DSM restarts Linz maleic anhydride plant amid tight supply

29 October 2009 15:29  [Source: ICIS news]

LONDON (ICIS news)--DSM restarted its 36,000 tonne/year maleic anhydride (MA) plant at Linz, Austria, on 24 October following nearly four weeks of planned maintenance work, a company source said on Thursday.

The plant was taken off line on 26 September, one week earlier than originally scheduled, due to a technical fault.

The European MA market was in tight supply due to force majeure as a result of a strike at BASF’s 115,000 tonne/year MA plant at Feluy, Belgium.

According to market sources, MA spot prices were set to increase by up to €200/tonne ($294/tonne) this week.

The strike followed BASF’s announcement that it intends to permanently cease MA production at the end of 2009.

As a result of the strike and force majeure at BASF’s Feluy plant, a source at DSM said it was expecting that production at the Linz plant in the next two months would be strong.

“With the BASF announcement, we assume it will be very easy to have maximum capacity for the next two months,” the DSM source said.

($1 = €0.68)

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By: Mark Victory
+44 208 652 3214

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