By Malini Hariharan

News is trickling in on Honam Petrochemical‘s plans for Titan Chemicals once it completes the acquisition at the end of the year.

A source close to the company said that revamping of Titan’s two crackers have been evaluated including expansion of derivatives and building new downstream units at Titan’s Pasir Gudang complex in Malaysia.

Titan’s No1 cracker has a capacity of 285,000 tonnes/year while the second cracker is of 435,000 tonnes/year. Its derivative slate includes polyethylene (PE), polypropylene and aromatics.

An industry analyst thinks that expanding both crackers to 600,000 tonnes/year is possible and the figure was confirmed by the source close to Honam.

titan.jpg
Pic source: Titan Chemical

But expanding the cracker beyond this level could be challenging given the size of the Southeast Asian market and capacities of competitors in Singapore and Thailand,

“Honam has considered this and will do things their way based on their expertise in experience in the business; they will realise higher competitiveness. Also synergies are possible in management of the Titan complex and in marketing and sales,” said the source.

The acquisition, he added, fits in with Honam’s strategy of boosting domestic and international competitiveness in petrochemicals by securing economies of scale.

As for the price of the acquisition, Honam could have got the asset cheaper if it had waited for the bottom of the petrochemical cycle. “But it has been pursuing Titan with a long-term view; they are confident that the cycle can be managed,” he added.

More details on Honam’s global strategy tomorrow.

PREVIOUS POST

Propylene And the Law Of Unintended Consequences

21/07/2010

Will this year’s K-Fair see some major announcements to take advantage of ...

Learn more
NEXT POST

Searching for balance

22/07/2010

By John Richardson and Malini Hariharan Cautious optimism first gave way to moun...

Learn more
More posts
Global polyethylene in 2020: Margins will reach historic lows as new growth model emerges
08/12/2019

Here is a first of a series of outlook articles for 2020 where I focus on the risks ahead for the gl...

Read
Long term downcycle will transform global petrochemicals, creating new Winners and Losers
06/12/2019

By John Richardson THIS IS not a normal downcycle. Please get over that idea however many people, bo...

Read
Asian PE and PP margins at lowest levels in at least five years and will go lower……
04/12/2019

By John Richardson NOT since at least the beginning of 2014 have Northeast and Southeast Asian polye...

Read
Asian polypropylene market heads for major 2020 downturn
02/12/2019

By John Richardson THE ASIAN polypropylene (PP) market hasn’t been as bad as the region’s polyet...

Read
China new vehicle sales: A long term decline and what this means for petrochemicals
29/11/2019

By John Richardson THE MAINSTREAM view is that there is nothing fundamental about the decline in new...

Read
Asian copolymer polyproplyene used as a sink for growing oversupply of ethylene
27/11/2019

By John Richardson A SURE sign that the Asian ethylene-to-polyethylene (PE) markets are distressed c...

Read
Asian polyethylene shutdowns? Once again, good luck with that idea
25/11/2019

By John Richardson I was new to the game as I had only been analysing the petrochemicals business fo...

Read
Europe to become much more self-sufficient in polyethylene because of sustainability
20/11/2019

Yes, I know I promised to focus on Asia and its cracker-to-PE industry today and how the region will...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more