Australia's Chemical Industry - Overview

Altona complex

The Botany complex

The Botany complex has consolidated its activities through by its JV owner Qenos (former Kemcor and Orica) in polyethylene resins (LDPE and LLDPE). The complex also produces ethylene oxide and its ethoxylate derivatives (surfactants, polyols, hydraulic fluids and triethanolamine), caustic soda and chlorine which is now owned by Huntsman Corporation.

Other major petrochemical operations

Huntsman Chemicals operates a styrene and styrene derivative plant at West Footscray, Victoria (near Altona) also producing some phenol and acetone. The key raw material, benzene, is 80 per cent imported.

Basell Australia operates two polypropylene plants at Shell refineries in Geelong Victoria and Clyde New South Wales. It uses propylene produced as a by-product of Shell's refining operations plus some purchased from Orica (that refines propylene acquired from the Kurnell refinery since closing its polypropylene plant).

Incitec ammonia, urea and ammonium nitrate operations at Newcastle New South Wales and Brisbane Queensland.

Wesfarmers ammonia and ammonium nitrate at Kwinana Western Australia.
Petrochemical capacity summary

Product	Company	Details
2,4-D, trifluralin, metham sodium	Nufarm at Laverton Victoria and Kwinana, Western Australia.	see carbon disulfide).
Acetone	Huntman Chemicals at West Footscray, Victoria.	Acetone (cumene route) 12 000 tpa.
Acrylic-based flocculants and viscosity modifiers (resource development industry)	Nalco Australia, Allied Colloids at Wyong NSW andCiba Specialty Chemicals (formerly Imdex Chemicals) located in Kwinana, Western Australia. Rohm and Haas at Point Henry Victoria produces acrylic polymer emulsions in water from imported acrylic esters. SNF Australia with acrylic polymers. See also acrylic acid.	Acrylic acid (acrylic esters and acrylamide) is imported.
Ammonia	Incitec (72 per cent owned by Orica, the balance listed) plants at Newcastle, New South Wales and Brisbane, Queensland (plus ammonium nitrate and urea) and CSBP at Kwinana, Western Australia	Ammonia
Benzene as BTX	BHP coking plants.	Benzene production (20 000 tpa) for Huntsman Chemicals manufacture of styrene and phenol
Carbon black	Hydrocarbon Products at Altona and Continental Carbon Petroleum at Kurnel in NSW	These purchase creosote tars to manufacture carbon black. Carbon black is sold as pigment and stabiliser for plastics and rubbers. Each supply about one-half the Australian market
Creosote	Koppers Australia	Creosote is produced as a component of oil refinery tars and from BHP coke ovens. Koppers Australia at Newcastle NSW purchases crude tar from BHP supplemented by imports (one-third?) of these tars. Koppers produces binder pitch, creosote oils, naphthalene, and crude tar acids.
Dimethyl ether	CSR Distilleries Group, Pyrmont, NSW	About 3 000 tpa using methanol. Since 1988 as an aerosol propellant.
Ethanol (ethyl alcohol)	Manildra Group in Victoria and by CSR Distilleries in Qld.	Produced by fermentation. Australian market around 50 000 tonnes
Esters of fatty acids	Megachem	Wide range of fatty acid esters from imported fatty acids.
Ethylene glycol and ethoxylates	Huntsman. Botany NSW.
Ethylene oxide	Huntsman Botany NSW.
Fatty acids (stearic and oleic acids)	Symex Holdings at Port Melbourne	Acid hydrolysis of animal and vegetable fats.  Oleine. From tallow, palm oil and olive oil with total production of 15,000 tonnes (2000 representing 9 per cent of world production). Major applications are as additives for polymers (35%), textile auxiliaries (25%), surfactants (20%) and lubricants. Stearine. Total production is around 22 000 tpa (representing 1.3% of world production). Major applications are in rubber, plastic lubricants, candles and cosmetics). Glycerol, co-produced with fatty acids, is also imported. Aside from the use of vegetable oils, Symex uses 60,000-70,000 tonnes annually of tallow representing 95 per cent of fats used. Symex also produces Distilled fatty acids from coconut oil, canol oil and tallow.
Formaldehyde and formaldehyde-based adhesive resins	Four plants operated by Orica (Deer Park Victoria - iron oxide catalyst), Borden Australia		Laverton North in Victoria - (silver catalyst process) and
	Murarne in Queensland) and

Dyno in Western Australia.

