SHANGHAI – Spanish energy company Cepsa has inaugurated its first petro-chemical plant in Asia, and fourth outside Spain, in Shanghai.
The new plant makes the company the world’s second largest producer of phenol and acetone and leading manufacturer of cumene.
The plant, construction of which began in 2011, was built at a cost of $300 million.
It has the capacity to produce annually 250,000 tonnes (275,578 tons) of phenol, 150,000 tons of acetone and 360,000 tons of cumene, a derivative of benzene used to produce the other two chemicals.
The plant is strategically located in the Shanghai Chemical Industry Park that supplies 30 percent of China’s total demand for phenol.
Bayer, Lucite and Evonik, major users of Spanish company’s petro-chemical products in components for computers, telephones, CDs and DVDs, detergents, wind turbine blades and the automotive, construction and furniture industries, also have factories in the park.
The park’s own petro-chemical pipelines ensure a direct supply of phenol and acetone from Cespa without the need for trans-shipment, and three-fourths of the plant’s production is expected to cater to demand from within the park itself.
The remainder will be supplied to smaller clients in the Yangtse delta through the Sumitomo Corporation, Cepsa’s local partner in China.
The new plant is also located in the region of the world with the fastest growing demand for phenol.
Demand for phenol in China is expected to grow at a rate of 7 percent per annum in the next five year period against the global 4 percent.