South East Asia's largest polyolefin producer, Titan Chemicals Corp Bhd, plans to use cheaper alternative feedstock in a bid to offset rising crude oil prices, leading to sustained margins.
The naphtha that Titan uses as its feedstock accounts for up to 85% of production cost. Recently, escalating oil prices have posed a heavy burden on naphtha prices, affecting margins for petrochemical producers. LPG prices are up to 9 times cheaper than naphtha, making it an attractive substitute for a major portion of the feedstock. This would be possible because of the care taken at the planning stage of Titan's plants in Malaysia that are designed to run on different feedstocks.
19-Jul-06 
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