Formosa to cut PE, PP output on feedstock shortage

04 August 2010 05:04  [Source: ICIS news]

SINGAPORE (ICIS)--Formosa Petrochemical Corp (FPCC) will cut polyethylene (PE) production at its facilities in Mailiao, Taiwan, by 30% each in August and September due to on-site shortage of ethylene feedstock, a company source said on Wednesday.

The feedstock shortage has been caused by the fire at its No 1 cracker and the scheduled maintenance of its No 2 cracker, the sources added.

"We may also cut output at Mailiao by 20-30% in October, depending on when the No 2 cracker resumes production,” the source said.

The affected Mailiao facilities consist of a 350,000 tonne/year high density PE (HDPE) plant, a 264,000 tonne/year linear low density PE (LLDPE) unit and a 240,000 tonne/year low density PE/ethylene vinyl acetate (LDPE/EVA) swing plant, he added.

Formosa Chemicals & Fibers Corp (FCFC), which receives propylene feedstock from FPCC, plans to cut production at its 450,000 tonne/year polypropylene (PP) facility at Mailiao in August, as the recent fires at FPCC’s upstream facilities had caused an on-site shortage of propylene feedstock, a FCFC source said.

He was referring to the separate fires at FPCC’s No 1 cracker and desulphurisation unit in July.

"We’ll have to cut PP production in August but we don't know yet how much to cut back,” the FCFC source said.

However, Formosa Plastics Corp (FPC), which also receives part of its propylene feedstock supply from FPCC, had no plans to cut production at its 350,000 tonne/year PP facilities at Linyuan, Kaohsiung, a FPC source said.

"We don’t plan to cut production yet because we still have propylene in storage,” the FPC source said.

"But we may experience feedstock shortage in September and October when FPCC shuts its No 2 cracker for maintenance,” he said.

FPCC was established in 1992 through total joint investments from several companies, including FPC, FCFC, Nan Ya Plastics and Formosa Taffeta, according to the FCFC website.

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By: Chow Bee Lin
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