Brazil Braskem halts caprolactam production

13 May 2009 15:39  [Source: ICIS news]

HOUSTON (ICIS news)--Braskem on Wednesday said it was halting production of caprolactam, an intermediate used in nylon 6, due to weakening market conditions amid the latest global economic crisis.

Most of its caprolactam production was being sold in the international market, the company said.

Braskem said it was forced to reduce production at its 62,000 tonne/year plant, which pressured margins and made continuing operations temporarily unfeasible.

The company will supply its domestic clients through the end of 2009, drawing on current inventories.

Braskem said it would continue to monitor developments in the caprolactam market to decide on the resumption of operations.

Around 70% of caprolactam is consumed in the production of nylon fibres for textile, carpet and industrial yarns with the rest used in engineering resins and films, according to ICIS chemical intelligence.

For more on caprolactam visit ICIS chemical intelligence
For more on Braskem’s plants, visit ICIS plants and projects
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By: William Lemos
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