Kraton shares details on Taiwan project

Isaac Li
PLASTICS NEWS CHINA

Published: May 30, 2013 12:47 pm ET
Updated: May 30, 2013 12:52 pm ET

Image By: Kraton Performance Polymers Michael Wong

Related to this story

Topics Materials, Materials Suppliers, Joint Venture

GUANGZHOU, CHINA — Kraton Performance Polymers Inc. announced at last week's Chinaplas show the latest estimated startup time for its joint venture project in Taiwan, and also explained to Plastics News the challenges of establishing production in mainland China.

In February, Houston-based Kraton signed a deal with Formosa Petrochemical Corp. to create a 50/50 joint venture that will eventually operate a 30,000-metric-ton-per-year hydrogenated styrenic block copolymer (HSBC) plant in Mailiao, Taiwan.

At Chinaplas in Guangzhou, HSBC project spokesman Michael Wong said the plant is expected to start supplying the international market by the middle of the third quarter of 2015.

Wong serves as plant general manager, Asia Pacific, as well as president of Kraton Formosa Polymers Corp.

In an interview with Plastics News on May 20, Wong noted that a major issue with establishing projection on the mainland is feedstock availability.

When the 50-50 JV project encountered objections by Taiwan's environmental authorities last year, Kraton said it would expand in Asia on a stand-alone basis and listed China as one of the considerations. Then the Taiwan project came back on track when Formosa Petrochemical worked out issues with the environmental permits for the project.

Taiwan offers more sufficient supply of feedstock than the mainland, Wong said. In China, the joint venture would be competing for feedstock with local companies like Yangtze Petrochemical Co. Ltd.

On the logistics front, it's more cost-effective to ship products from Taiwan to Guangdong and Fujian provinces than from the Yangtze River delta.

In addition to the abundant supply of butadiene, Wong said at a news conference on the opening day of the Chinaplas show, Mailiao also offers good infrastructure, local talent pool, as well as space for future expansion.

Kraton's China sales reached $76 million in 2012, accounting for 26 percent of the Asia Pacific regional sales.


Comments

Kraton shares details on Taiwan project

Isaac Li
PLASTICS NEWS CHINA

Published: May 30, 2013 12:47 pm ET
Updated: May 30, 2013 12:52 pm ET

Post Your Comments


Back to story


More stories

Image

Experts explain why resin sales are down in a healthy US economy

February 27, 2015 1:58 pm ET

The economies of the U.S. and Canada posted solid growth in 2014 — even though resin demand in those countries lagged behind.    More

Image

Industry vet Dwight Morgan joins M. Holland

February 27, 2015 1:55 pm ET

Resin distribution leader M. Holland Co. has hired industry veteran Dwight Morgan as its vice president of corporate development.    More

Image

Indian masterbatch makers growing locally and thinking globally

February 27, 2015 1:30 pm ET

GANDHINAGAR, INDIA — India’s masterbatch makers are expanding their domestic capacity to meet growing demand, as some are also moving...    More

Image

Polypropylene prices rise, while PE and PS fall

February 26, 2015 4:01 pm ET

North American prices for polyethylene and polystyrene resins continued to fall in February, while regional prices for polypropylene showed a...    More

Image

Price and sustainability both key to success for carpet recycler

February 26, 2015 1:28 pm ET

DALLAS — A green message will get you in the door, but ultimately that sustainability message has to be backed up with quality at the right pric...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events