Home / Knowledge / News / Textiles / Japanese petrochem firms dig foreign shores to stay afloat
Japanese petrochem firms dig foreign shores to stay afloat
19
Nov '12
Japanese petrochemical majors are scouting overseas countries to set up petrochemical plants either on the own or in joint ventures. Big petrochemical companies like Sumitomo, Asahi Kasei, Mitsui & Co, Mitsubishi Chemicals and Ube Industries have already set up overseas plants or are in the process of doing so.

According to Sumitomo Chemical, “Expansion of overseas operations is necessary for the survival and the development of the petrochemical business. Japan’s petrochemical industry faces various challenges, such as the transfer of user industries’ production bases abroad, the yen’s appreciation and a decline in cost competitiveness due to higher electricity bills in Japan”.

Recently, Sumitomo Chemical confirmed that it is moving ahead in its joint venture with Saudi Aramco on the Rabigh Phase II Project at a total investment which is projected to reach around US $7 billion. The Rabigh II Project will achieve superior cost competitiveness by using cost-competitive ethane as part of its feedstock and by utilizing the existing infrastructure of the Rabigh I Project.

The Rabigh II Project will use an additional 30 million standard cubic feet per day of ethane and approximately 3 million tons per year of naphtha as feedstock to produce ethylene propylene rubber (EPDM), thermoplastic polyolefin (TPO), methyl methacrylate (MMA) monomer, polymethyl methacrylate (PMMA), low density polyethylene/ethylene vinyl acetate (LDPE/EVA), paraxylene/benzene, cumene and phenol/acetone.

Sumitomo says, “We have been expanding our overseas business by investing in large-scale projects in Singapore and Saudi Arabia. By investing in the Rabigh II Project, we seek further expansion of our petrochemical business abroad”. Sumitomo and Saudi Aramco will continue to explore to implement projects related to acrylic acid, super absorbent polymer (SAP), caprolactam and nylon-6, including possible collaboration with a third party.

Incidentally, Sumitomo is the only Japanese petrochemical company to operate naphtha crackers outside Japan. It started operating naphtha crackers in Singapore as far as back as 1982. 

Japanese trading giant - Mitsui & Co along with a consortium of other Japanese companies has sketched a joint venture with Saudi International Petrochemical Co (Sipchem) to set up a plant to produce methanol with an annual capacity of 1.1 million tons in Jubail - Saudi Arabia. According to a spokesperson of Mitsui, cost competitiveness of raw materials is given the utmost importance, when they expand business overseas.

A spokesperson at Mitsubishi Chemicals revealed that they operate a PTA plant in China. It set up the 600,000 tons per annum PTA plant in 2007 in Ningbo province. Mitsubishi Chemicals also started commercial production of a new Bisphenol A (BPA) plant in China with a capacity of 150,000 tons per year in the current year.

Asahi Kasei Chemicals wants to become the top producer of acrylonitrile (ACN) in the world. A spokesman of Asahi Kasei informs, “In South Korea, we are planning to ramp up ACN capacity by 200,000 tons per annum, which will take ACN production capacity to 500,000 tons per year and in end-2011, Asahi Kasei began commercial production of an ACN plant in Thailand with a capacity of 230,000 tons per annum”.

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search