Cyclics' German plant is near completion and due to start up in 2005

The Cyclics Corporation has begun searching for a world-scale site for its second cyclic butylene terephthalate (CBT) resin plant, primarily across North America and Europe.

Key criteria in selecting a location include proximity to raw materials, low raw-material and energy costs, availability of skilled labour, good transportation routes and attractive financial incentives. Other regions outside Europe and the US will also be considered. The announcement comes as Cyclics nears completion of its first commercial plant, with a capacity of 2500 tonne/year, in Schwarzheide, Germany.

The plant is scheduled for commercial start-up in the first quarter of 2005 and, with over 50% of the initial nameplate capacity under contract, Cyclics is already taking steps to double the capacity to 5000 tonne/year.

Ged Eveleth, Cyclics chief executive officer, told ECN that the total investment cost of the first unit, up to 5000 tonne/year, will be €35m. Eveleth added that the cost of the second, world-scale, unit would be in the region of $60m (€50m) and that it would produce 25 000 to 50 000 tonne/year, dwarfing the capacity of the first unit.

Cyclics has no preference for either the US or Europe, according to Eveleth, and a deadline of mid-2005 has been set for site selection. Board approval has been given, and the unit is loosely scheduled for completion in 2009.

Eveleth said: ‘The tremendous growth in demand we are seeing for our products has given us the confidence to launch this search.’ Davy Process Engineering, the engineering firm that led the design and construction of Cyclics’ first plant, will assist in the site qualification process for the second plant.