Celanese, Shanghai Wujing consider China acetic acid jv
07 June 2000 17:16 [Source: ICIS news]
LONDON (CNI)--German industrial chemicals company Celanese and Shanghai Wujing Chemical Corp (SWCC) are considering a joint venture for the production of acetic acid in China.
The two companies said Wednesday they have signed a letter of intent to explore the formation of a joint venture in Shanghai. SWCC would contribute its existing 100 000 tonne/year capacity acetic acid unit, while Celanese would provide its patented acid optimisation (AO) acetic acid technology plus an equity contribution.
Celanese said that by applying its AO technology, the partners would be able to expand the existing unit to 250 000 tonne "at an exceptionally favourable cost compared to a new grass-roots unit".
The plant expansion would position the joint venture to take advantage of the rapidly growing demand for acetic acid in China, it added. Celanese was unable to give any cost estimates for the project.
A spokeswoman told CNI that the earliest the potential new capacity could be brought onstream was 2002. She said the first step was a feasibility study, but was unable to say when the study would be completed or indicate how any formal joint venture might be structured and financed.
Celanese has made no secret of its ambitions to expand in Asia. Knut Zeptner, chief executive officer of subsidiary Celanese Chemicals and Acetate, said earlier this year that investment opportunities in China were under consideration. Celanese already has a 150 000 tonne/year vinyl acetate monomer unit and a similar capacity acetate esters plant in Singapore. It also has a new 500 000 tonne/year acetic acid unit under construction in Singapore which is scheduled to come onstream towards the end of this month or early July.
By: Neil Sinclair
+44 20 8652 3214
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