These plants purchase methanol for conversion to formaldehyde and the urea is purchased from Incitec. (Formaldehyde is not traded being unstable). The two Victorian plants purchase the methanol on-line from the BHP plant. Glycerol (glycerine) Symex Holdings at Port Melbourne By acid hydrolysis (splitting) of fats (tallow and imported palm oil). Principally producing fatty acid co-product, production is inadequate to supply Australia's needs. Latex emulsions BASF at Altona Victoria.
Dow Chemical at Altona BASF purchased plant and market from Huntsman. Styrene purchased from Huntsman, butadiene from Kemcor. Metham Sodium Nufarm Western Australia Soil fumigant Methanol (methyl alcohol) BHP Petroleum (with Orica Katalco of the UK) Wyndham 20 km west of Melbourne, Victoria About 60 000 tpa methanol supplying about 70 per cent of Australia's needs. Naphthalene BHP’s steel plants recovered (separation by distillation process) by Koppers Coal Tar Products operating at Newcastle NSW. 6 000 tonnes is purchased by Albright and Wilson at a new plant at Wetherill Park in New South Wales to produce a specialist surfactant (naphthalene sulfonate formaldehyde condensate) for use in mortar, cement and concrete. Naphthalene sulfonate formaldehyde condensate Albright and Wilson at Wetherill Park in NSW. About 13 000 tpa (used as cement additive) Phenol Huntsman Chemicals at West Footscray, Victoria. Phenol (cumene route) 20 000 tpa Polyethylene resins Orica (LLDPE & LDPE) and Kemcor (LDPE) LLDPE, LDPE, HDPE Polyols, ethylene oxide oxide-based Orica at Botany Australia Used to produce ethoxylates (non ionic surfactants (inc. nonyl phenol) Polyols, propylene oxide-based Dow Chemicals From imported propylene oxide Polypropylene resin Shell Refineries at Geelong, Victoria and Clyde, New South Wales. Kemcor at Altona Victoria Polypropylene Polystyrene and other styrene polymers Huntsman Chemical Corporation at West Footscray and Dow Chemicals at Altona, Victoria under JV of Polystyrene Australia. The company has a joint venture with Dow Chemical for marketing and distribution of general-purpose and high-impact PS in Australia and New Zealand. 80 per cent from imported benzene. Some 60 per cent of the 80 000 tonne polystyrene market is produced by the Polystyrene Australia. Polyvinyl chloride Australian Vinyls Corporatio with a 90 000 tpa plant at Altona and Orica with a 140 000 tpa plant at Laverton Victoria). From imported vinyl chloride monomer (200 000 tonnes Specialist chemicals and preparations Dow Chemicals and BASF for textiles, leather and paper Styrene rubbers Qenos at Altona, Victoria SBR and BR. Latex emulsions are prepared by BASF and Dow Chemical. Vanadium pentoxide Australian Vanadium, NW WA Xanthate chemicals Coogee Chemicals 5 000 tonnes capacity. See also carbon disulfide

Inorganic chemicals 

Inorganic chemical manufacture in Australia is represented in particular by sodium carbonate, superphosphate fertiliser, titanium dioxide pigment, sodium polyphosphate and sodium cyanide.

Note: Follow the links under the Product heading!

There are many opportunities (see also Western Australia). Australia is the worlds largest importer of caustic soda (used for alumina production). Yet though simply manufactured from common salt and energy, Australia still imports nine-tenths of its needs. In Western Australia salt and energy are produced along side each other for export as raw materials and energy (at the Burrup Peninsula in the north west). An inadequate market for co-produced chlorine is claimed as an obstacle for a world scale chloralkali plant with Australia becoming increasingly competitive, this may change.

Presently seven-eighths of Australia's production of titanium minerals are processed overseas. The evidence with expanding production suggest vast export potential.

Opportunities

The chemical industry has improving opportunity to expand based on Australia's resource endowments and the nearby fast growing Asian markets. There are many favourable influences as for example the deregulation of the gas industry in Western Australia with prices falling by one-half. In response, BHP has made a US$1bn investment for production of direct reduced iron). Lower raw material and operating costs will favour world-class energy-intensive activities that may include a petrochemical project and the production of magnesium metal.

The opportunities for manufacture will be described in updates to this section. This will include caustic soda. During 1995, Australia imported 1.1 million tonnes of caustic soda valued at A$385 million. Not only indicating potential, it also points to the awkwardness of the industry. Australia is a major exporter of energy by way of natural gas (and coal) and salt, in addition to caustic soda, it also imports some A$100 million of vinyl chloride monomer containing some 100 000 tonnes of chlorine. There are many opportunities.

Comments and suggestions welcomed.

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