The Dow Chemical Company
) and Johnson Matthey Davy Technologies announced that they have
licensed their LP Oxo technology to PetroChina Guangdong
Petrochemical Company, a subsidiary of PetroChina, the largest
oil and gas producer and distributor in China. PetroChina
Guangdong Petrochemical Company will utilize the technology to
produce 2-ethylhexanol, normal butanol and iso butyraldehyde in
its major petrochemical complex in Jieyang, Guangdong, China.
LP Oxo SELECTOR Technology helps to reduce capital investment
along with providing low feedstock and energy requirements. The
Jieyang unit which has a capacity of 85,000 metric tons of
2-ethylhexanol, 235,000 metric tons of normal butanol and 33,000
metric tons of iso-butyraldehyde on an annual basis, will adopt
JM Davy and Dow's LP Oxo SELECTOR 10 Technology with advanced
liquid phase hydrogenation. It greatly helps in converting
propylene to alcohols and leads to low capital investment and
easy operation. The new facility is one of the largest grass root
oxo alcohol plant in the world.
This also marks the sixth alliance of Dow and JM Davy with a
PetroChina group and reinforces their long term commitment in
providing best-in-class oxo alcohols technology to their
LP Oxo Technology is a low-pressure hydroformylation process
that is most commonly used with propylene and synthesis gas (a
mixture of hydrogen and carbon monoxide) to produce normal and
LP Oxo Technology is the world's leading process for the
production of oxo alcohols from olefins. LP Oxo SELECTOR
Technology is the result of a partnership between Union Carbide
Corporation (UCC), now a subsidiary of Dow, and The Power-Gas
Corporation Limited, now known as Davy Process Technology Limited
(DPT), which set out to revolutionize propylene hydroformylation
Dow reported mixed second-quarter 2013 results on Jul 25. The
company's profit soared in the quarter on the strength of its
agriculture business and a sizeable gain from an arbitration
case. Adjusted earnings beat the Zacks Consensus Estimate, while
sales missed. Gains across agricultural sciences and performance
materials were offset by declines in feedstocks and energy and
Dow currently holds a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering are
Northern Technologies International Corp.
Cytec Industries Inc.
Eastman Chemical Co.
). All of them hold a Zacks Rank #2 (Buy).
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