InterviewAPIC '11: Diversification key to Haldia's growth strategy

27 May 2011 16:35  [Source: ICIS news]

FUKUOKA, Japan (ICIS)--Indian petrochemicals major Haldia Petrochemicals intends to diversify its product portfolio in the coming years as part of a new business plan, the company's new managing director Partha Bhattacharyya said on Friday.

As part of the strategy, the company expects to complete in the next 3-4 months a feasibility study on the setting up of a 25,000 tonne/year butene 1 unit at Haldia in India's West Bengal state.

"A major portion of this capacity [around 18,000 tonnes/year] will be utilised captively for the company's linear low density polyethylene [LLDPE] production," Bhattacharyya said in an interview to ICIS on the sidelines of the Asia Petrochemical Industry Conference (APIC).

The remaining 7,000 tonnes/year of butene 1 would be sold in the merchant market, added Bhattacharyya.

About 40% of Haldia's 670,000 tonne/year PE capacity at Haldia consists of LLDPE, with the remaining 60% directed at producing high density PE (HDPE), he said.

"We get better margins from HDPE than from LLDPE, so the HDPE component of our PE output will continue to increase while LLDPE output will be reduced," added Bhattacharyya.

The company is also looking at the possibility of setting up a 70,000 tonne/year isobutene unit which can produce 100,000 tonnes/year of methyl methacrylate (MMA), he said.

Haldia is also evaluating a 100,000 tonne/year styrene unit as part of its feasibility study, Bhattacharyya said. "The styrene could be recovered through the pygas route," he added.

India is a net importer of styrene, with no local production.

The company’s facility at Haldia currently produces 670,000 tonnes/year ethylene and PE, 370,000 tonnes/year of polypropylene (PP) and 100,000 tonnes/year of butadiene.

APIC 2011 is being held on 26-27 May at the coastal city of Fukuoka in Japan.

By: Prema Viswanathan
+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