SINGAPORE (ICIS)--Zhejiang Xingxing New Energy plans to start up methanol-to-olefin (MTO) unit in eastern China that can produce 600,000 tonnes/year of olefins in the first quarter of 2015, a company source said on Wednesday.
The new project is now under construction at Jiaxing in Zhejiang province, the source said.
A derivative 300,000 tonne/year polyethylene (PE) unit, which will consume the ethylene output from the MTO unit, will also be built at the site, and the propylene produced will be for commercial sales, according to other market sources.
The plant requires 1.8m tonnes/year of methanol to run at full capacity, the source said.
Methanol will either be imported or sourced from the domestic market, depending on prevailing prices at the time of procurement, the source added.