Dushan Energy Ltd., a subsidiary of China’s leading polyester producer Xinfengming Group Co., Ltd, has started first purified terephthalic acid (PTA) line at Zhejiang yesterday. Xinfengming Group’s Chairman Zhuang Kuilong officially put the Dushan Energy PTA Phase I plant into operation by pressing a start button. The company is setting up two PTA production lines of 1.1 million metric ton per annum each at the location as a part of their backward integration and consolidating the manufacturing chain. This 2.2 million metric ton per annum PTA units are first phase of the company’s Yuan 7 billion (US$1 billion) investment project in upstream processes which will improve the resource utilisation and cost completeness in polyester yarn manufacturing. Xinfengming Group currently has capacity of producing around 3.7 million metric ton of polyester per year.
Dushan has installed BP’s latest PTA process technology and patented equipment which is believed to be superior compared to the traditional PTA technology. It claims that new process can reduce 95% solid waste, 65% of greenhouse gases and 75% of wastewater discharge. On the market front, PTA spot prices remained weak in Asia especially in China. It is learnt that this week’s traded price of PTA is around US$ 622- 627 per metric ton CFR China.