Dow to reduce European PS output amid falling margins

16 May 2001 16:27  [Source: ICIS news]

LONDON (CNI)--Dow Chemical has cut its European polystyrene (PS) production by 20% because of overcapacity and pressure on margins, and is considering further cuts, CNI learned on Wednesday.

The US-based group has closed its 130 000 tonne/year PS unit in Schkopau, eastern Germany and is considering further cutbacks, according to market sources.

Dow produces a total of 630 000 tonne/year of PS at sites in Germany (Schkopau), Wales (Barry), Spain (Bilbao), Greece (Lavrion), The Netherlands (Terneuzen) and Belgium (Tessenderlo).

Dow's European PS cutbacks follow similar moves by Italy's EniChem, German group BASF and France-based AtoFina. EniChem is cutting output by 25% in May and June, BASF is cutting production by 20% and AtoFina is cutting production by about 30%.

Dow is set to announce an increase in PS prices for June. Nobody at the US group was immediately available to comment on the size of the increase, although it is understood to be DM0.10-0.20/kilogramme. Current prices for general purpose (GP) grade PS are DM1.60-1.75/kilogramme.

By: Anna Jagger
+1 713 525 2653

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