China Set to Become Largest Acrylic Acid Producer

By Qi Ruiping and Zheng Chengwang of Beijing Eastern Petrochemical Co., Ltd

1. Global Acrylic Acid Capacity Expanded
By December 2011, the world’s capacity to make crude acrylic acid (CAA, i.e. esterification-grade acrylic acid) had reached 5.38 million tons, up 4.3% YOY, from 5.16 million tons; capacity for common acrylate (CAE, including methyl acrylate, ethyl acrylate, n-butyl acrylate and 2-ethylhexyl acrylate), had reached 4.78 million tons, up 6.8% YOY. CAA is used in producing high-purity acrylic acid, which in turn is mainly applied to the production of super-absorbent polymers. While less CAA is used in manufacturing CAE.
   At present, the U.S., Europe and China are major producers of acrylic acid. With the fast-growing capacity, China is predicted to become the largest one by the end of 2012.

2. China’s Acrylic Acid Industry Grew Rapidly
1) Both the capacity and output increased
In recent years, China’s acrylic acid and ester capacities developed rapidly. Especially in 2011, a large number of production units were installed such as:
· 60 000 t/a acrylic acid unit (put into operation in August 2011) of Zhejiang Satellite Holding Group
· 160 000 t/a acrylic acid unit (to be put into production in 2012) of Jiangsu Yulang Chemical Co., Ltd
· 140 000 t/a acrylic acid unit of China National Offshore Oil Corp.
   The State’s CAA capacity increased 9.5% year-on-year to 1.25 million tons in 2011. Detailed information on China’s acrylic acid and ester capacities in 2011 is shown in Table 1, and statistics regarding China’s (mainland) acrylic acid and CAE outputs in recent years are shown in Table 2.

Table 1 China’s Acrylic Acid and Ester Capacities in 2011 (kt)
Company     CAA    GAA    PAA    MA    EA    BA    2-EHA    Total (Esters)
Beijing Eastern Petrochemical    80    24    5    15    15    50    15    95
Zhejiang Satellite Holding Group    160    0    0    30    40    100    40    210
Shenyang Paraffin Wax Chemical    80    0    0    10    10    80    20    120
Jiangsu Yulang Chemical    205    100    55    40    40     70    40    190
PetroChina Jilin Petrochemical Company    27.2    0    0    15    15    20    0    50
Shanghai Huayi Group    230    30    0    0    30    200    30    260
BASF-YPC    160    70    32.8    27.5    27.5    100    0    155
Formosa Plastic Group, Ningbo Branch    160    30    0    30    10    120    40    200
Shandong Qilu Petrochemical Kaitai Industry    30    0    30    6    0    0    0    6
Shandong Zhenghe Group    34    0    34    0    0    60    0    60
PetroChina Lanzhou Petrochemical Company    80    0    0    10    10    80    0    100
Total    1246.2    254     156.8    183.5    197.5    880    185    1446

Notes: CAA – Crude Acrylic Acid or Esterification-grade Acrylic Acid, PAA – Poly Acrylic Acid, GAA – Glacial Acrylic Acid, MA – Methyl Acrylate, EA – Ethyl Acrylate, BA – n-butyl Acrylate, EHA – 2-ethylhexyl Acrylate, CAE – Common Acrylate

Table 2 China’s (Mainland) Acrylic Acid and CAE Outputs (kt)
Year    CAA    Growth YOY/%     CAE    Growth YOY/%
2000    136.9    4.54    158.3    9.69
2001    147.5    7.74    206.3    30.30
2002    149.3    1.22    232.7    12.80
2003    154.8    3.66    244.1    4.89
2004    170    9.82    252.3    3.36
2005    326.9    92.30    405.9    60.90
2006    513.0    56.90    611    50.50
2007    697.0    35.90    732.4    19.90
2008    764.4    9.68    758.9    3.62
2009    836.5    9.43    849.4    11.90
2010       1028.6    23.00    1023.3    20.50
2011    1164.6    13.20    1163.2    13.70

In 2011, domestic CAA output was 1.165 million tons, gaining 13.2% year-on-year (CAE output, 1.163 million tons, 13.7%); the overall operating rate of mainland China’s acrylic acid units was 92.5%, up 1.1% from a year earlier (CAE units, 81.3%, down 0.1%).
2) Main products’ prices fell
As relevant foreign units restarted, which significantly dragged China’s exports down, and both the capacity and output of domestic acrylic acid soared in 2011, the prices of main products fell that year, when the price of high-purity acrylic acid slid from RMB22 000/t to RMB14 000/t.
3) Exports decreased
In 2011, the production units of acrylic acid and ester in Europe and America resumed normal operations, making China’s exports plummet 23.8% year-on-year.

