Thailand's Siam Mitsui, Tuntex consider PTA op rate cuts

17 June 2005 08:04  [Source: ICIS news]

SINGAPORE (CNI)--Thailand’s Siam-Mitsui Chemical and Tuntex Petrochemical could cut the operating rates of their purified terephthalic acid (PTA) plants at Mab Ta Phut, depending on the amount of water they are allocated by the government, sources close to the companies told CNI on Friday.

 

Mab Ta Phut, a major petrochemicals hub with a total ethylene capacity of 1.9m tonne/year, has been hit by a drought for the past few weeks. That has forced cracker operators like Rayong Olefins Co (ROC) and Thailand Olefins Co (TOC) to cut their operating rates.

 

A source close to Siam-Mitsui said that the company’s two PTA plants, which have a capacity of 470,000 tonne/year each, are running at full capacity. “The company is carrying out talks with the government, and will only get details on the water rationing next week,” she said. 

Tuntex Petrochemical, which operates a 440,000 tonne/year PTA plant, is running at full capacity until further notice from the government. “The company will wait to see what happens before considering operating rate cuts,” a source close to Tuntex said.

  

The Siam-Mitsui source said that the plant was operating at full capacity as there is still some available water supply, but this would not last for long if the drought continues to persist.

 

Government officials have instructed companies at the area to cut their water consumption by 10% or face tough measures, according to report by The Nation newspaper.

By: Caroline Sin
+65 6780 4359

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