Exxon to scale up investment in Asia

24-Sep-09

Exxon Mobil Corp. has decided to scale up investments in Asian plants to satiate estimated increase in demand from China and India. ExxonMobil's new plant in Fujian, China, has commenced production this year. Demand from China is estimated to increase faster than sales of gasoline and diesel, rising by double digits and continuing to expand for at least the next 15 years. India, with its current robust growth rate and optimistic growth potential is expected to be the major driver of global demand a decade from now. With a robust GDP rate and increased opportunity to compete with and replace traditional raw materials like metal and wood and like cotton, over 50% of the world's petrochemical growth is anticipated in China alone. Hence more production capacity can be considered in the region. The company is weighing several options that include a joint venture formation with Qatar and expansion at the company's Singapore complex in 2011. The company would consider acquisition of plants that can be connected directly to Exxon Mobil oil refineries, so that the integration could lead to byproducts of the refining process that can be converted to chemicals when fuel demand and prices are low.