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Pure terephthalic acid (PTA) is mainly used to produce PET (polyethylene terephthalate) resin and polyester fibers. By application, polyester fibers account for 68%, PET resin accounts for 25%, films account for 5%, and others account for 2%. 1 World Production Capacity and Demand 1.1 Current Production Status In 2005, the world’s PTA production capacity was 34.22 million tons per year, while the apparent consumption volume was 31.45 million tons; these figures represented increases of 8.5% and 6.2% respectively on a year-on-year basis. Due to the large amount of new production capacity added that year, the operating rate dropped from 96% to 94%. Table 1 shows the global PTA supply and demand balance and forecasts. Currently, Asia is the main producer of PTA in the world, while the production capacity in North America and Western Europe is far lower than that in Asia. In 2005, the PTA production capacities of these three regions were 24.85 million tons per year, 5.29 million tons per year, and 3.18 million tons per year respectively, accounting for 72.6%, 15.5%, and 9.3% of the world’s total production capacity. Asia’s share increased by about 1 percentage point compared to 2004, whereas the shares of North America and Western Europe both decreased slightly from the previous year. The rapid growth of PTA in Asia is primarily driven by the development in the Chinese mainland, Taiwan, and South Korea. Between 2000 and 2005, the production capacity in these three regions increased by 4.11 million tons per year, 1.63 million tons per year, and 1.10 million tons per year respectively, accounting for 49.0%, 19.4%, and 13.1% of the total new production capacity in Asia. Among the many PTA manufacturers, the combined production capacity of the top 10 manufacturers in the world is approximately 20.6 million tons per year, accounting for about 60% of the world’s total production capacity. BP ranked first, with its PTA production capacity increasing by 320,000 t/a compared to 2004, reaching around 7.376 million t/a, a year-on-year increase of 4.5% ； Sinopec’s PTA production capacity amounts to 2.584 million tons per year, ranking it second. With the expansion and construction of a series of units by Sinopec’s subsidiaries, its PTA production capacity will continue to increase significantly. Furthermore, the production capacity of PTA manufacturers in regions such as Taiwan, Japan, India, and South Korea in Asia is among the highest in the world. The aforementioned PTA manufacturers possess their own proprietary technologies, such as those of BP, and have established wholly-owned or joint-venture enterprises in many regions around the world, with large-scale production facilities. Table 2 lists the major global PTA producers in 2005 and their production capacities. 1.2 Consumption and Trade The world’s PTA consumption is also concentrated in Asia, North America, and Western Europe. In 2005, consumption in these three regions accounted for 74.4%, 14.0%, and 7.2% of the world’s total consumption respectively. Asia’s share increased by 1.3 percentage points compared to 2004, while the shares of North America and Western Europe both declined slightly. The rapid growth in global PTA demand in recent years has been driven primarily by strong demand for polyesters. The majority of global PTA trade is concentrated in Asia; in 2005, imports and exports from this region accounted for 71.1% and 65.9% of the world’s total respectively ； Western Europe accounted for 14.6% and 20.1% respectively ； North America accounted for 5.9% and 11.3% respectively. North America and Western Europe are the main net exporters of PTA in the world, while Asia, Central and South America, and Central and Eastern Europe are the main net importers. Looking at the global PTA trade trends in recent years, Asia’s share of total world trade has been increasing year by year, while that of Western Europe has declined slightly, and the situation in North America is also showing a downward trend. Currently, PTA worldwide is primarily used in the production of polyester, accounting for over 98% of total PTA consumption. The industrial production scale of PTT (polypropylene terephthalate) and PBT (polybutylene terephthalate) is relatively small; at present, the annual demand for PTA is only around 400,000 tons. 1.3 Capacity expansion plans of major companies: The world PTA industry will continue to develop rapidly in the coming years. It is estimated that by 2010, the world’s PTA production capacity will exceed 49.52 million tons per year. The additional capacity will come mainly from Asia, with particular increases in production capacity in regions such as the Chinese mainland, India, Thailand, and Taiwan. There are few new construction projects in the Middle East, North America, and Western Europe, resulting in a relatively slow growth rate in PTA production capacity. In the future, there will be no significant changes in the consumption pattern of PTA, with the proportion used for producing polyester remaining above 98%. In recent years, PTA capacity expansion has focused on Asia. 1.3.1 Samsung Petrochemical’s 300,000 t/a PTA plant in Seasan, South Korea, was expanded in November 2004 to reach a capacity of 700,000 t/a. Samsung Petrochemical holds 47.41% of Samsung Petrochemical’s shares, while the remaining shares are held equally by Samsung General Chemical and BP. The company has a 1.1 million t/a PTA plant in Ulsan. The expansion of this facility increased Samsung Petrochemical’s PTA production capacity to 1.8 million tons per year, making it the world’s third-largest PTA producer, after BP and Formosa Plastics Corporation (a BP subsidiary).