Showa Shell Sekiyu K.K. and Showa Yokkaichi Sekiyu Co., Ltd. announced today that they will construct facilities for a Toluene Disproportionation Process (TDP) at Showa Yokkaichi Sekiyu Yokkaichi refinery. TDP is a process that produces mixed xylene and benzene primarily mainly from toluene.

The decision comes as a key step in Showa Shell implementing its Medium Term Business Action Plan that includes expanding its petrochemical business. Showa Shell Sekiyu is shifting some of its oil products to petrochemicals in response to changes in the structure of oil demand in Japan. The shift will allow Showa Shell to produce more aromatics, including mixed xylene. The investment decision enhances the company's ability to respond to business environment changes and is a part of strategy that expands business activities from the Japan domestic market to the wider Asian market.

While domestic oil products demand is declining in Japan, demand for mixed xylene, a feedstock for polyester chemical fiber, is rapidly growing in the Asian market. By fully utilizing existing units, the project has cost advantages and improves Yokkaichi refinery's global competitiveness by efficiently producing high-value added products.

Preparatory work on the project will commence immediately with commercial operations expected to commence in 2016.

Project Outline

Unit to build : Toluene Disproportionation Process (TDP)
Location : Showa Yokkaichi Sekiyu Co., Ltd. - Yokkaichi Refinery
Capacity : Mixed Xylene Production at 200KT/year
Startup : 2016 (plan)

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