12 July 2011 00:06 [Source: ICIS news]
(Adds updates throughout)
HOUSTON (ICIS)--Mossi & Ghisolfi (M&G) cited logistics as the main reason for choosing Corpus Christi, Texas, as the site for its new 1m tonne/year polyethylene terephthalate (PET) plant and 1.2m tonne/year purified terephthalate acid (PTA) plant, the company said on Monday.
“Corpus Christi is an excellent strategic home for what will be M&G’s largest-ever investment. It has exceptional highway, deep-water and rail access, including three Class 1 railroads,” said Marco Ghisolfi, chief executive of M&G’s polymers business unit.
Ghisolfi added that other factors taken into consideration included the presence of six refineries and paraxylene (PX) production in the area, as well as the benefit of having marine access to most of the key raw materials used in PTA and PET production.
Corpus Christi is located on the US Gulf of Mexico, 200 miles southwest of Houston, Texas, and 145 miles east of Laredo, Texas. The Port of Corpus Christi is the sixth largest in the US in terms of tonnage.
The company estimates that construction for both plants will take 30 months. Chemtex Global, an M&G subsidiary, will handle the management, sourcing and construction management for the project.
M&G said the plants will generate approximately 250 new jobs, in addition to 700 indirect positions, and as many as 3,000 jobs during construction.
The single line plant will use the same technology as M&G’s single reactor PET plant at Suape in Brazil, and will comprise M&G’s proprietary EasyUp SSP technology.
An industry consultant emphasised that access to raw materials is the critical factor in determining whether a project is viable.
“At today’s cost, raw material makes up 88% of the cost for PET. The remaining 12% is capital, energy, labor, and transportation. You can’t get much advantage in technology,” the consultant said.
However, he added that “[M&G] are building near PX capacity with multiple rail lines available. The plant will be competitive.”
For more on PTA and PET visit ICIS chemical intelligence
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