Japan's Mitsui, Idemitsu integrate Chiba cracker ops on 1 Oct

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 Ichihara, Chiba prefecture, a Mitsui spokesperson said on Thursday.

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 China.

($1 = Y83.64)

For more on ethylene visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Tomomi Yokomura
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index