Sumitomo Chemical Upgrades Polypropylene Capacity in Singapore

09-Feb-2005

The Polyolefin Company (Singapore) Pte. Ltd. ("TPC"), a consolidated subsidiary of Sumitomo Chemical Co., Ltd., announced the conversion of its linear low-density polyethylene (LLDPE) plant to polypropylene production. The new plant's production capacity will be 200,000 metric tons/year. Construction is scheduled to be completed in the third quarter of 2006. Upon completion of the project, TPC will have a combined total polypropylene production capacity of 650,000 metric tons/year.

Sumitomo focuses on polyolefin as its petrochemicals sector's core business and is pursuing greater cost efficiency, securing stable and competitive feedstock, and shifting its product portfolio toward higher performance products in order to strengthen the business profitability. As part of the effort, TPC is aggressively moving away from commodity products and toward higher value-added products. LLDPE, a commodity polymer used in films and other materials, is facing intensive competition from Middle East manufacturers with lower feedstock costs. Polypropylene, however, is a higher value-added product with positive growth prospects, particularly in China's automotive and home appliance markets.

The additional propylene required as feedstock for the new plant is expected to be supplied by the Petrochemical Corporation of Singapore Pte. Ltd. ("PCS"), a Sumitomo Chemical affiliate, which, along with TPC, constitute a major part of the Singapore Petrochemical Complex. PCS, concurrently, is building a new propylene plant employing a metathesis process' that will have a production capacity of 200,000 metric tons/year.

https://www.chemeurope.com/en/news/43257/sumitomo-chemical-upgrades-polypropylene-capacity-in-singapore.html