Polystyrene Producers Concentrated at the Yangtze River Delta.

Attracted by the good in vestment environment and market prospect in the Yangtzi River Delta, foreign polystyrene companies are vying each other in developing polystyrene units in the area.

The project jointly funded by BASF of Germany and Yangzi Petrochemical Corporation has been completed and put on stream. It includes a 120 000 t/a styrene unit, a 100 000 t/a GPPS and HIPS unit and a 40 000 t/a BPS unit. The proposal of another 600 000 t/a joint venture ethylene project between BASE and Yangzi has been approved. The project includes a 300 000 t/a styrene unit and a 209 000 t/a polystyrene unit. After the completion of the project, the total polystyrene capacity will reach 345 000 t/a. Tai wan Chimei Industrial Co., Ltd. has invested in the construction of a 300 000 t/a polystyrene unit in Jiangsu Zhenjiang. The first phase of 150 000 t/a polystyrene is already completed and put into operation, and the second phase is in full swing. Feasibility study reports of a wholly-owned 100 000 t/a polystyrene unit to be constructed by Chevron Chemical of the United States in Zhangjiagang and a wholly-owned 120 000 t/a polystyrene unit to be constructed by Sterlon, a joint venture subsidiary of Dow Chem ical of the United States and Asahi Chemical of Japan, also in Zhangjiagang have been approved by the state. Besides, the proposal of a joint venture 650 000 t/a ethylene project in Shanghai has been approved. The project includes a 300 000 t/a styrene unit and a 100 000 t/a polystyrene unit. After the completion of above projects, the polystyrene capacity in the Yangtzi River Delta can reach around I million t/a. It will become the biggest polystyrene production region in China.

Guangdong is the biggest production region of polystyrene products in China. Hong Kong has 2 polystyrene units. One is an 80 000 t/a unit of Hong Kong Petrochemical Corporation and the other is a 240 000 t/a unit of Dow Chemical, the total capacity being 320 000 t/a. The total existing polystyrene capacity in Guangdong and Hong Kong is 620 000 t/a. The feasibility study report of an 800 000 t/a ethylene project in Nanhai has been approved by the state. The project has a propylene oxide unit using oxidation of ethyl benzene and propylene, and the unit can produce 560 000 tons of polystyrene as co-product. Huge polystyrene resources will provide an excellent opportunity for Guangdong in potential tapping of its polystyrene producers and enhancement of competitiveness.

Foreign companies involved in China' s polystyrene production are all famous companies in the world. Dow Chemical and BASF are two biggest polystyrene producers in the world. Asahi Chemical is the biggest polystyrene producer in Japan and the biggest polystyrene dealer in Asia. Taiwan Chimei is the biggest ABS producer in the world. It has recently made a rapid development of polystyrene production, and the product has a strong price advantage. Chevron Chemical is one of the major suppliers of styrene monomer in the world. It has a strong financial standing and the projects constructed in China are all funded by the company itself. The coming of so many famous companies will without doubt play a great promotive role in the stable production and supply of polystyrene in China. The market competition will also be fierce, and only by fully employing their own advantages can polystyrene producers have a firm foothold. Dow Chemical and Chevron Chemical will both construct large polystyrene units in Zhangjiagang. But these two units have their own special features. HIPS produced by Dow Chemical is most suitable for covers of large household electric appliances and electronic devices, and the major clients will be manufacturers of electronic devices and household electric appliances in Japan. Polystyrene produ ced by Chevron Chemical is mainly used in food packing and small electric appliances with medium requirements of impact resistance. The two companies already have fixed sales channels and clients.