Taiwan's Nan Ya Plastics to prolong MEG shutdowns to end July

27 May 2011 07:13  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Nan Ya Plastics expects to prolong the shutdown at two of its monoethylene glycol (MEG) plants in Mailiao for two more months because of the pending approval from the local government, a company source said on Friday.

The shutdown at Nan Ya’s 360,000 tonne/year No 1 and 360,000 tonne/year No 2 MEG plants was a result of a fire that hit the Formosa group’s petrochemical complex on 12 May. The fire affected Formosa’s 700,000 tonne/year No 1 cracker and some other downstream units. Nan Ya is a subsidiary of Formosa Plastics Corp.

“We expect the restart to be in end July at the earliest,” the source said.

“The facility itself was not damaged, but we are not able to restart the units because the fire was at the pipelines for the supply of feedstock ethylene to the two MEG units,” he added.

Given the unexpected shutdown, Nan Ya had informed its customers that it will cut 30% of its regular MEG supply and 40% of its diethylene glycol (DEG) supply from June.

Nan Ya had initially planned to conduct major turnarounds at its four MEG plants in Mailiao in the second half of this year to upgrade the facilities. These include its 360,000 tonne/year No 3 and 820,000 tonne/year No 4 MEG plants at the same site.

“The current shutdown will not change our turnaround plans, but the detailed schedule will depend on the progress of the preparation works,” the source said.

The turnarounds are likely to start in August, he added.

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By: Becky Zhang
+65 6780 4359



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