What are Basic Chemicals?
What are Basic Chemicals
Basic Chemicals are petrochemicals such as ethylene and propylene that are the basic raw materials for plastic products, chemical fibers, etc. They are obtained by processing (cracking, reforming, etc.) "naphtha fraction *" and "LPG fraction" produced by refining crude oil.
In addition, we use Basic Chemicals as raw materials and produce products through chemical reactions that have high functionality, such as heat resistance and chemical resistance.
These are called Advanced materials & Performance Chemicals
.
*Crude oil is heated in an atmospheric distillation device, separated and concentrated into its components, and is called a distillate. By subjecting each fraction to secondary processing (desulfurization, decomposition, reforming, etc.), petroleum products such as gasoline, kerosene, and diesel oil are produced.
Relationship between petrochemistry and oil refining
petrochemicals are manufactured in the following manner, and Idemitsu Kosan's Basic Chemicals business handles the products outlined in red. In addition, we sell derivatives * such as polyethylene, polypropylene, and polystyrene through our affiliated companies.
*Products produced from Basic Chemicals through chemical reactions
Our Strengths in the Basic Chemicals Business
One of the strengths of our Basic Chemicals business is the integrated operation with the oil refining business. This integrated operation allows us to share fractions and utilities (energy and equipment to operate the equipment). In the future, we will be able to shift surplus fractions that will become available due to the decline in demand for petroleum products such as gasoline to the manufacture of basic chemical products, and we will also be able to reduce costs by utilizing facilities such as tanks at Refinery and factories together with the oil refining business.
We also gain an early and accurate understanding of market needs through our Advanced materials & Performance Chemicals business and affiliated companies such as Prime Polymer Co., Ltd. and PS Japan Corporation, which manufacture the resins that are the raw materials for final products.
Group bases and production capacity for main chemical products
We stably produce and supply a variety of Basic Chemicals, with our ethylene production capacity being one of the largest in Japan.
