10 February 2010 06:25 [Source: ICIS news]
SINGAPORE (ICIS news)--China’s Jialong Petrochemical Fibre expects to start its new 600,000 tonne/year purified terephthalic acid (PTA) plant in Fujian by the second half of March after a year-long delay, a company official said on Wednesday.
“We have been working overtime on the wastewater treatment facility recently, with the aim to bring the new line on stream in the middle of March,” the official said but gave no reasons for the delay.
The company delayed the start up of the plant twice. Originally scheduled to come online towards the end of 2008, the plant’s start up was pushed back to February 2009 due to financial constraints and equipment delivery issues.
While some market players believed that technical issues during construction had caused the latest delay, others felt the company was waiting for the market to improve before beginning operations.
“They may also take into considerations PTA profit margins,” a regional market source said.
PTA profit margins, which were weak until the second half of 2009, had improved and were averaging around $40/tonne (€29/tonne), the source added.
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Jialong is 50:50 owned by Beijing Jialong Investments and Xinjiang Hualing Industry & Trade. The PTA project is the first foray of both companies into the petrochemical industry.
($1 = €0.73)
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