Celanese opens Singapore acetic acid plant
Celanese AG (Kronberg, Germany) officially inaugurated its 500,000 mt/yr acetic acid plant in Singapore. Attending the ceremonies was Singapore's Minister for Trade and Industry George Yeo.
The facility is one of three that make up the Celanese acetyls complex on Jurong Island, an industrial park in the South of Singapore. The facility also houses a 170,000 mt/yr vinyl acetate monomer (VAM) plant opened in July 1997 and a 100,000 mt/yr acetate ester unit that began production at the start of 2000.
"This integrated complex, in which we have invested around US$300 million, represents a milestone for Celanese," company CEO Claudio Sonder stated at the opening ceremonies. "It will enable us to significantly strengthen our position in the dynamic Asian growth region."
Competitive technology
The new plant, which took two years to build, uses the same patented AO (acid optimization) methanol carbonylation technology used by the company's Clear Lake, TX, unit. The company says the process reduces acetic acid cost significantly.
Construction of the Singapore acetyls complex is part of Celanese's strategy to provide local production and faster delivery times for customers.
The Jurong Island industrial park also hosts many Celanese customers, who will take delivery by pipeline. Celanese itself will absorb about 40% of its acetic acid output for downstream products.
The site also benefits from its location in Singapore, the world's largest port and a gateway to Asia. The company plans to export some of the plant's output to Europe. The company recently announced plans to close its sole European acetyls plant in Knapsack, Germany, and supply the continent from Asia and North America.
Asian presence
The new plant will significantly expand Celanese's presence in Asia. The region accounted for 15% of company consolidated and unconsolidated sales in 1999. Celanese operates production facilities at 10 different locations in Asia, and two of its subsidiaries, Celanese Chemicals and Technical Polymers Ticona, have established a number of joint ventures with Asian partners.
Celanese has a history of joint ventures with local partners. In 1989, Celanese Acetate and China National Tobacco Corp. launched Nantong Cellulose Fibers Corp. outside of Shanghai. It was Celanese's first joint venture, and one of the first ever between a Western company and Chinese partner.
The 30-70 venture (in which Celanese holds 30%) produces filter tow for cigarettes. In 1995, the companies formed two additional filter tow joint ventures in the southeast and southwest regions of China.
In June, Celanese announced plans to form a joint venture with Shanghai Wujing Chemical Corp. to make acetic acid in China.
In Japan, Celanese and Teijin Ltd. have signed a letter of intent to form a joint venture that combines their acetate filament activities. The new marketing and production venture would be based in Matsuyama, Japan.
Ticona grabs a foothold
Technical Polymers Ticona, the Celanese engineering resin business, has also expanded its presence in Asia. At the end of 1999, it spent $95 million for a 50% stake in Korea Engineering Plastics Co. Ltd. (KEP), leading regional polyacetal (POM) producer. The purchase strengthens Ticona's already-strong global position in polyacetals.
In Asia, Ticona markets most of its products through Polyplastics Co. Ltd., a joint venture with Daicel Chemical Industries in which Ticona holds a 45% interest. Established in 1968, Polyplastics operates a 100,000 mt/yr polyacetal plant. It opened a 30,000 mt/yr POM in Kuantan, Malaysia, this past July.
The Singapore acetyls complex further positions Celanese to grow its Asian presence in acetyl, acetate, and engineering resins.
Edited by Alan S. Brown
Managing Editor, Chemical Online