Plants: Sumitomo Chemical to close MMA plants in Singapore; Toyo Engineering awarded EPC contract for SAP plant in Indonesia

Japan’s Sumitomo Chemical Co has decided to close two of the three production lines for methyl methacrylate (MMA) monomer and polymethyl methacrylate (PMMA) at its wholly-owned subsidiary Sumitomo Chemical Asia Pte Ltd, located in Singapore, by the end of September 2024.

This will result in an approximately 80% reduction in MMA monomer production capacity and an approximately 70% reduction in PMMA production capacity at the location.

PMMA is a plastic that possesses outstanding transparency and weather resistance, as well as gloss. It is used in a wide range of applications, such as automotive taillights, signage, water tanks in aquariums, and optical components of liquid crystal displays. MMA monomer is used as a raw material in both PMMA and coating materials.

While the market conditions for MMA monomer and PMMA are showing signs of recovery after a period of significant slowdown, it is expected that their production capacity, particularly in Asia, will continue to expand going forward. In the midst of these conditions, the Sumitomo Chemical Group has concluded that it will be difficult to secure stable sales volumes and margins in the medium to long term, especially in the area of general-purpose grades of the products.

Following these capacity reductions, the group will focus on specialty and high-value-added PMMA products, in which it can leverage its technological strengths, and transform the structure of this business into one that is stable and resilient to changes in market conditions.

In addition to accelerating the transformation of its existing product portfolio and production systems, Sumitomo Chemical is making a major pivot in its petrochemicals business, and is directing its resources to value creation through environmental impact reduction technology.

For PMMA, the company completed a pilot facility for chemical recycling of the plastic at its Ehime Works in Japan in December 2022, and is currently working on technology validation and marketing activities to implement the chemical recycling technology in society as soon as possible. In May 2024, the Company also signed a collaboration agreement with Lummus Technology, a major US technology licensor, for the licensing and commercialization of chemical recycling technology.

Going forward, the company adds it will further step up its efforts to provide MMA-related solutions.

In other news, Indonesia’s PT Inti Karya Persada Tehnik (IKPT), a subsidiary of Toyo Engineering Corp, has been awarded an EPC contract by PT. Nippon Shokubai Indonesia, a subsidiary of Nippon Shokubai Ltd. (Tokyo) to expand its Super Absorbent Polymer (SAP) production plant located in Cilegon, West Java.

The SAP production facility will be upgraded with a capacity of 50,000 tonnes/year (totalling 140,000 tonnes/year when combined with the existing capacity of 90,000 tonnes/year).

IKPT will undertake the engineering, procurement, and construction (EPC) work for the project, which is slated for completion in 2027.

Toyo has a longstanding and successful partnership with Nippon Shokubai, beginning with the construction of an SAP production plant in China in 2003, followed by numerous projects across Asia, Europe, and the US.

In Indonesia, Toyo successfully completed an acrylic acid and SAP production plant for NSI in 2011 followed by an acrylic acid production plant in 2018.

The strong relationship between Nippon Shokubai and Toyo, along with IKPT’s project execution capabilities in Indonesia were key factors in securing award of this project, the companies add.

Subscribe to Get the Latest Updates from IMA  Please click here