Olefins in
The stream of olefins in Europe and W e s t Germany and
Europe Part 1 European ethylene and propylene capacities continue to spiral upward at an almost dizzying pace. By 1966 or early 1967, total annual ethylene capacity in Western Europe, including European Economic Community (EEC) countries, Great Britain, Spain, and Scandinavia, will stand at 3.9 million metric tons, approaching twice the present 2.1 million metric tons. Annual propylene capacity will be 2.5 million metric tons versus the current 1.4 million metric tons. These estimates are based on known plans. There may well be other projects in the mill that will push capacities still higher. This river of ethylene, with sizable sidestreams of propylene and C 4 olefins (the C 4 olefins are not included in this report), will flow into a complex web of processing units that will convert the river of basic raw materials into an impressive array of products. The current box score in the most active countries looks like this: • West Germany is just winding u p a round of expansions and new plant 102
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construction that's adding some 280,000 metric tons a year to her annual ethylene capacity. That's a hike of more than 50% and gives the country a total current announced annual capacity of 787,000 metric tons, although some observers feel this figure is on the high side. Two additional projects will boost capacity another 300,000 metric tons in the next two years to give a total of at least 1.1 million metric tons by 1966. Propylene capacity has risen to 431,000 metric tons a year from 266,000 metric tons at the end of 1962. The two new ethylene projects will also add 170,000
This is the first part of a three-part series on olefins in Europe. Part 2, which will appear on Aug. 31, will report on Italy and Great Britain. Fart 3, which will appear on Sept. 28, will cover Svain, Benelux, and Scandinavia.
metric tons of propylene a year leading to a total propylene capacity of 601,000 metric tons by 1966. • France is also taking giant steps. By 1966, expansions and new plants will have added 628,000 metric tons a year to annual ethylene capacity that now stands at 183,000 metric tons—a fantastic 340% jump to 811,000 metric tons. During the same time, propylene capacity will push ahead some 345,000 metric tons a year to a total of 552,000 metric tons. • Italy, too, is very much in the olefin picture. Montecatini (now Monteshell Petrochimica) recently started up its new 80,000-metric-ton ethylene plant at Brindisi. Also this year, state-owned ANIC, chemical arm of E N I (Ente Nazionale Idrocarburi), brought its Gela (Sicily) ethylene plant on stream with an annual capacity of 75,000 metric tons. These two plants have jumped Italian ethylene capacity about 7 5 % to 361,500 metric tons a year. Two other plants under construction in Sardinia and another planned for Sicily will
special report C&EN
has become a flood tide, France are riding the crest add still another 141,000 metric tons a year to give a total annual capacity of 502,500 metric tons by 1965 or 1966. By that time, tag-along propylene capacity will have risen to 314,000 metric tons from the present level of 222,000 metric tons. • The Benelux countries will raise ethylene capacity almost fivefold—to 389,000 metric tons from 80,000 metric tons by 1966-67. And propylene capacity will move ahead to 326,000 metric tons from 141,000 metric tons. Totaling these data for EEC countries shows that ethylene capacity will reach 2.8 million metric tons a year by 1966-67 versus 1.4 million metric tons now. Propylene capacity will total 1.8 million metric tons in 196667 versus 1 million metric tons now. The main producing areas outside the EEC shape up this way: • Great Britain will boost ethylene capacity about 60% to 933,400 metric tons a year by 1966-67 from the current 576,200 metric tons. Along with this increase, propylene capacity will rise from 371,400 metric tons to 624,500 metric tons. • Spain, currently with no ethylene or propylene capacity, plans two steam crackers for 1966-67 that will give her 137,000 metric tons annual capacity of ethylene and 60,000 metric tons of propylene. • Scandinavia (Sweden, Norway, and Denmark) will hold steady at an annual capacity of 85,000 metric tons AUG. 3, 1964
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Plentiful supply of n a p h t h a cheers European olefin makers of ethylene and 67,000 metric tons of propylene, although producers may have expansions in the offing that they don't want to discuss. Two questions that come immediately to mind are: Where is it all coming from? Where will it all go? The first question is easy. Europe has been adding refinery capacity at a staggering rate to meet insatiable consumer demands for fuel oil, gasoline, lubricants, and related products. The big push in Europe is on fuel oil; so there is plenty of excess naphtha around to supply the new naphtha steam crackers going up. Even with increasing numbers of automobiles in Europe, gasoline consumption there hasn't kept up with the supply. The second question is much harder. It's one that must give European market men uncomfortable moments as they optimistically point their demand curves skyward. In Europe, it's not at all easy to analyze the supply-demand picture or to project growth curves with confidence. For one thing, statistics are far from complete. For another, European companies, in contrast to their U.S. counterparts, are less inclined to discuss capacities, the market outlook, production, and the like. When capacity figures are quoted, they are sometimes overquoted, in some cases for prestige purposes and in other cases to discourage new ventures and further overcapacity (if that is a problem). In addition, European chemical industries seem to be turning more and more to the export market, which itself is hard to size up. And, finally, company and government plans are changing rapidly. Major new projects seem to pop up almost each month. Others quietly fade and never get beyond planning. Excess Ethylene and Propylene Capacity Expected by 1968 Nevertheless, it is possible to sketch a general outline, if not a detailed 104
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picture. like this:
Ethylene looks
something
In West Germany, ethylene consumption this year will likely be a comfortable 7 5 % of capacity, following a period when some firms felt that ethylene was in short supply. Five years from now (at the end of 1968) ethylene plants easily could be running at full capacity. France is currently so close to being in balance on ethylene capacity and consumption that she is verging on undercapacity. Two expansions under way should make things comfortable this year and next. But over the next five years, the country will go through a period of overcapacity. Even by 1968, it's doubtful that ethylene demand could exceed 70% of capacity. Italy now has excess ethylene capacity. If there are no new expansions beyond those already planned, if the home market improves, and if Italian producers can strengthen their export markets, the outlook is for fullcapacity operation by 1968. The Benelux countries are short of ethylene now but current projectsShell plans a new naphtha cracker at Pernis (the Netherlands)—should give excess capacity, perhaps 40% by 1967. Great Britain probably has more than enough ethylene to meet present demand. By 1968, the prospect is still for excess capacity. Spain, with undercapacity now, will likely have excess capacity by 1968. Scandinavia will probably need more ethylene by 1968, if new capacity hasn't been added by that time. These data are on a country-bycountry basis. The EEC, however, is coming ever closer to being a truly common market. The European Free Trade Association ( E F T A ) , while certainly not as integrated as the EEC, has lowered its internal tariff walls significantly. Thus, analyzing European countries separately, especially
those in the EEC, or labeling one as having excess capacity and another undercapacity is becoming less meaningful, except as a starting point. Looking at the E E C or even Western Europe as a whole, the outlook is overcapacity in ethylene during much of the next five years. The market is now integrated enough that each member country will share in any problems stemming from this excess. Thus, though West Germany's position when viewed alone looks pretty good, her position may be somewhat more uncomfortable when fitted into the E E C framework. Propylene prospects are harder to determine. There are far fewer data available on propylene outlets—companies seem generally to be more silent on the subject. So it's hard to put down numbers. Most propylene producers in the big producing countries agree that there's oversupply now and that things will get worse before they improve. Tag-Along Propylene and C 4 Olefins Create Problems for Ethylene Makers One big problem in Europe is that most ethylene comes from naphtha steam crackers and propylene and C 4 olefins come along for the ride uninvited. For each pound of ethylene, 0.5 to 0.75 pound of propylene and about 0.5 pound of C 4 olefins are produced, depending on cracking severity. (The tendency in Europe, however, is to go to more severe cracking with its higher yields of ethylene and lower yields of C 4 's and cracked gasoline.) Another problem is that there's no really big and fast-growing propylene outlet—no product like polyethylene. Propylene's big hope, polypropylene, hasn't really taken hold yet in Europe, and it will be some time before it does. Other outlets like acrylonitrile and ethylene-propylene copolymers hold promise, but are in their early stages of evolution.
