|
|
|
| Volume 3, issue #20 - 24-07-1998 | |
May 29, 1998 Malaysia is, next to many other things, also home to two PE producers: Titan Polyethylene (200,000 tpy capacity) and Polyethylene Malaysia (245,000 tpy). The plants of both companies are swing L-LDPE/HDPE types.
Forthcoming capacity expansion projects in Malaysia include Titan's planned addition of 100,000 tpy of HDPE capacity in 2000. Titan is also likely to build new LDPE facilities based on LDPE technology licensed last autumn from Exxon Chemical.
The nation's two PE players could be joined by a third in the near future. Recently, Petronas in conjunction with Union Carbide has decided to construct a 600,000-tpy ethylene complex in Malaysia. Although ethylene oxide and ethylene glycol will be the primary derivatives, the partners reportedly are considering adding a PE business as well.
Philippines
The Philippines' sole producer of PE, JG Summit Petrochemical, is a joint venture between Marubeni and local conglomerate Gokongwei. The venture began producing PE just
this year after finishing construction in the second half of last year of a 200,000-tpy swing L-LDPE/HDPE facility.
Ironically, the Philippines has no ethylene plants upstream and relies on imports for all supplies of the raw material. JG Summit intends to rectify this situation by bringing onstream a 350,000- tpy ethylene plant in 2001, but before that plans to expand its LDPE capacity by 100,000 tpy.
Rival Bataan Polyethylene broke ground last year for a 250,000-tpy swing L-LDPE/HDPE facility targeted for completion in the latter half of 1999. This company, funded by Sumitomo & Co. and others, also expects to finish construction of an upstream ethylene plant in 2001.
India
Four companies are producing PE in India: IPCL, Reliance, Gail, and Nocil.
Combined, their estimated annual PE output capacity is 1 mm tons. India's PE demand, on the other hand, was 960,000 tons in 1996 and probably broke through 1 mm tons in 1997.
India is Asia's most promising PE market after China.
However, multiple facility construction and expansion plans on the drawing board threaten to push supply capacity higher than domestic demand.
To add to this, India's market has become a target of intense export offensives launched by geographically-close Middle Eastern nations, making India a tough market to penetrate for Asian PE makers.
Recent facilities expansion in India includes Reliance's construction last summer of a 200,000-tpy swing production L-LDPE/HDPE facility in tandem with its instalment of a 750,000- tpy ethylene plant. Reliance's PE capacity now totals 360,000 tpy. Moreover, Gail has newly entered the PE business with its construction of a 100,000-tpy HDPE plant and 60,000-tpy L-LDPE plant.
As for forthcoming projects, IPCL has scheduled a 160,000- tpy expansion of L-LDPE/HDPE swing facilities (from 220,000 tpy now) between 1999-2000. During the same period Nocil is planning a 90,000-tpy HDPE expansion (from 60,000 tpy), plus a new 210,000-tpy swing facility. Whether the project
will be realised is uncertain at this stage.
Finally, Haldia is now building a 420,000-tpy ethylene plant targeted at 1999 completion, to be accompanied by a new 200,000-tpy HDPE plant.
If these projects go forward as planned, India's ethylene capacity in 2000 will swell by more than 40 % from the present level, to 2.4 mm tpy. The nation's capacity to produce and supply derivative PE would increase to 1.7 mm tpy and therefore, temporarily, exceed domestic demand.
 |