19 June 2007 09:30 [Source: ICIS news]
TOKYO (ICIS news)--Japanese polypropylene (PP) producers are looking at increasing PP capacity due to vigorous demand from China, with the country’s largest producer considering an ambitious expansion project, it said on Tuesday.?xml:namespace>
Japan Polypropylene, a joint venture of Mitsubishi Chemical and Chisso Corp, was considering the second phase of a “scrap-and-build project”, which involved the closure of old lines and the building of new, more efficient ones, a company spokesman said. While Prime Polymer, another major Japan-based PP producer, was mulling a similar scheme.
Japan Polypropylene wanted to increase capacity as supply of PP was tight due to booming demand from ?xml:namespace>
The company expected demand would outstrip supply for quite some time, though it mentioned new PP plants were being built overseas.
Japan Polypropylene announced earlier it was constructing a 300,000 tonne/year PP unit in Kashima,
Two existing PP units in Kawasaki, Kanagawa prefecture, with a combined capacity of 138,000 tonnes/year would be scrapped about a year after the new Kashima unit comes on line, the company said.
However, despite the closures, Japan Polypropylene's PP output will rise from about 1.08m tonnes/year to 1.25m tonnes/year due to new capacity.
Meanwhile, Prime Polymer was also mulling a scrap-and-build project with the building of a new unit with a capacity of 200,000-300,000 tonnes/year in Chiba in 2009-2010 on the table, a company spokesman said on Tuesday, adding it could boost overall capacity by about 100,000 tonnes/year.
The planned plant could get its supply of propylene feedstock from a 150,000 tonne/year olefins conversion unit that Idemitsu, Mitsui Chemicals and Sumitomo Chemical were building in
Prime Polymer is a joint venture of Mitsui Chemicals and Idemitsu Kosan. It produces a total of 1.36m tonnes/year of PP.
($1 = Y123.67)
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