China’s Maoming Petro-chemical Shihua delays ethanolamine project

14 February 2012 08:42  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Maoming Petro-chemical Shihua said on Tuesday it will postpone its planned ethanolamine expansion, on expectations of low returns on investment given sharp falls in product prices.

The company had announced in March 2008 that it will expand its ethanolamines capacity in Guangdong province by nearly eightfold to 46,000 tonnes, but it got held up by the financial crisis later that year, the company said in a filing to the Shanghai Stock Exchange.

Construction works on the expansion was supposed to be completed in two years from 2008, said a company source.

Maoming Petro-chemical Shihua, which is one of the biggest ethanolamines producers in China, had warned in end-January 2012 that it expects its full-year 2011 profit to slump by more than 85% to yuan (CNY) 11m ($1.75m).

Ethanolamines are high-class intermediates used in the manufacture of agrochemicals and wood protectants, surfactants for detergents and cleaning products, process chemicals for gas treatment, lubricants and cement additives as well as active pharmaceutical ingredients.

($1 = CNY6.30)

By: Adele Zhu

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