S Korea's Honam shuts No 1 Yosu MEG unit permanently

11 November 2010 07:13  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Honam Petrochemical has permanently shut its 120,000 tonne/year No 1 monoethylene glycol (MEG) plant at Yosu, Chonnam, on 10 November following a recent expansion at its ethylene oxide derivative (EOD) plant, a company source said on Thursday.

“Our new 50,000 tonne/year EOD line was successfully started up in October, which increased requirement on ethylene oxide (EO),” the source said.

The company’s total EOD capacity, thus, reached 150,000 tonnes/year, he added.

The unstable running of the MEG No 1 unit due to some mechanical problems was another reason for the company to close the plant, he said, adding that the unit was running at 70% before it was shut down.

The company would raise the operating rate at its 120,000 tonne/year No 2 Yosu plant to 100% from 70% in a bid to reduce the overall production loss of MEG, the source said.

Honam had earlier announced to its customers that it would slightly cut down contract volumes in 2011 because of the expected reduction of its MEG output.

The company operates two other MEG lines with a combined capacity of 280,000 tonnes/year at Yosu, and two MEG facilities with a total capacity of 650,000 tonnes/year at Daesan.

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By: Becky Zhang
+65 6780 4359

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