(Plasteurope) -- Dow Chemical has scored another coup with its ⌠Unipol technology in China. The US group has clinched a deal with Qinghai Salt Lake Industry to license the process for a new 160 KTa PP production plant at Xining in central China's Qinghai province, set for start up in the second half of 2013. According to Dow, Quinghai Salt Lake is the eighth licensee of the Unipol PP process in China.
The relatively small polypropylene unit is to form part of an integrated coal-based magnesium metal complex planned by the potassium specialist. As part of the project, coal gasification will be used to generate ethylene and propylene as feedstock for the PP unit. The Chinese company also intends to leverage its salt and coal resources to build a 300 KTa PVC plant at its Xining site.
The two contracts for Dow and recent awards made to other North American and European technology licensors appear to underscore that China's coal-to-olefins strategy is moving into high gear. Recently, Ningxia Baofeng Energy Group selected the Ineos ⌠Innovene process for its new 300 KTa PP plant at Ningxia, earmarked for start-up in 2015.