05 July 2011 08:36 [Source: ICIS news]
SINGAPORE (ICIS)--JG Summit Holdings is building the Philippines' first naphtha cracker, with a 320,000 tonne/year capacity, in Batangas at a cost of $700m-800m (€483m-552m), company sources said on Tuesday.
The company has tapped South Korean engineering firm Daelim Industrial for the cracker’s construction, with a groundbreaking ceremony at the site in southwestern Luzon held in March, said the first company source.
JG Summit will finance the project using internal resources, the source said.
The naphtha cracker, which is also expected to produce 190,000 tonnes of propylene, is slated to start up in June 2013, with commercial operations to begin five to six months after, said the second company source.
JG Summit imports ethylene and propylene to feed into its polymer plants.
Having the cracker will allow JG Summit to expand its polyethylene (PE) capacity by 60% to 320,000 tonnes/year, the same capacity as the ethylene plant being built, while its propylene capacity will stay at 190,000 tonnes/year, the second source said.
The PE plant expansion is expected to be completed at the same time as the new cracker, the source said.
JG Summit is a Philippine conglomerate. It has businesses in air transportation, banking, food manufacturing, hotels, petrochemicals and power generation, property and telecommunications.
($1 = €0.69)
Additional reporting by Peh Soo Hwee
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