ExxonMobil to purchase one of the world’s biggest petrochemical-refining plant of the Jurong Aromatics Corporation

Date: 2017-06-20   Author: Saipriya Iyer  Category: #news

ExxonMobil to purchase one of the world’s biggest petrochemical-refining plant of the Jurong Aromatics Corporation

Jurong Aromatics Corporation, based in Singapore has signed an agreement with ExxonMobil that enables the latter to purchase Jurong’s petrochemical-refining plant by the second half of 2017. The acquisition of this plant will raise the annual aromatic production of ExxonMobil in Singapore to over 3.5 million tons, out of which paraxylene production would amount to 1.8 million tons. This strategic move is expected to help ExxonMobil acquire a competitive edge in terms of revenue gains and increased brand presence.

ExxonMobil’s decision to acquire the firm was based on the benefits provided by the plant location for the petrochemical and refining sectors and the strong position that Singapore holds in world trade subject to its robust economic development.

The largest crude oil manufacturing plant of ExxonMobil, possessing a manufacturing capacity of 592,000 barrels of crude oil per day, is based in Singapore and comprises of world-class steam crackers. The integration of Jurong aromatics plant operations, producing 1.4 million tons of aromatics per year with the existing manufacturing unit production activities of ExxonMobil in Singapore will help the latter increase its overall production, fulfill global demand, and expand its business in the Asian continent.

ExxonMobil is also willing to provide employment to the qualified staff of JAC (Jurong Aromatics Corporation) to ensure the safe and effective functioning of the newly acquired plant. This move, state experts, will not only support employee retention, but will also enhance the plant production by utilizing the knowhow & experience of the staff acquired by the firm.  

By the end of 2017, this integrated unit is projected to produce performance resins and halobutyl rubber for adhesive applications with the help of its specialty polymers facilities with an annual capacity of 230,000 tons. It has a high production capacity and can process a large variety of feedstocks ranging from crude oil to lighter gases.

According to reliable reports, the global demand for chemical products is expected to rise by about 45% over the coming years, which is faster than the worldwide demand for energy. Asia Pacific is expected to contribute approximately 75% of the overall chemical products demand, owing to its high economic growth and rise in the middle-class population base.

In 2015, Jurong aromatics corporation (JAC) went into receivership on account of debt crises. The company failed to detect and resolve a major technical problem at its Jurong plant, which forced the firm to completely curtail its operations for one and half years commencing from 22nd December 2014, resulting in a heavy loss.



About Author


Saipriya Iyer linkdin-boxtwitter

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

Post Recommendents

India-based Kaizen AI set to influence the $1.36 trillion GCC realty sector

Author: Pankaj Singh

Kaizen AI, a prominent technology firm that uses AI to revolutionize large-scale building projects, is entering the lucrative GCC real estate sector, where the value of planned and under-construction projects is projec...


Microsoft expands partnership with Oracle to Deliver Oracle Database Services

Author: Pankaj Singh

Microsoft Corp. and Oracle Corp. have reportedly announced the availability of Oracle Database@Azure, which provides direct access to the Oracle database services operating on Oracle Cloud Infrastructure ...


Reliance Industries and NVIDIA join hands to advance AI in India

Author: Pankaj Singh

Indian billionaire Mukesh Ambani-owned Reliance Industries Ltd. has reportedly announced a partnership with U.S.-based chipmaker NVIDIA for advancing AI in India.

Apparently, Indi...