Dow Chemical plans to start up Thailand HPPO line in Dec 2011

26 May 2010 07:21  [Source: ICIS news]

SHENZHEN, China (ICIS news)--Dow Chemical expects to start up its new 390,000 tonne/year hydrogen peroxide to propylene oxide (HPPO) plant at Mab Ta Phut, Thailand in December 2011, a company official said on Wednesday.

Construction of the plant would be completed in November 2011 and commercial production was expected in January 2012, the source said on the sidelines of the PU China 2010 conference.

The HPPO facility is a joint venture with Siam Cement, but Dow would control both the manufacturing and commercial sales of PO, he said.

Some of the PO from the unit would be used as raw material in Dow’s downstream plants in Asia, while the rest of the capacity would be available for sale, he said, adding that Japan, Korea and China were potential target markets.

Dow was already selling its products in China and Korea and planned to increase its share in these markets, the source said.

"There might be stiff competition in China as a Ningbo-based 285,000 tonne/year PO/SM (styrene monomer) will be up by early July this year, so currently, we are monitoring the China market," he added.  

Meanwhile, PO trades in the Chinese domestic market were thin due to a supply glut and poor demand from the downstream polyether polyols sector, sources said.

On Wednesday, PO spot prices were discussed at yuan (CNY)12,100-12,600/tonne ($1771-1845/tonne) DEL (delivered), down CNY200-300/tonne from last week due to a drop in upstream propylene values, they added.

Other PO producers in Asia include Ningbo Zhenhai Lyondell Chemical (NZLC), LyondellBasel, Shell, Nihon Oxirane, AGC Chemicals, SKC Co and CSPC.

The PU China 2010 conference, which lasts from on 26-28 May, provides a platform for global polyurethane producers.

($1=Y6.83)

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By: Ong Sheau Ling
+65 6780 4359

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