P. 1



# OAR Box 1872 Prepped by Keeia Richards



# Document

Number: 

# 80 ) 11-1-12

9 Docket Number: 

# A-90-1 9

Printed 11/26/20088:52:00AM

Sheet 80of 204

### P. 2 OLI . I D I *r . I T i IN. U . £' I U 3 •o - o-3 i •-j-aor w•r\MuiM U uur.r u 

### 0LaA~/0*J

TLaa-f^fff

?iyt fJfj/r f JUN E 199 0 ' ^ •Yrrloaiatapon - Octobe r1995 TEREPHTHALI C ACI D 

# 19 8 

# A-90-1 9 IM-12 9

FOCUS....Terephthali c aci d (TPA) i s a vereetil e aromati c acid . A reactiv e compound , TP A undergoe a reac tion s cheracteriati e o faromati c dicarboxyli c acida , auc h e e esterification , halogenation , hydroganation , an d aci d halid e formation . Terephthali c acid , eithe ra a th e fre e aci d o ra a th a intermediat e dimethy l terephthalat e (DMT) , i e used primaril y i n th e productio n o fpolyethylen e terephthelet e (PET) polymer e fo r fiber s an d plastics . However , polybutylen e terephthalat e (PBT ) polymers er e als o importan t reein s uae d i n moldin g variou s plasti c product s en d specialt y bottlae . Rigi d elloy a o fPB Thev e application a i n moldin g automotiv e bod

y components . Bot h productio n snd domesti c deman d fo rTPA/DM

Treache d recor d high e i n 1988 , wit h productio n ectuell y exceedin g eetimata d '•nameplate " capacit yb yove r50 0 millio n pounds . Thi s outpu t wa s i n rsspons s t o sn extreordinar y hig h leve l o fdemen d fo rbot h th e monome r(principall yTPA

) an d polyeste rfiber s i n th e Fa r Easter n markets . Also , TPA/DM Tfacilitie s ar e believe d cepsbl s o frunnin g a t rats s 40-50 * highe rtha n "nameplsta " fo rlimite d period s o ftime * 1989 ss wth e renewe d influenc e o freduce d fibe rdeman d domesticall y i n th e fee s o fimpoxt e fvu m th e fa rEeet , bu t deman d fo rpolyeata rra wmateria l TPA/DM T contmue e unabate d a t a hig h level , buoye d b yBtil l atron g expor t markets . OUTLOOK....Abou t 60-63 * o fTPA/DM Ti s consume

d b yth e polyeete rfibe rindustry . Th e outloo k fo re continue d depresse d fibe rindustr y wil l b e reflecte d i n ststi c i fno t declinin g TP A requiremsnts . A hig h lsvs l o ftextil e an d clothin g import s wil l continu e t o cu t int o demen d fo rdomesti c polyeete rfiber . Althoug h ther e wil l b e greatl y increase d deman d fo rPE

Ti n plasti c bottl e moldin g en d plauti c tap * an d film , th e declin e i n fibe rgrowt h wil l overshado wprojecte d growt h m thee e othe rapplicationa , thu s bringin g oversl l TPA/DM Tgrowt h dow

n t o a nomina l 2-jfc/yea rrat e overal l i n th e nea rfuture . U S 198 9 productio n o fPE Tplasti c ream s ws s estimste d e t abou t 2 billio n lbs. , wit h abou t 60 Xo fthi s tonnag e uae d a s eolid-etate d resi n fo rbottlea . Der*end fo rbottl e gred e i a expecte d t o continu e t o in creas e b

y a t leas t 8-10

% annuall yfo rth e next severa l years . Tap e an d fil m applications , moa t o fth e re mainin g 40* , ar e mor e mature an d ehoul d sho wmodea

t growt h o f3--4*/year . PRICING....Paraxylen e i a th e majo rra wmaterie l fo rTPA/DMT . TP A i s generall yprice d aeeordin o t o a formul a LHS-BL

) o n oeraxvlen e coete . Dut containin o fue l oil'an d u-hn.•«•. •r.T-*r» wmnR » rert-nra j • •«*fi . PM T pricin g i e normall yfactore d of fo fth e TP A price . I n th e firs t qusrts ro f1990 , th s TP A formul s prie s ws

s 3Q.2 2 cent s pe rpoun d «ut h DM Te t 27.5 0 cents , wit h parexylen e quote d e t 25. 5 cent s pe rpound . Wit h • H»fHn « i n pB»a-.*ylen t p«a>*ing e * e 21 * e©nt » i n th » 2n«* / -a-uatrtor , th * TP A ptse * f.l l t o 39.70 , nat h DM T« t 26.32 . Som

e modes t escslstlo n i n price s ca n b e expecte d ove rth e nex t severa l year s a e hydrocarbo n price s i n genera l eacalat e i n lin e wit h th a expecte d increase s i n crud e oi l vslues . [ AVERAG E PRICE RANQ

