PERP

Phthalic Anhydride (93-3)

Phthalic anhydride (PAN) is a commodity petrochemical with no product differentiation and widely available technology. The main feedstock is ortho-xylene (o-xylene), which is readily available on a commodity basis. An alternate feedstock is naphthalene, although this is less important than o-xylene. PAN is produced from o-xylene feedstock or naphthalene by oxidation with air. Nearly 90 percent is produced from o-xylene. In the United States all plants base their operations on o-xylene except for the Koppers plant in Cicero, Illinois. More than 90 percent of PAN used in Western Europe is based on o-xylene. The majority of the plants in Japan use naphthalene feedstock; only two plants are based on o-xylene. In China about 50 plants, operating on naphthalene feedstock, account for about half of China's total capacity. Many of these plants will be phased out, however, since China plans to erect plants of about 100 thousand metric tons of new o-xylene-based capacity. Phthalic anhydride technology is offered by several licensors. The process is similar for all the major licensors. o-Xylene is mixed with compressed air and fed to a multitubular reactor containing vanadium pentoxide with titanium dioxide/antimony trioxide catalyst. A fluid bed reactor is alternately specified for naphthalene feed. The process has not changed significantly in recent years, although improvements have been made to increase catalyst life and reaction yields. The ability to operate at higher feedstock to air loadings has reduced the production cost through lower capital costs and utility consumption. The economics of PAN production from both o-xylene and naphthalene have been developed and are presented in Phthalic Anhydride. Phthalate plasticizers are the most important group of products made from PAN, accounting for at least 50 percent of PAN consumption. They are used predominantly in flexible PVC compounds. The second largest use is for unsaturated polyester resins, which are used in the manufacture of reinforced plastics and in specialized applications such as surface coatings. The major markets are for reinforced plastics in recreational areas, with a high sensitivity to economic changes. Alkyd resins, used in solvent-based paints, are the third major use for PAN. This end use is declining because of the continuing replacement with latex-based paints. Other smaller applications of PAN include chemical intermediates used in the manufacture of dyes and pigments,

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herbicides, insecticides, and flame retardants. Global demand for PAN is expected to grow from 2.5 million metric tons in 1991 to 3.4 million metric tons in 2000, representing an annual growth rate of 3.5 percent.

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