Formosa Ningbo to shut down PVC plant late Sept

23 September 2008 12:46  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s Formosa Ningbo will shut down its 300,000 tonne/year ethylene-based polyvinyl chloride (PVC) facility in eastern Zhejiang province due to weak demand and falling PVC prices, a company source said on Tuesday.

“The demand is very weak, squeezing our margins seriously. Under this condition, we have to consider a shutdown to relieve our sales pressure,” the source told ICIS news.

The Ningbo city plant would shut down starting from 27 September and restart after a week-long national holiday from 29 September-5 October.

Ethylene-based PVC prices have slipped 25% from the second half of July to yuan (CNY) 6,800-7,200/tonne DEL (delivered), said traders.

Other domestic ethylene based PVC producers had also remained at low operating rates.

Tianjin Dagu was now running its 800,000 tonne/year PVC facility at 70% capacity, while Suzhou Huasu Plastic Co planned to shut down its plant for one-to-two weeks after the golden week holiday in early October.

Formosa Ningbo is owned by Taiwan's Formosa Plastics Group

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By: Lynn Du
+65 6780 4359

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