WEST GERMANY Much has been written about West Germany's resurgent chemical industry. Hardly any better example of this resurgence could be found than her petrochemical industry. Starting almost from scratch in the early 1950*8, West German producers have built up a petrochemical capacity second to none in Western Europe. The big emphasis has been on ethylene and to a lesser extent on propylene. West Germany now leads Western Europe in ethylene capacity (787,000 metric tons a year). Since 1957, West German ethylene consumption has risen at a very steep rate. In 1962, the latest year for which there's a firm figure available, processors consumed about 400,000 metric tons—46% more than the year before. (Because there is no foreign trade in ethylene, production equals consumption.) Since 1957, when consumption was 75,000 metric tons, through 1962, average annual growth has registered a solid 40 %. There's good reason to believe that the figure for 1963 approached 460,000 metric tons. This year, it may total about 580,000 metric tons. In the next five years, ethylene consumption will likely settle down into a healthy 15 to 20%-a-year pattern and probably just top 1 million metric tons in 1968. Capacity and demand have been
pretty well meshed in West Germany, and there's been no overcapacity problem yet. Some firms feel that ethylene may even have been in somewhat short supply toward the end of last year. This year will reflect the just completed plants and expansions, however, and consumption will probably be about 7 5 % of capacity. With increasing requirements for ethylene in the offing next year, consumption should rise to perhaps 8 5 % of capacity. In 1966, the new plants coming on stream will push consumption back to 75% of capacity. By 1968, West German ethylene plants could again be operating near capacity. In light of probable overcapacity in Europe as a whole, though, this outlook may be unrealistic. West Germany may lose ground in foreign markets and share in general overcapacity. Most, if not all, West German ethylene is spoken for well in advance of a plant's coming on stream. Thus, most of the country's ethylene is either captive or tied up in supply contracts. A look at the current capacity tables shows that of the 10 West German ethylene producers, six produce captively and two produce under contract. In terms of tonnage, close to 90% is captive or under contract, the rest being sold on the open market. West German Ethylene Makers Prefer to Use Naphtha as a Raw Material The bulk of West German ethylene comes from light naphtha. Of the current 787,000 metric tons annual capacity, 590,000 (75%) is based on naphtha, 50,000 (6%) on crude oil (from crude cracking processes), 75,000 (10%) on refinery gases, and 72,000 (9%) on LPG (liquefied petroleum gas) and other sources. In 1962, producers converted about 1 million metric tons of light naphtha, some 500,000 metric tons of refinery gas, and about 100,000 metric tons of crude oil into a wide variety of petrochemicals. Naphtha is the raw material of choice for several reasons: It's plentiful, cheap, and easy to ship. To meet growing demand in West Germany for fuel oil, refiners have been building refineries at an impressive rate. At the end of 1964, refinery throughput will be 60 million metric tons per year, about six times what it was in 1953. By 1966, it will have jumped another 20%.
Fuel oil and diesel oil are most in demand. Together they will account for about 6 3 % of all petroleum consumption this year, while gasoline will take only 19%. In 1956, the split was 52% fuel and diesel oil, 2 8 % gasoline. Though automobile registrations are increasing rapidly, gasoline consumption hasn't kept up with production. So there's plenty of available naphtha. Most (87% this year) of West Germany's crude oil is imported. The country has no really large oil or gas deposits, but it has high hopes of tapping gas fields on its side of the Dutch border and of striking oil and gas under the North Sea. The recent strike at 9000 feet in the East Frisian Islands, while mostly nitrogen, has heightened interest in North Sea explorations. Use of Dutch gas itself (one of the "largest single fields outside the U.S., with 35 trillion cubic feet of proved reserves) is still open to question. The feeling in Holland is mixed, with some saying that the gas will be used mostly for energy with little if any going to chemicals in the next several years, while others see chemical potential. Thus, West Germany's petrochemical raw material picture shouldn't change much in the next five years except that there will be still more naphtha around. West Germany's main olefin producing and processing centers are located near Frankfurt am Main, in Ludwigshafen on the upper Rhine, near Cologne, in the Ruhr area, and near Hamburg. The new refineries springing up in southern Germany and Bavaria may eventually support petrochemical production, too. West German chemical firms have bridged the gap between petroleum and chemicals in several ways. Farbenfabriken Bayer and BP Benzin und Petroleum (a subsidiary of the British Petroleum Co.), for example, formed Erdoelchemie, a 50-50 joint venture which turns out a variety of petrochemicals from BP Benzin-supplied raw material. Badische Anilin- & Soda-Fabrik (BASF) and Deutsche Shell did the same thing when they set up Rheinische Olefinwerke, which has the country's largest ethylene plant. Deutsche Erdoel, A.G., (DEA) and Continental Oil set up Condea Petrochemie as a 50-50 joint venture to make Alfol straight-chain alcohols from ethylene produced at DEA's Heide refinery. AUG.
