Zibo, Shandong – SKC and three other companies will build a 300 kT/year propylene oxide plant in Zibo, using HPPO technology, to support China’s polyols industry.
Some polyols are made from propylene glycol, which in turn is made from propylene oxide.
SKC of Korea, Germany’s Evonik and ThyssenKrupp signed a memorandum of understanding with Zibo Qixang Tengada Chemical (QXTD)on 6 December. QXTD is part of Cedar Holdings, the 16th largest privately owned company in China.
Evonik and ThyssenKrupp co-license the construction technology, while SKC is providing operational know-how.
SKC said that demand for PP in the region around Zibo is close to 500 kT/year, but that there is no local supplier. HPPO technology was chosen because it is clean. The only by-product it produces is water.
Meanwhile, construction is scheduled to start in the first quarter of 2019. The plant should be commercially operational in 2021.
This marks the first stage in an expansion of HPPO technology by SKC. It plans to have 1 MT/year capacity by 2025. In addition to making this concrete announcement, SKC added that it has plans for HPPO plants in southeast Asia and the Middle East.
‘Our global PO expansion is to secure new growth engines for SKC’s chemical business,’ said SKC president Lee Wan-jae.
‘We are also going to create a successful business model for all of our partners by considering adding PG and PPG production facilities,’ he added.