preservatives both growing fast, food-grade applications potentially exceeding 15% annual growth. Integration, not scale alone, is the real moat here.