It is reported that three Chinese factories making olefins from coal are slated to start up this year, part of a serious look that Beijing is taking at using its large coal reserves to reduce its heavy dependence on imported polyolefins. But before the government lifts some restrictions it imposed in May 2009 and allows more projects making polyethylene and polypropylene from coal, analysts say that government officials will want to see more details on the economic and environmental performance of the factories.

Mr Sun Weishan vice general secretary of the Beijing-based China Petroleum and Chemical Industry Association Speaking at a recent industry conference in Beijing, several Chinese petrochemical industry officials urged the government to give coal-to-olefins work high priority, considering that the country imports about half of its PE and one-third of its PP. The three projects starting this year will provide a boost to China's polyolefin supplies. The factories, in the coal belt of northern and western China, will have He said that capacity for 1.56 million tonnes of polyolefins, or about 6.9% of the country's current PO capacity.

(Sourced from Plastic NewsX)