US Shell to close Texas solvents unit

18 June 2008 00:10  [Source: ICIS news]

HOUSTON (ICIS news)-- The US solvents market could tighten even further as producer Shell Chemical said on Tuesday it planned to close its Deer Park solvents operation in Texas by 1 November.

“The closure is based on declining demand, over supply and the significant investment required for the facility to successfully compete long-term in the global solvents marketplace,” Shell said in a statement.

The Deer Park solvents operation includes isopropyl alcohol (IPA), isopropyl ether (IPE) and C6 solvents, Shell said. The C6 solvents are methyl isobutyl carbinol (MIBC), methyl isobutyl ketone (MIBK), di-acetone alcohol (DAA) and hexylene glycol (HG).

Shell’s Deer Park production capacity includes 270,000 tonnes/year of isopropanol, and 45,000 tonnes/year of MIBK, according to ICIS plants and projects.

“Shell will continue to supply IPA to customers in North America from facilities in Sarnia, Canada, or in certain circumstances from third-party tank facilities in Houston,” the company said.

Shell will no longer market C6 solvents in North America from end-2008, it said.

Shell said it did not anticipate layoffs or severance packages.

Other products produced in Deer Park including phenol, acetone and cumene are not planned for closure.

For more on Shell’s Deer Park facility visit ICIS plants and projects
To discuss issues facing the chemical industry go to ICIS connect

By: Heather McGuire Doyle
+1 713 525 2653

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