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Sinopec and Mitsui in $320 million JV for Shanghai ETP

Sinopec and Mitsui to create world largest EPT plant

Shanghai Sinopec Mitsui Elastomers Co., Ltd. was established on 28 May 2012 to build an ethylene-propylene-diene terpolymer (EPT) production plant in Shanghai Chemical Industry Park.

The plant will use metallocene catalyst in its production.

It will be the world’s largest and most advanced EPT production plant with annual production capacity of 75,000 tons.

Shanghai Sinopec Mitsui Elastomers is a 50:50 joint venture, with registered capital of RMB630 million ($100 million), between China Petroleum & Chemical Corporation (Sinopec) and Mitsui Chemicals, Inc. (Mitsui Chemicals).

The total capital expenditure of the project is approximately RMB2 billion ($320 million).

The joint venture is focusing on the production and sales of Ethylene Propylene Diene Monomer Rubber, which is the copolymer of ethylene, propylene and diene.

Driven by the rapid development of the China automotive market and the increasing investment in public utilities like railways, it is anticipated that the market demand for Ethylene Propylene Diene Monomer Rubber will rapidly expand in the future.

In 2011, the apparent consumption of Ethylene Propylene Diene Monomer Rubber reached 237,400 tons in China, with imports accounting for 223,000 tons.

Import dependence has remained consistently high.

The metallocene catalyst technology developed by Mitsui Chemicals is now the world’s most advanced Ethylene Propylene Diene Monomer Rubber production technology, enjoying competitive advantages in terms of product quality and production cost.

Shanghai Sinopec Mitsui Elastomers, Co., Ltd. will seek to establish and develop its supply chain as soon as possible in order to meet the fast-growing demand of Ethylene Propylene Diene Monomer Rubber in the China market.

In December 2009, Sinopec and Mitsui Chemicals signed a Memorandum of Understanding on the development of Ethylene Propylene Diene Monomer Rubber, and undertook feasibility studies on this project.

The project has been approved by the relevant government department recently, triggering the establishment of this joint venture.

Sinopec in brief

China Petroleum & Chemical Corporation (Sinopec)  is the largest petroleum products manufacturer in China.

The ethylene capacity ranks fourth in the world, while the aromatic production ability ranks first in the world.

The chemical production enterprises are mainly located in the southeast coastal areas, middle and lower reaches of Yangtze River and north China.

The main products include synthetic resin, synthetic rubber, synthetic fiber, chemical fertilizer, basic organic chemical raw materials etc

Sinopec is also the largest supplier of chemical products in China, the products are sold to all over the country, and some products exported overseas.

In 2011, Ethylene production broke the 10 million tons of mark for the first time, chemical operation scale became bigger than before effectively.

The annual ethylene production capacity reached 1million tons, an increase of 9.23%; products such as aromatic yield a new record.

The sales volume of chemical products reached 50.8 million tons, an increase of 16.8%.

Mitsui in brief

Mitsui Chemicals is a Japanese-based producer of petrochemicals, polymers, industrial chemicals, fine chemicals and engineering materials.

Its three main business areas are Performance Materials, Advanced Chemicals and Basic Chemicals

In its business plan, Mitsui Chemicals will concentrate on expanding and growing its high performance materials business.

The company will also strengthen the profitability of its petrochemicals and base chemicals operations by reconfiguring its business structure and focussing on its internationally competitive core businesses. 

Headquartered in Tokyo, Japan, Mitsui Chemicals had net sales of Yen1,208bn and 12,892 employees in fiscal year ended March 2010.

The $320 million new Ethylene Propylene Diene Monomer Rubber plant is expected to be completed and to commence commercial production in the first quarter of 2014.

Through this Shanghai joint venture, Sinopec and Mitsui Chemicals are setting their Market Leadership in China for ETP synthetic rubber.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer


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