China is set to drive capacity growth in the global propylene oxide (PO) industry from planned and announced projects between 2019 and 2023, contributing around 41% of the global growth by 2023, according to GlobalData, the data and analytics company and parent of just-auto.com.
The company's report, Global Propylene Oxide (PO) Industry Outlook to 2023 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants, revealed China was expected to have a planned and announced PO capacity of 1.52m tonnes per annum (mtpa) by 2023. The new build projects account for the entire capacity additions in the country.
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Propylene Oxide (PO) does not go directly into the automotive sector but derivatives such as polyols (used in polyurethane foam) and propylene glycol (used in unsaturated polyester resins) are used in the auto industry.
Sowmya Sivaji, oil and gas analyst at GlobalData, said: "China is expected to add seven planned and announced projects during the outlook period.
"Among these, CNOOC and Shell Petrochemicals Company Huizhou Propylene Oxide Plant 2, Wanhua Chemical Yantai Propylene Oxide Plant 2 and Zibo Qixiang Tengda Chemical Company Zibo Propylene Oxide Plant are the largest projects, each with a capacity of 0.30 mtpa."
