Tamilnadu Petroproducts to Increase Capacity of Linear Alkyl Benzene Unit

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Asia-Pacific region produces half the world's linear alkyl benzene (LAB). North America recently has seen a drop in capacity, mainly because of insufficient sources of n-paraffins, which are used in the production of LAB. Global LAB manufacturing capacity is expected to fluctuate through 2011, as the ripple effect of the global economic downturn moves through the market, but it is expected to stabilize and begin an upward trend by mid-2012. A growth rate of 2% per year is anticipated, but growth could possibly be tempered, as new detergents derived from alcohols, rather than LAB, arrive in the market.

The Middle East is also seeing a rise in the production of LAB. Many large-scale benzene units are being included in massive petrochemical complexes, and Middle Eastern refineries are excellent sources of liquid hydrocarbons, such as kerosene, from which n-paraffins are derived. Both kerosene and benzene are essential for the synthesis of LAB.

Indian company Tamilnadu Petroproducts Limited (BSE:500777) (Chennai, Tamil Nadu) has a distinguished presence in the LAB-production sector and manufactures more than 100,000 metric tons of LAB per year. Almost 40% of detergents and industrial or institutional cleaning products are manufactured using LAB produced by Tamilnadu. LAB manufactured in Tamilnadu plants is produced via technology acquired from UOP LLC, which is a subsidiary of Honeywell International Incorporated (NYSE:HON) (Morristown, New Jersey).

Next spring, Tamilnadu is planning to begin construction on a new LAB production facility in the Yanbu Industrial Zone of Yanbu Al Bahr in Saudi Arabia. The company is investing about $200 million on the facility and is anticipating a production capacity of 80,000 metric tons per year of LAB, once the facility is completed in late 2012. Tamilnadu is also planning the construction of a 125,000-metric-ton-per-year n-paraffins plant in Singapore, which is set to be completed by mid-2012 to help meet the capacity demands of Southeast Asia.

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