12 September 2008 07:57 [Source: ICIS news]
SINGAPORE (ICIS news)--Three major polypropylene (PP) producers in South Korea Polymirae, Lotte Daesan and Honam Petrochemical plan to cut production by 20% in September as their inventories were building up due to weak demand, company sources said on Friday.
“We’re running at full capacity now but we’ll cut production from mid-September by 20% and by 25% in October,” a Polymirae source said, adding that further cuts were possible in November if demand did not pick up.
Polymirae’s production losses were estimated at about 12,000 tonnes in September and 14,000 tonnes in October, he added.
“We plan to cut output by 20% in September and will continue to run at the reduced rate in October if demand is still weak,” a Honam source said.
The production cuts also applied to the PP facility in Daesan operated by Honam’s sister company, Lotte Daesan, a second Honam source said.
Polymirae operates a 600,000 tonne/year PP plant in Yeosu, Honam runs a 380,000 tonne/year PP unit at Yeosu, and Lotte Daesan operates a 550,000 tonne/year PP facility in Daesan.
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