Asian Capital Chemical Processing Project Starts Increase in First-Quarter 2012

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--Over the course of the first-quarter 2012, more than 530 capital chemical processing projects are scheduled to start. Nearly 30% of these starts are grassroot in nature, though the majority of them will take place in Asia. First-quarter 2012 chemical starts represent roughly $60 billion in investments, with Asia accounting for approximately 80%. China will be the primary driver behind Asia, accounting for approximately $37 billion in capital chemical projects alone.

Most of Asia's first-quarter starts will take place in China, as will the majority of capital project completions. The largest of those projects expecting completion is a grassroot methanol-to-olefins plant headed by Shenhua Ningxia Coal Industry Group Company Limited (Yinchuan, China). By February, the plant will have a maximum annual capacity of 500,000 metric tons of olefins.

China is projected to become the world's largest chemical production hub and will be able to supply approximately 15% of global demand within the next few years. Resins and plastics, petrochemicals and agriculture-related projects will make up the majority of 2012's completions. Despite this projection, China is facing a surplus if capacity growth does not slow. Between the current quarter and the first quarter of next year, project starts will see a rise of at least 24%.

Outside of China, Southeast Asia, driven by Vietnam, is edging its way up in the region's chemical processing market. Vietnam is currently poised to become one of the largest petrochemical hubs in Asia and is one of the largest importers of plastic materials. The country's growth is booming and Vietnam is looking for ways to establish itself against other major players in the field such as Malaysia and Singapore. One of the largest projects scheduled to start next quarter is a grassroot ethylene complex on the books for the Ho Chi Minh area. This area in particular is well known for its plastics production.

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