Argentina chlorine plant production woes continue

04 June 2008 21:36  [Source: ICIS news]

BUENOS AIRES (ICIS news)--A electric transformer failure has resulted in a lengthy shutdown of Petroquimica Capitan Bermudez’s chlorine and sodium hypochlorite plant in Santa Fe province, Argentina, a source said on Wednesday.

Production will be halted for four months, a source close to the situation told ICIS news. The plant has already experienced a shutdown due to labour issues.

“The two months of inactivity that started on middle April had an impact on the plant’s operation. As a consequence a transformer stopped working past week,” the source said.

The plant will require a new transformer at a cost of $3.3m (€2.1m) to restart, a source said.  The company is analysing the investment.

Celulosa Argentina was Petroquimica Capitan Bermudez main customer. It used to purchase 70% of its product. With the halt, Transclor became the new provider for Celulosa Argentina.

Petroquimica Capitan Bermudez will reduce its workforce as a result of the shutdown.

Workers had received only a partial payment for April and May, said Daniel Santillan, leader of the Chemical and Petrochemical Union of Fray Luis Beltran. The union is part of the labour organisation FESTIQyPRA.

On 10 April, Petroquimica Capitan Bermudez, Sergio Taselli owner announced the shutdown of the factory because of a “preventative crisis”.

A preventative crisis is a legal term which means the company was no longer profitable because of the lost of clients, after having to stop production for a month because of the union conflicts generated by the dismissal of seven employees of Poliservicio SA, which was in charge of the weekend staff at the plant.

Petroquimica Capitan Bermudez produced 100 tonnes/day of chlorine, and employed over 70 people.

($1 = €0.65)

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By: Cristina Kroll
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