Energy and chemicals group Sasol inaugurated its new R1.9-billion Ethylene Purification Unit 5 (EPU5), in Sasolburg, in January.

The inauguration, which was held at the Sasol Polymers Plant in Sasolburg, was attended by CEO Dr David Constable and the South African Minister of Trade and Industry Dr Rob Davies.

The unit, which has been in production since October 2013, will reach its nameplate capacity of 47 000 t/y in 2017 and aims to address the growing demand for polyethylene (PE) material in South Africa, a domestic market that Constable asserts is growing at a rate of between 4% and 5% a year.

The plant will ensure improved use of Sasol’s existing downstream PE facilities and new compressor unit in Secunda, as well as service the country’s expanding plastics manufacturing industry.

Constable said at the launch that PE was widely used for manufacturing containers, dispensing bottles, wash bottles, tubing, computer components and various moulded laboratory equipment, with its most common use being a component of plastic bags.

“The global demand for PE, which is a key material for a range of industries, is continually on the rise; from plastic goods and fuel tanks to footwear and corrosion protection for steel pipelines.

“With a rise in new plant capacities and the need to be globally competitive, we recognised the necessity to expand both polymer and ethylene production,” he commented, adding that the plant was entirely internally funded.

South Africa currently consumes about 565 000 t/y of PE, with around 370 000 t/y produced locally and less than 200 000 t/y imported.

“It goes without saying that the availability of local product goes a long way to ensure security of supply to South Africa-based downstream converters,” asserts Constable.

The unit, which is located at the Sasol polymers plant, was also designed to reduce hydrocarbon flaring, which would lower the carbon footprint of Sasol’s total PE production capacity in South Africa and ensure zero emissions from EPU5.

“In addition, while the plant produces a caustic stream, we found synergies with a sister plant. The total EPU5 effluent is now integrated within our Midlands facility as a feedstock, which, in turn, reduces potash imports from Botswana,” Constable adds.

Global gas and engineering company the Linde group was appointed as the main engineering, procurement and construction contractor of the project, construction of which started in 2010.

Local engineering and construction service providers were sub-contracted to execute significant portions of the work. This amounted to almost 4.6-million man-hours worked and resulted in important knowledge transfer and skills development in construction and advanced welding techniques.

“At the height of construction, we were able to create 1 000 construction jobs, predominately sourced from the local community in Sasolburg. For us at Sasol, this project not only illus- trates our unwavering focus on unlocking the full potential of our chemical assets, but it also demonstrates our commitment to our customers to ensure improved supply, and our belief in, and support for, the communities in which we live and work,” Constable says.

Downstream Advantages
Davies added at the launch that his department “fully supported” the development of EPU5, which would, through the provision of PE to downstream industries, bolster government’s industrial- isation agenda and transform raw materials into higher value- added products.

“The increased production of PE will, therefore, have a positive impact on the local market, of which Sasol holds an 80% share. Plastic finds its way into nearly every manufacturing chain in South Africa, which places Sasol and EPU5 in a strategic position in the economy,” he noted.

Davies held that the R1.9-billion investment was a positive indicator of confidence in the South African economy by the multinational group, adding that the Department of Trade and Industry was particularly encouraged by the investment made in the local manufacturing sector.

“I’ve said repeatedly that value- adding in manufacturing is essential, as there is not a single case of a country that has moved from underdevelopment to development without having first transitioned through a strong manufacturing and goods-producing phase.

“The next phase of growth in South Africa and, indeed, in Africa must involve this indus- trialisation,” he emphasised.

Davies further noted that government – which held a 22% interest in Sasol through the Public Investment Corporation and the Industrial Development Corporation – had long iterated the importance of investing in and developing downstream industries, as these would have the most critical impact in terms of job creation.

“However, this raises the question of the relationship between upstream companies [such as Sasol] that produce for downstream industries [such as packaging companies]. “We need to ensure that the feedstock [such as PE] required to support these downstream industries is priced cost effec- tively,” he cautioned.

Davies said the price of PE, thus, needed to support downstream manufacturing rather than hinder it.

He added that various instruments employed by government would create benefits for upstream companies such as Sasol, citing government’s local content designation mechanism as an example.

“Government will also use its national infrastructure plan as a way to support industrialisation. “ This is a good day for Sasol and South Africa,” Davies concluded.