Mitsui Chemicals

Mitsui Chemicals To Strengthen Propylene Production at Osaka Works

September 20, 2002

Japan's leading petrochemicals manufacturer Mitsui Chemicals, Inc. (MCI) has decided to increase the propylene production capacity at its Osaka Works in western Japan by 140,000 ton/yr to 420,000 ton/yr for completion in 2004, the company announced today.

Osaka Works currently has ethylene and propylene production capacities, based on steam-cracking of feedstock naphtha and purification, of 478,000 ton/yr and 280,000 ton/yr, respectively, as calculated as the average of regular maintenance shutdown years and non-shutdown years. Propylene capacity increase will be achieved by addition of a unit for converting purified ethylene and butenes into propylene.

MCI is currently strengthening its petrochemical feedstocks business as one of its core businesses. In view of the current concern that the global propylene supply and demand situation would tighten from now on, MCI intends to push ahead with such strengthening efforts by restructuring its domestic petrochemicals production setup, and thereby boost the international competitiveness of its petrochemicals sector.

The capacity expansion at a projected total investment of some 4 billion yen, will be based on the Olefins Conversion Unit (OCU) Process of ABB Lummus Global Inc. and executed by the Japanese main contractor Toyo Engineering Corporation. Construction work is scheduled to begin in July 2003, for completion in August 2004.

For further information, please contact:

Mitsui Chemicals, Inc.
Corporate Communications Div.
Tel: +81-3-3592-4060