In late March, Formosa Plastics Corp. USA started commercial production of one of two trains in its grassroots polypropylene unit in Point Comfort, Tex.
When both phases are commissioned, the 700 million-lb/year unit will boost Formosa's total polypro pylene capacity to 1.5 billion lb/year.
Although both trains are mechanically complete, Formosa is delaying the start-up of its second train as a result of a current oversupply of commodity grades.
The first of the unit's two trains produces homopolymer, impact polymer, and random copolymer grades.
The second train will produce homopolymer and random copolymer grades.
High propylene prices, high utility costs, and overcapacity are creating gloomy conditions for polypropylene in the short term. Despite short-term market conditions, the long-term outlook for polypropylene is positive, said Ken Mounger, vice-president and general manager of Formosa's propylene division.
Formosa will start up the second unit when positive market conditions prevail.
The new unit features gas-phase technology licensed by Chisso Corp., Tokyo. Formosa's existing original polypropylene unit uses Novolen technology (formerly owned by Targor GMBH, now owned by an ABB Lummus Global-Equistar Chemicals LP JV) technology to produce homopolymer, impact copolymer, random polymer, and thermoplastic olefin products.
The Chisso technology will allow Formosa to develop fractional melt and high crystalline product grades, said Mounger.
The polypropylene unit is part of a larger project that includes a second olefins unit.
This unit will increase Formosa's total olefins capacity to 3.4 billion lb/year and is scheduled to start up later in the second quarter.
