Ineos and Sinopec to Build Nanjing Phenol Complex

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Researched by Industrial Info Resources (Sugar Land, Texas)--In January, Ineos Phenol GmbH and Company KG (Gladbeck, Germany) and Sinopec Yangzi Petrochemical Company Limited (Nanjing, China), a wholly owned subsidiary of China Petroleum & Chemical Corporation (NYSE:SNP) (Sinopec) (Beijing, China), signed a letter of intent to negotiate the formation of a joint venture to build a phenol and acetone plant in China. Ineos, which has been developing the project since 2005, is the world's largest producer of phenol and acetone, while Sinopec is China's largest producer of the two chemicals. The Nanjing Phenol Complex, which is to be the largest of its kind in China, will be in the Nanjing Chemical Industrial Park in Nanjing, China.

Construction of the Nanjing Phenol Complex will begin early next year, once the joint venture details have been settled and final approval has been granted. Ineos and Sinopec plan to continue the selection of an engineering company and a subcontractor into the fourth quarter. The scope of the Nanjing Phenol Complex includes a grassroot phenol production facility and an acetone unit addition, as well as a cumene unit addition. When complete in 2013, the complex will produce about 1.24 million metric tons of chemicals per year, utilizing technology supplied by Ineos and Sinopec. All cumene produced at the complex will serve as feedstock for the phenol and acetone production lines, which will in turn be sold to manufacturers for the production of acrylics, paints and varnishes, and chemical intermediates, as well as CDs and DVDs, Aspirin, and textiles.

Below are the details for the grass-roots complex and unit additions:

• Grassroot phenol plant: US$200 million will be invested to construct the phenol production complex with a production capacity of 440,000 metric tons per year of 99.99% pure phenol.
• Acetone unit addition: US$100 million will be invested to install a unit addition with a production capacity of 250,000 metric tons per year of 99.99% pure acetone.
• Cumene unit addition: US$200 million will be invested to install a unit addition with a production capacity of 550,000 metric tons per year of 99.99% pure cumene.

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