Qilu Eastman Specialty Chemical Ltd (QESCL), a joint venture between Sinopec Qilu Petrochemical Company and Eastman Chemical Ltd, has begun construction of a plant that will produce ester alcohol and TXIB plasticizer in China.

The oxo derivatives plant being built in Zibo, Shandong Province, is scheduled for mechanical completion in October 2004, and will see a technical process installed that is based on the use of a rhodium catalyst.

Commercial production is scheduled to come on stream in December 2004, with the management remaining confident of the success of the initiative.

'QESCL will enhance Eastman's global capacity for Texanol ester alcohol and TXIB plasticizer and provide us with a more competitive position on derivative technology currently being imported to China,' declared David Brubaker, vice president of Eastman Chemical Company.

'The synergy established with Sinopec Qilu will provide long-term business growth opportunities in China and the Asia Pacific region in general,' Mr Brubaker added.

Qilu Petrochemicals president Zhang Rui Sheng said that Qilu would now become the largest oxo producer in China and Asia upon completion and start up of its ethylene expansion project next autumn.