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The naphtha steam cracker located at Deutsche Erdoel's ethylene plant (at Heide, West Germany) has an annual capacity of 60,000 metric tons of ethylene and 25,000 metric tons of propylene
Farbwerke Hoechst and its wholly owned subsidiary, Knapsack-Griesheim, took a different tack, preferring the flexibility of supply contracts. Hoechst has such a contract with Caltex Deutschland, whose refinery came on stream this year. Knapsack has a similar deal with Union Rheinische Braunkohlen Kraftstoff (URBK), whose refinery started up at about the same time as Caltex's. Dynamit Nobel also buys ethylene from URBK for its Liielsdorf plant. Chemische Werke Huels makes about 80 % of its ethylene and buys the rest from Esso, A.G., under contract. Where does it all go? West Germany's ethylene goes into the traditional outlets—polyethylene, ethylene oxide, styrene, and ethanol. In addition, acetaldehyde made via the Hoechst-Wacker direct oxidation route has become an important consumer of the Co olefin in only three years. These five outlets probably took over 90% of total ethylene consumed in 1963. They will continue to provide much of the leverage for future ethylene growth. Ethylenebased acetaldehyde will grow in importance as a user of ethylene and should be solidly entrenched in the number two spot by the end of 1968. Giving the growth rate an extra push will be ethylene-based vinyl chloride made from cracking ethylene dichloride. All West German vinyl chloride until earlier this year was based on acetylene. The switch to 106
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ethylene dichloride has now begun, however, and by 1968 this material should have captured half the vinyl chloride raw material market. Ethylene-propylene copolymers and Condea's Alfol alcohols should give the ethylene growth rate a big boost, too. Polyethylene Could Be the Top West German Plastic Within Five Years Polyethylene has been relatively as successful in West Germany as in the U.S. Production in West Germany
in 1963 hit 165,300 metric tons, 12% more than 1962's 148,000 metric tons. (Until 1963, West German statistics carried a bulk production figure for polyolefins with no breakdown. C&EN estimates polyethylene production prior to 1963 at 9 3 % of the published figure for total polyolefins, the balance being mostly polypropylene and some polyisobutylene.) Average annual growth for the eight-year period 1956 through 1963 was 39%. The lower growth rate last year may be a sign of maturity of the industry or of the bad 196263 winter—or both. This year, the growth rate will probably pick up. A sales representative of one big producer says his firm could currently "sell 110% of its capacity." All in all, West Germany's polyethylene shouldn't have much trouble holding a growth rate of 20% a year over the next five years. Likely it will do even better. At the 20% growth rate, it would just hit 415,000 metric tons a year by the end of 1968 and consume about 435,000 metric tons of ethylene—about 40% of the estimated total ethylene consumed in 1968 and about the same percentage as now. Despite its strength and glamor, polyethylene is still West Germany's number two plastic, well behind frontrunning polyvinyl chloride. Polyvinyl chloride production rose to 273,000 metric tons last year, a 2 1 % increase over the previous year. Polyvinyl
Polyethylene Is the Star Performer Among Ethylene's Outlets (Total Ethylene Production In Thousands of Metric Tons) 1250
- _ _
1000-
750-
500-
250-
1958
1959
1960
1961
1962
1963
1964
U
Sources: Statistisches Bundesamt; Monopol Verband; Verband der Chemischen Industrie
chloride, with its countless end uses, has shown remarkable staying power. Its average ;i.nual growth rate from 1952 through 1963 (11 years) was 25%. In spite of such stiff competition, many market men in West Germany feel polyethylene will ease past polyvinyl chloride in the next five or six years to become king of the plastics. This is possible, but the displacement won't be easy unless the polyvinyl chloride market falters badly. Polyethylene Exports Passed Imports in 1960 and the Gap Is Widening West German polyethylene producers sell substantial amounts of their production on the export market. In 1963 exports of unfinished polyethylene reached 67,800 metric tons, a formidable 4 1 % of production. The polyethylene producers' biggest customer was France, followed by other EEC countries and Australia. West German imports amounted to 18,100 metric tons and came mostly from the U.S. (8500 metric tons) and Great Britain. Over the years the trend in West Germany has been for a greater share of production to go to exports than to domestic consumption. Where 17% of production was exported in 1956, the figure was 25% in 1960, 37% in 1961. This year the figure is 4 1 % . During roughly this same span of time imports have fallen off
as a percentage of production plus imports—from 24% in 1957 to about 10% last year. In actual tonnage, exports passed imports in 1960. Imports from the U.S. have fallen off as a result of the 40% antidumping duty (imposed in August 1962) on American material imported by the EEC. The duty against other EEC countries is 7.6%, while the tariff on third (non-EEC) countries is 19%. Although West German producers don't complain about U.S. dumping any more, they still regard imports in general as a disturbing but not serious factor. This sounds like the classic lament of all producers, however. Current annual polyethylene capacity totals about 234,000 metric tons. Of this total, 112,000 metric tons (48%) is high-pressure-process material (ICI process) and 122,000 metric tons (52%) is low-pressure-process material. Of the low-pressure-process polyethylene capacity, 102,000 metric tons (84%) is Ziegler process. The sole high-pressure-process user is Rheinische Olefinwerke ( R O W ) , which has an exclusive Imperial Chemical Industries (ICI) license in West Germany that expires in 1966. By then, when other firms can enter the field, ROW should be in a very strong if not dominant competitive position with its annual capacity pushing 158,000 metric tons (C&EN, July 15, 1963, page 70). Control of the
market by ROW is probably part of BASF's over-all strategy (BASF sells all of R O W s output). ROW also makes low-pressure-process polyethylene using the Phillips Petroleum process. ROW's present low-pressureprocess polyethylene capacity is 20,000 metric tons a year; but this company's capacity will be raised to 32,000 metric tons by 1966. BASF itself makes high-pressure-process polyethylene resin in a 12,000 metric-ton pilot plant. West Germany's other four polyethylene makers—Hoechst, Huels, Scholven Chemie, and Ruhrchemie— all make low-pressure-process material (Ziegler process). Of the lowpressure-process users, Hoechst is largest with a capacity cf 60,000 metric tons, soon to be raised to 100,000 metric tons. Bottle Carriers Offer Polyethylene Makers a Large Fast Growing Market West German statistics don't separate the two types. The capacity breakdown should be indicative, however. One market research man feels the market will eventually stabilize at 60% low-pressure-process polyethylene and polypropylene and 40% highpressure-process polyethylene. Nor do West German statistics pin down the plastic by end use. According to one producer's estimate, at least 40% of production of convenText continues on page 110
Production in metric tons (Ethyl ene equivalent in metric tons in parentheses) Major ethylene outlets Polyethylene Ethylene oxide
1958 29,500 (31,000) 41,093 (41,000)
1959 56,900 (59,700) 58,777 (59,000)
Acetaldehydea
1960 75,100 (79,000) 79,211 (79,000) 30,000 (21,000)
1961 97,600 (102,500) 88,908 (89,000) 42,000 (29,000)
1962 148,000 (155,000) 101,800 (102,000) 100,000 (70,000)
1963 165,300 (174,000) 113,100 (114,000) 121,000 (85,000)
Alfol alcohols Styrene Synthetic ethanol
75,000 (24,000) 2,610 (1,800)
82,000 (26,000) 2,370 (1,650)
90,000 (29,000) 15,400 (11,000)
100,000 (32,000) 29,400 (21,000)
130,000 (42,000) 32,300 (21,700)
160,000 (51,000) 39,500 (26,600)
(1,200) (99,000)
(18,650) (165,000)
(9,000) (228,000)
— (273,500)
(9,300) (400,000)
(5,400) (456,000)
Ethylene dichloride
1964 (est.) 200,000 (210,000) 120,000 (120,000) 186,000 (130,000) 11,000 (15,000) 190,000 (61,000) 41,500 (27,900) 25,000 (8,000)
Ethylene-propylene rubber Miscellaneous uses Totals a
(6,000) (577,900)
1968 (est.) 415,000 (435,000) 153,000 (153,000) 250,000 (175,000) 45,000 (60,000) 278,000 (89,000) 50,000 (33,600) 363,000 (115,000) 12,000 (6,000) (10,000) (1,076,600)
| 1
Only the acetaldehyde production based on ethylene is incl jded
AUG. 3, 1964 C&EN
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West German Ethylene Capacity Is Second to None in Western Europe Ethylene Company BADISCHE ANILIN- & SODA-FABRIK, A.G.
