08 April 2009 20:57 [Source: ICIS news]
LONDON (ICIS news)--Tergal Industries will partially shut down its fibre production for three weeks of maintenance from mid April because of high inventories, Alain Escat, chairman and director general, said on Wednesday.
”We kept running normally but now there are too many inventories so we stop,” Escat said.
The output at the 40,000 tonne/year unit in Gauchy, France, would be reduced to 1,000 tonnes/month instead of its usual 3,000 tonnes/month, Escat added.
Rates at the unit had been reduced to 2,000 tonnes/month since the end of 2008 because of poor demand, he said.
The outage would result in a 500-tonne reduction in requirements for purified terephthalic acid (PTA) but this would have “almost no impact” to the upstream market, Escat said.
April PTA prices were under pressure to move up because of developments in its feedstock, paraxylene (PX), and supply issues, but demand could hamper any attempts to increase prices, sources said.
The insolvent Tergal Industries was up for sale and had recently received a bid for a management buyout.
Tergal Industries also runs a polyethylene terephthalate (PET) unit in Gauchy, which has a capacity of 65,000 tonnes/year and is the country’s only PET plant.
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