The hottest Asian chemical industry has entered a

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The development of Asian chemical industry has entered a virtuous circle the development of Asian chemical industry has entered a virtuous circle July 31, 2002 although the global economic development has slowed down and the development of Asia has also slowed down, the world is still optimistic about the chemical industry in Asia in the first decade of the new century. It is expected that the Asian chemical industry will develop at the fastest growth rate in the world and step into a virtuous circle. China and India will be the main drivers of this growth

Asia accounts for 1/3 of the global chemical consumption, but in a few years, the chemical consumption will increase to more than one and a half of the global. The output value of Asian chemicals will increase from US $260billion now to US $1trillion in 2010. By the end of 2010, it is estimated that Asia will account for about 40% of the global total chemical output value of US $2.6 trillion. The Asian chemical market (including imports and exports) is worth about US $500billion a year. Its market has surpassed that of the Americas and Europe, and is still developing at a high speed. By 2010, the major new capacity in Asia will double the consumption of petrochemical products to 12 kg per capita. It is estimated that in this decade, the world must increase 35million tons of new ethylene capacity (an investment of 70billion US dollars), and about half of it is to meet the needs of Asia

India's demand for polymers will increase rapidly from 330 million tons in 2000 to 12.3 million tons in 2010. The total polymer consumption of India will rise from the 10th place in the world now to the third place in 2010 after the United States and China. The polymer consumption of the United States and China is expected to reach 38.9 million tons/year and 31.3 million tons/year respectively. In order to meet the demand growth, India will invest about US $12billion in the chemical industry in this decade

Singapore will continue to strengthen its position as a leading chemical production and distribution center in the region. In 2001, the output of Singapore's chemical industry (including petroleum, petrochemical and special chemicals) decreased by 9%, with an output value of S $29billion (US $15.8 billion). Recently, Singapore launched the alternative fuel program to promote the R & D and commercialization of fuel cell technology. DaimlerChrysler has tested 10-20 fuel cell vehicles in Singapore, and BP will also build a hydrogen filling facility for fuel cells in Singapore. Singapore will continue to strengthen the chemical industry infrastructure in Jurong Island, vigorously

strengthen human resource capacity building, and invest S $40million in the chemical process technology center, which will be used to train the technical and operating personnel serving the modern chemical plants, and can train more than 8000 talents for the chemical and pharmaceutical industries every year

many multinational chemical companies will strengthen their position in Asia. Chevron Phillips Chemical Company's

hdpe plant in Singapore, PS plant in Zhangjiagang, China and styrene butadiene copolymer plant in Lichuan, South Korea are all operating at full

load. At the same time, part of the investment focus will be shifted to the Middle East with rich raw materials. By the end of the year, the company will complete the q-

chem (a joint venture between Chevron Phillips Chemical Company and Qatar Petroleum Company QP) project, which can produce 450000

tons of PE per year. Chevron Phillips Chemical Co., Ltd. has also cooperated with QP to build q-chem II project in mayside, which will more than double the PE production capacity by 2006. The q-chem project aims at the demand for HDPE in Asia, especially in China

borouge (a joint venture between Nordic chemical company and Abu Dhabi National Petroleum Company) is also targeting the Asian market. The company's 600000 T/a ethane cracking unit and 450000 T/a North Star process PE unit in Abu Dhabi levos were put into operation in December, 2001. It is predicted that the demand for polyolefins in Asia will increase by 5% in 2002. China is the key to the growth after the pulling machine has been used for a period of time.

some other companies are also expanding their production capacity in Asia. BP will expand the capacity of ethylene and

pe in kertih, Malaysia, and will build an ethyl acetate monomer plant. However, its focus is on China. The company and SINOPEC are in cao4 New degradable plastics: the $2.5 billion petrochemical project including carbon dioxide, PBS (polybutyric acid butanol), PBAT (poly-p-benzoic acid/hexanoic acid butanol), PBSA (polybutyric acid/hexanoic acid butanol), polyhydroxyalkanoates (PHA), polycaprolactone (PCL) and other biodegradable plastics will include 900000 T/a ethylene and 500000 t/a PE units, which are scheduled to be put into production in 2005. Several other multinational companies (including BASF) have also built olefin and derivative combined plants with Sinopec. The expansion plan of China's domestic ethylene production plants will increase China's ethylene capacity from the current 4.8 million tons/year to 6.6 million tons/year in 2004. BP also plans to jointly build a world-class PTA plant with Sinopec in Shanghai. BP has 4million tons/year PTA capacity in Asia, accounting for 20% of the total capacity in the region. BP's PTA plant in Zhuhai, China is scheduled to be put into operation in 2003

several other companies invested in Malaysian petrochemical industry. BASF and Petronas (Petronas) put into operation a propylene based combined unit in Kuantan in 2001. Optimal company (a joint venture between Petronas and Dow Chemical

company) has put into operation a $2billion petrochemical complex in kertih at the beginning of the year. The complex package

includes 600000 T/a ethylene, 93000 T/a propylene and several downstream units. Malaysia is committed to the development of special chemicals

and engineering polymer industries. Future investment opportunities include the production of PBT (polybutylene terephthalate), polycarbonate

esters, styrene butadiene and polybutadiene rubber. BASF has planned to build PBT plant in Kuantan

petronas is seeking partners to build the third cracking unit

shell's main investment in Asia is to jointly build a $4billion petrochemical project in Huizhou, China with CNOOC, including 800000 T/a ethylene, PE, PP, styrene, propylene oxide and ethylene glycol units. It is expected to be completed in 2005-2006. Shell also plans to build a 1million ton/year cracking unit on bukom Island, Singapore, which is expected to be completed in 2008-2009

some smaller companies have also identified their investment priorities in Asia. For example, about 17% of the sales of SUD chemical company in 2001 was in Asia, and the goal is to account for at least 1/3 of the sales in Asia in the medium term. Investment in China

focuses on chemical adsorbents, additives and catalysts. The company has production capacity in Korea, Indonesia and India, and is one of the few catalyst manufacturers in Japan

The sustained growth of Asian chemical industry will provide business opportunities and opportunities for multinational companies to expand their business, and also provide new opportunities and space for the region to accelerate the development of chemical industry

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