Dow cuts Terneuzen PS on poor economics

16 July 2008 17:52  [Source: ICIS news]

LONDON (ICIS news)--Dow Europe will temporarily stop production of all its polystyrene (PS) resins at Terneuzen, the Netherlands, from 21 July due to poor economics, the company said on Wednesday.

 

Dow would continue to run other PS units in Europe at reduced rates, it said in a statement.

 

The company has PS production at Tessenderlo, Belgium, Bilbao in Spain, Schkopau in Germany and Lavrion in Greece, amounting to an additional annual output of 490,000 tonnes/year. The Terneuzen unit has an annual capacity of 50,000 tonnes/year, according to ICIS plants and projects.

 

“Last month Dow announced that its plans to temporarily reduce production at a number of manufacturing sites world wide”, said Peter Whitmore, polystyrene product director for Europe, India, Middle East and Africa.

 

“Today’s announcement is another example of our actions needed to address the recent surge in energy and hydrocarbon feedstock cost.

 

"We must restore our margins in the polystyrene business and will need to do so both through price increases and through asset decisions like these.”

 

PS demand has been poor in 2008 and assets have been running at reduced rates throughout Europe for several months.

 

PS producers in Europe include BASF, Total Petrochemicals, Dow, Polimeri Europa and INEOS NOVA.

 

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By: Linda Naylor
+44 20 8652 3214

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