BASF may not run China, Korea TDI plants in Dec

19 November 2008 13:27  [Source: ICIS news]

SINGAPORE (ICIS news)--BASF may not run its toluene di-isocyanate (TDI) plants in China and South Korea in December if regional demand does not improve, sources close to the company said on Wednesday.

Asian TDI demand has been weak since the global financial crisis unfolded at the end of September and has shown no signs of improving, Asian traders said.

BASF’s 160,000 tonne/year plant in Caojing, China, was currently running below 50% capacity due to weak demand, and its 140,000 tonne/year plant in Yeosu, South Korea, had been shut since the end of October for a turnaround, the sources said.

“The plant in South Korea is scheduled to be restarted in end-November, but the restart may be delayed to early-January if demand doesn’t pick up,” one of the sources said.

BASF issued a reduced full-year profits outlook on Wednesday and said it was reducing production at about 100 plants worldwide in an attempt to avoid overcapacity.

Other key TDI producers in Asia, including Mitsui Chemicals Polyurethanes in Japan and South Korea's DC Chemical, had also cut production since October due to weak demand.

TDI is used for making polyurethane foams used in various applications, including automotive and furniture.

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By: Chow Bee Lin
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