Cumene Capacity Expansion Strengthens Petrochemical Operations
Tokyo, Japan – Tosoh Corporation announced a JPY 3 billion investment that will upgrade facilities and take advantage of a high performance catalyst to improve cumene production. The conversion will result in a 30% capacity expansion for cumene, pushing the present annual production from 230,000 to 300,000 MT. The investment will enable Tosoh to better supply the bourgeoning demand for phenol that presently accounts for over half of all cumene consumed in Asia. Construction is slated to begin at Tosoh’s Yokkaichi Complex in December and will be completed in May of 2008.
In addition to the expansion, the plant upgrade will include installation of an exhaust-heat recovery system which will result in improved energy consumption. Tosoh continues to execute a strategy of sharing production with neighboring petrochemical operations in the Yokkaichi area to maximize resources, minimize distribution costs, and reduce operating risks. In line with that strategy and this capacity expansion, the Cosmo Oil Co., Ltd., Yokkaichi refinery will supply the primary raw material, FCC propylene. An increase in the by-product propane will result from the conversion, and as an extension of Tosoh’s fuel diversification policy, the naphtha cracker will utilize the additional propane as a fuel.
Tosoh’s Petrochemical Group encompasses olefins and polymers, and is central to competitiveness because it supplies a large proportion of the ethylene Tosoh requires for its vinyl isocyanate chain and polyethylene operations. The naphtha cracker at Tosoh’s Yokkaichi Complex has an annual ethylene production capacity of approximately 500,000 metric tons, and supplies roughly half of Tosoh’s demand. The Company has accelerated a program of selectively concentrating resources to maximize earnings and is countering the higher price of naphtha by enhancing capabilities to use heavier grades, improving recovery efficiency for spent C4 and C5 fractions, and shifting to other raw materials to increase flexibility in selecting feedstock in order to reduce production costs.
Investment in the cumene expansion will strengthen petrochemical operations while increasing the overall competitiveness of the Yokkaichi Industrial Complex.
Tosoh Corporation
Headquartered in Tokyo, Japan, Tosoh Corporation is a diversified global chemical and specialty materials company. Founded in 1935, the Company has expanded its reach into high value-added businesses such as fine chemicals, bioscience, thin film materials, and quartzware. Tosoh is a multi-billion dollar corporation that employs more than 9,000 people worldwide and is listed on the Tokyo Stock Exchange.
Stock Exchange Ticker Symbol: 4042
For more information, please contact:
Michael Hoover
International Public Relations
Tosoh Corporation
m_hoover@tosoh.co.jp
Tel: +81-3-5427-5118
Fax: +81-3-5427-5198
www.tosoh.com
Disclaimer
This document contains forward-looking statements, including without limitation, statements concerning product development, objectives, goals, and commercial introduction, which involve certain risks and uncertainties. The forward-looking statements are also identified through use of the words "anticipates," "plans," "expects," and other words of similar meaning. Actual results may differ significantly from the expectations contained in the forward-looking statements.