Plant Location Ludwigshafen
CALTEX DEUTSCHLAND, G.m.b.H.
Raunheim
DEUTSCHE ERDOEL, A.G.
Heide
ERDOELCHEMIE, G.m.b.H. (50/50 joint venture of Bayer and BP Benzin und Petroleum, A.G.)
Dormagen
ESSO, A.G.
Cologne
FARBWERKE HOECHST, A.G.
Frankfurt/MainHoechst
CHEMISCHE WERKE HUELS, A.G.
Marl
RHEINISCHE OLEFINWERKE, G.m.b.H. (50/50 joint venture of BASF and Shell) SCHOLVEN CHEMIE, A.G.
Wesseling
UNION RHEINISCHE BRAUNKOHLEN KRAFTSTOFF, A.G.
Gelsenkirchen-Buer Wesseling
TOTALS
Current Capacity After Capacity Expansion (Metric Tons per Year) Remarks Captive; existing production comes from a 200,000 50,000 petroleum crude cracker; new production capacity will be a naphtha steam cracker slated for operation in 1965 Supply contract with Hoechst; naphtha steam 70,000 n.a. cracker went on stream in early 1964 Captive; supplies raw material to Condea for 60,000 n.a. Alfol alcohol production; naphtha steam cracker went on stream December 1963 Captive; current capacity is based on two n.a. 125,000 naphtha steam crackers and one LurgiRunrgas sand cracker; on stream in 1958, expanded to present capacity in late 1963 Merchant market and supply contracts; current n.a. 95,000 capacity is based on two naphtha steam crackers Captive; 45,000 metric tons from high-tempera65,000 n.a. ture pyrolysis and 20,000 metric tons from middle-temperature pyrolysis Captive; both an electric arc plant that uses n.a. 72,000 liquefied petroleum gas and a tubular cracker plant that uses liquefied petroleum gas and refinery gases Captive; cracks refinery gases and light naphtha; More than 150,000 expansion slated for completion by 1966 300,000 Partly captive, partly merchant market; naphtha 30,000 n.a. steam cracker went on stream in 1962 Supply contract with Knapsack-Griesheim, A.G. 70,000 n.a. (wholly owned Hoechst subsidiary); naphtha steam crackerwenton stream in December 1963 West German ethylene capacity, based on known More than 787,000 plans, should reach more than 1 million 1,087,000 metric tons by 1966
Polyethylene BADISCHE ANILIN- & SODA-FABRIK, A.G. FARBWERKE HOECHST, A.G.
Ludwigshafen
12,000
Frankfurt/MainHoechst
60,000
n.a. 100,000
CHEMISCHE WERKE HUELS, G.m.b.H.
Marl
12,000
15,000
RHEINISCHE OLEFINWERKE, G.m.b.H.
Wesseling
100,000 20,000
158,000 32,000
RUHRCHEMIE, A.G. SCHOLVEN CHEMIE, A.G. TOTALS
Oberhausen-Holten Gelsenkirchen-Buer
12,000 18,000 112,000 122,000 234,000
n.a. n.a. 170,000 177,000 347,000
More than 24,000 About 55,000
High-pressure-process polyethylene from a socalled pilot plant operation Low-pressure-process (Ziegler) p o l y e t h y l e n e figures include polypropylene capacity; expansion scheduled for completion in 1964 Low-pressure-process (Ziegler) polyethylene; expansion scheduled for completion in 1964 High-pressure-process (ICI) polyethylene Low-pressure-process (Phillips) polyethylene Expansion of both capacities scheduled for completion by 1966 Low-pressure-process (Ziegler) polyethylene Low-pressure-process (Ziegler) polyethylene High-pressure-process polyethylene Low-pressure-process polyethylene All polyethylene; current plans call for completion of expansions of polyethylene capacity by 1966
Ethylene Oxide BADISCHE ANILIN- & SODA-FABRIK, A.G. ERDOELCHEMIE, G.m.b.H.
Ludwigshafen
12,000
Dormagen
36,000
FARBWERKE HOECHST, A.G. CHEMISCHE WERKE HUELS, A.G.
Gendorf Marl
10,000 About 40,000 20,000
n.a. n.a.
About 120,000
About 149,000
CHEMISCHE FABRIK HOLTEN, G.m.b.H.
Ludwigshafen
TOTALS
n.a.
Direct oxidation of ethylene Scientific Design air oxidation process; company also makes high-purity ethylene oxide having an acetaldehyde content of less than 50 p.p.m.; completion of expansion due by 1965 Huels direct oxidation process Joint venture of BASF (46%), Ruhrchemie (29%). and Goldschmidt (25%)
Ethylene Glycol; Di-, Tri-, and Polyethylene Glycols; and Glycol Ethers Ludwigshafen
BADISCHE ANILIN- & SODA-FABRIK, A.G., AND CHEMISCHE FABRIK HOLTEN, G.m.b.H. ERDOELCHEMIE, G.m.b.H.
Dormagen
FARBWERKE HOECHST, A.G. CHEMISCHE WERKE HUELS, A.G.
Gendorf Marl
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n.a. 32,000 n.a. n.a.
n.a.
n.a. n.a. n.a.
BASF makes glycols; Holten sells Includes mono-, di-, tri-, and glycols, but not glycol ethers
tetraethylene,
Ethanolamines Company BADISCHE ANILIN- & SODA-FABRIK, A.G. FARBWERKE HOECHST, A.G. CHEMISCHE WERKE HUELS, A.G.
Plant
Location
Ludwigshafen Gendorf Marl
Current Capacity After Capacity Expansion (Metric Tons per Year) Remarks 6,000
n.a.
n.a. n.a.
n.a. n.a.
Includes mono-, di-, and triethanolamine
Ethanol (Synthetic) ERDOELCHEMIE, A.G.
Dormagen
HIBERNIA-CHEMIE, G.m.b.H.