C - TEREPHTHALI

C ACI D Csnt s Pa rPoun

d - Bul k

- TP A (Purified ) 

### i7 .

Tr-A<ri- » Lx« t 

### 196 0 196 5 197 0 ****** HISTORICA

L ************ 

### 197 5 198 0 198 5 198 6 T2 T TO. A

. le. 4 

## 3v

198 7

2eT 7 198 8 *****

• PROJECTE

D• 198 9 199 0 199 2 Si. o - 'Jtrr

o 51. 5 SUPPL YAn © 0EMAND....Million s o fPounds....Estimated....Domeati c U S

l?O Q 

### Capacit y Productio n12 1 Export a Deman d12 1 i«imi«*« » • « HISTORICA L •••••*#••*•*•••••#•••«•••«••*«••* • • PROJECTE D• l-US O 1*F7Q 1T- 7 3 170 U 170 3 170. 6 17C_ / 17B P 17S y_i?_yU 1»* Z 

### "53 7 TUTJO " 

### S9TJT

J n WeToT

J 715TL, , 7I5TJ " 72FL T7251 5 • 7551 5 7TO & 47 5 166 4 397 2 521 8 554 5 5320 J " "'646 0 7950(E ) 7085(E ) • 40 0 115 0 130 0 140 0 148 5 162 5 • 47 5 166 4 3972 481 8 439 5 402 0 506 0 646 5 546 0 •550 0 590 0 Al l euppl y an d demen d value s ar e TP

A equivalent s converte d fro m USIT C report s whic h ar e expreeee d a s DM Teater . Export s er e th e su m o freporte d DM

Tan d estimate d export e fo rTPA. Th a U S Burea u o fth e Ceneue report 8 TP

A export a a

e per t o fth e grou p o fpolycarboxyli c acida . DM Texport a fo r198 9 war e abou t 27 3 millio n pounds . Import s er e insignificant , amountin g t o iee a tha n 2 millio n pounds . Th e USITC productio n ststiatic a ar e no wreporte d a a "terephthali c acid , dimethy l ester" , an d in clud e reporte d productio n o fbot h TP A an d DM

Tcombined fo ral l producera , withou t doubl e counting . T o reac h a commo

n reportin g base , th e aci d figure s ar e nxiltiplie d b yth e facto ro f1.1 6 t o conver t the m t o th e equivalen t DMT , a a reported . Conversely , th e TP A equivalen t i e abou t 8 6 percen t o fth e total . Som

e trad e source s believ e tha t th e USIT C det e ^considerabl y overetate d whe n compered t o det a reporte d fo rfibe ran d plasti c components . *H«'« 2 AVAILABILITY....U S supplie s o fDHT/TP A ar e sufficien t t o kae p pac e wit h domesti c deman d fo rth a foreeee sbl e future . Onl y modes t expansion s ar e underwa y o rplanne d fo rU

S producers , bu t i n othe rpart e o fth e worl d substantia l addition s t o capacit y sr s bein g made . A a thes e ne

wunit e com

e on , expor t market s fo rU S producer a wil l declin e an d mor e cspacit ywil l b

e availabl e t o satisf ydomesti c demend . Foreig n capacit y additions , almos t exclusivel yTPA , ar e bein g buil t i n respons e t o continuin g hig h growt h i n demand , estimste d b

y som e industr y expert s e t abou t 65/yea rt o th s yea r2000 . Beside s it s U

S additions , Amoco, th e worldwid e leade ri n TP A capacit y wit h 30 * o fth e world' s total , i s activel y expandin g i n man yareas - A ne

w250,00 0 metri c ton/yea rAmoc o facilit ywil l com e o n a t Ceel , Belgiu m i n 1991 . I n th e Fa rEaBt , tti s Amoc o J V i n Kores i s doublin g cspscit y t o 800,00 0 metri c tons/yss r an d thsi rTsiws n affiliate , CAPC 0 i s addin g 250,00 0 metri c tons/yssr . ICI , reportedl y th e world' s sscond-lsrgss t TP A producer , i s buildin g a ne w350,00 0 metri c to n pe ryea r facilit y i n Taiwan , fo rstartu p b y vss ran d 1991 , an d i e buildin g a 250,00 0 m.t./ysa rplan t i n Thailend . World-acal e unit s sr s unds rconstructio n b y othsr s i n Chin a an d Indonesis , t o b s on stree m i n 1991/92 . 1/8 8

