APIC ’08: Iran PE jv set for Q1 commercial start-up

27 May 2008 10:32  [Source: ICIS news]

SINGAPORE (ICIS news)--Siam Cement Group’s high density polyethylene (HDPE) joint venture in Assaluyeh, Iran plans to start commercial production in the first quarter of next year, a Siam Cement source said on Tuesday.

“Mechanical completion will be achieved in December and commercial production will begin as soon as construction of the supporting utility facilities are completed and logistics are in place,” the source said on the sidelines of the two-day Asia Petrochemical Industry Conference (APIC).

“Commercial production has been pushed back to the first quarter because the utility facilities can’t be completed in time,” he said, adding that commercial production could have been achieved by the end of the year.

The producer also has to decide how to deliver the material to its customers before starting commercial production, he said.

“The key issue is how to get the product out (from the plant),” he said.

The producer was considering different methods of delivering the material to its customers, which include sending the material via trucks to the neighbouring Turkey market or shipping the product directly from the Assaluyeh port, he said.

Another option was to send the product by trucks to Bandar Imam Khomeini or Bandar Abbas ports for export, he said, noting that most Iranian polyolefins exports are currently shipped from these ports.

Siam Cement holds a 38% stake in the joint venture. Other major shareholders include Thailand's largest olefins maker PTT Chemical with a 10% share, Iran’s National Petrochemical Co (NPC) with 40% and Itochu Corp of Japan with 12%.

PTT Chemical said earlier that the project was delayed due to political instability. 

ICIS custom publishing and The Chemical Daily have produced an official 84-page, special publication on Asian petrochemicals for the APIC event
To discuss issues facing the chemical industry go to ICIS connect

By: Chow Bee Lin
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly