Gohsei takes longer on Euro EVOH site choice

15 March 1999 12:08  [Source: ICIS news]

LONDON (CNI)--Nippon Gohsei told CNI on Monday it has delayed by another two months the choice of European site for its planned Soarnol ethylene-vinyl alcohol copolymer (EVOH) plant.

Naokai Takahashi, the general manager for international business development, said there is no clear favourite for the 10 000 tonne/year plant as the Japanese chemical company continues to assess market conditions. He said each site being assessed has advantages and disadvantages, and Gohsei hopes to choose a site for detailed feasibility study by the end of May.

An interim choice of site was expected by late March from what is believed to be a list of some three or four contenders for the approximately $100m (Euro92m) EVOH project. Takahashi said that the detailed feasibility study would take about six months and a final decision on the project site is not expected until late 1999 or, more likely, during 2000. No information on the prospective sites or countries for the major investment were disclosed.

The company is continuing to review developments in the EVOH market, which has been growing annually at about 12%-13%, he said. While there has been good growth, he said Gohsei's studies have to be cautious in case the market flattens. He added that Gohsei also had to try to ensure the best timing to bring the large plant onstream to avoid depressing general plant operating rates.

By: Patrick Reynolds
+44 208 652 3214

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