Japanese-Thai Joint Venture Targeting Global Acrylonitrile Market Growth

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Researched by Industrial Info Resources (Sugar Land, Texas)--Japan's Asahi Kasei Chemicals Corporation (AKCC) (Tokyo) and Marubeni Corporation (Tokyo) have formed a joint venture with Thailand's hydrocarbons and petrochemicals group PTT PLC to construct acrylonitrile (ACN) and methyl methacrylate (MMA) plants at Map Ta Phut in Rayong, Thailand, as part of a project worth between $750 million and $800 million.

The joint venture, PTT Asahi Chemical Company, has given the ACN market high priority for expansion, as it was identified as a global growth business in AKCC's initiative "Growth Action - 2010." The ACN plant will use the world's first commercial process for ACN production from propane feedstock, which was developed by AKCC. The cost-competitive feed will enable production at a cost 30% lower than the conventional method using propylene feed. PTT will provide secure propane feed stream from imported ammonia giving the plant a competitive edge in global markets and providing a base for AKCC's expansion of ACN business.

The new plant will have a capacity of 200,000 tons per annum (TPA) and is scheduled to start construction in mid-2008 for completion in late 2010. This will give AKCC an annual ACN production capacity of 950,000 tons to bring it almost level with the current global leader UK's Ineos Group. The Japanese company is planning another ACN plant in the Middle East to give it first place in the global league on start-up in 2014. Products will be sold by the JV in Thailand and AKCC elsewhere. Annual sales are forecast at $400 million.

The MMA plant will maintain a cost-competitive edge by using the hydrogen cyanide byproduct from the CAN plant as feedstock in the acetone cyanohydrin process (ACH). The 70,000 TPA capacity plant will be constructed on the same timetable as the ACN plant. Products will be sold by the JV in ASEAN countries and AKCC elsewhere. Annual sales are forecast at $180 million (including 160,000 TPA of ammonium sulfate)

AKCC and PTT will each hold 48.5 % of the venture and Marubeni will hold 3%. AKCC will invest $200 million in the projects.

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