30 March 2012 10:50 [Source: ICIS news]
SHANGHAI (ICIS)--China’s Shenghong Group plans to start up its 1.5m tonne/year purified terephthalic acid (PTA) plant at Lianyungang in Jiangsu in the third quarter of 2013, a company source said on Friday.
The project, which will be run by its subsidiary Jiangsu Honggang Petrochemical, will use technology licensed from the China Textile Academy, the source said. Construction of the plant began in July 2011.
The company, a major polyester yarn maker in China, has been planning to build a PTA facility since 2003.
"Having our own PTA production can enhance our competitiveness,” the source said.
However, he admitted that an expected shortage of feedstock paraxylene (PX) supply might restrict PTA production and its margins.
Shenghong is one of the biggest producers of polyester filament yarn in China. It has a total 1.05m tonnes/year of polycondensation capacity at Wujiang in Jiangsu province.
The company plans to bring on stream a 250,000 tonne/year polyester yarn unit at Wujiang in April, the source said.
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