US, China growth to continue fuel global petchem demand:IPCL head

New Delhi (Platts)--27Jun2005

The current upturn in the petrochemicals sector is likely to continue due to
the strong global demand for petrochemical products, said Mukesh Ambani, the
chairman of Indian Petrochemicals Corp Ltd, Monday. "The global petrochemical
industry today presents a picture of buoyancy. Demand is strong, supply is
tight and inventories are low," he said at the annual shareholders meeting.

Ambani is also the chairman and managing director of India's petrochemical
major Reliance Industries Ltd. "Strong economic growth, particularly in the
USA and China, has contributed to optimism in the industry. Demand in domestic
[Indian] market is also envisaged to grow strongly on the back of increases in
per capital income," said Ambani. The growth in automobiles, appliances,
packaging, water management, housing and infrastructure would lead to strong
growth in demand for polymers even as the IPCL and the petrochemical industry
have to contend with volatile feedstock and increased energy costs, putting
pressure on pricing and margins, Ambani told shareholders.

Meanwhile, Ambani detailed several projects that IPCL has either initiated or
commissioned. IPCL has raised monoethylene glycol plant capacity at Gandhar by
157% to 188,000 mt/yr; raised caustic soda output capacity by 25% to 170,000
mt/yr; and raised acrylonitrile plant capacity at Baroda by 17% to 42,000
mt/yr. The company was also expanding its PVC plant capacity from 245,000
mt/yr to 315,000 mt/yr. 

IPCL's petrochemical business comprises manufacture of products like polymers,
synthetic fiber, fiber intermediates and surfactants totaling over 1.5-mil
mt/yr. It owns and operates three petrochemical complexes: a naphtha-based
complex at Vadodara and two gas-based plants at Nagothane and Dahej.

This story was originally published in Platts Petrochemical Alert
http://petrochemcialalert.platts.com

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