Mukesh Ambani-led Reliance Industries Limited informed that it will soon come up with two new petrochemical plants. These plants will be manufacturing polyester plastic that is used in packaging, plastic bottles, clothing and foods and beverages.
The company informed of initiating a plant at Dahej in Gujarat with resin capacity of 650 KTA PET (Polyethylene Terephthalate) and 1,150 kilo tons per year Purified Terephthalic Acid (PTA).
Benefits from the plants
The polyester plastic made from PTA is capable of being used in the production of many things including drinks bottles, clothes and home furnishings. Similar to clothing fabric, PET is a kind of polyester. It is given shapes of plastic bottles and containers that are then used in the packaging of personal care products, foods and beverages, etc.
A statement from the company informed that the PTA plant is set up using Invista technology. It also said that after this plant is initiated,Reliance Industries' total PTA capacity will be as high as 3.2 million tons per year. Besides, the company's global capacity share will also reach at 4%.
Reliance Industries' refinery at Jamnagar is the source and controller of Paraxylene. Paraxylene is the feedstock for PTA plant. The same complex also houses 640 KTA PET. Reliance Industries through this integrated process will thus be able to reduce its operating costs and also seizethe full chain margin. The company is setting up one more PTA plant. The new plant will have the same capacity and will be located near it. The construction for the same has already begun. This will help the company to feature among the top five PTA manufacturers worldwide.
At present, India produces 5.4 million tons polyester every year. This makes the country, the second largest producer of polyester. Every year, the Polyester market is showing growth rate of 8-10%. Indian market is currently facing deficit of PTA over 1.5 million tons every year. The current capacity will help to overcome this deficit to an extent.The PTA plant will also help the country to attain self-sufficiency. It is a step to fulfill Prime Minister Narendra Modi's dream of 'Make in India.'
PET plant has two lines that together give manufacturing capacity of 650 KTA. Invista Technology is used in the plant for Continuous Polymerization and Buhler AG Technology is used for Solid State Polymerization. The plant has one of the largest bottle grade PET resin capacity, in the world from a single place. This makes Reliance Industries to rank first as PET resin producer with over 1.15 million tons of PET resin capacity.
PET resin from this capacity will be used in the packaging of water, pharmaceuticals, carbonated soft drinks and other foods and beverages. This capacity will also help the downstream industry of bottle and packaging to meet the ever rising demands from India.The demand for PET is fast growing in India at a rate of 15-20% every year.
The two feedstocks for the new PET plant, PTA and Mono Ethylene Glycol (MEG),are available within the complex. Because of raw materials being produced in-house, the company will be benefitted with low costs and higher product quality.