The board of Israel Petrochemical Enterprises Ltd. has approved an additional investment in a new polypropylene plant under construction by subsidiary Carmel Olefins. The approved figure of US$315 million is one of the largest industrial investments in Israel. The new plant is intended to boost Carmel Olefins' polypropylene production to 450,000 tpa from the current 200,000 tpa. The plant will also make propylene - feedstock for polypropylene. Only three plants in the US and Japan, built in recent years, produce propylene.
The original cost of the plant was US$245 million, but subsequent restructuring and changes in construction inputs raised costs. The cost of metals shot up, adding US$20 million to the original outlay; and the company decided to expand production from 200,000 tons a year to 250,000.
05-Jul-05 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}