Current Edition >> Archives Section >> Leading Stories >> August 2001
SASOL Solvents, a division of Sasol Chemical Industries, has just announced the go-ahead for the construction of a new chemical complex at the Midlands site in Sasolburg - a project that would involve a possible total investment of R5 billion over the next 10 years, creating in the process some 4 000 jobs.
The first phase of the project is a normal-butanol (n-butanol) plant with an annual production of 150 000 tons, due to commence during 2002. The plant is to utilize proprietary hydroformulation technology licensed from Mitsubishi Chemical Corporation (MCC) of Tokyo, one of the largest chemical manufacturing and marketing companies in Japan. The plant will facilitate Sasol's planned diversification into the downstream derivatives of n-butanol, including n-butyl acetate and n-butyl acrylate. Most of the n-butanol and the derivatives of butanol are to be exported offshore, including sales to MCC as part of an offtake agreement with Sasol.
Officiating at the launch, Minister for Trade & Industry, Mr. Alec Erwin, said that the agreement between Sasol and MCC is for himself a dream came true. He said that it has been worked hard for a long time to procure investments from Japan for South Africa and that therefore this agreement comes as a breakthrough. Hopefully it will open the door for a further inflow.
Sasol's relationship with MCC will be strengthened considerably with a proposed acrylic acid and acrylates joint venture which is to include a further four plants at the Midland complex, producing annually 80 000 tons of acrylic acid and equivalent acrylates products. The expected expansion of the complex, which would include a possible doubling of the acrylic acid capacity as well as investment in a super absorbent polymer plant, could see total potential investment reaching almost R5 billion over the next 10 years.
Chemical solvents are used widely in the coatings, inks, adhesives and related industries. Sasol Solvents is the Southern Hemisphere's largest producer and marketer of industrial solvents, including a range of alcohols, ketones, acetates, acids and aldehydes. In Sasol's financial year ended June 2000, the division increased its turnover by 51% to R1 037 million, with sales volumes reaching 525 000 tons. More than two-thirds of this was exported to a total of 83 countries worldwide.
Chemicals have been identified as a key growth area for Sasol. The five new plants represent a major step towards the company's declared objective of growth, globalisation and value-adding to its feedstreams. The investment in the Midland complex will result in Sasol being the only player in the global acrylic acid and acrylates industry to produce all of the required feed materials and have them available at the same site. Acrylates being produced at the Midlands complex are an environmentally friendly water-based alternative to traditional solvents. SA industries currently import acrylates to the value of approximately R120 million per annum and the Midlands complex will therefore offer a reliable local alternative.
As a further benefit to the SA economy, approximately 80% of the acrylates production and more than 60% of the n-butanol production will be exported to global customers. This represents an export value of more than R1 billion per year once the plants are at full production.
Construction of the complex also brings particularly welcome relief to the economically depressed Vaal Triangle. The creation of up to 4 000 jobs temporary jobs during the peak construction period of the n-butanol and acrylic acid plants are being expected, eventuating into 150 permanent jobs on the long-term.
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