Wanne-Eickel
n.a.
Ludwigshafen
80,000
54,000
65,000
Shell Development license on hydration process; expansion due for completion in 1965
n.a.
Styrene BADISCHE ANILIN- & SODA-FABRIK, A.G.
150,000
200,000
CHEMISCHE WERKE HUELS, A.G. TOTALS
90,000 170,000
n.a. 240,000 290,000
Marl
30,000 50,000 30,000 110,000
80,000 120,000 n.a. 230,000
Marl Marl
3,000 120,000
n.a. n.a.
Marl
Stepwise expansion; over next two years, capacity will be expanded, first to 150,000 metric tons in 1965 then to 200,000 metric tons in 1966 The 200,000 metric tons will split as follows: 80,000 for expandable polystyrene, and 120,000 to high-impact polystyrene, acrylonitrilebutadiene styrene, and acrylonitrile-styrene resins Slated for 1965 Slated for 1966
Polystyrene BADISCHE ANILIN- & SODA-FABRIK, A.G. CHEMISCHE WERKE HUELS, A.G. TOTALS
Ludwigshafen
Expandable resins Standard and high-impact grades Huels may increase capacity in 1964
Styrene-Butadiene Rubber CHEMISCHE WERKE HUELS, A.G. BUNAWERKE HUELS, G.m.b.H.
Mostly SBR latex foam Jointly owned by Huels and Synthese-Kautschukbeteiligungs, G.m.b.H. (owned equally by Bayer, Hoechst, and BASF)
Acrylonitrile-Biitsdiene-Stvrene Resins BADISCHE ANILIN- & SODA-FABRIK, A.G. FARBENFABRIKEN BAYER, A.G.
Ludwigshafen
n.a.
n.a.
Leverkusen
n.a.
n.a.
CHEMISCHE WERKE HUELS, A.G.
Marl
n.a.
n.a.
Company will buy acrylonitrile from Knapsack and U.S. producers until Erdoelchemie plant is on stream in 1965 Pilot plant amounts; company may make commercial quantities in 1965
Ethylene Dichioride BADISCHE ANILIN- & SODA-FABRIK, A.G.
Ludwigshafen
CHEMISCHE WERKE HUELS, A.G.
Marl
KNAPSACK-GRIESHEIM, A.G.
Knapsack bei Cologne
"Several hundred tons per m o n t h " 48,000
78,000 to 120,000 n.a.
Current production comes as a by-product of chlorohydrin ethylene oxide production New production will be used for vinyl chloride production. First construction slated for completion in 1965; second, in 1966 Huels sells current production and has no plans to use ethylene dichioride to make vinyl chloride Production goes to the company's new 29,000metric-ton ethylene dichloride-based vinyl chloride plant that started up in the spring
Tetraethyllead ASSOCIATED OCTEL CO., LTD.
Biebesheim
The company, owned jointly by BP, Caltex, Shell, and Socony Mobil, plans to build West Germany's first TEL plant
Vinyl Chloride BADISCHE ANILIN- & SODA-FABRIK, A.G.
Ludwigshafen
DYNAMIT NOBEL, A.G.
Rheinfelden and Lueladorf Gendorf Frankfurt/MainHoechst Marl
FARBWERKE HOECHST, A.G. CHEMISCHE WERKE HUELS, A.G. KNAPSACK-GRIESHEIM, A.G. TOTALS
Knapsack bei Cologne
50,000 —
48,000 to 72,000
From acetylene; no planned expansion From ethylene dichioride cracking combined with acetylene route. First construction slated for completion in 1965; second in 1966 From acetylene; expansion planned
24,000 12,000
n.a. n.a.
From acetylene From acetylene
100,000
110,000
25,000
58,000 29,000
77,000 101,000
269,000
327,000 351,000
From acetylene; no immediate plans to switch to ethylene dichioride; expansion due for completion in 1964 Half from acetylene and half from ethylene dichioride in combined process that started up this spring Total production based on ethylene dichioride. First expansion slated for completion in 1965; second, in 1966 Total from both acetylene and ethylene dichioride; first in 1965; second in 1966
AUG.
3, 196 4 C & E N
109
West German Capacity Tables (continued) Polyvinyl Chloride Company BADISCHE ANILIN- & SODA-FABRIK, A.G. DEUTSCHE SOLVAY WERKE, G.m.b.H DYNAMIT NOBEL, A.G. FARBWERKE HOECHST, A.G. CHEMISCHE WERKE HUELS, A.G. LONZA-WERKE ELECTROCHEMISCHE FABRIKEN, G.m.b.H. WACKER CHEMIE, G.m.b.H. TOTALS
Plant Location Ludwigshafen Solingen-Ohligs Troisdorf Frankfurt/Main-Hoechst Marl Waldshut Munich
Current Capacity After Capacity Expansion (Metric Tons per Year) 50,000 n.a. 25,000 n.a. 100,000
100,000 n.a. n.a. n.a. n.a.
n.a. n.a. 270,000 to 300,000
n.a. n.a. n.a.
n.a. About 9,600
n.a. n.a.
Remarks
Expansion planned
Ethyl Chloride BADISCHE ANILIN- & SODA-FABRIK, A.G. Ludwigshafen CHEMISCHE WERKE HUELS, A.G. Marl
Sold on open market
Acetaldehyde BADISCHE ANILIN- & SODA-FABRIK, A.G. FARBWERKE HOECHST, A.G.
Ludwigshafen
CHEMISCHE WERKE HUELS, A.G. KNAPSACK-GRIESHEIM, A.G.
Marl Knapsack bei Cologne
Frankfurt/MainHoechst
(20,000)
-
24,000
n.a.
100,000 37,000
n.a.
45,000 n.a.
Bergheim bei Cologne
WACKER CHEMIE, G.m.b.H. TOTALS
Not
available
Source:
C&EN
AUG.
