Production rate

Currently, there is only one styrene plant in Malaysia located at Johor,

Idemitsu SM Sdn Bhd. According to Malaysian Petrochemicals Association (2016),
the total production of styrene in Malaysia is 240,000 tonnes per year. Market
researchers forecast that the demand of styrene will increase 2.3% per year.

Figure 1 The statistic for styrene based on the capacity, demand, import and
export.

Based on Figure 1, the expected demand capacity of styrene in Malaysia is

330,000 tonnes per year. Which means, Malaysia needs about 27% to fulfil the
demands. Table 2.1 shows the consumption of styrene in Malaysia after 5 years.
However, the calculated of production rate cannot reach the demand. In order to
solve this issue, new plants must be constructed.

Table 2.1: The consumption of styrene in Malaysia after 5 years

Year Appreciation (tonnes Consumption (tonnes

per year) per year)
2016 - 240,000
2017 240,000 2.3% = 5520 240,000 + 5520 =
245,520
2018 245,520 2.3% = 5647 245,520 + 5647 =
251,167
2019 251,167 2.3% = 5777 251,167 + 5777 =
256,944
2020 256,944 2.3% = 5910 256,944 + 5910 =
262,854
2021 262,854 2.3% = 6046 262,854 + 6046 =
268,900
 The production rate of styrene in Malaysia is to be calculated by taking
average production rate of 5 companies around the world. Table 2.2 shows the list
of production rate of styrene 5 worldwide companies.

Table 2.2: List of production rate of styrene for 5 worldwide companies

Company Country Production capacity (tonnes per

year)
Idemitsu Kosan Co. Ltd Japan 210,000 (Idemitsu,2017)
(Chiba plant)
Chiba Styrene Monomer Japan 270,000 (Denka, 2015)
Limited
Formosa Chemicals & Fibre Taiwan 132,000 (Formosa, 2014)
Corporation
Nova Chemicals USA 431,000 (Nova Chemicals, 2007)
Corporation(Samia)
Shanghai SECCO China 650,000 (PR Newswire, 2015)
Petrochemical Company
Limited

Therefore, the production rate for new styrene plant in Malaysia is around
340,000 tonnes per year. This amount is predicted to be able to fulfil 100% of
Malaysias demand.

Denka Company Limited (2015), Styrene Monomer, Available at:

http://www.denka.co.jp/eng/chemical/product/d03/detail_003026.html, Accessed on
12 March 2017
Formosa Petrochemical Corporation (2014), Project Investments, Available at:
http://www.fpcc.com.tw/en/investments.html, Accessed on 12 March 2017
Idemitsu (2017), Petrochemicals: Production Capacity, Available at:
http://www.idemitsu.com/products/petrochemicals/production.html, Accessed on 12
March 2017
Nova Chemicals Corporation (2007), Annual Information Form, Available at:
https://www.sec.gov/Archives/edgar/data/922960/000104746907001518/a2176290z
ex-99_1.htm, Accessed on 12 March 2017
PR Newswire (2015), China Styrene Industry Chain Report, Available at:
http://www.prnewswire.com/news-releases/china-styrene-industry-chain-report-
2014-2017-300048552.html, Accessed on 12 March 2017