Vopak has announced plans to build a new chemical storage terminal in China and expand chemical capacity at its facilities in the Port of Antwerp and Mexico.
In its third quarter financial update, the company says that it will develop a joint venture industrial terminal to provide storage and handling services for the chemical manufacturing plants in the Qinzhou Chemical Park in southwest China, together with Shanghai Huavi Group Investment and Guangxi Qinzhou Linhai Industrial Investment. This terminal, in which Vopak will hold a 51% share, will have an initial capacity of 290,000 m3 and is expected to be commissioned mid-2021.
Additionally, Vopak is also expanding chemical capacity at its existing facilities in Belgium and Mexico. It will expand Vopak Terminal Altamira in Mexico with 40,000 m3 for chemical products. The expansion will facilitate the growing import of chemical products in Mexico and is expected to be commissioned in the second half of 2021.
In Blegium, the company is investing in 50,000 m3 for stainless steel capacity for chemicals at the Vopak Terminal Linkeroever. The new tanks will be connected to the new jetty that is currently under construction. The jetty will have two berths and will be suitable for vessels up to 80,000 DwT. Monoethylene Glycol, among other products, will be stored in the new tanks. The port hosts one of the main industrial chemical clusters in Western Europe and is a strategic location for Vopak. The company has close to 800,000 m3 of independent storage capacity and is expanding its footprint. The additional capacity is expected to be commissioned in mid-2021.
The company reported an EBITDA of €625 million, an increase of €71 million compared to the third quarter 2018, reflecting good aggregate business performance, positive currency translation and positive IFRS. Its occupancy rates of 84% reflects planned temporary conversion activities related to IMO 2020 readiness and ongoing market conditions at oil hub terminals. Other market segments remained solid.
Looking ahead the company says that most of the fuel oil capacity conversion for IMO 2020 have been delivered. Its efficiency programme, which aims to deliver targeted cost level of €676 million for 2019 is expected to be outperformed.
Vopak will continue to invest in the growth of its global terminal portfolio in 2020 and beyond with growth investment for 2020 that could be in the range of €300 million to €500 million, subject to developments in the business environment.