16 September 2010 10:59 [Source: ICIS news]
GUANGZHOU (ICIS)--China’s Zhejiang Yuandong Chemical Fibre Group is planning to start up its new 1.2m tonne/year purified terephthalic acid (PTA) line in Shaoxing, Zhejiang province, by late 2011 or early 2012, a company source said on Thursday.
“We began construction [of the line] last month and we hope to bring it on stream in late 2011 or early 2012,” the source said in Mandarin.
A source from another major Chinese PTA producer told ICIS that current PTA margins were very attractive and said that could be Zhejiang Yuandong’s reasons for wanting to expedite the construction of its new line.
“Construction of a large PTA unit [such as that of Zhejiang Yuandong] would normally require around two years to complete,” he said.
Once completed, the yuan (CNY) 2bn ($297m) line would increase Zhejiang Yuandong’s PTA production capacity to 3m tonnes/year and help it to meet China’s increasing domestic demand, according to the company source.
However, he could not provide any further details on the project.
Zhejiang Yuandong is one of China’s leading producers of PTA. It currently operates two 600,000 tonne/year PTA units and one 600,000 tonne/year EPTA line.
“The company’s three lines are currently operating at full and we basically have no inventory on hand,” said the source.
The company reserves one-third of its PTA output for captive use in its downstream fibre plants and sells the rest, he added.
($1 = CNY6.74)
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