Tongkun’s Jiaxing Petrochemical to build 800,000 t/y PTA plant

14 January 2010 08:20  [Source: ICIS news]

SHANGHAI (ICIS news)--Jiaxing Petrochemical, a subsidiary of the Tongkun Group, plans to build an 800,000 tonne/year purified terephthalic acid (PTA) plant at Jiaxing, in China’s eastern Zhejiang province, a source with Tongkun said on Thursday.

Jiaxing Petrochemical would operate the plant, which will be located in the Zhapu Economic Development Zone, the source said, adding that the total investment for the plant and auxiliary facilities was yuan (CNY) 3.04bn ($445.1m).

“The formal construction work will kick off around this July and August, and the plant is due to come on stream in 2012,” the source said.

“We will buy the feedstock for the plant, as we don’t produce paraxylene (PX), and the company plans to use the PTA output for captive use in its polyester plants,” the source added.

China’s National Development and Reform Commission (NDRC), the country’s macroeconomic management agency, approved the project at the end of last month, according to an announcement on the commission's website.

The local Jiaxing Development and Reform Commission said on 16 November 2009 that South Korea’s KP Chemicals would not participate in the project, citing a change in the direction of its investments and the mature domestic PTA production technology.

Tongkun Group is a leading domestic producer of polyester filament yarn and polyester chips. It is headquartered in Tongxiang, in eastern Zhejiang province.

Last month, the NDRC approved Jiangsu Sanfangxiang Group Co’s 600,000 tonne/year PTA plant in eastern Jiangsu province.

PTA is a key feedstock for polyester production.

($1 = CNY6.83)

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By: Judith Wang
+65 6780 4359

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