09 June 2004 12:08 [Source: ICIS news]
LONDON (CNI)--Huntsman is expected to learn within the next three or four weeks whether its request for a substantial regional development grant to build a polyethylene (PE) plant on Teesside, northeast England, has been approved.
A UK spokeswoman for the privately owned US-headquartered commodity chemicals group told CNI on Wednesday that a decision by the Department of Trade & Industry (DTI) was anticipated by the end of June or early July.
She confirmed that current plans for the approximately 400 000 tonne/year capacity low density polyethylene (ldPE) plant hinge on grant approval.
The plant is expected to cost around $250m (Euro204m) and take around two and a half to three years to build.
Huntsman's resins project reflects the company's desire to process its excess ethylene capacity on Teesside. Output from the company's Wilton, Teesside, cracker - which has a nameplate capacity of 865 000 tonne/year - is sold to third parties, with an undisclosed amount exported. By building a PE plant at Teesside, Huntsman would yield higher added value for the ethylene.
Talks are already underway with several contractors and technology suppliers for the new plant. The project would create several hundred direct jobs as well as a significant amount of secondary employment in a region of relatively high unemployment.
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