60,000 166,000
214,000
100,000 266,000
n.a. 314,000
C6-E7V estimates
tional (high-pressure-process) polymer goes into films. The biggest outlet for linear material (low-pressureprocess ), on the other hand, is in injection molding (about 4 5 % of the total), blow molding (about 25%), and extrusions (about 22%). One of the fastest-growing items using low-pressure-process polyethylene is bottle carriers made by injection and blow molding. Bottle applications for the low-pressure-process material are also rising. The bottle carriers are used mainly to carry beer and soft drinks bottles (about 9 0 % ) , but some carriers are beginning to be used for milk bottles (about 10%) as well. Production of carriers started about four years ago. Now beer bottle carriers are a familiar sight in West Germany as beer trucks haul them from breweries to distributors and to homes. The carriers (cases) come in just about any common color, although red and yellow are the most popular. Each case holds 20 half-liter bottles, weighs 4.4 pounds empty, has an estimated life of eight to 10 years, costs about $2.50, and can withstand a force 110
48,000
From acetylene; plant shut down One-step Hoechst-Wacker direct oxidation of ethylene to acetaldehyde; on stream early 1960 From acetylene One-step Hoechst-Wacker direct oxidation; on stream in 1961 Two-step Hoechst-Wacker direct oxidation; on stream in 1963 Two-step Hoechst-Wacker direct oxidation; due on stream late this year Ethylene supplied by Union Rheinische Braunkohlen Kraftstoff Two-step Hoechst-Wacker direct oxidation process; on stream 1960 Hoechst-Wacker ethylene-based acetaldehyde (end of 1964) Acetylene-based acetaldehyde Total acetaldehyde
3, 196 4
of about two tons. In contrast, the wooden counterpart, which also holds 20 bottles, weighs 8.8 pounds empty, has an estimated life of three years, and costs about 75 cents. The plastic cases stack better than the wooden cases because of a protruding lip on the bottom of the plastic case that fits snugly into the top of the case below. Henninger-Braeu (Frankfurt), one of West Germany's largest brewers, began switching to plastic cases about a year ago and now has about 700,000. The firm says it's very happy with the plastic carriers and intends to use more. One minor problem for the brewers is that the cases are so convenient that many people use them for storing bottles at home. The result is that brewers find themselves supplying at least one carrier for each household. This extra utility is no problem—indeed, it is a blessing—for the carrier producers, which include Fa. Schoeller, Fa. Delbrouck, Press-Werk, and Bebret-Plastikwerke. Schoeller says it's made about a million cases so far. West Germany's big polyethylene producers export much of their out-
put. BASF, for example, estimates that it exports about one third of ROW's total polyethylene production, mostly to the EEC, with France the biggest single customer. Current price in West Germany for low-pressure-process polyethylene is 28.4 cents per pound. The trade looks for this price to move down perhaps 0.2 cent a pound this year. The price for high-pressure-process material last year averaged 22 cents a pound (normal film grades sold for 20 cents). Last fall at the plastics show in Duesseldorf, BASF announced it was trimming prices for certain grades. Prices for film-grade resin for bags dropped about 15%, for example. Generally, prices of both types of polyethylene should slide down gradually during the next five years as producers improve manufacturing methods and seek larger markets. West German producers look for domestic prices to drop step by step to the U.S. level. But they see no sudden drop similar to that which occurred two years ago when producers faced offgrade material from the U.S. at prices close to 11 cents a pound.
The long-term outlook (10-year) for polyethylene is one of increasingly stiff price competition and the survival of only the largest producers. Apparently, there isn't much belowlist selling in West Germany, at least now. Producers feel that their slidingscale price system—five prices, each for a special quantity and type of resinscotches below-list deals. They think that the U.S. system of having only two official list prices, by contrast, fosters the common practice .of belowlist selling. Ethylene Oxide Loses Out to Ethylene-Based Acetaldehyde Until polyethylene passed it in late 1961 or early 1962, ethylene oxide had been the top consumer of ethylene. The oxide still takes a large share of total ethylene production. For example, in 1963 some 114,000 to 125,000 metric tons of ethylene were used to make ethylene oxide (based on 113,130 metric tons of the oxide). Even with an average annual growth of 25% from 1958 through 1962, the oxide couldn't cope with polyethylene's driving pace. Now, ethylene oxide is in the process of losing out to ethylene-based acetaldehyde, which may move into second position among ethylene consumers this year. It's hard to be sure, because there are no production figures for ethylene-based acetaldehyde alone. For another thing, it's difficult to pinpoint ethylene consumed in making ethylene oxide without knowing how much is made through chlorohydrin and how much by direct oxidation. The spread in consumption factor (pound of ethylene per pound of oxide) varies from 0.8 for the chlorohydrin route to 1.0 to 1.1 for direct oxidation. However, calculating from the total Hoechst-Wacker-Knapsack direct oxidation acetaldehyde capacity and using a conservative consumption factor of 0.7 pound of ethylene per pound of acetaldehyde shows that acetaldehyde will probably move ahead of ethylene oxide before the year is out. In the next five years, ethylene oxide most likely won't grow at the same rate it has during the past five years. A growth rate for ethylene oxide of 6% a year would lead to the production of some 150,000 metric tons of the oxide in 1968 and to the need for perhaps 160,000 metric tons of ethylene. One reason for the slowdown is
that the ethylene glycol market in West Germany and Europe isn't too sprightly these days. More car owners seem to be leaving their antifreeze in indefinitely. Also, two of Europe's largest selling cars, West Germany's Volkswagen and France's Citroen 2-CV, use air-cooled engines. And at least one large production model—the French Renault R-8—uses a sealed coolant system. Finally, there's a lot of glycol around Europe, and import pressure is rising. In 1962 in West Germany, for example, ethylene glycol exports almost exactly balanced imports at about 11,000 metric tons each. Possibly the import export standoff is all related to price; but this sort of ex-
duction data for the oxide itself are available, figures for most of its derivatives such as the glycols and monoand diethanolamines are not. The only products listed in government production statistics are triethanolamine and glycol ethers. Last year, 2677 metric tons of triethanolamine were produced, accounting for about 2100 metric tons of ethylene oxide. In the same year, 22,677 metric tons of glycol ethers were produced, using some 11,500 metric tons of ethylene oxide. In addition, 7140 metric tons of ethylene oxide were exported. Also, about 12,000 metric tons of ethylene glycol were exported, representing another 9800 metric tons of ethylene oxide.
Attractive molded polyethylene strawberry cartons that are covered with polyethylene film typify the growing market for olefins in Europe
change doesn't make West German producers particularly happy. And as one Frenchman puts it, such trading merely subsidizes the railroads. Last year, West Germany's glycol imports doubled, hitting a record 23,000 metric tons. Exports stayed about the same—12,000 metric tons. On the other hand, polyester fiber made from ethylene glycol and terephthalic acid seems to be faring well. Hoechst, which has an ICI license to make Trevira fiber, has been aggressively marketing the fiber for some time. Unfortunately, it's hard to speak of ethylene oxide production in West Germany without resorting to generalities and estimates. Although pro-
All told, these known outlets accounted for some 30,000 metric tons of ethylene oxide, not quite 27% of production. And that's about as complete an analysis of the compound as can be made from official data. Ethylene and Acetylene Have Equal Shares of the Acetaldehyde Market The changing relationship between acetaldehyde and vinyl chloride points up a switch in raw materials that's in full swing in West Germany as well as in France and Italy. Before 1960, all of West Germany's acetaldehyde production was based on acetylene. In 1960, Hoechst brought a 24,000 metric-ton-per-year direct oxidation unit on stream at its main plant near FrankAUG.