## SEN T BY-RTP , N . C . 2770 9 3 - 8-9 1 ; 3-57PM ; RADIA N CORPORATION - 21 5 64 3 2772.JN 3 P. 3

PRODUCER

S AM ) CAPACITIES - TEKPHTHMI C ACI D - MILLIW S C F POUND S 

### PRODUCE R Amoc o Chemical s Amoc o Chemical s Cap e Industrie s (Hereofins ) DuPon t DuPon t Eastma n Eastma n LOCATION Decatur , 

## A

L Charlesto n(Coope r River) , S C Wilmington , N C Cap e Fear , N

C Old-Hickory , T

N 

### Columbia , S C Kingsport , T N PRODUC T 

### TT Aonl y TP A onl y DM Tfro m TPA DM Tfro m TP

A DM Trro m TPA CU Tfro m TP

A DM Tfro m TPA 199 0 CAPACITYA S TP A 

### Sld d 110 0 1300 ' 120 0 

### 500 90 0 45 0 TOTAL 755 0 Based on announced capacitie s an d trad e estimate* } - 1s t Q 1990 . Th e Cap e Industrie s plan t a t Wilmington , N

C ca n produce abou t 25 0 millio n pounds o fhighl ypurifie d TP A b yhydrolyai a o fDMT . Hercofin e wa

s s join t ventur e o fHercule s an d America n Petrofin a bu t i n earl y1985 , < Hercule a sol d it s 7 A S Hereofina^equity^ o America n Jp.eehBiV^ " ^Bctot-C-danese, . DuPon t an d CapeInduetr.ie e jr e "th e dnly

_"tfi^jsliere^iJWlJt^^tt e JMrchwt-J»ajkat.-l^tHiariu^tbJi'.a» . fro m th e DM Tmerchenj^jar'k>l;3rilearlyj,?86j u Amoc o i s expandin g bot h plant s i n 199 0 b y a tot"aT~of 200~mnrio n "pounds . Cap e Industrie s i s ala o plannin g a n incrementa l expansio n o fthei runit . EM ) USES....Terephthali c aci d (TPA) , uasd_priinaril.y_t o produc e polyethylen e teMghthalate_(PET ) resin s fo r fiber s sn d "plastlca , a s availabl e commerciall y as^ithbr"lln"a'~rre e aci d o fas " th e eate raiitietKiiir " liYephlhelet e "][DMT)77IU ^ used_ae polyesterrssinraiia'msterlTl , bu t th e tw o ir e no t fnter'chengeeble.7ifL3l , " J .sam e plsnt * IfDMT'i' e used , tl* e methano l eliminate d "iii"the"polymerizatio n rrueV~toe recovered . The.lfirBtlpolyeate r"fibe r.plant s .nere_bBaed_on._DMT_becaue s itjusjieeie r_t o -ouri_y_tna n TPA a However , ther e have__bee n processe s develope d and plsnt s buil t t o yiel d purifie d terephthali c ~acjg

_ o f al71t8ble

_ 1quB3it'y

__ fo rconversion " to'PET'dirscUy . in~th"e"'U 5 sTTs¥st"1ial f"o fal l PE

Treein e ar e mad e directly-fro m TPATTlntheTertesrover " 75 Xo f"al l Prris~derive d directly^ronrrPf u •—' Polyeste rfiber s ar e used primaril y i n appare l end " hom e furhiahinge" , wit h som e use d fo rtir e cor d an d industria l products . Polyeste rha s becom e th e leadin g man-mad e fibe rbecause o fversatilit yan d ua e i n permanen t o rdurabl e pres s fabrics . Cotton-polyeste rblends , i n veryin g percentages , have gaine d Hide sprea d acceptanc e wit h polyeete rreducin g th e nee d fo rironing . Fabri c blend e o fpolyeste rwit h woo l an d cotto n provid e fabric s wit h a textur e mor e lik e ell-natura l fiber s tha n 1D0Ko rhig h polyeete rblende . Fil m end shee t mad

e fro m PE

Thav e majo rapplication s i n amateu rBn d professiona l photographi c film , Xre y an d microfilm ) magneti c recordin g fil m sli t int o tap e for m fo rcomputers an d fo raudi o sn d vide o cassettes ; an d flexibl e disk s fo rcompute rinformatio n etorage . Polyeste rfil m i a th e standar d materie l fo rengineerin g drawinge . PE Tfil m application s ar e reasonabl ymature an d ar e growin g a t abou t a 3-AS/yee r rste . Terephthelet e engineerin g resins , includin g polybutylen e terephthalat e (PBT) an d PET , ar e experiencin g excellen t growt h i n th e 6-10* . rang e dependin g o n application , albei t fro m a emai l base . "Solid-stated " PE