3. Acrylic Acid Units to Be Constructed Worldwide
a. Nippon Shokubai plans to Expand Capacity Substantially
Nippon Shokubai Co., Ltd will construct an 80 000 t/a acrylic acid unit. Machinery is predicted to be installed by May 2013 and meet operation standards three months later. Benefiting from the unit, the acrylic acid capacity of Nippon Shokubai in Himeji will be pushed to 540 000 tons (and to 780 000 tons worldwide).
   Furthermore, in its factory located in Cilegon, Indonesia, Nippon Sholubai has started to build an 80 000 t/a acrylic acid unit, expected to be commissioned in August 2013, and a 90 000 t/a super-absorbent polymer (SAP) unit.
b. BASF is Building an Acrylic Acid Plant in Brazil
In 2011, BASF started to establish a world-class plant in Camacari, Bahia, Brazil to produce acrylic acid (160 000 t/a), butyl acrylate and SAP. The plant is expected to be put into operation in Q4 2014.
   Also in Brazil, BASF plans to build a 2-ethylhexyl acrylate unit in its integrated chemical device area at Guaratinguetá, Sao Paulo.
c. LG Chem is Constructing Acrylic Acid Unit in Yeosu
LG Chem is constructing an integrated set of acrylic acid and ester units in Yeosu, including a 160 000 t/a CAA unit, a 120 000 t/a high-purity acrylic acid unit, a 30 000 t/a butyl acrylate unit and a 70 000 t/a SAP unit. The plant is planned to be put into operation in 2H 2012, making the CAA capacity of LG Chem in Yeosu 360 000 tons.

4. Toagosei to Build an 80 000 t/a Acrylic Acid Unit
Toagosei intends to invest US$131 million in an 80 000 t/a acrylic acid unit, which is located in Oita, Japan and is planned to be commissioned in May 2013.

5. Acrylic Acid and Ester Project of CNOOC Put into Operation
CNOOC’s acrylic acid and ester project, located in Huizhou, is planned to be commissioned at the end of 2010 but the time was postponed to July 2012, when the State’s CAA capacity will increase 140 000 tons (CAE capacity, 160 000 tons).

6. Yip's Chemical is Building an 80 000 t/a Butyl Acrylate Production Line
Yip's Chemical Holdings Limited invested RMB300 million in an 80 000 t/a butyl acrylate production line, which is located in Jiangmen, Guangdong, and is expected to be put into operation in September 2012.

7. Acrylic Acid Unit of Formosa Plastic Group in Ningbo Ongoing
Formosa Plastic Group is constructing a set of acrylic acid and ester units in Ningbo, expected to be put into operation in 2014, making the CAA capacity of the company at Ningbo 320 000 tons. The unit includes a 160 000 t/a CAA device, a 60 000 t/a glacial acrylic acid device and a 120 000 t/a butyl acrylate device.

8. Yantai Wanhua is Constructing Acrylic Acid Unit
Yantai Wanhua Group is planning for a series of chemical projects, including a 300 000 t/a acrylic acid project, for completion in 2014, and a 600 000 t/a unit to produce propylene through propane dehydrogenation.

9. BASF-YPC to Construct a Glacial Acrylic Acid Unit
BASF-YPC plans to construct a 190 000 t/a glacial acrylic acid (GAA) unit in Nanjing Chemical Industry Park. The unit will employ advanced GAA patent technologies of BASF and raw material propylene will be produced by the company’s own upstream ethylene units. Upon completing the unit, BASF-YPC will close its currently operating 70 000 t/a GAA unit.

10. Zhejiang Satellite and Jiangsu Yulang to Be China’s Two Biggest AA Producers
Zhejiang Satellite Holding Group (ZSHG) and Jiangsu Yulang Chemical Co., Ltd (JYC) are set to become China’s two largest acrylic acid producers. By the end of 2013, their combined CAA capacity will exceed 1 million tons (ZSHG, 480 000 tons; JYC, more than 500 000 tons).

Conclusion

In China’s acrylic monomer sector, upstream firms and downstream corporations must develop together. Traditional applications of acrylic acid include adhesives, coatings, textiles, leathers, papermaking, etc. Newly emerging areas are SAP, concrete water reducing agents, etc.