Dow to build naphtha plant in Thailand

By an OGJ correspondent
BANGKOK, Nov. 9 -- Dow Chemical Co. has teamed with Siam Cement PLC, Thailand's largest industrial group, to build a $1.1 billion naphtha-cracking plant in Rayong province on Thailand's eastern coast.

Under the signed letter of intent, Siam Cement holds a 67% stake in the scheme, which will be capable of producing 900,000 tonnes/year of ethylene and 800,000 tpy of propylene, using naphtha, condensate, and LPG as raw materials.

Construction of the plant, to be built 220 km southeast of Bangkok, is expected to commence early next year and is scheduled for operation start-up in 2010, Siam Cement said.

In an associated project, Siam Cement alone will invest $400 million in a new downstream facility using olefins derived from the cracker. This plant will be capable of producing 300,000 tpy of high-density polyethylene and 400,000 tpy of polypropylene, also starting in 2010.

Siam Cement already operates an existing naphtha-cracking plant in Rayong capable of producing 800,000 tpy of ethylene and 400,000 tpy of propylene.

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