Oxea begins construction of propanol unit at Bay City, Texas


Oxo chemicals manufacturer Oxea has started construction of a new propanol unit at its production site at Bay City, Texas, US.

The new unit, Propanol 2, is scheduled for completion next year.

Once commissioned, the company anticipates that its new Propanol 2 unit will add a capacity of 100,000mtpa of propanol and 40,000mtpa of propionaldehyde.

Propanol is used in the production of products such as printing inks, coatings, adhesives, and pharmaceuticals applications.

While propionaldehyde is used in pharmaceutical applications and the production of food preservatives, plasticisers, plastics, and rubber chemicals.

Oxea Global Sales and Oxo-Intermediates executive vice-president Purnendu Rai said: “This project reflects our long-term selective growth strategy. It helps us reinforce our strong position as the largest producer of propanol worldwide. Propanol 2 will provide Oxea with opportunities for further expansion into profitable growth areas.”

Oxea is engaged in finalising the detailed engineering phase of the new plant.

As part of site preparation works, the existing foundations from previously retired equipment are being demolished, and construction of temporary project facilities has been completed.

"We aim for further expansion of our portfolio and growth in volumes over the coming period."

Currently, the focus is on starting the execution of civil construction and completing the bid processes for the remaining construction work, primarily mechanical, and instrumentation and electrical.

Oxea CEO Salim Al Huthaili said: "This capacity increase is another excellent example of our strong commitment to supporting our customers with sufficient and reliable supplies.

"To continue as a profitable and sustainable company, we are significantly investing in our production platforms and continuously seeking opportunities to differentiate ourselves. We aim for further expansion of our portfolio and growth in volumes over the coming period."

Oxea has awarded the construction management contract for the Propanol 2 project to Jacobs Engineering Group, which will be responsible for delivering pre-construction planning and construction management services.


Image: Oxea starts construction of propanol unit at its production site at Bay City, Texas, US. Photo: courtesy of Oxea.