SASOL and Mitsubishi Chemicals of Japan have commissioned a R2,1bn chemical plant in Sasolburg that will see them exporting acrylic acid and acrylates before the middle of next year. 

The new plant, called Sasol Dia Acrylates, was part of Sasol's long term plan to move away from fuels into higher margin chemicals. 

The new plant will usher Sasol into the global crude acrylic acid market that is estimated at 300-million tons a year. The new complex would produce 80000 tons of crude acrylic acid and 125000 tons of acrylic acid derivatives a year. 

SA imports its acrylic acid and acrylates requirements now. Local production could see the country saving as much as R150m a year in the short term, said Sasol. This figure could grow as high as R350m in the long term. 

Sasol said this particular chemical business was expected to contribute about R1,2bn a year to the country's balance of payments once it hit full production by mid 2005. 

The chemicals coming out of this plant would be sold to Asia, Europe and the Americas through Sasol's and Mitsubishi Chemical's sales and distribution networks, and used in paints, adhesives, textiles and disposable diapers. 

Sasol CEO Pieter Cox said the new plant was a "major boost for SA's economy and the positive impact will be felt for many years to come". 

Cox said Sasol was pleased to utilise Mitsubishi Chemical's technology and to work in association with one of the largest chemical manufacturing and marketing companies in Japan. 

Sasol and Mitsubishi Chemical each hold 50% of the global marketing joint venture that would sell acrylic acid and acrylates. 

Sasol Dia Acrylates's head office is based in Johannesburg, where Takeshi Kimura of Mitsubishi Chemical has been appointed president and Savvas Pouroullis of Sasol as vice-president. 

The project is Sasol's second partnership with Mitsubishi Chemical. Sasol commissioned a R1,16bn butanol plant under licence from the Japanese company this year. Butanol is one of the feedstock used in the production of acrylic acid and acrylates. 

Aside from butanol, Sasol's other production facilities would provide all other feedstocks, making it the only "one-stopshop" in the industry.