EMSB implements modifications to optimise ethylene production capacity

02-Jan-07

Ethylene Malaysia Sdn Bhd (EMSB) is currently implementing modifications to its plant in Kertih to optimise its production capacity and ensure that high levels of production can be sustained. This step has been taken as an effort to capture gains from the current high prices of ethylene, keeping in view the company's excellent plant performance and reliable supply of ethane last year. EMSB recorded production levels of 404,500 tons last year, at a time when market prices rose above US$1,000 per ton. With no direct competitors in the market, EMSB is poised to exploit the gain in the normally cyclical market. Most of the ethylene plants due on steam are being constructed on a large scale in the Middle East, and will impact the market only when they commence production in the next one or two years. EMSB also has the advantage of captive customers with long term supply contracts. About 64% of the output is sold to Polyethylene Malaysia Sdn. Bhd, 19% to Vinyl Chloride Monomer Sdn Bhd, a wholly owned PETRONAS' subsidiary, and 16% to Idemitsu Styrene Monomer plant in Pasir Gudang under long term contracts. Additional ethylene products available are exported. PETRONAS holds 72.5% equity, BP Chemicals 15% and Idemitsu Petrochemicals 12.5% equity in EMSB. The plant had an initial design production capacity of 320,000 tpa, which was subsequently increased to 400,000 tons.