Mitsubishi Chem, Sasol close to formalising acrylic acid jv

26 July 2001 04:48  [Source: ICIS news]

SINGAPORE (CNI)—Japan’s Mitsubishi Chemical and South Africa’s energy and chemical’s group Sasol are close to formalising an acrylic acid and acrylic esters manufacturing joint venture in Sasolburg, South Africa, because their joint feasibility study is near finished, a Mitsubishi spokesman told CNI on Thursday.

The feasibility study to construct an 80 000 tonne/year acrylic acid plant and a 65 000 tonne/year acrylic ester plant and other acrylic acid derivatives at Sasolburg, South Africa, was started in December 2000. The projects, which would cost a total of Yen10bn ($80m/Euro91m), could be brought onstream by end-2003 if construction commences on schedule in early 2002.

The proposed acrylic acid and derivatives capacities may be expanded at a later date. Also, the joint venture could undertake expanding Sasol's wholly owned existing glacial acrylic acid capacity, also at Sasolburg, which would enable a worldscale super absorbent polymer plant to be built at the site.

Mitsubishi is attracted to establishing the joint venture because of South Africa’s abundant supply of coal and Sasol’s ability to manufacture coal-based petrochemicals. These have become more competitive because of the surge in crude oil prices.

Further, Sasol says that the combination of Mitsubishi’s technological expertise with the on-site availability of all the required feedstocks will greatly enhance the competitiveness of the proposed joint venture.

Mitsubishi already licenses technology to Sasol for acrylic acid, butyl acrylate, ethyl acrylate and glacial (high purity) acid production.

And on 12 July 2001, construction began on Sasol’s 150 000 n-butanol project at Sasolburg. Mitsubishi is licensing its n-butanol production technology to Sasol and has a captive offtake agreement with it.

Details about the share ownership of the joint venture and capital costs will be revealed once the study is formally concluded, which is likely to happen in the next couple of months, the Mitsubishi spokesman said.

By: Iqbal Anand
+65 6780 4359

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