|
Global oil, gas and petrochemical giant BP yesterday launched its first PTA (purified terephthalic acid) venture in China - the Zhuhai Chemical Ltd - in this harbor city in South China's Guangdong Province.
BP Zhuhai, a joint venture 85 percent held by BP and 15 percent held by Fu Hua Group Ltd, a local company, will produce an initial 350,000 tons per year of PTA for the Chinese market. PTA is the preferred raw material for use in manufacturing polyethylene terephthalate, a polymer used for the production of textiles, bottles, packaging and film products.
BP executives said the Zhuhai plant, which went into full operation yesterday, has the capacity to expand production to 500,000 tons each year. Investment in the facility totaled more than US$300 million, they said.
Byron Grote, BP's chief financial officer, said at a commissioning ceremony that "Zhuhai is one of the most competitive PTA centers in the world - a major operation for the world's largest PTA producer - BP, serving the world's largest PTA market, China."
The BP Zhuhai plant and other investments this year have increased BP's PTA capacity in Asia by 45 percent, BP officials said.
Xu Kunyuan, vice-president of Chinese Textile Industrial Association, said the new plant will help Chinese polyester companies reduce costs and improve competitiveness by reducing their reliance on imports. Official statistics indicate that China's PTA consumption in 2002 exceeded 6.6 million tons, of which only 30 percent was supplied by domestic production.
The construction of the plant started in November, 2000. A trial production began in January this year and the products have been seen as of high quality and have been met by far greater market demand, according to local government officials.
Grote said the Zhuhai plant is not only commercially competitive, but socially responsible. "The leading edge process used here makes a major contribution to minimizing the plant's environmental impact. It reduces energy consumption by 17 percent and waste by 30 percent, compared with conventional technology as well as reducing equipment costs by 40 percent," he said.
BP and its subsidiary companies have invested about US$4 billion in China over the past 20 years and are now participating in a number of major projects with a planned investment of US$3 billion over the next five years, the chief financial officer said.
He said BP currently has a major focus on identifying future leadership talent and accelerating the development of local staff to be able to "fill key leadership roles, both inside and outside China."
"Our aim is to have a pool of Chinese managers large enough to meet the requirements of our business in this country by 2010," Grote said.
(China Daily September 10, 2003)
|
