09 July 2009 17:33 [Source: ICIS news]
LONDON (ICIS news)--Dow Chemical’s decision to close ethylene oxide (EO) and ethylene glycol (EG) production facilities at Wilton on Teesside will have a significant impact through production chains in the UK, a source at EO user Cognis said on Thursday.
“This is a huge nail in the coffin of ?xml:namespace>
Cognis uses EO to make base-fluids and formulated polyalkylene glycols (PAGs) at Hythe in Hampshire for speciality lubrication and foam control with Dow as a principal supplier.
Ethylene Oxide is not easy to transport but the Dow closure, scheduled for January 2010 will mean that Cognis will have to import 100% of its raw material requirement adding costs and logistics problems. EO is currently transported to the Hythe site by road.
UN trade statistics showed that the
Some firms will be immediately hard hit by the Dow decision nevertheless.
Croda said on Wednesday that it would be forced to close its production site at
Nel Weddle contributed to this article
For more on ethylene oxide visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|