Tresi n i a use

d t o mak

e bottles , mierowavabl e trey s an d packaging . Sold-etate d reei n i e produce d by eutoclevin g th e ordinar y "melt-phase " PET , thereb yincreasin g it a intrinsi c viscosity . Ua e i n bottl e reein e i s th e fastes t growt h are s fo rTPA/DMT , wit h growt h i n th e rang e o f6-10ft/yeer . EN D US E PATTER

N - 198 9 ESTIMAT

E DERIVATIV E PERCEN T Polyeste rFiber s iT" " PE TBottle s and Plastic s 1 9 PE TTap e an d Film s 1 2 Misc.(include s engineerin g reeine ) 6 MANUFACTURING.. . .Al l DM Ten d TP

A i e bssed or

^ parsxylen e feedetock.obtained..by.separating—mixe d ...xylenee a DMT/TP A i a essentiall y th e onlj rcommercial_oullet2Xor-feedstoc k per6^1ene._PeraxylsnB_Is._oxidized.J o fitolui c aci d and'the'ri , unde rmor e severe " conditions , t o terephthalic^BcJe l whicfTl s either " purifie d t o fioe r gride^produc t bX^river^edZBiree^l^bJJKrarTh e "feasibilit y "of"TP A purTficstlo n depends , on factor s suc h aa feedstoc k

purity , catalys t ayster o an d proces s conditions . Th e currsn t standar d o fp-xylen e purit yi n th e U S an d Europe i e 99.5 s minimum . I n producin g TPA , 0.7 1 lb . o fp-xylen e yield a on e poun d o fTPA . I n DM T production , 0.6 1 lb . o fp-xylen e i e require d pe rpound o fDMT . irLiheJtigittjLntoa e Jil^hjjrostjwide^_jjeed.^rj3ce8B_fpr..DMT ^ p-xylen e , condition s tpTo-toIuicacid.whicfcLisJthe n ._aIeuIXed^oj-methyi_tolyate . This_i a then " oxidiie d unde r pressur e t o monomethy l terephthalat e whic h i s esterifle d t o DMT . I n a newl ydevelope d .proceaa._to_.mak a tlberTgrade'TPA', ' crudVDM Ti s hydrolyie d wit h wate rfollowecTb y separatio n o f"the " resultan t terephthVli c aci d whic h i e eryetellixed . Anothe rprecee e involve s th e oxidatio n o fparaxylen s a t lo wtsmperature a an d pressure s i n aceti c aci d solven t uain o a cobal t acetat e catalys t an d acetaldehyd e activato rt o yiel d crud e TP A whic h i s esterifie d t o DMT . Purificatio n o fDM Tl e b ycrystallizatio n fro m methanol . DM Ti s eeperate d fro m methano l i n centrlfuge e en d finall y distille d t o fibe rgrade . DM Ti n molte n for m ca n b e used directl y o rtraneporte d i n tanker s t o th e fibe rplsnt . Mos t o fth e world' s terephthali c aei d i s produced b y th e Amocoprocese . Fibe rgrad e TP A i a produce d b

y thjjjiquldjihes a oiid8ti"0n^"p-'xyleras:et~r00° C an d *0 0 "psirTh s p-xyTene~X e dilute d wit h eceti c aci d an d smal l amount

s of ' manganes

e ecetete , o rcobal t acetate , an d a bromid e er e added e e catalyet . Th e reacto r effluent s ar e remove d a a a ho t alurr y int o e eryatsllizs rwher e the ysr e cools d b yflashin g eceti c acid , unreacte d xylen e en d taster . Afte rseparatio n and drying , TP A o fbette rtha n 99 Kpurit yl e obtained . T o produc e fibe rgrad e TP A th e produc t iB>washe d wit h ho t wate rt o remov e trece a o fcatalye t an d aceti c acid . ENVIROMCNTAL ASPECTS. ...Terephthali c aci d i s a fin e powder ymateria l whic h ca n b e harmfu l i fth e dus t i a inhaled . Contac t wit h dust ca n irritBt e ski n and irucou a membranee . TP A ca n produc e a due t explosion . T o th s bee t o fou rknowledge , th e informatio n containe d herei n i e accurate . However , w e do no t assum

e an y liabilit y whatsoeve rfo rth e completenes s o raccurac y o fthi e report .