30 September 2010 11:49 [Source: ICIS news]
(Adds capacity detail in third paragraph)
TOKYO (ICIS)--Japanese producers Mitsui Chemicals Inc and Idemitsu Kosan can expect to generate yen (Y) 3bn ($36m) in cost savings through the integration of their cracker operations in the ?xml:namespace>
Mitsui’s 553,000 tonne/year cracker and Idemitsu’s 374,000 tonne/year cracker would be owned and operated by a joint venture firm Chiba Chemical Manufacturing LLP from 1 October, the companies said in a joint statement.
The annual capacity of Mitsui's cracker, as stated by the company, makes allowances for shutdowns. Its full nameplate capacity is 617,000 tonnes/year, according to ICIS data.
The integration would allow the two companies to optimize selection of feedstock for the crackers and optimize the plants’ operations, said Hiromichi Hori of Mitsui in a phone interview.
Idemitsu Kosan and Mitsui Chemical said would offtake olefins from Chiba Chemical based on the capacities of their respective crackers.
Combining the two crackers operations under Chiba Chemical would also help it compete more effectively with huge petrochemical plants in the Middle East and
($1 = Y83.64)
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