CHECKOFF NEW PLANTS
• Ammonia—Hawkeye Chemical, subsidiary of Skelly Oil, to be third partner with 25% interest in 1200 ton-per-day ammonia plant near Woodward, Okla., to be in operation in mid-1977; other two partners to be Woodward Chemicals subsidiary of W. R. Grace with 50% and Terra Chemicals International (C&EN, June 2, page 11). • Ferro alloys—Joint venture formed by International Minerals & Chemical (75%) and Allegheny Ludlum Industries (25%) to build a $34 million ferrosilicon facility at Bridgeport, Ala., with annual capacity of about 72,000 tons of 50% equivalent. • Herbicides—Construction begun by Rhodia Inc. on expansion for methylchlorophenoxyacetic acid and 2,4-dichlorophenoxybutyric acid at Portland, Ore., to be completed in fall 1975. • Niacinamide—Plant costing $8.5 million planned by Degussa Alabama Inc., subsidiary of West Germany's Degussa, at Mobile, Ala., with 3000 metric-ton-peryear capacity, to be operational in late 1977. • Soda ash—Ground broken by Kerr-McGee Chemical for $175 million expansion at Trona, Calif., to increase annual capacity from less than 150,000 tons to 1.3 million tons in late 1977. PLANTS COMPLETED
• Chlorine-caustic—By GeorgiaPacific at Plaquemine, La., in July; annual capacity of 580,000 tons. • Diammonium phosphate—By Hooker Chemical at White Springs, Fla.; capacity 50 tons per hour; construction by Gulf Design division of Badger. • Ethylene—By Mobil Chemical at Beaumont, Tex.; delayed startup now in progress. • Malic acid—By Allied Chemical at Moundsville, W.Va.; 1974 production rate now tripled. • Phosphoric acid—By Agrico Chemical subsidiary of Williams Cos., in Donaldsonville, La.; ca.pacity 1263 tons per day; construction by Davy Powergas.
10
C&EN June 30, 1975
Phthalic anhydride ma :ers foresee shortage When producers that are operating their plants at less than 50% of capacity all stubbornly insist that a long stretch of tight supplies lies ahead for their product, aren't they being just a little bit impudent? Not necessarily. Phthalic anhydride producers have been limping along, turning out less than half the amount of product that their plants can produce during the first quarter of the year. Yet, they all see a phthalic shortage—possibly a severe shortage—ahead. And they're not being at all impudent. Right now, phthalic customers can get all the material they want. The problem is that they don't want much. Not only is demand off in phthalic's two major markets—plasticizers and polyesters—but export sales have slumped as well. In fact, attractive domestic prices are pulling in imports this year. Next year, however, the picture likely will start to change, assuming the heralded economic recovery actually occurs. Phthalic demand then could return to a closer-to-normal growth curve. By 1980, demand could hit 1.4 billion lb. Present phthalic capacity is just about 1.1 billion lb. That's nameplate capacity and producers do well to average 90% of nameplate. Although that's plenty of capacity to supply this year's market, it's hardly adequate to meet future demands. Yet so far, there's not one new phthalic plant in sight. Companies contemplating possible new phthalic plants evidently are waiting until some of the uncertainties about feedstock supply and price are cleared up. The tough emission standards for vinyl chloride raise some doubts about the future of polyvinyl chloride. To a phthalic producer, this means doubts about phthalate plasticizers. The cost of capital is another factor. Economics of scale dictate that a new phthalic plant be in the 130 million to 150 million lb-per-year range. A plant of this size costs $60 million or more to build. Possible new producers are weighing all of these factors. Within the rumor mill, two of the leading candidates for new phthalic plants are Tenneco and W. R. Grace, but rumors about both of these companies are getting gray with age. For the record, Tenneco will say only that "our phthalic position is under active study." At one time, its Heyden Newport division made phthalic at Fords, N.J., in a unit converted from maleic anhydride. After a few years, the company returned the unit to maleic service. W. R. Grace now is talking with Puerto Rican officials about a petrochemical complex on the island. The complex will include phthalic, vinyl
chloride, and polyvinyl chloride units if it is ever built. Right now, Grace considers the project to be in the "planning and development stage" and a long way from a final decision. The company also is a former phthalic producer. It, too, produced phthalic in two units at Fords, N.J. The company already has a plasticizer alcohol plant in Puerto Rico. Even if a decision to build a phthalic plant were to be made today, it would take an estimated two and a half to three years to bring it on stream. And at least two more 150 million lb-peryear units will be needed to meet the demand that is expected to build up over the next few years. Incremental expansions this year won't add much, if anything, to total phthalic capacity. Last month, Koppers brought on stream a 45 million lb-per-year expansion at Cicero, 111.
Phthalic output will pick up but from extremely low level Millions of lb 1400i 1 1
1
1
1
70
72
74
r
1200 1000 800 600 400
1964
66
68
76 80
Sources: International Trade Commission, C&EN estimates
The addition raised the capacity there to 175 million lb annually. This October, U.S. Steel is scheduled to complete a 50 million lb-per-year expansion of its 155 million lb-per-year plant at Neville Island, Pa. Although these two expansions add 95 million lb to phthalic's annual nameplate capacity, the net gain will be virtually nil because Union Carbide closed its 90 million lb-per-year unit at Institute, W.Va., on Jan. 1. The Institute plant, which used petronaphthalene as its feedstock, was old and uneconomical. With no new capacity in sight for at least two or more years, phthalic producers have good reason to talk of impending shortages. Meanwhile, they will have to live through this year with an output that will be lower than anything they have experienced since 1966. During the first quarter of the year, phthalic production followed PVC, plasticizers, and polyesters into the doldrums.
Nearly 70% of phthalic capacity is based on o-xylene Millions of lb per year
Location
Capacity
Allied Chemical BASF-Wyandotte Chevron Chemical Exxon Chemical Hooker Chemical Koppers
El Segundo, Calif. South Kearny, N.J. Richmond, Calif. Baton Rouge, La. Arecibo, P.R. Bridgeville, Pa.
35 130 50 90» 90 90
Cicero, III. Bridgeport, N.J.
175b
Monsanto Stepan Chemical Union Carbide
Texas City, Tex. Millsdale, ill. Institute, W.Va.
130 50
U.S. Steel
Neville Island, Pa.
155 compatible
resinous, nonvolatile. non-mi^ratin^ plastici/er for pol\\in\l acetate.
Cambridge Industries Co. 440 Arsenal St. Watertown, Mass. 02172 Serving since 1946
June 30, 1975 C&EN
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