MOSCOW (MRC) -- Japan-based Sumitomo Chemical will permanently wind up the operations of an ethylene plant at its Chiba Works in Ichihara, Chiba, in or before September 2015, following a decline in domestic demand for ethylene derivatives, said Chemicals-technology.
"The move is expected help the company consolidate its domestic and global petrochemical business."
The ageing of the ethylene plant and its falling competitiveness in terms of energy efficiency, as well as maintenance and repair costs, have contributed to the closure, which is set to take place at the time of the next periodic shutdown maintenance of the Chiba Works.
The move is expected help the company consolidate its domestic and global petrochemical business, by reducing costs and increasing lines of higher value-added products.
Sumitomo is planning to secure required ethylene and other basic petrochemical feedstock, by increasing purchases from its joint venture company Keiyo Ethylene.
Commenced in January 1970, the plant at Chiba Works has an ethylene production capacity of 415,000 tonnes per annum (tpa), while Keiyo Ethylene has production capacity of 768,000 tpa (a year with no periodic shutdown maintenance).
Maruzen Petrochemical holds a 55% stake in Keiyo Ethylene, while Mitsui Chemicals and Sumitomo Chemical own 22.5% each.
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 USD7 bln. The Rabigh II Project will 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, as MRC informed earlier. Incidentally, Sumitomo is the only Japanese petrochemical company to operate naphtha crackers outside Japan.
Sumitomo Chemical is a Japanese based manufacturer of a diverse range of products, including basic chemicals, petrochemicals and plastics, fine chemicals, agricultural chemicals, IT-related chemicals and pharmaceuticals.
MRC