ExxonMobil Chemical plans to increase MLLDPE supply to China

29 March 2011 14:27  [Source: ICIS news]

SHANGHAI (ICIS)--ExxonMobil Chemical will increase the supply of metallocene linear low density polyethylene (MLLDPE) resins to China to meet growing demand after its second petrochemical complex in Singapore starts up, a senior official said on Tuesday.

“The trends in China are clear for continued growth for basically all major petrochemicals and polymers. And specifically even more so in high-valued premium products, and so as China grows, we want to grow with China,” said William P Cirioli, vice president of global technology at ExxonMobil Chemical.

Currently, ExxonMobil exports around 100,000–130,000 tonnes of metallocene LLDPE to China per month, according to market sources.

Speaking of the MLLDPE demand growth forecast in China, Cirioli said there would be double-digit growth in the next few years, due to increasing GDP and improved standards of living in China and penetration into new applications.

“China continues to grow strongly, so the demand for the metallocene products will continue on [a] very fast growth rate,” Cirioli told ICIS.

With polypropylene (PP), the company is focusing on two areas - impact copolymer PP and non-woven polymer grades.

“Demand for impact copolymer PP is mainly driven by automotive and appliances markets. Those are two areas growing very rapidly in China,” said Cirioli.

The company has said its second petrochemical complex on Jurong Island, Singapore, will start up in phases this year but declined to give a specific timeline.

“Once the downstream polymer units are demonstrated, the cracker will be brought to full production. Each step is confirmed to be done safely, then we go next one step,” said Cirioli.

ExxonMobil’s second petrochemical project in Singapore will have a 1m tonne/year cracker complex and associated derivative units, including two 650,000 tonne/year polyethylene (PE) units and a 450,000 tonne/year PP unit.

Most of the petrochemical products from the new complex will be supplied to the “growing Asia-Pacific region” and a large portion will go into China, said Cirioli.

The company’s first petrochemical project on Jurong Island, the Singapore Chemical Plant, was completed in 2001, according to ExxonMobil’s website.

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By: Judith Wang
+65 6780 4359

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