By Jane Han
Staff Reporter
Specialty film maker SKC, a subsidiary of SK Group, said Wednesday that it started the world's first commercial production of propylene oxide (PO) based on an eco-friendly, hydrogen peroxide (HP) efficient process. The petrochemical is a versatile chemical intermediate used in many industrial and commercial products, such as steering wheels and mattresses.
HPPO-based PO production is a leading-edge technology that many global chemical players have been trying to commercialize in order to solve drawbacks ― such as lack of efficiency and potential environmental hazards ― of existing production methods.
SKC invested over 200 billion won in a new plant in Ulsan since it entered into a license agreement with Evonik and Udhe, two Germany-based chemical firms, to use their non-commercialized HPPO technology in May 2006.
The new plant is capable of producing 100,000 tons per year, which will increase the company's total annual PO production capacity to 275,000 tons. This will satisfy more than 90 percent of the current domestic demand of around 300,000 tons per year, according to SKC.
The company says its short-term target is to improve productivity of the new plant by 20 percent by the year-end and 30 percent by the first quarter of 2009.
By the first half of 2011, SKC plans to expand its annual domestic PO production to 400,000 tons, mainly to supply local demand. The company says it is considering setting up an additional 400,000-ton production facility in China or another Asian country to meet overseas demand.
SKC CEO Park Jang-suk said in a statement, ``As the PO shortage in the Asian market is expected for an extended time, the world's first commercialization of HPPO-based production is providing a great opportunity for SKC.''