25 August 2011 08:05 [Source: ICIS news]
SINGAPORE (ICIS)--Philippine producer JG Summit Petrochemical has been running its polyethylene (PE) and polypropylene (PP) plants in Batangas at significantly reduced rates for more than 10 years because of the absence of a naphtha cracker to provide sufficient feedstock, a company executive said on Thursday.
The producer has been operating its 210,000 tonne/year PE plant and 190,000 tonne/year PP unit at 30-35% of their capacities since they were built, JG Summit Petrochemical executive vice president for commercial operations, Patrick Go, told ICIS in an interview.
“We are operating at really low rates. We’re having a hard time buying [feedstocks] from the spot market to support production,” Go said.
Philippine conglomerate JG Summit Holdings, the parent firm of the company, announced a plan to build a naphtha cracker more than a decade ago, but only took off the project recently, Go added.
The project has been plagued by a series of financial crises since the late 1990s, which have affected the company’s funding of the cracker, Go said.
JG Summit Petrochemical is now funding the $700m (€483m) project on its own, without tapping the financial markets for funds.
The company started building the much-delayed naphtha cracker in Batangas, the first in the country, in March this year and will bring it on stream in June 2013, Go said.
($1 = €0.69)
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