Gohsei delays decision on EVOH plant location

11 December 1998 12:23  [Source: ICIS news]

LONDON (CNI)--Nippon Gohsei has delayed by several months its choice of site in Europe for the planned 10 000 tonne/year Soarnol ethylene-vinyl alcohol copolymer (EVOH) plant, the Japanese chemical company told CNI Friday.

Gohsei had hoped to select the EVOH site by the end of this year or at the beginning of 1999, but now plans to make an "interim" decision on its preferred location around late Q1/early Q2 next year. However, Naokai Takahashi, the general manager for international business development, said Gohsei may instead produce a shortlist of two or three sites for further studies.

A final decision on the choice of EVOH site may not be taken until near mid-1999, he indicated. The target date to have the plant onstream in late 2002 or by early 2003 is unaffected, he said.

"We are still investigating potential sites," he said. "It will take more time to reach a decision."

The project has been affected by Gohsei's decision to re-analyse forecasts of EVOH demand in Europe in light of the rapidly changing economic environment. Gohsei's re-think on the optimum EVOH site is part of its general review of long-term investment strategy, said Takahashi. More studies are underway on how EVOH demand is changing by country to give Gohsei more certainty in its strategic choice of site.

Gohsei is looking to locate its plant close to a vinyl acetate monomer (VAM) plant, which would provide raw material for EVOH production. Companies with key VAM plants include Hoechst, Elf Atochem and Dow. BP is planning to build facilities at Hull, England. Takahashi said there have been "preliminary talks with some of them".

A strong contender to host the Gohsei EVOH plant appears to be Wacker-Chemie's VAM plant at Burghausen, Germany. But Takahashi indicated that Antwerp, Belgium, is also possible, even though its Japanese competitor Kuraray is building its Eval EVOH plant at the complex.

CNI was told in November by a BP source that BP had been in talks with Gohsei over the merits of VAM plans for its Hull plant. But Takahashi said Gohsei would "ideally" prefer an existing VAM site in order to reduce uncertainty in a changing economic climate.

Takahashi said no major sites are ruled out yet and Gohsei is even considering whether to ship or pipe VAM feedstock to the EVOH plant. "The feasibility studies on the economics are not yet finished," he stated.

By: Patrick Reynolds
+44 208 652 3214

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