Roehm mulls 250,000 tonne/year MMA plant at OQ Chemicals US Gulf Coast site

LONDON (ICIS)–Roehm has signed a memorandum of understanding (MoU) with OQ Chemicals to potentially build a 250,000 tonne/year methyl methacrylate (MMA) plant in the US Gulf Coast, the German chemicals producer said on Tuesday.

The plant is to be commissioned in 2023 and would be integrated at OQ Chemicals’ facilities in Bay City, in Texas.

Financial details for capital expenditure (capex) were not provided.

The project was first disclosed by ICIS in October 2019.

Because the project has been several years in the making, Roehm’s CEO said a final investment decision (FID) would be taken within the first half of 2021.

“We are very pleased to have found in OQ a very competent and reliable partner. This project will strengthen the reliability of our supply chain towards our valued customers in the Americas and globally,” said Michael Pack.

The MMA production will use Roehm’s proprietary technology LiMA.

Under the MoU terms, OQ Chemicals will integrate the plant into its existing site and provide raw materials, utilities, and site services to Roehm.

Once in operation, the plant is expected to employ 70 workers.

Despite the economic downturn caused by the pandemic, MMA is again of interest as an increasing number of applications include this product.

Nearly all MMA is polymerised to make homopolymers and copolymers, the largest application being the casting, moulding or extrusion of polymethyl methacrylate (PMMA) or modified polymers.

These are used widely in industrial applications like protective screens for LCDs, adhesives, finishes, floor coatings and dental products.

An investment based on an ethylene technology in the US Gulf Coast aims to tap into the vast reserves of natural gas-based ethane that the shale gas boom revolution brought.

MMA producer Lucite International is also mulling a plant in the US with a capacity of 350,000 tonnes/year, according to the firm’s parent company Japan’s Mitsubishi Chemical in December.

The FID for this project will be taken in mid-2022, said Mitsubishi.

In November, this producer said it was discontinuing MMA production at its Beaumont site, which used an older technology.

OQ Chemicals (former Oxea) is a producer of oxo-alcohols, among others; its managing director said the project with Roehm would help the Texas site maximise resources.

“This new partnership offers significant growth potential for our oxo business. It will also strengthen our operations at Bay City as we will provide utilities and site services,” said Oliver Borgmeier.

Front page picture: Existing OQ Chemicals facilities in Bay City, Texas
Source: OQ Chemicals