25 January 2013 07:26 [Source: ICIS news]
SINGAPORE (ICIS)--SCG-DOW’s propylene oxide (PO) plant is currently running at rates above 80% after its restart about a month ago, a source close to the company said on Friday.
However, the company may still reduce spot exports to the key consuming Chinese market for at least the next two months because of captive use and other contractual obligations, he added.
The 390,000 tonne/year PO unit, which employs the hydrogen-peroxide-to-propylene-oxide (HPPO) technology, was successfully restarted on 17 December after an unexpected technical issue in late November. It is situated at the Asia Industrial Estate site near Map Ta Phut, Thailand.
Although official figures are unavailable, current output from the PO plant is mainly used to support a downstream propylene glycol (PG) plant at the same site which has attained commercial production this month. The latter has a nameplate capacity of 150,000 tonnes/year.
In addition, the company will need to fulfill contractual obligations to other customers in the northeast Asian markets in February and March, said the same source. As a result, it may no longer be able to sustain previous export levels of more than 10,000 tonnes/month into China.
SCG-DOW Group is a joint venture between US-based Dow Chemical and Thailand’s Siam Cement Group (SCG).
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