Keyuan inks long-term supplier agreement with Shell to purchase butadiene

29-Feb-12

Keyuan Petrochemicals Inc. has signed a long-term supplier agreement with Shell Petrochemicals Company Ltd to purchase butadiene, an feedstock for production of styrene-butadiene-styrene (SBS). This one-year agreement ensures adequate supply of butadiene for Keyuan to meet its 70,000 ton SBS production target in 2012, which will be the first full year of commercial SBS production. "This agreement provides important stability for one of our new business units," explained Chunfeng Tao, chairman and chief executive officer of Keyuan Petrochemicals Inc. "We have secured an adequate supply from a trusted partner and at a reasonable cost. Having recently secured strong orders for SBS, we can now focus on optimizing our production for the remainder of 2012."With its 165,000 tpa butadiene production facilities located in China's Guangdong Province, Shell can conveniently ship materials directly to Keyuan's Ningbo plants.