10 December 2012 13:23 [Source: ICIS news]
NEW DELHI (ICIS)--India's HPCL-Mittal Energy Ltd (HMEL) is on track to start up its polypropylene (PP) facility in Bathinda, Punjab, north India on 16 December, a company source said on Monday.
The source added that HMEL will start selling product in the domestic market in the following week.
The 440,000 tonne/year PP unit was initially scheduled to start-up in September, but there were delays following issues with the facility's reactors, the source said.
“At this moment, the start-up date is 16 December. Hopefully there is no further delays,” he said.
HMEL will begin to produce PP injection grade, followed by raffia grade.
Within the next three months, HMEL will start to produce biaxially oriented polypropylene (BOPP) film as well.
“We will continue to sell in the domestic market for two months to see the market feedback and then venture into the export market,” he said.
PP material from HMEL will be marketed in north, west and even southern parts of India via their distributors.
HMEL’s primary export market will be Pakistan, given its close proximity.
“Our sole agent in Pakistan has already been appointed. So, once we get the products coming out from the plant, we will be selling in Pakistan for sure,” he said.
PP cargoes will be transported not just in trucks, but also via railways to Pakistan, he added.
“Logistics facilities-wise at the India-Pakistan border does not favour large quantities of PP to be transported by truck, so we have to move material by railway as well,” the source said.
Besides Pakistan, HMEL has strong interests to export to Nepal via trucks and westwards by sea such as Turkey and even Latin America.
“Given the poor market condition, we should diversify our cargoes in various outlets to secure sales,” another source from HMEL said.
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