Taiwan’s FPC cuts Linyuan PP plants rate to 40% after Mailiao fire

01 August 2011 11:11  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) has cut production further at its polypropylene (PP) plants at Linyuan because the weekend fire at a propylene pipeline has created uncertainty over its feedstock supply, a company source said on Monday.

FPC obtains part of its propylene feedstock supply from Formosa Petrochemical Corp’s (FPCC) crackers in Mailiao, where the weekend fire had occurred, the source said.

The Linyuan plants, which have a combined capacity of  350,000 tonnes/year, were being operated at lower rates following the earlier fires at Mailiao in May and July, he added.

With the latest fire, FPC has further reduced the operating rate of the PP facilities to 40% capacity, the source said.

FPC has also suspended its offers for August shipment after the fire.

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By: Chow Bee Lin
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