10 August 2011 08:04 [Source: ICIS news]
SINGAPORE (ICIS)--Formosa Plastics Corp (FPC) has imported about 2,500 tonnes of polypropylene (PP) to supply to its local customers as its PP facility at Linyuan, Taiwan, has been running at below full capacity, a company source said on Wednesday.
The Taiwanese major is a net exporter of PP, but a shortage of propylene feedstock in Taiwan and the reduced production rate at the PP plants owned by the Formosa Group have prompted it to turn to imports, the source said.
FPC’s PP facility at Linyuan, which consists of a 230,000 tonne/year plant and a 120,000 tonne/year unit, has been running at 70% capacity as its propylene feedstock supply was tightened in the aftermath of a recent fire at Formosa Petrochemical Corp’s (FPCC) propylene pipeline in Mailiao, the source said.
FPC’s sister company, Formosa Chemicals & Fibre Corp (FCFC), has also shut part of its PP facilities at Mailiao.
FPC imported PP yarn, injection and biaxially oriented grades from traders for prompt shipment from regional bonded warehouses, he said.
The Formosa Group will be submitting a shutdown schedule for its petrochemical facilities at Mailiao to the authorities for inspection, following the recent fire at its Mailiao facility, but FPC’s PP plants in Linyuan are unlikely to be included in the schedule, the source said.
“All the recent fires have occurred at the Mailiao complex [that is] operated by Formosa Petrochemical Corp. They have nothing to do with the PP plants in Linyuan,” he said.
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