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, Joint Venture, Materials Suppliers

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

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Antimicrobial polymers firm TiFiber launching pilot production in Ark.

December 19, 2014 10:58 am ET

TiFiber Inc., which makes synthetic compounds to control dangerous microorganisms, will locate a pilot production facility and its future company...    More

Image

Patel named LyondellBasell CEO

December 19, 2014 9:56 am ET

Bhavesh V. “Bob” Patel has been named CEO of Houston-based polyolefins producer LyondellBasell Industries NV, effective Jan. 12.    More

Image

Momentive to get a new name in January

December 19, 2014 9:45 am ET

Momentive Specialty Chemicals Inc. will change its name to Hexion Inc., effective Jan. 15.    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS fr...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events