Sterling, BP Amoco expanding acetic acid

12 February 1999 21:55  [Source: ICIS news]

HOUSTON (CNI)-Sterling Chemicals and BP Amoco announced Friday plans to invest $10m (Euro8.8m) in the 25% expansion of the world-scale acetic acid plant at Sterling's Texas City, Texas petrochemical facility.

The companies said the expansion which will boost that plant's capacity to 453 720 tonne/year and predict it will be complete by March 1999.

The expansion project will include minor hardware modifications but will employ "the most recent technology and process developments afforded by BP Amoco's Cativa technology." Houston-based Sterling said it expects implementation of the Cativa technology combined with advanced operating expertise to "upgrade the plant to one of the most cost competitive acetic acid facilities in the world."

Sterling describes itself as a major US producer of acetic acid, with about 18% of domestic capacity after the expansion. BP Amoco is the world's largest merchant marketer of acetic acid and markets all of Sterling's acetic acid production under a long-term agreement. BP Amoco's global production of acetic acid will soon exceed 1.8m tonne/year, according to the company.

BP Amoco is providing the Cativa technology and a "portion" of the capital for the $10m expansion. About 70% of the world's manufacturing capacity for acetic acid uses BP technology.

"The expansion of Sterling's acetic acid facility demonstrates the strength of the Sterling/BP Amoco relationship in acetyls, which has been ongoing since 1986," said Peter De Leeuw.

He added: "This new effort expresses our continuing commitment to the marketplace and provides additional evidence that Sterling is becoming a cost leader in the commodity chemical industry."

By: Mary Ann Tawasha
+1 713 525 2653

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