Taiwan’s Formosa Plastics suspends PP offers in China after Mailiao fire

01 August 2011 09:34  [Source: ICIS news]

Correction: In the ICIS news story headlined "Taiwan’s Formosa Plastics suspends PP offers in China after Mailiao fire" dated 1 August 2011, please read in the first paragraph ... from its 450,000 tonne/year plant ... instead of ... from its 350,000 tonne/year plant.... A corrected story follows.

SHANGHAI (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) has stopped offering polypropylene (PP) from its 450,000 tonne/year plant at Ningbo in Zhejiang province after a fire broke out at a propylene pipeline at the Formosa group’s Mailiao petrochemical complex in Taiwan over the weekend, an FPC source said on Monday.

The producer is concerned that its propylene supply might be further disrupted as a result of the fire, because its feedstock is supplied by its sister company, Formosa Petrochemical Corp (FPCC) which operates three crackers at Mailiao, the source said.

FPC’s PP plants have been running at below capacity because of a shortage of propylene feedstock, the distributors said.

FPC produces injection grade PP at its 170,000 tonne/year PP plant in Ningbo, while its 280,000 tonne/year PP plant at the same site is producing biaxially oriented PP (BOPP), the source said.

The absence of FPC offers will not affect the PP market in Taiwan, because the producer has not been supplying much recently, China distributors said.

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By: Lizzie Yu

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