Mitsui's phenol plant in S'pore

Mitsui's phenol plant in S'pore

SINGAPORE (AP): Japan's Mitsui Chemicals Inc. said Monday it will build a US$180 million phenol plant on Singapore's Jurong island, Singapore TV reported.

Mitsui Chemicals, Japan's second-largest petrochemical concern, is set to establish a joint project venture, called Mitsui Phenol Singapore Ptd., in April 1999. The company will own a 90 percent stake in the venture, while a Japanese trading house Mitsui and Co. will hold the remainder.

At a total investment of $180 million, the joint venture will construct a plant that will have a production capacity of 200,000 metric tons a year of phenol.

Phenol is a raw chemical material used as dye stuff in textile manufacturing, and in the production of pharmaceuticals. Asian demand for the product is expected to climb at an annual average growth of 6.2 percent to 1.66 million tons in 2002, according to Mitsui.

Mitsui's plant will be the first phenol plant in the Association of Southeast Asian Nation region, while representing the first overseas phenol production site for Mitsui Chemicals, the officials noted.