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Formosa Plastics to expand Baton Rouge manufacturing site

November 15/2019

MOSCOW (MRC) -- Formosa Plastics Corp. Louisiana, a subsidiary of Formosa Plastics Corp. USA, is investing USD332 million to expand its production of polyvinyl chloride (PVC) resin and add production equipment in two other units at the companys industrial manufacturing site in Baton Rouge, La., on the east bank of the Mississippi River, reported Oil&Gas Journal.

The project will include installation of new machinery and equipment for the expansion of the PVC resin production unit, expected to result in a 20% increase in production capacity and sales; installation of new machinery and equipment for a halogenated acid production unit for internal use in the production of vinyl chloride monomer; and installation of utilities equipment needed for operations, the Louisiana Economic Development (LED) said.

Launch of the new operations is scheduled for late 2021 or early 2022, LED said.

The expansion of the existing PVC unit will result in an additional 300 million lb/year of resin production, said Paul Heurtevant, plant manager of Formosas Baton Rouge site.

LED estimates the project will create 15 direct jobs and 66 indirect jobs. Formosa also will retain 230 existing jobs.

The expansion project is slated to create 500 construction jobs beginning in early 2020, LED said.

LED said it began discussing potential expansion plans with Formosa in March, and the company considered a Texas location before committing to Louisiana.

To secure the project, LED offered Formosa a competitive incentive package that includes a performance-based grant of up to USD500,000. The company also will have access to the Louisianas Quality Jobs and Industrial Tax Exemption programs, LED said.

Formosas Baton Rouge site currently includes three operating units to produce PVC, a synthetic plastic polymer with a variety of uses in the construction industry, including as insulation on electrical wires, in flooring for buildings needing a sterile environment, and as piping and siding.

As MRC informed before, Formosa Petrochemical Corp reduced its October average run rate at the 540,000-barrel-per-day (bpd) Mailiao refinery in October to about 70% from more than 87% last month due to maintenance. Formosa, Asias sixth-largest standalone refinery by capacity, took an 80,000-bpd residue desulphurizer down for a planned maintenance.

According to MRC's ScanPlast report, Russia's overall production of polyvinyl chloride (PVC) reached 809,000 tonnes in the first ten months of 2019, up by 3% year on year. At the same time, not all Russian producers raised their output,

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).


mrcplast.com
Author:Margaret Volkova
Tags:PVC, crude and gaz condensate, SPVC, petrochemistry, Formosa, Russia, USA, Tayvan (Kitay).
Category:General News
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