Japan's Tosoh to divert caustic soda to EA units

20 June 2008 09:19  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan’s Tosoh Corp will divert over 40,000 tonnes/year of caustic soda to its new ethylene amine (EA) unit, scheduled to be completed by March next year, a source familiar with the situation said on Friday.

The caustic soda will be used as feedstock in the 26,000 tonne/year EA unit, further reducing the amount of caustic soda the company could offer to clients, the source added on the sidelines of the 12th Asian Chlor-alkali Conference in Bangkok. 

Asian caustic soda prices have risen by more than 70% since the start of the year due to tight supplies and strong demand.

The new EA unit will also use around 52,000 tonnes/year of ethylene dichloride (EDC), the source added.

EDC prices have been largely stable since the start of the year due to the influx of cheap deep-sea cargoes from the US.

Tosoh’s main chlor-alkali complex in Nanyo currently produces around 1.1m tonnes/year of caustic soda after an expansion, which was completed early June.

Around half of this new capacity has already been diverted for the company’s polyurethanes production.

Tosoh exports around 1,000 to 1,500 tonnes/month of spot caustic soda.

It operates a second caustic soda plant in Yokkaichi with a production capacity of 180,000 tonne/year.

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By: Ng Hun Wei
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