Mitsui to cut phenol/acetone output on low profits

23 May 2008 06:09  [Source: ICIS news]

SINGAPORE (ICIS news)--Mitsui Chemicals, Asia’s largest phenol-acetone producer, plans to cut back its phenol/acetone production in Japan and Singapore because of poor economics, a company source said on Friday.

The operating rates would be reduced to 80% from June, the source said, adding that export availability would be reduced by 10,000 tonnes/month.

No definite date was fixed for restoring the plants to full operations, as “it depends on the market situation”, the source said.

Surging upstream benzene and propylene values as well as utilities costs, coupled with weak sentiment in the key Chinese market, had prompted the producer to cut its operations, the source added.

Mitsui Chemicals operates three plants in Japan and one plant in Singapore.

The plant in Chiba - a joint venture with Idemitsu Kosan - can produce 230,000 tonnes/year of phenol and 80,000 tonnes/year of acetone.

It also runs another plant in Chiba, which has a nameplate phenol capacity of 190,000 tonnes/year and 114,000 tonnes/year of acetone.

The plant in Osaka can produce 200,000 tonnes/year of phenol and 120,000 tonnes/year of acetone.

The plant in Singapore will also run at a reduced rate following a 20-day turnaround starting 3 June. The Jurong Island facility has a nameplate capacity of 300,000 tonnes/year of phenol and 180,000 tonnes/year of acetone.

By: Liu Xin
+65 6780 4359

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