Kuraray delays expansion at Texas EVOH plant

23 January 2008 11:17  [Source: ICIS news]

TOKYO (ICIS news)--Kuraray has delayed its target for the second-phase expansion of its existing 35,000 tonne/year ethylene vinyl alcohol (EVOH) resin unit in Texas to 2009 due to weak demand for the product from car manufacturers, a spokesman from the Japanese chemical company said on Wednesday.

 

The company now expected to complete the expansion by March of next year, the spokesman, who declined to be named, said.

 

Kuraray previously said it had hoped to begin commercial operations by 2008, according to previous ICIS news reports.

 

The delay was due to sluggish demand for the product for gasoline tank applications, the spokesman said.

 

This was because the three major automobile manufacturers General Motors, Chrysler and Ford were experiencing a shift of demand from full-sized cars to medium- and small-sized cars, he said.

 

Meanwhile, Kuraray restarted operations at its EVOH unit in Texas last April after the completion of the first-phase capacity increase of 12,000 tonnes to 35,000 tonnes/year.

 

The company was investing $150m in the two-phase expansion, the spokesman said.

By: Tomomi Yokomura
+65 6780 4359

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