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Japan's Ethylene Industry Need To Take The Reform Road Will Face Restructuring
In view of the Middle East and China, the world's supply of ethylene and price advantages of incremental factors, Europe and North America have forced this situation began to try to overcome their weakness. At the same time, Japan's petrochemical industry began to adapt to new trade barriers. Japan's Sumitomo Chemical Company's U.S. subsidiary in the United States, President TetsuWakabayashi SPE International Polyolefins Engineering Society Conference (February 21-24, Houston, Texas) said that in 15-20 years ago, Japan is the world's total production to account for 15% of the amount, but according to the present situation in view of the world, can only account for 10%. Although the production capacity in the past 10-15 years has remained the same between, but domestic demand has declined significantly, from 1999 -2000 in the 5.7 million tons down to 5.3 million tons in 2008. In the past 10 years decreased by 3% -4%. "Domestic demand and production capacity of 2 million tons the difference is the biggest problem currently facing Japan."
On this point, according to statistics there are 10 companies in Japan operates 15 production bases of ethylene. Some machinery and equipment in Japan and South Korea and Saudi Arabia, compared to "small, old" known. Wakabayashi about. South Korea currently has 11 operating time was 20 years old factories that the annual production value of 610 thousand tons. In Saudi Arabia, has eight similar plants with annual output of 850,000 tons. According to 2008 statistics, Japan's factory dates back to the fifties or sixties, but also raw materials at a disadvantage. So 94% of Japan's ethylene from naphtha.
In addition to weak domestic demand, Japan polyolefin industry must face the reality of more stringent emission limits, especially carbon dioxide. In Japan, the manufacturing sector accounts for about 36% of emissions, of which 20% of chemical industry, so 7.5% of the carbon dioxide emissions from the chemical industry. Looking ahead, the President has pledged to give Japan a 25% reduction of carbon dioxide emissions to 1990 level. "[Carbon emissions] for us, will be the next 5-10 years the chemical industry must face a long-term burden." Wakabayashi said.
In order to resist the competitive disadvantage of domestic production facilities, Japan has started to invest overseas, including Saudi Arabia, methanol, ethylene glycol, PE and PP production of some cooperation. Japanese companies in the phenol, acetone, acid and PP composite materials production in China and India are also looking to partner, terephthalic acid,
Returning to the subject, Wakabayashi said that rationalization does not mean individual plant overall optimization of complex environments. Japan's ethylene producers of some major problems facing the downstream companies, including some resin manufacturers, one-third of the 90 have since closed. In the near future, Wakabayashi believe that the number of Japanese manufacturers of ethylene from 10 down to five, some of which may be combined. This merger has been implemented in the Chiba area.
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