Dow and Davy License LP OxoSM Technology to plant in Shangdong Province

25-Jun-08

LP OxoSM SELECTORSM Technology, jointly offered by Dow Technology Licensing and Davy Process Technology Ltd., has been selected by Lihuayi Group for a new 250,000 tpa facility in People's Republic of China. Slated to produce 140,000 tpa of 2-ethyl hexanol, 85,000 tpa normal Butanol and 244,000 tpa iso-Butanol, the plant will be built in Dongying City, Shangdong Province and is due on-stream in 2010. LP OxoSM SELECTOR Technology is a low-pressure hydroformylation process that uses propylene and synthesis gas (a mixture of hydrogen and carbon monoxide) to produce normal and iso-butyraldehydes. These butyraldehydes are then converted into 2-ethylhexanol (2EH) and normal- and iso-butanol. For more than 30 years, Davy and Dow have co-marketed and delivered LP Oxo Technology licenses and services. To date, 32 projects have been implemented in 15 countries, on four continents. LP Oxo Technology is recognized as the world's leading licensed Oxo technology, contributing to more than 85 percent of the world's licensed propylene based Oxo capacity. Lihuayi Group is a large cross-industrial, diversified enterprise group as well as the largest local petrochemical enterprise in crude oil processing capacity in China. Listed among the top 500 enterprises in China as well as the excellent enterprises in China, Lihuayi Group consists of more than 10 subsidiaries, which are involved in petrochemical, pharmaceutical, textile & garment and thermopower business, etc. In 2007, Lihuayi Group reached RMB 10.8 billion in revenue.