China expansions: LyondellBasell licenses PE tech to Jiangsu Fenghai; Sinopec/Sabic start up jv PC plant for Chinese demand

Chemical firm LyondellBasell Industries has announced that Jiangsu Fenghai High-Tech Materials (Jiangsu Fenghai) has selected LyondellBasell Lupotech T high-pressure polyethylene technology for a new manufacturing plant. The Lupotech T process technology will be employed for two vinyl acetate (EVA) copolymer lines with a capacity of 200 kilotonnes/year. The new line will be built in Lianyungang, Jiangsu Province, China.

The Lupotech T process is the chosen technology for LDPE/EVA plant operators owing to decades of experience in high-pressure application design. The Lupotech T process is designed to attain energy efficiency through high conversion rates, plant availability and effective process heat integration, says LyondellBasell.

“Demand for both EVA and low density polyethylene (LDPE) remains strong in the current dynamic market. In particular, higher value applications such as for solar panel lamination and encapsulant are in strong demand, driven mainly by the on-going energy transition,” said Neil Nadalin, Director Global Licensing and Services at LyondellBasell.

Bai Wei, Chairman of Jiangsu Hongjing New Material, “We gained within the Jiangsu Shenghong group companies a very pleasant experience with the LyondellBasell polyolefin technology offer in the field of high pressure technology. This is already the 4th and 5th polyolefin line based on LyondellBasell proprietary technology allowing us to produce superior polyolefin grades in high demand. Therefore, selecting LyondellBasell technology was a natural choice for expanding our production capacity with this additional project.”

LyondellBasell has licensed more than 15 million kilotonnes/year of the Lupotech T process for LDPE/EVA manufacturing capacity in more than 70 lines across the world.

Meanwhile in other news, chemical firm Sabic and Chinese petchem company Sinopec announced the commercial operation of a new polycarbonate (PC) plant at their 50-50 joint venture (JV) – Sinopec Sabic Tianjin Petrochemical Co. Ltd. (SSTPC).

Established in 2009, SSTPC is a mega-size petrochemical complex that already consists of nine world-scale production plants producing chemicals, polyethylene, and polypropylene.

With an annual designed capacity of 260 kilotonnes, the new PC plant is said to be a vital component of Sabic’s PC growth strategy in China, allowing for further collaborations with global and local customers. The development of the PC plant marks the next chapter of the JV and strengthens the partners’ capability to meet regional PC market demands.

Abdulrahman Al-Fageeh, Sabic CEO said, “By working in partnership, Sabic and Sinopec are unlocking significant and mutual growth opportunities that complement the national agendas of Saudi Arabia and China. Building on our position as one of the world’s leading polycarbonate manufacturers, our first-ever PC plant in Asia underlines our commitment to operate and manufacture in markets that are close to our customers to increase service capabilities, agility, and supply reliability.”

Al-Fageeh continued, “For almost 40 years, China has been a key strategic market for Sabic and our investment in Tianjin reflects our position as a trusted supplier, investor and partner for sustainable and inclusive growth.”

The availability of Sabic’s polycarbonate will primarily be for customers in the China region, targeting major PC-related industries such as electricals & electronics, consumer goods & appliances, automotive, healthcare products and building and construction applications. Sabic’s portfolio of PC materials produced at SSTPC will be marketed under its Lexan resin brand.

Ma Yongsheng, Chairman of Sinopec said, “Sinopec consistently strives to propel the development of SSTPC and facilitate China-Saudi petrochemical cooperation. The successful commercial operation of the PC plant marks a successful case of Sinopec towards high-end chemical materials.”

Polycarbonate is a transparent, high-impact, and strong yet lightweight material, used widely in automotive parts, home appliances, medical products, and many everyday products. Future demand for polycarbonate and other engineering plastics is expected to grow in China, to support the increasing production of electronics, automotive, information technology and building materials.

SSTPC has served as the epitome of close China-Saudi economic ties. In 2016 and 2017, during King Salman bin Abdulaziz Al-Saud Custodian of the Two Holy Mosques, and Xi Jinping, President of China’s mutual visits, Sabic and Sinopec signed a series of memorandums of cooperation under the patronage of the leaders of two countries, with the polycarbonate plant’s joint construction being underlined as one of the most important projects.

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