Sasol Signs Agreement To Increase Polyethylene Capacity

11-Nov-2002
Petrochemicals group, Sasol, announced the signing of an agreement with ExxonMobil Chemical Company to license ExxonMobil's high-pressure process technology for Sasol's new low-density polyethylene (LDPE) plant in Sasolburg, South Africa. In line with achieving its growth objectives through chemical expansion opportunities, the investment by the Group will provide sufficient capacity to meet the forecast domestic LDPE market demand well into the next decade. Polyethylene is used in a variety of consumer and industrial plastic applications. Pieter Cox, Chief Executive of Sasol, said "The new world-scale 220 000 ton per year plant will use a single tubular reactor unit and is scheduled to be completed in 2005. Sasol will also be rationalizing its existing LDPE assets in South Africa as well as uprating its existing linear low-density polyethylene (LLDPE) plant. To facilitate continuing growth for Sasol Chemical Industries, two Malaysian joint ventures, an ethylene plant and a world-scale, downstream LDPE plant, were commissioned during the year. These new investments are expected to contribute substantially to future earnings." ExxonMobil's high-pressure LDPE technology offers a broad range of quality polyethylene products that is best suited to meeting the growing needs of the diverse Southern African market. The technology will also provide a high degree of flexibility that is particularly important in helping to balance Sasol's integrated plants. ExxonMobil Chemical Company's technology will synergise with Sasol Polymer's own extensive experience and knowledge in operating a high-pressure LDPE plant in South Africa. The basic engineering for the project has already started and final capital approval is expected during 2003.

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