Urethane Blog

Chinese Slowdown Not Affecting PTT Expansion Plans

August 17, 2015

Polyurethane project set for detailed study

 
The Nation August 18, 2015 1:00 am
 

PTT Global Chemical says its board of directors has agreed for the company to proceed with a detailed study on a plan to build a US$1-billion (Bt35-billion) polyurethane complex in Rayong.

PTT Global Chemical says its board of directors has agreed for the company to proceed with a detailed study on a plan to build a US$1-billion (Bt35-billion) polyurethane complex in Rayong.

President and chief executive officer Supattanapong Punmeechaow said PTTGC had agreed with Toyota Tsusho Corp and Sunyo Chemical Industries to undertake an engineering and design study on two petrochemical projects. These would be a 200,000-tonnes-per-year propylene-oxide joint venture with TTC and a 130,000-tonnes-per-year polyether-polyols joint venture with TTC and Sunyo.

Propylene oxide and polyether polyols are the two key components in the production of polyurethanes, which are used to produce various products including rigid and flexible foams, adhesives, sealants, coatings, elastomers, agrifibres and many other applications.

Supattanapong said the parties were expected to decide whether to go ahead with the projects by next year.

PTTGC and the two Japanese companies signed a memorandum of understanding early this year to undertake a feasibility study on the two projects. The preliminary study set the investment criteria of the three companies, which have now agreed to pursue a detailed engineering study to conclude the investment costs before making a final decision.

If approved, both projects will be located in the Hemaraj Eastern Industrial Estate in Rayong province.

Supattanapong said China's economic slowdown would not affect PTTGC, since the company shipped only 5-10 per cent of its products to that country.

The company expects the olefins spread (margin between the prices of olefins and polyolefin products) to stay at a high level of $700-$800 a tonne.

PTTGC has maintained its five-year investment budget (2015-2019) at $4.5 billion.

http://www.nationmultimedia.com/business/Polyurethane-project-set-for-detailed-study-30266770.html

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