S Korea's Honam restarts EVA plant after expansion

20 April 2011 04:42  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Honam Petrochemical has restarted its expanded ethylene vinyl acetate copolymer/low density polyethylene (EVA/LDPE) swing plant at Daesan, following a turnaround and debottlenecking works, a company official said on Wednesday.

The plant was shut down on 18 March and was restarted on 19 April, the official said.

The debottlenecking exercise raised the company’s total EVA/LDPE capacity to 125,000 tonnes/year, the source said. About 100,000 tonnes/year of that capacity can be used for EVA production, up from the previous 70,000 tonnes/year, he added.

The capacity expansion would boost the company’s output of higher VA-content grades to cater to the growing demand from the solar encapsulant sector, the source said.

The ratio of production between the low and high VA-content grades would be adjusted according to the market situation, he added.

“We are not yet sure of the ratio to produce higher VA-content grades,” he said, “it depends on the market situation and we will adjust between producing the 18% VA-content grade and the 30% VA-content grade accordingly.”

Meanwhile, Asia’s EVA prices were hovering at record high levels, amid supply shortages during the week ended Tuesday, reflecting fixtures and discussions for May-loading cargoes.

The key 18% VA-content EVA was traded at $2,850-2,900/tonne (€1,995-2,030) CFR (cost & freight) China Main Port/southeast Asia/south Asia, the highest since ICIS records for EVA began in November 2000.

Major EVA producers in Asia include Formosa Plastics Corp (FPC), USI Far East, The Polyolefin Company (TPC), BASF YPC, Hanwha Chemical and TPI Polene.

($1 = €0.70)

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By: Helen Lee
+65 6780 4359



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