07 September 2011 10:02 [Source: ICIS news]
SINGAPORE (ICIS)--Iran’s Mehr Petrochemical is planning to resume the production of film-grade high density polyethylene (HPDE) at its 300,000 tonne/year HDPE facility at Asaluyeh in late October, a source close to the company said on Wednesday.
Mehr is producing blow moulding-grade HDPE at the plant.
The producer was hoping to switch production back to film grade in mid-September, but will not be able to because of a shortage of feedstock butane-1, the source said.
The butane-1 shortage is due to the low operating rates at Jam Petrochemical’s 1.32m tonne/year cracker, which is located at the same site.
As a result, the producer will continue to produce blow moulding-grade HDPE at the plant until the feedstock shortage is resolved, but will export its output, said the source.
“Hopefully by the end of October, Mehr can secure sufficient butane-1 to resume film production,” added the source.
Mehr Petrochemical’s HDPE plant is a joint venture between Thailand’s PTT Chemical (PTTCH) and Siam Cement, Iran’s National Petrochemical Co (NPC) and Japan’s ITOCHU.
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