29 April 2009 16:24 [Source: ICIS news]
LONDON (ICIS news)--Unipetrol will end its production of oxo alcohols at its Litvinov plant on 31 May due to a significant drop in demand caused by the global financial crisis, the Czech chemicals producer said on Wednesday.
“The unit is not competitive from the point of view of raw material and energy consumption or in terms of capacity and the make-up of alcohols produced,” said Lubomir Lukac, director of the BUII Unipetrol RPA business unit.
The company said it had considered the closure of the unit several times over the past decade, but that under the current market conditions, with demand and profit margins decreasing, a final decision had been made.
The business unit has been in operation since 1969 and uses out-dated technology, which is demanding on energy and raw materials and would require immediate investment of between koruny (Kc) 20m ($985,222, €749,064) and Kc30m, according to Unipetrol.
Production has been restricted since the end of last year and steps leading towards complete shutdown will be taking place from the beginning of May, the company said.
The oxo alcohols n-butanol, i-butanol and 2-ethylhexanol produced at the site are used as solvents for various oils, grease, waxes and resins. They are also used in the chemical industry as a raw material for further processing.
Unipetrol said customers had been informed of the closure and were advised to seek other supplier sources.
($1 = Kc20.30, €1 = Kc26.70)
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