Nation's first cement producer The Siam Cement Group (SCC) has entered into a Letter of Intent (LOI) with The Dow Chemical Company to invest in a naphtha cracker in Thailand worth $1.1 Billion (44,000 MB), and will hold a 67 percent stake in the project.
Moreover, SCC will invest another $400 Million (16,000 MB) to expand its downstream operations which would use feedstocks from the new naphtha cracker. Both the naphtha cracker and downstream operations are expected to begin commercial operation in 2010.
The naphtha cracker will have an annual Olefins capacity of 1.7 million tons (Ethylene 900,000 tons and Propylene 800,000 tons), and other products of approximately 700,000 tons.
Utilizing the latest and proven olefins conversion technology which aims to maximize Propylene output, the new naphtha cracker will generate 75 percent more Propylene than its existing naphtha cracker.
Market outlook for Propylene is for continued supply tightness, as the large majority of the new Olefins plants will be gas-based capacity additions from the middle-east that will have very little Propylene and By-products capacity.
The downstream operations will have the capacity of approximately 700,000 tons (HDPE 300,000 tons, and PP 400,000 tons), with emphasis on the maximization of non-commodity products that command higher margins, while leveraging SCC's existing domestic and regional distribution network.
Raw materials (naphtha, condensate, LPG) for the naphtha cracker will be sourced domestically and from abroad. Furthermore, SCC believes that sufficient water supply will be available for production purpose.
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