Japan's Mitsui Chemicals switches to acetone-based IPA production

29 August 2011 05:20  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Mitsui Chemicals said on Monday it will invest about yen (Y) 3bn ($39m) to build isopropyl alcohol or isopropanol (IPA) facilities based on acetone at Osaka Works, moving away from the use of propylene as a feedstock for production.

“Shortages in raw material propylene are predicted, resulting in unstable supply and higher prices,” the company said in a statement.

Mitsui Chemicals said that the new acetone-based IPA facilities, to be built at Takaishi in Osaka prefecture, will have a total capacity of 60,000 tonnes/year, and are slated to start operations in April 2013.

The company derives acetone from its phenol chain operations.

Meanwhile, operations at its existing 28,000 tonne/year propylene-based IPA production at Osaka Works will be suspended, Mitsui Chemicals said.

“The switchover will form the cornerstone of a new production framework for stable supply of IPA domestically and to Asian markets,” the company said.

($1 = Y76.79)

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By: Pearl Bantillo
+65 6780 4359



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