10 April 2012 11:08 [Source: ICIS news]
SINGAPORE (ICIS)--Japan’s Showa Shell Sekiyu and Taiyo Oil on Tuesday signed an agreement with South Korea’s GS Caltex to expand the paraxylene (PX) plant at the GS Caltex complex at Yeosu by 1m tonnes/year to 2.35m tonnes/year by 2014.
Once completed, the expansion works at the 1.35m tonne/year PX plant will give it the world’s largest PX capacity, Showa Shell Sekiyu said in a statement.
Construction works at the expansion project may start in 2013, a company spokesperson told ICIS.
“The exact timetable for construction work has not been decided but the completion target will be at the end of 2014,” he said.
Financing details as well as the final configuration of the expansion project has yet to be finalised, the spokesperson added.
PX is a basic raw material of polyester, which is used to make fibers and pet bottles.
“Through the cooperation amongst the three companies, the competitiveness of the PX business from feed sourcing and production to marketing will be increased,” Showa Shell Sekiyu said.
The Memorandum of Understanding (MoU) was signed by officials of Showa Shell Sekiyu, GS Caltex and Taiyo Oil at the GS Caltex head office in ?xml:namespace>
Additional reporting by Bohan Loh
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