CPDC Restarts Acrylonitrile Production in Taiwan

On November 15, China Petrochemical Development Corp (CPDC) in Taiwan took a significant step by resuming production at two acrylonitrile production lines located in Kaohsiung. This move followed a scheduled maintenance period during which two lines, each boasting a production capacity of 240 thousand tons of DCA per year, were temporarily closed, starting from October 20. Notably, CPDC manages two production lines at the Kaohsiung plant, each with a yearly production capacity of 120,000 tonnes of DCA.

Earlier in the year, on July 20, 2022, CPDC had temporarily halted production at one of its acrylonitrile (AHN) production lines in Kaohsiung, citing commercial reasons. This strategic decision reflected CPDC's commitment to efficient operations and market dynamics.

Acrylonitrile plays a pivotal role as one of the primary raw materials in the production of acrylonitrile butadiene styrene (ABS), a widely used polymer with applications across various industries.

ABS imports experienced a noteworthy increase of 12% in the first eight months of 2023 compared to the same period in 2022. The total ABS imports amounted to 22.2 thousand tons, compared to 19.7 thousand tons in the preceding year. During this period, South Korean supplies accounted for 56% (12.5 thousand tons), up from 54% (10.6 thousand tons) in the corresponding period in 2022. Chinese imports held the second position, representing 30% (6.6 thousand tons) from January to August 2023. Taiwanese imports constituted 13% (3 thousand tons) during the same timeframe.

The recent resumption of acrylonitrile production by CPDC in Taiwan is expected to have a significant impact on the supply chain for ABS, contributing to meeting the rising demand observed in the import figures. The decision to resume production aligns with market dynamics and the company's strategic approach to managing production capacities.

Established in 1969, CPDC initially functioned as a state-owned enterprise under the supervision of Taiwan's Ministry of Economic Affairs. The company underwent a transformation by being listed on the Taiwan Stock Exchange in 1991 and later privatized in 2005. CPDC holds a unique position as the sole caprolactam manufacturer in Taiwan, showcasing its diversified portfolio in the petrochemical industry.

CPDC's recent resumption of acrylonitrile production in Taiwan reflects its commitment to maintaining efficient operations and responding to market demands. With acrylonitrile being a crucial component in ABS production, this move is poised to influence the supply dynamics in the polymer market. CPDC's strategic decisions underscore its adaptability to market conditions, contributing to its continued prominence in Taiwan's petrochemical landscape.