Novapex cuts phenol/acetone output on poor sales

17 October 2008 15:11  [Source: ICIS news]

LONDON (ICIS news)--Novapex has reduced cumene and phenol/acetone production at its facility in Roussillon, France, on poor economics, a company spokesperson said on Friday.

 

“We have officially cut operating rates on cumene and phenol because of poor demand for phenol,” said the company source. “Our order book has suddenly decreased.”

 

Novapex declined to confirm how far it had cut operating rates at the Roussillon plant, which has a capacity to produce 155,000-160,000 tonnes/year of phenol and 96,000-99,000 tonnes/year of acetone. 

 

The decision to cut operating rates followed news that INEOS Phenol and Domo Caproleuna have slashed output further in Europe because of “the disaster in downstream markets,” as one source put it.

 

Domo said that the decision to reduce operating rates even further at its facility in Leuna, Germany, was “influenced by the [slumping] automotive sector and the weak situation in Asia”.

 

The company preferred not to comment on exact operating rates at its 150,000 tonne/year phenol and 90,000 tonne/year acetone plant.

 

“Every day you get more information that customers have reduced but we are hoping that the first quarter will be better,” said a Domo source.

The global major, INEOS Phenol also confirmed on Friday that it had cut its phenol and acetone production again. The company has been running its plants in Gladbeck, Germany, and Antwerp, Belgium, at 75% operating rates since June.

A company source confirmed that phenol/acetone production was now 30% below capacity.

“Quarter four will be tough,” he said.

Spain’s CEPSA Quimica has also been running its phenol/acetone facilities in Huelva, Spain, at reduced rates since June because of poor phenol demand.

 

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By: Julia Meehan
+44 20 8652 3214

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