BASF to cut PS by 25% in Ludwigshafen, Antwerp

19 September 2008 10:28  [Source: ICIS news]

LONDON (ICIS news)--BASF will cut back its polystyrene (PS) output in Europe by 25% from 1 October on a diminished market for the product, the company said in a statement on Friday.

“The market for polystyrene has shrunk in almost all customer sectors this year,” said Jaroslaw Michniuk, head of BASF’s European styrenics business unit at Ludwigshafen, Germany.

The production cutback will affect the Ludwigshafen and Antwerp, Belgium, sites, which have a combined capacity of 620,000 tonnes/year, to an equal extent. 

European PS production had been running at reduced rates for several months as demand dwindled and producers’ margins suffered.

August 2008 was reported by some producers as the worst month ever for PS volumes.

PS capacity had been cut back by 13% in 2006, allowing producers to enjoy an improved margin position immediately afterwards, but since then margins have become steadily worse.

A source at BASF said that styrene production would not be affected.

Other European PS producers include Nova Innovene, Total Petrochemicals, Polimeri Europa and Dow.

($1 = €0.70)

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By: Linda Naylor
+44 20 8652 3214

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