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| December 26, 2005 |
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Increase of Production Capacity of Purified Terephthalic Acid
in MCC PTA India Corp. Private Limited |
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| Mitsubishi Chemical Corporation |
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Mitsubishi Chemical Corporation ('MCC') (Head Office: Minato-ku, Tokyo; President: Ryuichi Tomizawa) has decided to increase production capacity of purified terephthalic acid (PTA), which plans a 800kt/y increase in a new production facility of MCC PTA India Corp. Private Limited, dealing with production and distribution of PTA.
Based on the policy: 'to expand business by being located in a growing market', MCC has promoted PTA business at four sites: Japan (the Matsuyama Plant, MCC), South Korea (Sam Nam Petrochemical Co., Ltd.), Indonesia (PT. Mitsubishi Chemical Indonesia), and India (MCPI). In addition, we have set up the Ningbo Mitsubishi Chemical Corporation in the Ningbo Daxie Development Zone in April 2005, in order to secure a business site in the rapidly growing Chinese market, and a 600kt/y production facility for PTA is under construction. (It will be completed between October and December 2006.)
Moreover, production of polyester products is continuously growing in India. PTA is the main raw material for polyester and its demand in India has increased to 2.3 million ton at the end of 2004. It is expected that the demand of polyester products continues to expand due to further increase in population and development in economy and industry. With the abolition of quota for textile products implemented by WTO in January 2005, expansion of the export volume from India to Europe and America is also expected to grow steadily. Therefore, the demand of PTA in India is expected to reach a high annual growth rate around 10% or more from now on. In response to the dynamic growth potential of PTA market MCC has examined a plan to build the second production facility adjacent to the existing first production facility in MCPI.
MCPI started operating the first production facility with 350kt/y production capacity in 2000, utilizing the cutting-edge proprietary technology of MCC. It has now 470kt/y production capacity by increasing its production capacity twice in recent years. As for its operation, we achieved a significant improvement: extending the lifetime of catalyst used in the refining process from one year to two and half years. The experience at MCPI led to improvement in production technology and the latest technology has been utilized in the production facility under construction in China. In the second production facility to be constructed in MCPI, we will adopt further improved technology. Therefore, we can expect to produce the world's most competitive PTA both in quality and price at MCPI.
Total investment will be US $ 370 million (around 42.6 billion yen). We plan to start all preparatory action for implementation of the project in January 2006, and then the construction at the site is to start in July 2006 with a target to complete the construction around June 2008. With this expansion of production facility, we would like to consolidate our position in PTA business in India, and also contribute to economic development in India.
| For further information, please contact |
Public Relations and Investor Relations Department
Mitsubishi Chemical Corporation |
| Tel: [+81]-(0)3-6414-3730 |
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Reference
1. Outline of MCPI and expansion plan
2. Terephthalic acid business in the MCC Group
3. Map of around Kolkata and Haldia, West Bengal, India
4. Layout of the production facility |
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1. Outline of MCPI
| (1) Company name |
MCC PTA India Corp. Private Limited |
| (2) Establishment |
February 1997 |
| (3) Capital |
US$135 million(around 15.5 billion yen) |
| (4) Shareholders |
| MCC |
66 % |
| WBIDC |
5 % |
| Mitsubishi Corporation |
9 % |
| Sojitsu Corporation |
8 % |
| Marubeni Corporation |
5 % |
| Tomen Corporation |
5 % |
| Sumikin Bussan Corporation |
2 % |
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| (5) Head office |
Kolkata, West Bengal, India |
| (6) Production site |
Haldia, West Bengal, India(130km south from Kolkata) |
| (7) Production capacity |
Purified terephthalic acid 470kt/y |
| (8) Managing director |
Yoshihiro Ikegawa |
| (9) Employees |
Around 700 |
2. Outline of the expansion plan
| (1) Product |
Purified terephthalic acid |
| (2) Production capacity |
800kt/y (1 line) |
| (3) Process |
Cutting-edge proprietary technology of MCC |
| (4) Completion |
June 2008 (construction period: 30 months) |
| (5) Total investment |
US$370 million (around 42.6 billion yen) |
| (6) Site |
Next to the first production facility (see Reference 4) |
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