TEC Receives Order for the First Plant in Japan Utilizing ABB Lummus' OCT Process, Technology to Produce Propylene from ButenesSep. 26, 2002

Toyo Engineering Corporation (Tokyo, Japan, TEC, President Toshihiko Hirose) will build the first plant in Japan that utilizes the Olefins Conversion Technology (OCT) process for increasing propylene production, licensed by ABB Lummus Global Inc. (LGI).

The purpose of this project is to increase propylene production at the Osaka Works of Mitsui Chemicals Inc. in line with that company's plan to establish their new propylene based structure, which boosts annual output from 280,000 tons to 420,000 tons. The total investment of this project is worth about 4 billion yen (US $35 million).

TEC will act as the main contractor of the LGI technology-based OCT plant, with completion slated for August 2004.

In the final process selection by Mitsui, the factor that led to TEC being awarded this contract was the economic efficiency of project investment and OCT as sole successful conversion technology applied for commercial plants in the world as well as TEC and LGI's history of collaboration spanning over 40 years (exclusive tie-up in Japan). This LGI's OCT process for increasing propylene production uses a catalyst to produce propylene from C4 fractions (butadinenes and butenes) and ethylene.

By using this technology not only with an ethylene plant, but also in combination with a fluid catalytic cracking (FCC) plant, production of propylene can be improved and operation flexibility attained without the need for major reconstruction of existing plant, which can be expected to improve profitability for the customers. Furthermore, an advanced new process has been developed by LGI that allows propylene production from C4's or C4's & C5's fractions only, without consuming ethylene. This process, known as Auto-metathesis, is nearing the commercialization stage.

Based on the actual results from this project, TEC will promote business development of the OCT process to its domestic and foreign clients who have plan to increase propylene production in compliance with the rising market demand.

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