AtoFina cuts northwest Europe PS output due to poor margins

11 April 2001 18:09  [Source: ICIS news]

LONDON (CNI)--AtoFina, the chemicals division of Franco-Belgian energy group TotalFinaElf, has temporarily reduced polystyrene (PS) output by almost a third in northwest Europe in response to deteriorating profit margins, CNI was told Wednesday.

A senior source in AtoFina's PS sales office in Paris said the cutbacks had been instituted in an attempt to improve margins squeezed by high feedstock costs and lacklustre demand.

He indicated that the reductions averaged around 30% although the exact amount would vary from region to region and plant to plant.

It is understood that resumption of normal production will depend on prevailing PS prices, margins and the response of AtoFina's competitors.

AtoFina, which is one of Europe's biggest PS producers, is well advanced with a 60 000 tonne/year capacity expansion at its Carling, France plant. The expansion is due onstream around June or July this year.

By: Neil Sinclair
+44 20 8652 3214

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