Karpatneftekhim plans shutdown on high costs

22 May 2008 11:31  [Source: ICIS news]

MOSCOW (ICIS news)--Ukraine's Karpatneftekhim plans to shut down its petrochemicals production facilities for a two and a half months due to high feedstock costs, the company said on Thursday.


"Now it's more economically beneficial to continue paying salaries to employees but halt production," Karpatneftekhim CEO Sergei Chmykhov said.


The company’s monthly operational losses were up from $5.5m (€3.5m) in February to $10m in April, the company added.


Karpatneftekhim produces ethylene, propylene, polyethylene, vinyl chloride monomer and caustic soda.


Meanwhile, the company also announced plans to invest more than $500m in new caustic soda, chlorine and PVC facilities by 2014.


Karpatneftekhim, based in Kalush, western Ukraine, is controlled by Lukoil-Neftekhim, petrochemical subsidiary of Russian major Lukoil.


($1 = €0.63)


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By: Sergei Blagov
+44 20 8652 3214

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