3, 196 4 C & E N
111
furt. The same year, Wacker Chemie (50% owned by Hoechst) started up a 60,000-metric-ton unit near Cologne. The following year Hoechst's wholly owned subsidiary, Knapsack-Griesheim, switched some of its acetylenebased acetaldehyde production over to a 37,000-metric-ton ethylene-based plant. In 1963, Knapsack started up a second plant having an annual capacity of 45,000 metric tons. The company has plans under way for a further extension of its ethylene-based acetaldehyde by another 48,000 metric tons a year. In all, Hoechst, Knapsack, and Wacker will have a total annual capacity of 214,000 metric tons of ethylene-based acetaldehyde by the end of this year or early next year. At capacity operation, these plants would consume close to 150,000 metric tons a year of ethylene. How much of total West German acetaldehyde is now ethylene-based is hard to know precisely. If Hoechst, W7acker, and Knapsack ran their original three plants at full capacity last year, they turned out 121,000 metric tons of acetaldehyde and consumed about 85,000 metric tons of ethylene in the process. Total acetaldehyde production last year was 253,300 metric tons. So the ethylene-derived portion could have been as much as 48%. Acetaldehyde, a key compound leading to a variety of important products such as acetic acid, vinyl acetate, 2-ethyl hexanol, and the like, has enjoyed a modest, if not sensational, growth of about 6% a year since 1952. Last year, production suffered a 2% setback compared to 1962. But the long-haul outlook is probably for continuing growth at 5 or 6f/o a year. At this rate of growth, ethylene-based acetaldehyde production might reach 250,000 metric tons in 1968, requiring 175,000 metric tons of ethylene. Ethylene Dichloride Will Become Popular as a Route to Vinyl Chloride Vinyl chloride production, as happened to acetaldehyde production, is in for a big switch from acetylene to ethylene as a raw material. Until recently, all West German vinyl chloride production was based on acetylene. This past spring, though, Knapsack started up a combined plant that can produce 29,000 metric tons a year of vinyl chloride from acetylene plus a like amount from ethylene dichloride. The ethylene dichloride is cracked to 112
C&EN
AUG.
3, 196 4
Badische Anilin- & Soda-Fabrik's ethylene plant (at Ludwigshafen, West Germany) now has a capacity of 50,000 metric tons a year of ethylene from petroleum crude
give vinyl chloride and hydrochloric acid, which in turn is used to hydrochlorinate acetylene and yield still more vinyl chloride. This combined process is not new, certainly, but it's new to West Germany on a commercial scale. BASF is planning a move, similar to Knapsack's at Ludwigshafen. There BASF will build a 48,000 metric-ton-a-year vinyl chloride plant that will crack ethylene dichloride. The unit, when on stream in 1965, will complement the firm's existing acetylene-based operation, whose capacity is 50,000 metric tons a year. BASF plans to raise the capacity of this new plant to 72,000 metric tons of vinyl chloride by 1966. The plant will need 78,000 metric tons of ethylene dichloride to meet the initial vinyl chloride capacity and about 120,000 metric tons to supply the expanded plant. Thus, ethylene dichloride, which has not yet been made in any great amount
in West Germany, is due for a sharp climb, its fortunes tied to polyvinyl chloride. By 1966, ethylene-based vinyl chloride capacity will be 101,000 metric tons a year (based on known plans). This vinyl chloride production capacity will require an ethylene dichloride input of 167,000 metric tons a year (52,500 metric tons ethylene equivalent). With polyvinyl chloride continuing to show the spark it has (11 years of 25%-a-year jumps in production), it shouldn't have much trouble holding up to a growth of at least 10% a year. If, indeed, it does hold to that 10% rate, polyvinyl chloride producers would have to put out 440,000 metric tons of their product by the end of 1968. If half of this production were based on ethylene, it would mean a 363,000-metric-ton ethylene dichloride requirement. This amount of ethylene dichloride, in turn, would take about 115,000 metric tons of ethylene. Ethylene dichloride would then be the
fourth largest consumer of ethylene, using about llr/c of the total. Another future ethylene dichloride outlet is tetraethyllead, which is not now made in West Germany. However, Associated Octel, a British firm, plans to build a tetraethyllead plant near Mainz. Ethylene is storming still another of acetylene's bastions. Earlier this year, ICI decided to build a new vinyl acetate plant that will use an ethylenebased route (C&EN, March 30, page 53). Several other companies are working on ethylene-to-vinyl-acetate processes and may soon be making similar moves.
Acetylene Markets Remain Strong, Despite Inroads by Ethylene These developments are taking their toll of acetylene consumption in the organic field. Observers expect acetylene consumption—which reached 281,000 metric tons in 1960, dropped to 280,000 metric tons in 1961, then jumped to 300,000 metric tons in 1962—to slide off again to about 250,000 metric tons a year in the next several years. In 1962, ethylene passed acetylene, becoming West Germany's second largest tonnage building block organic chemical (after carbon monoxide). Acetylene is not down and out, to be sure. Chemische Werke Huels, for example, expects to continue its big acetylene-based operations at Marl. The company thinks it has a unique raw material position with its electric arc process that allows it to use several (liquefied petror different feedstocks leum gas and gaseous hydrocarbons such as refinery gases). Another plus factor for the acetylene-electric arc process is the credit that Huels gets from selling the large amounts of hydrogen produced by the arc. [ This summer Huels will start up its new 60,000 metric-ton-per-year soft detergent plant. Huels will chlorinate saturated straight-chain paraffins produced in Gelsenberg's UOP Molex unit. Next, through a Friedel-Crafts • reaction, the paraffin will be used to alkylate benzene. The resulting hydrochloric acid will then go into polyvinyl chloride production. All these factors make Huels feel comfortable ' with its acetylene. BASF, though it will be adding h some ethylene dichloride-based vinyl chloride capacity, hasn't given up on acetylene either. BASF is just start-
ing up its new 60,000-ton acetylene plant that will use light naphtha feedstock. BASF's petroleum-based acetylene plant underscores another basic change in West German chemicals. Between 55 and 60% of all primary organic raw material was made from petroleum in 1962. In 1957, the amount was only 24%.
