01 February 2001 13:09 [Source: ICIS news]
LONDON (CNI)--The cost of a new purified terephthalic acid (PTA) plant being built in Montreal, Canada by a Spanish-Canadian joint venture has been increased by two-thirds to Euro500m ($460m).
A spokeswoman for Spanish oil and chemicals group Compania Espagnola de Petroleos (Cepsa) told CNI on Thursday that the investment has increased by 67% to allow for future expansion. The previous budget for the project was Euro300m, she confirmed.
Initial capacity of the PTA plant remains at 500 000 tonne/year, she added, but the size of the possible future expansion was not disclosed.
Cepsa is building the plant with joint venture partner Societe Generale de Financement (SGF) - owned by the Quebec government. The Spanish group has majority control and SGF owns 49%. Cepsa's chemicals subsidiary Interquisa is undertaking the project with SGF.
Construction of the PTA plant is due to begin in March and its scheduled to come onstream in 2002. Last October, Interquisa and SGF begun preliminary engineering work on the project.
Cepsa said in a statement that the 500 000 tonne/year Montreal project, plus its planned 350 000 tonne/year PTA plant at San Roque in southern Spain, would take its global PTA capacity to 1.25m tonne/year.
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