18 July 2008 09:59 [Source: ICIS news]
LONDON (ICIS news)--Wacker Chemie will discontinue the production of its Pioloform polymer binders at Burghausen in Germany from 30 September due to weak demand and high feedstock costs, the specialty chemicals company said on Friday.
The Munich-based company said there were limited expectations for polyvinyl butyral growth in industrial applications such as coatings, paints and printing ink.
At the same time, raw material and energy costs had continued to climb sharply, it added.
“Both these factors are putting at risk the sustained profitability of this business,” the company said in a statement.
Capacity of the plant - Wacker’s only production facility for Pioloform in
To allocate supplies of Pioloform in the coming months, Wacker Polymers said it was currently working closely with clients to coordinate delivery schedules and define terms.
The company spokesman said talks were held with customers on a case-by-case basis to offer help to modify their products or to switch to third-party suppliers.
These negotiations include price increases, too, Wacker added.
From 1 August, the company would aim to increase prices for Pioloform by up to 15% in ?xml:namespace>
The Wacker spokesman said it was unclear whether these price increases would be accepted by customers.
“This depends on the customers and their needs,” he said.
In 2007, Pioloform sales were in the lower double-digit million euro range, about 0.5% of group sales. The workforce of around 20 people employed in the sector will be offered jobs in other parts of the group, Wacker said.Additional reporting from Bohan Loh
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