Exxon expands in China
-- Purchasing, 10/15/2009 2:00:00 AM
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ExxonMobil is increasing its investment in Asian chemicals plants because of an expected sustained surge in future Chinese and Indian chemicals demand.
T.J. Wojnar, the senior vice president who oversees Exxon Mobil's worldwide chemicals business, tells Bloomberg that China's appetite for chemicals and resins already is climbing 10% annually and will continue to expand for at least the next 15 years. India probably will be the major driver of global demand a decade from now, he adds.
So, Irving, Texas-based Exxon Mobil is evaluating whether to form a joint venture with Qatar to process the Persian Gulf nation's natural gas into chemicals for export to the firm's new plant in Fujian, China, that began production this year and its Singapore complex that will be expanded in 2011.
"We continue to think about opportunities in China," Wojnar tells Bloomberg. "More than half of the world's petrochemical growth is going to be in China, so there's definitely room for more facilities to be built out there."
Use of chemicals in China is being driven by expanding personal incomes and the desire to use lighter, cheaper materials for food containers, auto parts and building materials.
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