16 June 2008 09:06 [Source: ICIS news]
SINGAPORE (ICIS news)--The truckers strike has not had a marked impact on production at Korea Alcohol Industrial, South Korea’s sole butyl acetate producer as it was still ramping up its operating rates, said a company source on Monday.
The company had reduced operating rates at its 50,000 tonne/year esterification butyl acetate plant in May on a shortage of feedstock n-butanol and weak demand, he added.
"The strike has affected our sales and deliveries as we can’t move products to our customers," a local producer said.
Customers in the downstream wood/automobile coatings industries were buffered for now as they had stocked up one week’s worth of inventory prior to the strike, the source in Korea Alcohol said.
"Nevertheless, if the strike continues for more than a week, then our customers may have to shut their plants," he added. "We, on the other hand, can take the time to build up our low butyl acetate inventories."
The arrival of feedstock n-butanol from deep-sea sources enabled the producer to raise operating rates at the plant in Ulsan from below 30% of capacity in May to the current 60-70%, he said.
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