New Copolymers Will Help
Styrene
Styrene takes a good part of ethylene production, too. With only two producers, Huels and BASF, no official data on production or exports and imports are available. Total styrene capacity is about 170,000 metric tons a year. Since BASF plans to raise its capacity in steps to 150,000 metric tons a year from the current 80,000, it might not be too far off the mark to assume that 1963 production was creeping up on total capacity (170,000 metric tons). According to one company's estimate, styrene will have an average annual growth rate between 1961 and 1968 of a little over 5%. But this is too conservative, according to a BASF executive who says that consumption during the past two to three years has almost doubled. Such growth is equivalent to an average rate of at least 26% a year. However, any analysis of the styrene market is complicated by the fact that styrene imports are high. Unfortunately, West German trade statistics don't list the monomer separately. Most styrene goes to polystyrene, WTest Germany's third biggest plastic. Styrene-butadiene rubber, 25% of which is styrene, is the second largest outlet. And styrene producers are looking for new outlets. No official figures are available on polystyrene production in West Germany. But according to C&EN estimates, total capacity of BASF and Huels facilities is about 110,000 metric tons a year. BASF is raising its capacity for all types of polystyrene to about 200,000 metric tons from 80,000. The company has been specific about its polystyrene only regarding expandable grade material, of which capacity is now 30,000 metric tons, to be raised to 80,000. Huels may also follow with an increase in polystyrene capacity later this year. Total production of all types of synthetic rubber last year was 112,000 metric tons. Of this total, about
90,000 metric tons was styrene-butadiene rubber, which took about 22,500 metric tons of styrene. Most of the remaining styrene (about 150,000 metric tons) probably was used in making various grades of polystyrene. Most of the polystyrene production goes into injection molded and foam products, two fast-growing outlets in West Germany. Acrylonitrile-butadiene-styrene and acrylonitrile-styrene copolymers are also riding a rising consumption curve, as are unsaturated polyesters, whose production was about 10,000 metric tons last year. BASF already makes acrylonitrile-butadiene-styrene and acrylonitrile-styrene resins. Huels turns out pilot plant amounts of acrylonitrile-butadiene-styrene material and may go into commercial production before the end of the year. One West German executive estimates that consumption of acrylonitrile-butadiene-styrene resins in West Germany will rise at about 30% per year for the next two to three years, then fall off to 10 to 15% annual rises in the face of competition from polypropylene. Styrene's bread-and-butter outlets, polystyrene and styrene-butadiene rubber, along with these promising newer outlets, could drive styrene production close to 300,000 metric tons a year by 1968. Such a production figure represents an average annual growth over the next five years of about 10% based on a current production estimate of 170,000 metric tons. Production of 300,000 metric tons of styrene would require some 90,000 metric tons a year of ethylene. Alfol Alcohols Are Noio Moving into the Ethylene Picture Condea Petrochemie's straight-chain alcohols should take hold in the soft detergent and plasticizer market during the next several years. With the growing demand for soft detergents created by West Germany's recent detergent law and buttressed by increasing European demand for liquid detergents, Alfol alcohols shouldn't have too much trouble establishing a firm market for themselves. At full capacity, Condea's plant will generate a 60,000 metricton-per-year ethylene requirement for Deutsche Erdoel's Heide plant. (Deutsche Erdoel and Conoco jointly own Condea.) Another promising future outlet for both ethylene and propylene is AUG. 3, 196 4 C&EN
113
ethylene-propylene copolymers. So far, the market hasn't been opened in West Germany. But market research teams from Hoechst are now trying to get a reading on the potential market. Weather stripping and gaskets are two typical uses being studied. The big outlet that producers are aiming for is the all ethylene-propylene terpolymer tire. Although such a tire could take five to 10 years to develop, it could mean landing a market that now takes about 100,000 metric tons of styrenebutadiene rubber.
Meanwhile, though, market forecasters in West Germany feel that ethylene-propylene terpolymer might reach 12,000 metric tons by 1968. During the same time, styrene-butadiene rubber will probably have risen to anywhere from 20 to 50% above its 1963 level. Saturated ethylene-propylene rubber hasn't aroused much interest in West Germany, mainly because of the bad odor of the material when vulcanized with peroxides. Huels and Hoechst have cooperated in technical
development of ethylene-propylene terpolymer rubber in West Germany and both have pilot plants in operation. West Germany Is the EEC's Only Big Synthetic Ethanol Producer West Germany is the only EEC country with any important synthetic ethanol production. West Germany's output is 20 times that of the Netherlands, the only other synthetic ethanolproducing country in the EEC. Ethanol production in West Germany for the year ending Sept. 30,
Ethylene oxide 10-
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114
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1963, was 13.2 million gallons (equivalent to 39,500 metric tons of 100% ethanol), estimated from a total figure that includes alcohol made by fermentation of cellulose-derived products. Cellulose-based ethanol is still important in West Germany and accounted for about 30% of all industrial alcohol production in 1963. In turning out 39,500 metric tons of ethanol last year, West Germany's two producers-Erdoelchemie and Hibernia —probably consumed 28,000 metric tons of ethylene, making ethanol the
country's fifth largest ethylene outlet. The production of synthetic ethanol spurted ahead 550% between 1959 and 1960 and another 90% in 1961. This production jump was probably caused by Erdoelchemie's 32,000 metric-tonper-year plant at Dormagen coming into full operation in 1960. Total industrial alcohol production, including that derived from cellulose, moved ahead only 65% in 1960 and 4 5 % in 1961. Thus, much of the high growth in synthetic ethanol production was apparently related to a switch in the
Ethvlen^filycois 40-
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process rather than to a rising demand. Ethanol consumption will probably show a 4 to 5% (maximum) per year increase during the next several years. The outlook is for an annual output of about 50,000 metric tons of synthetic ethanol by 1968 (equivalent to 35,000 metric tons of ethylene). If synthetic ethanol does no better than 50,000 metric tons a year, it will decrease in relative importance as an ethylene outlet, losing out to ethylene dichloride and Alfol alcohols. The federal government of West Germany controls synthetic ethanol production and prices through the Monopol Verband in Offenbach (a city near Frankfurt). Producers must sell all their alcohol to the Verband. Consumers must buy the product from the Verband. And the Verband sets production levels. Industrial ethanol goes into the normal outlets: solvents, extraction uses, and miscellaneous chemical reactions. Isopropyl alcohol, cheaper than ethanol and uncontrolled by the Verband, competes for some of these uses (solvents and cosmetics especially) and may be cutting into ethanol's markets. Almost no ethanol is exported, and imports have been large. Last year (year ending Sept. 30, 1963), for example, imports totaled about 21,000 metric tons (from all sources). The year before, imports amounted to only about 6000 metric tons. Ethanol prices vary with end use and quality. Technical grade material sells for 63 cents a gallon. However, the price for ethanol for pharmaceutical uses is $1.98 a gallon plus $8.00 a gallon tax. For cosmetic use, the price is $1.98 a gallon plus $5.65 a gallon tax. The price for alcohol that's destined for human consumption is $2.55 a gallon plus $9.45 a gallon tax. (These prices are based on 100% ethanol.)
20
Propylene Capacity Outdistances i«h
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In West Germany propylene presents quite a different picture from ethylene. Whereas ethylene should have little trouble finding outlets, propylene will probably go begging in the next several years. This hasn't always been the case, though. An executive of one large petrochemical firm says that until about a year ago, he could have sold more propylene than he did if he only had more available to sell. He points AUG.
3f
196 4 C & E N
115
Production of Ethylene and Its Derivatives Is Increasing Across the Board In West Get'man; (Thousands 0t
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