Sumitomo Chem plans to stop EVA in Chiba

15 August 2007 10:33  [Source: ICIS news]

TOKYO (ICIS news)--Sumitomo Chemical plans to stop producing ethylene vinyl acetate (EVA) at its factory in Chiba, Japan, a spokesman said on Wednesday.

 

The Japanese chemical producer plans to stop producing EVA this autumn to optimise production, and start receiving supplies from the Singapore plant.

 

This was due to the fact that the company established a system to produce EVA in Singapore, in addition to polyethylene (PE) last year, he said.

 

“Rather than producing (EVA) at different locations, it would be more efficient to produce at one place,” he added.

 

The EVA unit in Chiba will then be switched to producing high-grade low-density polyethylene (LDPE), according to the spokesman.

 

He said the construction work to the unit would take place during the turnaround period of the plants at the Chiba factory, which was scheduled to start at the end of August and last until mid-October.

 

The unit would then start producing LDPE, he added.

 

The spokesman did not give the capacities of the EVA units in Chiba or Singapore, or of  LDPE. He, however, said the Chiba factory produced 305,000 tonnes/year of PE, adding that the capacity of EVA was included in this number.

 

The Chiba plant also produces ethylene (C2), polypropylene (PP), polystyrene (PS), benzene, toluene and mixed xylenes (BTX) and other products, according to the spokesman.

 

He said the company hoped to make EVA and PE higher added-value businesses through this project, by optimizing EVA production and start the production of higher-grade LDPE in Chiba.

 

Sumitomo Chemical has continued to increase the prices of EVA emulsion several times in the past few years due to the worsening profitability, impacted by the rising feedstock costs.

 

The most recent price raise was in May 2007, when the company increased the costs of two grades of EVA emulsion by 10% from undisclosed prices for shipments starting on 1 June.

By: Tomomi Yokomura
+65 6780 4359

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