22 October 2010 08:01 [Source: ICIS news]
(Recasts paragraph five for clarity)
SINGAPORE (ICIS)--China’s Hanbang Petrochemical Co plans to start up its new 600,000 tonne/year purified terephthalic acid (PTA) plant in Jiangyin city, Jiangsu province, at the end of 2010, a source close to the company said on Friday.
The start-up had been postponed several times from its initial schedule of end 2009, as progress on the project had been slower than expected, the source said.
“We have recently finished machinery installation and started test runs on some auxiliary facilities,” he added.
Around 200,000 tonnes/year of the plant’s output would be reserved for captive consumption at Hanbang Petrochemical’s downstream 300,000 tonne/year polyethylene terephthalate (PET) bottle chip unit, and around 400,000 tonnes of PTA would be supplied to the market, he added.
That supply was still far less than downstream polyester demand, which rapidly grew by around 1.2m tonnes/year in the last three months to 28.5m tonnes/year in the key China market, ICIS data showed.
Around 0.86 tonnes of PTA is required to produce one tonne of polyester.
“I don’t think the new capacity will have much of an impact on market prices,” said a major regional trader.
Hanbang Petrochemical is majority owned by Jiangyin Chengxin Industrial Group Co, which also runs a 300,000 tonne/year polycondensation unit at Jiangyin that produces mainly bottle-grade PET.
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