South East Asian Chemical News

REGIONAL 

BASF has announced plans to build a DM5bn (US$3.1bn) petrochemical complex in Nanjing, China. The project is a JV with Sinopec-Yangzi Petrochemical and is slated to open in 2003. BASF is involved in several other projects in China, including an isocyanates investment and a nylon intermediates plant. (September 7th 1998)

Bayer has announced that it expects a 13% growth rate in its Chinese ventures next year. Major investment plans include an 80,000 tpa polycarbonate plant in Shanghai, which will be a JV with Shanghai Chloralkali. (September 20th 1998)

BP Chemicals expects to establish an ethylene cracker in Jinshan, Shanghai, China, with a capacity of 650,000-700,000 tpa. The plan is still in the pre-feasibility stages. BP has plans for several other ventures in China, including an acetic acid plant in Sichuan, and two acetic acid investments in Heilongjiang and Shanghai. (September 7th1998)

DuPont has announced its intention to purchase Tongkook Synthetic Fibers' elastane fiber business. DuPont officials noted that the company's South Korean management team would continue to manage the business. (September 7th 1998)

DyStar, a JV between German chemical companies Bayer and Hoechst, has begun manufacturing reactive dyes in China. The dye facility, DyStar Wuxi, is itself a JV between DyStar and Wuxi Dyestuff. The plant's capacity is 1,500 tpa of textile dyes. (September 22nd 1998)

The Guizhou Hongyue Group has started construction on a large gelatin production line in the Guizhou province, China. The plant will produce 2,000 tpa of gelatin, and 12,000 tons of bone meal. Gelatin is made from cattle bone and is used in the production of film and drug capsules. (September 29th 1998)

Heilongjiang Chemical Industrial Co Ltd has announced plans to increase its methyl methacrylate (MMA) capacity to 40,000 tpa. (September 22nd 1998)

Hercules Inc has announced the start up of a high-performance paper chemical manufacturing plant in Shanghai, China. The facility will manufacture Hi-pHase and Hercon paper sizing agents, which are used in packaging paper, printing paper, and liquid packaging board. The capacity of the plant is 20,700 metric tpa. (September 29th 1998)

ICI has sold its PTA manufacturing JV with the Far Eastern Group, ICI-Far-Eastern, to DuPont. ICI has also closed another subsidiary, a 35 year old explosives manufacturing plant in Kaoshiung, due to pressure from environmental activists and shrinking profit margins. The plant was one of Taiwan's biggest manufacturers of explosives. (September 24th 1998)

The Indian Government plans to divest its 9.2% stake in ICI India Ltd worth US$17.6m. The Government originally invested in the company to help promote the domestic explosives industry and now feels that it has satisfactorily fulfilled this goal. ICI India continues to focus on specialty chemicals and explosives. It also moving into nitrocellulose production, in conjunction with Asha Nitrochem Ltd, India's largest nitrocellulose producer. (October 5th 1998)

The Jinling Petrochemical Corp has begun work on a second phthalic anhydride (PA) plant with a capacity of 40,000 tpa. The new facility, which will feature technology from Lurgi Gmbh (Germany), is slated to open in July 1999. PA is used in the production of plasticizer and alkaline resin, as well as medicines, dyestuff, and paint. (September 11th 1998)

The Jinling Petrochemical Corp, in conjunction with the Nanjing Chemical Industrial Group, is slated to open a new MMA facility, with output of 20,000 tpa. (September 22nd 1998) National Starch and Chemical, an ICI subsidiary, is to buy a 70% stake in South Korea's Dongsung Chemical footwear adhesives business. The investment will total US$57.8m and should be completed by the end of the year. (September 7th 1998)

Nemoto & Co, a Japanese pigment producer, has announced that it is set to increase capacity at its Chinese subsidiary's facility. Dalian Nemoto Chemical, the subsidiary, will expand capacity to 60 tpa of phosphorescent pigments. The Chinese facility will be Nemoto's main production base for this type of pigment. (September 29th 1998)

SE Asian chemical companies share prices

Company	Price 24Sep98	% change YoY
Gujurat Alkalies & Chems	25	(60.6)
Indian Petrochemicals Corp	56	(51.4)
Reliance Industries	125	(26.2)
INDONESIA (Rupiah)
Indorama	1025	(43.1)
Trias Sentosa	75	(88.5)
Polysindo	450	(52.7)
THAILAND (Baht)
SThai Plastics and Chemicals	48	(44.8)
Vinythai	2.7	28.6
Thai Petrochemical Industry	2.2	(81.7)
Source: Asian Chemical News and BDA research

North Paint Chemical Industrial Group Co Ltd, a new paint chemical company, has been established in China. The new company is the result of a merger between Qiqihar Paint Chemical Industrial Co Ltd, Qiqihar North Coating Industrial Co Ltd, Heilongjiang Qiyi Synthetic Resin Co Ltd and 29 paint distributors. (October 1st 1998)

PPG Industries will soon complete its acquisition of the Australian technical coating business, Orica Ltd. PPG is obtaining Orica's automotive original equipment, automotive refinish, coil, packaging, and production coatings, which generate annual sales of approximately US$100m. PPG intends to use Orica's resources to build a prominent coating presence in the South Pacific region. (September 19th 1998)

Rhodia Specialty Chemicals Wuxi Co Ltd, the Chinese arm of Rhodia, Rhone-Poulenc's specialty chemical subsidiary, is establishing a new JV in China called Jade Fine Chemicals. Jade will be an Asian base of manufacturing for synthesis intermediates for flavors, fragrance, food additives and active pharmaceutical ingredients. (September 16th 1998)

Rinol AG, the German flooring company, established a JV in Shanghai, China called Rinol Flooring Systems China Co Ltd. Rinol holds a 60% stake in the JV, and its partner, CanBuild Flooring Ltd, holds the remaining stake. Rinol also intends to establish a manufacturing JV in Changzhou to produce casting resins and industrial flooring. (October 17th 1998)

Tata Chemicals Ltd (TCL), the Indian alkali and fertilizer producer recorded a 15% drop in sales during the first five months of 1998. Cheap imports of soda ash from China and strong domestic competition in the caustic soda market have hit company sales. TCL recorded US$131m in revenues in the first five months of 1998. (October 6th 1998)

The Xi'an Amylum Factory announced plans to use corn amylum to produce levulinic acid. Output is expected to be 3,000 tpa, with production of byproduct formic acid reaching 1,900 tons. The factory is expected to generate about RMB$70m (US$8.8m) in revenues annually, and Xi'an noted that they are keen to form JVs with foreign companies to gain access to foreign technology. (September 18th 1998)

The Yangzi Petrochemical Industrial Corp signed a JV with Eastman Chemical Ltd to build a US$300m petrochemical facility. The new plant will be constructed in the Dachang District of Nanjing. (September 28th 1998)