BASF to shut Tarragona, Spain plasticiser, PA plants
23 July 2002 11:22 [Source: ICIS news]
LONDON (CNI)--BASF said Tuesday it is closing its plasticisers and phthalic anhydride (PA) production plants in Tarragona, Spain due to market over-capacity and intense price competition.
Production from the 40 000 tonne/year plasticiser facility will cease on 31 August. PA output of around 17 000 tonne/year will continue until 31 December to ensure all existing contracts are fulfilled.
BASF intends to concentrate production at its worldscale facilities in Ludwigshafen, Germany and Feluy, Belgium. Plasticiser capacity at Ludwigshafen is around 260 000 tonne/year and PA capacity is 110 000 tonne/year. At Feluy, BASF has plasticiser capacity of 95 000 tonne/year and PA capacity of 92 000 tonne/year.
BASF said the opening up of European markets meant that worldscale production plants are needed to ensure competitiveness.
All 40 employees at the Tarragona plants will be affected by the closures. A BASF spokeswoman told CNI that most would be offered alternative jobs within BASF or early retirement.
BASF Espanola management board member Ramon Gil-de-Luigi said: "We knew that our local production of plasticisers and PA lacked the necessary economic scale and had an unfavourable cost position compared with other European sites."
BASF closed an initial plasticiser intermediates plant in Tarragona last June but over-capacity was exacerbated after the acquisition of additional plasticiser and PA facilities at Feluy last July when it bought Sisas.
Herbert Fietzek, BASF’s head of European plasticisers business in Europe, said: "Our aim is to extend our leading position in the European plasticisers market and to strengthen the business on a long term basis."
By: Joanna Kesteven
+44 208 652 3214
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Links posted in this story:
|
|
Related Articles
- 24 Jun 05 16:27 BASF restarts production of MA at Feluy, Belgium
- 17 Jun 05 17:43 Strike over BASF site closure at Feluy, Belgium ends
- 17 Jun 05 17:37 Strike at BASF's Feluy site disrupts MA plant restart
- 17 Jun 05 13:01 BASF Feluy, Belgium PA closure likely end of Q3
- 16 Jun 05 16:08 BASF Feluy, Belgium PA closure will add length to OX market
- 15 Jun 05 17:17 BASF to halt DEHP production in Europe, shut 2-EH plant at Ludwigshafen
- 04 Oct 04 22:08 BASF buys land, tanks to expand Texas plasticizer business
- 23 Mar 04 11:53 BASF cuts Feluy, Belgium MA capacity by 15%
- 18 Mar 03 15:28 BASF achieves Euro700m of Euro1bn/yr cost savings target
- 07 Aug 02 16:25 Canada’s Nova, BASF sign SM deal for N AM, Europe
- 01 Aug 02 15:25 Dow, BASF form jv for hydrogen peroxide-to-PO process
- 12 Jul 02 17:53 BASF's plasticiser applications
- 25 Oct 99 00:00 Overcapacity poses threat to plasticisers
- 30 Apr 02 09:30 BASF says on track to raise 2002 pfts after positive Q1
- 04 Feb 02 00:00 Phthalic anhydride
- 01 Oct 01 11:24 EPCA 2001: BASF makes good progress on Feluy integration
- 07 Aug 01 11:25 BASF restructuring to have cost 4000 jobs by end 2002
- 11 Jul 01 16:04 BASF sees DM30m cost savings from Feluy MA/BDO purchase
Latest News
- 20 Nov 09 23:59 Europe Q4 acetic acid settles up at €470-550/tonne
- 20 Nov 09 23:17 EVENING SNAPSHOT - Americas Markets Summary
- 20 Nov 09 22:08 Jan-Oct Argentina chem production rises 11.6% year over year
- 20 Nov 09 21:33 Lyondell can cancel some executive benefits - US court
- 20 Nov 09 21:28 Russia petchems to grow on proximity to China
Barbara Ortner looks at the off-beat and unusual side of chemical industry life.
ICIS Chemicals Confidential