METHANOL’S BIG BOY

The M5000 methanol plant is now touted as the largest in the world.

External pressures, he said, like the reduced availability of steel and the resultant price increases due to the sudden demand increase from China, the unusual rainy season and the competition for local skilled resources, were just some of the factors that they had to deal with during the plant’s construction.

"Many of these challenges would have been sufficient to stall other projects, however, by the strength of our partnership and strong sense of cooperation between all parties, were able to persevere and to succeed once again," he said at the opening of the plant at Point Lisas.

MHTL’s Chairman Lawrence Duprey, whose statements were read by board member Joseph Cassidy, said the start-up of the M5000 plant was a major milestone in the history of the company.

This single event, he said, now positions MHTL as the number one exporter of methanol to the US market and the number two methanol producer to the world. It means that CL Financial, who has majority shareholding in the company, continues to solidify its position as world’s leading methanol producer.

Made from natural gas, methanol is used in some wood products, plastics and polyester fibers, and in windshield wiper fluid, paints, solvents, refrigerants and disinfectants. It is also being considered for use in hydrogen fuel cells and as a fuel source for electricity turbines.

Dr Axel Wipperman, Member of the Executive Board of shareholder MAN Ferrostaal Ag of Germany, said the latest plant was well-built and the money well-employed. "We have succeeded to construct and start up the plant within budget and on schedule," he told guests.

Holger Apel, Senior vice president of Kreditanstalt fur Wiederraufbau (KFW), the major financier of M5000 said the bank has invested over US$1 billion in three plants owned by MHTL.

"The methanol growth story has continued in the meantime and the successful business model is here to stay and it explains all the trust KFW has in the partners, in MHTL, the main players," said Apel.

"KFW is very proud to be part of this success story and that is the reason why we were brave enough to invest over one billion US dollars in the methanol industry here alone."

Noting that MHTL was in the planning stages of a UAM (Urea, Ammonia, Melamine) plant, Apel said it was important that the projects have a reliable supply of gas at a competitive and flexible price.

MHTL has established two marketing and distribution centres to provide a deeper presence in its major markets, North America and Europe. Southern Chemical Corpora-tion, based in Houston, Texas and Helm Ag, based in Germany are responsible for methanol sales in North America/Mexico and in Europe respectively.

Currently, approximately 65 percent of total production is exported to the North American market, 34 percent to the European market and the remaining one percent is sold locally for the manufacture of MTBE and urea, formaldehyde resins, cleaners, engine degreasers, detergents and for use in oilfield operations and laboratories.

In 2002, the United States imported US$1.2 billion under CBERA (Caribbean Basin Economic Recovery Act, which falls under the Caribbean Basin Initiative (CBI), up from US$328 million in 2000.