Urumqi Petrochemical Planning Over $500 Million Investment in Paraxylene and Benzene

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Researched by Industrial Info Resources (Sugar Land, Texas). China Petroleum and Chemical Corporation (Sinopec) subsidiary, Urumqi Petrochemical Company (Urumqi, China) is actively planning $550 million worth of capital investment at its existing plant in Urumqi, China. The company will construct a paraxylene unit and a benzene production unit to be operational by the fourth quarter of 2008.

The paraxylene unit, estimated at $450 million, is expected to have a production capacity of 930,000 tons per year and the benzene unit will produce 320,000 tons per year at a cost of approximately $100 million. Construction is planned to commence during the spring of 2007.

This is just a drop in the Asian-bucket as China continues to invest in heavy industry with the intention of bulking up its infrastructure and competing on an international level in the Chemical Processing Industry. Urumqi is one of many subsidiaries that the state-owned Sinopec runs and is just one of the many fingers in the fist that China is reaching out to grab a majority of the international chemical market share.

Benzene is an aromatic chemical that is used in the production of plastics, rubbers, dyes and pharmaceuticals. In the past benzene has been used in after-shave, a degreaser and in the process of decaffeinating coffee, but as its toxic levels were discovered these popular uses were soon discontinued. Another popular use of benzene is in the production of petrol, which increases the octane rating and decreases the “knocks and pings” in the engine.

Paraxylene, also an aromatic and a derivative of benzene, is applied in the production of terephthalic acid, which then is used to produce polyester that goes into films and fibers. Paraxylene is also found in pesticides, paints, thinners, varnishes and airplane fuel.

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