S Korea's Hanwha cuts oxos to 50% rates on costs

03 November 2008 11:52  [Source: ICIS news]

SINGAPORE (ICIS news)--South Korea’s Hanwha Chemical is running its 125,000 tonne/year oxo-alcohol plant at Yeosu at around 50% rates due to poor economics and weak demand, a company source said on Monday.

“Our cost is high but current 2-EH prices are very low,” the source said. "We are seriously considering to shut down the plant this week."

The souce added that spot material was limited due to the reduced production rates.

The oxo-alcohol plant, which comprises 110,000 tonnes/year of 2-ethylhexanol (2-EH) capacity, 10,000 tonnes/year of n-butanol (NBA) and 5,000 tonnes/year of isobutanol (IBA), could be shut for an indefinite period if the market fails to improve.

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By: Su Yeen Cheong
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