26 February 2010 21:40 [Source: ICIS news]
An equipment failure at Celanese - Dow’s methyl-A toll manufacturer at the site - was described by a Dow source as a “massive setback” in its ongoing effort to lift FM at the site.
Celanese spokesman W Travis Jacobsen said the company does not comment on its manufacturing operations. But a source confirmed that Celanese declared FM on its methyl-A production at Cangrejera on 22 January, after an unspecified equipment failure.
Neither Dow nor Celanese provided their methyl-A capacities at the site.
Dow initially declared FM on its methyl-A production at the site on 30 June 2009, after losing complete production capability when its feedstock propylene supplier, Petroleos Mexicanos (Pemex), experienced operational problems.
Although Dow was initially optimistic it could lift its FM by the end of 2009, methyl-A has remained on allocation, sources said.
The Celanese incident prompted Dow to take its allocations below 100%, the company said without being more specific.
“We were more comfortable before the Celanese incident,” a company source said. “But the issue now is really inventory. ... That inventory gap means we will be digging out of this for several months.”
($1 = €0.74)
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