The new 70,000 mt/year SBS facility will be built adjacent to the company's integrated petrochemicals complex in Ningbo, at an estimated cost of $17.5 million.
Phase one of the project, which would be dominated by civil engineering works, is expected to run from September 2010 to March 2011, while Phase two, which includes equipment installation will run from April to September 2011. Trial runs are expected to begin from October to November next year in the project's third phase.
"Due to rising demand for SBS from products consumers as well as basic materials and industrial customers, there is a shortage of SBS in China," said Chungfeng Tao, Chairman and Chief Executive Officer of Keyuan Petrochemicals.
China's current production capacity of SBS is approximately 600,000 mt/year, while domestic demand is projected to reach 750,000 mt/year in 2010, resulting in China importing a substantial percentage of its needs from Japan, South Korea, Taiwan and the US, the statement said.
Demand for SBS in China is expected to grow 6-7% annually in the next few years and the average selling price of the product is expected to be approximately $2,000/mt in 2012, the company added.
The new facility is anticipated to achieve 80% operating rate in 2012, the first full year of production, and generate approximately $110 million of sales and $10 million to $11 million of net income.
In addition to the SBS plant, Keyuan will also begin in the third quarter of this year, the construction of a 100,000 mt petrochemicals storage facility, a raw material pre-treatment facility and a 300,000 mt asphalt production facility at the same location.
Keyuan expects the storage capacity expansion to be completed in the second half of 2011, while the raw materials pre-treatment and asphalt production facilities will be completed in the first half of 2012.
The company currently operates an integrated petrochemicals complex in Ningbo, Zhejiang province, which can produce a total of 550,000 mt/year of petrochemicals including 345,000 mt/year of benzene, toluene and mixed xylenes, 51,500 mt/year of propylene, 36,000 mt/year of styrene and 77,500 mt/year of LPG. The company also currently operates a storage facility in Ningbo that can hold 100,000 mt/year of liquid chemicals.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
