US Eastman, Sinopec to build hydrogenated hydrocarbon unit in Nanjing

31 July 2012 15:55  [Source: ICIS news]

HOUSTON (ICIS)--Eastman Chemical has formed a joint venture with Sinopec Yangzi Petrochemical to build a 50,000 tonne/year hydrogenated hydrocarbon resin plant in Nanjing, China, the CEO of the US-based producer said on Tuesday.

The plant will increase Eastman’s total capacity for hydrogenated resins by 50% after start-up towards the end of 2014, Jim Rogers told analysts during the company's second-quarter earnings call.

Eastman’s hydrogenated hydrocarbon resins are used in a variety of hot melt adhesives, polymer compounds and plastic modifications.

Rogers said the product's market is growing by 7%/year, largely driven by its use in growing diapers markets.

“The capacity that we will be bringing to the market represents two years of market growth, and it will be located in the region in the world that we expect will experience the highest part of the growth," he said.

“While [Eastman] has been continually adding capacity, we have been on allocation for most of the last several years,” he added.

Eastman and Sinopec Yangzi have an existing resins joint venture at Nanjing.

By: Stefan Baumgarten
+1 713 525 2653

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