Chinese acrylic acid and acrylate ester producer SunVic Chemical Holding has suspended temporarily construction of a propylene plant at Xiangshui, Jiangsu province, which was supposed to be completed by December 2009, a source close to the company said Monday.
     The project has been placed on hold indefinitely due to weak economic conditions, including slower demand and poor returns for acrylic acid. The company has been operating its acrylic acid plant below capacity for a large part of the year. On Monday, the acrylic acid plant was being run at around 65% of its capacity.
     The propylene project is part of a fluid catalytic cracker that will be
capable of cracking 1 million mt/year of fuel oil to produce propylene,
gasoil, gasoline and LPG. The facility will be able to yield 230,000 mt/year
of propylene.
     SunVic had intended to consume its propylene output, while the gasoil,
gasoline and LPG output will be sold.
     The company currently buys propylene for its 205,000 mt/year acrylic acid
and 250,000 mt/year acrylate ester plants in Chenjiagang Chemical Zone of
Xiangshui county in Jiangsu province.
     Last year, the company's main propylene suppliers were Samsung Corp.,
Shougang Shanshou Chemical Co., Wuxi Petroleum Chemical Engineering Factory,
and China Petroleum and Chemical Corporative Shengli Oilfield Co. SunVic's
shares are listed on the Singapore Exchange. (see PCA p680.)
--Joanna Lim, joanna_lim@platts.com