Samsung Total to build a PP compounding facility in China
April 22, 2008 - Belgium
Total Petrochemicals announces that its joint-venture with Samsung, Samsung Total Petrochemicals, will build a polypropylene compounding facility in Dongguan, which is in the Pearl River area of Guangdong province, in the South of China.
The project supports Samsung Total Petrochemical’s strategy to maintain and advance its current leadership position in the higher value-added sector of the polypropylene compounds market. This added capacity will allow the Company to market about 20% of its total polypropylene production in the form of compounds while improving service to the customer through local production. The investment amounts to € 6 million. Completion is forecast for early 2009.
The facility, comprised of three lines, will have a total capacity of 28,000 tons per year. The products will supply the south China market, targeting the Electronics and Household Electrical Appliances sector including refrigerators, dishwashers and air conditioners.
“We all know that the production of polyolefins from China and from the Middle East is forecast to increase dramatically over the next few years.” said Graeme Burnett, Total Petrochemicals Senior Vice President, Asia & Middle East. “It is therefore important to have a strategy for sales in China that is based on being seen as a local supplier as well as being able to differentiate oneself from other suppliers in terms of quality and added value for the customer. We believe that this project not only makes sense from an economic perspective, but also is in line with this strategy”.
“Samsung Total Petrochemicals is excited to enhance and improve our already industry leading service to our customers in China. The opportunity to further support our customers, while growing our business in this dynamic area will yield benefits for many years to come.” said Scott McEwen, Executive Vice President and Joint Representative Director of the Company.
The Samsung Total Petrochemicals joint-venture was created in April 2003, both partners, Total and Samsung, retaining a stake of 50%. Their common petrochemicals site, located in Daesan, on the west coast of South Korea, produces and markets a wide range of base chemicals and polyolefins.
With this project, Total Petrochemicals pursues its development in the Asia market where the Company owns already two polystyrene plants respectively in Foshan, China, and in Singapore, as well as a network of commercial offices.