Sinopec & Mitsui JV to set up ethylene/propylene plant (China)

Shanghai Sinopec Mitsui Elastomers Co., Ltd. was established on 28 May 2012 and will 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. The plant is expected to commence commercial production in the first quarter of 2014.

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

The total investment of the project is approximately RMB2 billion. The company is focusing on the production and sales of Ethylene Propylene Diene Monomer Rubber, which is the copolymer of ethylene,propyleneand diene. It is a synthetic rubber known for its superior ability to cope with various climatic conditions, and its resistance to ozone, heat and coldness.

It also performs well as an electric insulator and is known for its chemical resistance. It has been widely used in automotive parts, electric wires and cables, as well as many other industrial products.

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 and Mitsui Chemicals established Shanghai Sinopec Mitsui Elastomers, Co., Ltd. in March 2006 for the production and sales of Bisphenol A.

After that, the two parties developed another phenol-acetone project with annual production capacity of 400,000 tons, a project that is now under construction.