Mitsubishi runs two Japan crackers near capacity

05 September 2008 11:50  [Source: ICIS news]

TOKYO (ICIS news)--Mitsubishi Chemical, Japan’s largest cracker operator, is currently running its two remaining crackers at “almost full rate” after the Kashima No 2 cracker was taken offline on Tuesday, a company spokesman said on Friday.

 

However, he declined from disclosing the exact operating rate.

 

“I don’t think it will reach full rate because we have to adjust based on the circumstances of any given time such as the order situation,” the spokesman said. "We will operate (the crackers) at optimal rate with an aim for full (rate operation)."

 

The No 2 cracker in Kashima, Ibaraki prefecture, producing 476,000 tonnes/year of ethylene, was shut on Tuesday due to a technical glitch in the freezing system.

 

MCC expects to restart the cracker in two weeks.

 

The producer had been reducing the combined operating rate of all three crackers - the 375,000 tonne/year Kashima No 1, No 2 and the 450,000 tonne/year unit in Mizushima, Okayama prefecture, to 80-85% as scheduled since 1 September, the spokesman said.

 

MCC would not be able to make up for the shortfall of production just by increasing the rate of the two remaining plants, and it planned to fill the gap through domestic swap arrangements with Japanese producers and purchases on the spot market, the spokesman said.

 

The production of ethylene derivatives including styrene monomer (SM) would also be impacted by the shutdown of the No 2 cracker, the spokesman said, without disclosing further detail.

 

The producer has been reducing the production of SM from the second quarter, he added.

 

The combined operating rate of MCC’s crackers would be lowered to 80-85% again once the No 2 cracker is restarted in two weeks, the spokesman added.

 

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By: Tomomi Yokomura
+65 6780 4359

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