Upsurge in naphtha prices affirm Japanese firms to switch to alternative raw materials for plastics

25-Aug-08

The chemical makers in Japan including Sumitomo Chemicals, Asahi Kasei Corp. and Mitsui Chemicals Inc. are increasingly softening their dependence on naphtha in light of persistently rising crude costs to achieve steady production levels. Although the crude prices have softened in the recent weeks but the firms are not anticipating persistent fall in naphtha prices. Sumitomo Chemical Co. has planned to start a plant in Saudi Arabia by end of March, 2009 to make feedstocks of plastics from natural gas and ethane released during oil drilling. In addition, Asahi Kasei Corp. will start a plant by 2010 in Thailand to make acrylic fiber and acrylic sheets from propane gas. Also, Mitsui Chemicals Inc. will test-produce plastics materials by having carbon dioxide in the air react with hydrogen in a facility at a plant in Takaishi, Osaka Prefecture, by March 2009.