Mitsubishi shuts down BDO unit on high costs

09 September 2008 12:25  [Source: ICIS news]

SINGAPORE (ICIS news)--Japanese butanediol (BDO) producer Mitsubishi Chemical Corp has shut down one out of its three lines producing BDO due to high feedstock butadiene values, said a company source on Tuesday.

 

The company shut down the Yokkaichi-based line producing 20,000 tonnes/year of BDO in August, he said.

 

The two other lines at the same location producing 50,000 tonnes/year and 30,000 tonnes/year of BDO were running at full rates, added the source.

 

The shutdown had brought the company’s overall production levels to 80%, he said.

 

A rally in feedstock butadiene costs a few months ago had pressured margins of BDO producers with some of them heard to be cutting back operating rates or shutting down units, said regional sellers. No further confirmation was available.

 

BASF, Nanya and SK Corp are some of the key producers of BDO in Asia.

 

For more on butanediol visit ICIS chemical intelligence

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By: Mahua Chakravarty
+65 6780 4359

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