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Keyuan Petrochemicals Inc. recently announced that it has signed a long-term supplier agreement with Shell Petrochemicals Company Limited to purchase butadiene, an essential raw material used in the production of styrene-butadiene-styrene (SBS).
 
The one-year agreement ensures Keyuan has adequate supply of butadiene to meet its 70,000-ton SBS production target in 2012, which will be the first full year of commercial SBS production.
 
"This agreement provides important stability for one of our new business units," explained Chunfeng Tao, chairman and chief executive officer of Keyuan Petrochemicals Inc. "We have secured an adequate supply from a trusted partner and at a reasonable cost. Having recently secured strong orders for SBS, we can now focus on optimizing our production for the remainder of 2012."
 
With its butadiene production facilities located in China's Guangdong Province and annual production capacity of 165,000 metric tons of butadiene, Shell can conveniently ship materials directly to Keyuan's production plants in Ningbo, China.
 
An independent manufacturer and supplier of various petrochemical products, Keyuan Petrochemicals Inc. was established in 2007 and operates through its wholly owned subsidiary.