http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.71Change: 0.00
R/$ = 10.95Change: 0.07
Au 1198.83 $/ozChange: 0.67
Pt 1228.00 $/ozChange: 5.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 11, 2003

New R870m comonomer project for petrochem giant

Back
Engineering|Cox|Diesel|Petrochemicals|PROJECT|Projects|Sasol|Sasol Chemical Industries|Chemical Giant’s|Mining|Petrochemicals|Petrochemicals Giant|Plastics|Polyethylene Products|Products|Quality Plastic Products|Steel|Structural Steel|Hannes Botha|Pieter Cox|R10|Diesel
Engineering|Diesel|Petrochemicals|PROJECT|Projects||Mining|Petrochemicals|Products|Steel||||
engineering|cox|diesel-company|petrochemicals-company|project|projects|sasol|sasol-chemical-industries|chemical-giantrsquos|mining|petrochemicals|petrochemicals-giant|plastics|polyethylene-products|products|quality-plastic-products|steel|structural-steel|hannes-botha|pieter-cox|r10|diesel
© Reuse this South African petrochemicals giant Sasol is in the process of spending R870-million on another comonomer project, Engineering News Online can today exclusively report.

This comes against the backdrop of the chemical giant’s modest 4% increase in group earnings, announced gingerly by CEO Pieter Cox at Sasol’s interim financial results presentation yesterday, ahead of the company’s historic April 9 NYSE listing.

The comonomer project, a second 1-octene train, is expected to be commissioned by the third quarter of 2004, at a cost larger than the first 48 000 t/y plant, but with roughly the same capacity.

As a comonomer, 1-octene is used to manufacture different polyethylene products, providing mechanical strength to various types of plastics, including both high- and low-density polyethylene from which quality plastic products are made.

Sasol’s Hannes Botha revealed, in answer to a question, that the company’s board is also expected to approve an even bigger project soon.

This is the R10-billion to R12-billion, Project Turbo, the most significant part of Sasol’s renewal initiative, Project World Class, which will prepare Synfuels for new fuel specifications that are to come into effect in January 2006, the deadline for all South African refineries to supply lead-free petrol and low-sulphur diesel.

Engineering News Online can report that Project Turbo would require the largest portion of the estimated capital for Project World Class and is expected to have significant spin-offs for Sasol Chemical Industries, as it will supply the division with more feedstreams for further expansions. This is part of a R19-billion capex commitment.

Sasol Polymers will also benefit from increased levels of ethylene and propylene from Project Turbo's new processes.

The project consists of multiple phases, which, in turn, comprise several smaller projects.

In total, the project is estimated to require about 17 000 t of structural steel, and the employment of some 15 000 people.

Meanwhile, Sasol’s strong financial performances over the last three years have been followed by a mere 4% increase in operating profit, to R7,3-billion for the interim period to December 31, 2002.

The group’s earnings suffered a R2-billion blow, caused mainly by the strengthening of the rand.

Cox said the rand:dollar exchange rate weakened by 8% from an average of R9,29 in the previous reporting period to R10,03 in this reporting period. While the weaker rate had a beneficial effect on sales, the closing rate on December 31, of R8,57, was much stronger than the closing rate of preceding months and 28% stronger that the closing rate of R11,95 on December 31, 2001.

This resulted in net translation losses of R974-million being charged to the income statement, as a result of the revaluation of financial assets and liabilities on December 31 last year. This compares to net translation gains in the previous reporting period of R922-million and represents a swing of R1,9-billion.

Cox reported that attributable earnings were more or less equal to, and basic earnings per share of 751 cents were slightly above, those achieved in the previous reporting period.

Sasol’s financing costs rose by 23% to R529-million, mainly due to higher capital expenditure, which increased from R3,6-billion to R5,7-billion during the comparable periods.

Increased capital expenditure resulted primarily from the Mozambique Natural Gas project, the Qatari and Nigerian gas-to-liquid (GTL) projects and the n-butanol and acrylic acid projects in Sasolburg.

Top performing divisions during the period were Sasol Synfuels, which lifted profits by 36% – from R3,688-billion to R5,032-billion – and Sasol Mining, up by 10% to R708-million. National pipeline gas sales of Sasol Gas were about 12% higher.
Edited by: Martin Czernowalow
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
Updated 1 hour 27 minutes ago South Africa will know by mid-December whether it would get a new independently owned and operated liquid fuels storage and distribution facility at the Eastern Mole of the Port of Cape Town. The National Energy Regulator of South Africa (Nersa) was currently mulling...
Article contains comments
Lethabo power station
Updated 2 hours 3 minutes ago State-owned power utility Eskom on Wednesday said its Lethabo power station, in the Free State, was experiencing “very high emissions” on four of its six units as a result of the failure of ash plant equipment.  The utility explained that the failure of equipment...
South Africa has dropped four places to rank eighty-third in the World Energy Council’s 2014 Energy Trilemma Index as the country’s performance remained stagnant, while other countries such as China and Nigeria improved their rankings. The WEC Energy Trilemma Index...
Article contains comments
More
 
 
Latest News
Updated 46 minutes ago A Spoor & Fisher partner on Wednesday called on the Department of Trade and Industry (DTI) to finalise its proposed policy for Intellectual Property (IP). The policy, which had not been drafted in consultation with IP law experts, was published in September 2013,...
Auditor-General Kimi Makwetu
Updated 56 minutes ago Auditor-General Kimi Makwetu has called on all government leaders to play a crucial role in ensuring that government departments and entities improve their audit outcomes. He has raised concerns over irregular expenditure, non-compliance with legislation, auditees...
Updated 1 hour 12 minutes ago The Somalia Stock Exchange expects seven companies in the telecoms, financial services and transport sectors to list their shares when the bourse is set up in 2015, its founder said. Somalia's economy is slowly recovering from more than two decades of conflict,...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks