After the Calm … A Surge of New PET Resin Capacity Additions in 2017

After a quiet period for new capacity during 2015 and 2016, new capacity expansions, mainly focused on China, are coming in 2017. However, it is likely some of the 2017 start-up dates (shown in the following table) may be delayed, depending on market condition.

World New PET Resin Plants 2016-2017
(1,000 Metric Tons)






China Resources Packaging Material

Zhuhai, China

 Oct 2016

Jiangsu Sanfangxiang

Jiangyin, China

 Q1 2017

Zhejiang Wankai New Material

Haining, China

 Q1 2017

Hainan Yisheng Petrochemical

Yangpu EDZ, China

 Q2 2017

M&G Group

Corpus Christi, US

 Q3 2017

Hosaf Fibres

Jacobs, South Africa

 Q3 2017

Jiangyin Chengsheng (Chengao)

Jiangyin, China


Sichuan Shengda Chemical

Nanchong, China




Existing overcapacity has also led to industry restructuring and plant closures over the past year or two. Several small and medium-sized PET resin plants in China have closed permanently during the period. Japan Unipet’s plant at Iwakuni was closed in early 2015 and Egypt’s EIPET has idled one line and not started the second at its plant in Ain Sokhna. In addition, SK Chemical in South Korea plans to cease standard bottle grade PET resin production (80 ktpa) by the end of 2016.

Looking to 2017, renewed capacity expansions have many market participants taking a skeptical view for 2017 PET business, particularly in China, due to overcapacity in a market with slowing growth and limited export opportunities. Most see it as inevitable that some small and medium sized plants will be shut permanently in the near term.

Acquisitions were a major feature of the past 18 months with Indorama buying facilities in Spain (Cepsa), Turkey (Polypex) and India (Micro Polypet). Restructuring also occurred via joint-ventures including the Indorama-Dhunseri JV in India combining Indorama’s Polyplex facility with Dhunseri’s plant at Haldia, India providing the JV with a total resin capacity of 700 ktpa.

Backward integration was also evident with Indorama acquiring the PTA facilities of Cepsa (Canada and Spain) and BP (Decatur, Alabama, US).

According to Tecnon OrbiChem data contained in the most recent update of the PET Packaging Resin S/Db-Chem World Analysis , global consumption growth in 2016 is expected to be 4.6% due to market maturity, global economic slowing and decelerating Chinese domestic growth. Regional consumption growth is expected to vary widely in 2016 with rates ranging from 1.8% for Northeast Asia to 11.3% in South & Southeast Asia.

S/Db-CHEM and World Analysis
Tecnon OrbiChem’s S/Db-CHEM is a truly comprehensive service, containing all the information you need on Polyester – Supply/Demand data, Trade flows, Consumption trends, Capacity listings and Historical prices.

  • Production, Consumption and Trade data are based on an analysis of historical data and forecasts out to 2025.
  • Historical trade flows are presented as country-to-country trade grids.
  • Capacity listings on a plant-by-plant basis give producer, owner and feedstock information.
  • Historical prices allow for construction of tables, charts and margins.

For more information please click on the title

Chemical Business Focus
The Chemical Business Focus provides a monthly market overview and analysis of the key factors influencing the market.

The Chemical Business Focus service comprises the following:

  • Monthly Consultancy Report: Expert commentary, price monitors, trade tables and full colour charts.
  • Supplementary Charts and Tables: Accessed directly on our website via hyperlinks in the report.
  • Historical Prices: 10 years available to download as Excel files from our website.
  • Plant & Project Reviews: Quarterly updates for key products.

Subscription includes email delivery and internet access for 5 users. Extra users can be added for UK£250 or 50% of subscription cost for unlimited users.

Click here to receive a sample for Polyester & Intermediates and PET Packaging Resin Chemical Business

Darrel Collier_web

Darrel Collier
Business Manager
– Synthetic Fibres, Polyester & Intermediates Phone: +44 207 924 3955

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s