Degussa plans '08 start-up of world-scale China MMA plant

04 July 2005 18:24  [Source: ICIS news]

DARMSTADT (CNI)--Start-up of Degussa's planned world-scale methyl methacrylate (MMA ) monomer plant in China is expected in 2008, with downstream production facilities to follow in 2009, the Dusseldorf-based group said on Monday at a Specialty Polymers press briefing here. 

 

While a final decision on capacity of the new plant has not yet been made, Gregor Hetzke, head of the president of the methacrylates business unit, said output is likely to be in the 100,000 tonne/year range. Without naming a concrete investment figure, he said the typical cost of a world-scale facility is around Euro150m ($179.5m).

 

The decision to build the plant is part of a new global strategy for the MMA market in which Degussa specialty polymers division head Manfred Spindler estimates Degussa’s share at 10-15%. The group’s capacity for monomer is currently “sold out”.

 

Degussa will add capacity for polyMMA (PMMA) polymer and other MMA derivatives in China as needed, Hetzke said. Monomer produced at the site will be used by the German group and its customers to manufacture products for the Chinese and other Asian automotive market as well as for optoelectronics.

 

In the latter category, the business unit head pointed in particular to booming demand for films to coat LCD computer and television monitors, for which growth rates currently average 40-50% annually.

 

The new Chinese plant and a 20,000 tonne/year expansion of output at Cyro, the former joint venture with Cytec in which Degussa recently acquired full control, will push the group’s MMA output capability to nearly 500,000 tonne/year. This includes 320,000 tonne/year in Germany and 180,000 tonne/year at Cyro.

 

Until the new facility comes onstream, Degussa will attempt to increase its worldwide output through debottlenecking and will continue to supply the growing Asian MMA market from plants in Europe and North America. The ability to source product from the now wholly owned US plants will help eliminate euro-related competition constraints, Hetzke said.

By: Dede Williams
+44 20 8652 3214

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