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Mitsubishi Chemical builds EO hub

Mitsubishi Chemical is constructing an integrated ethylene oxide (EO) hub in Kashima, Japan, which is designed to exclusively supply by pipeline to derivative producers in the said location. Mitsubishi Chemical’s Kashima complex has a capacity of 290,000 tons per year. Mitsubishi Chemical expects to invest ยฅ 5 billion (US$47.8 million) in the project. Construction of the pipelines and tanks will be built by the end of 2010. Delivery by lorry and freight car is anticipated to fully cease by March 2011. Eight companies with Kashima operations will eventually be supplied with EO by pipeline. Mitsubishi Chemical expects EO sales to reach 100,000 tons per year once all of the derivative facilities are operational. (July 10, 2008)