13 September 2011 16:57 [Source: ICIS news]
HOUSTON (ICIS)--US polypropylene (PP) producer Phillips Sumika will permanently shut down its PP units, joint venture partner Chevron Phillips Chemical said on Tuesday.
Chevron Phillips Chemical, which operated the company as a joint venture partnership with Sumika Polymers America, did not specify when the units would shut down, but said the partners had reached an agreement for the "orderly wind-up of PSPC operations".
"We are assessing the impact to employees affected by this closing and will work to redeploy as many as possible in others parts of our organisation," said Tim Taylor, chief operating officer for Chevron Phillips Chemical.
The move is not a surprise to many in the industry, who had said recent price increase announcements by Phillips Sumika to raise PP prices by as much as 10 cents/lb over any projected monomer increase, was a sign that the company was planning to exit the business.
Phillips Sumika has one PP plant in Pasadena, Texas, with two units and a total capacity of 365,000 tonnes/year according to ICIS Plants and Projects.
All other operations at the Chevron Phillips Chemical Pasadena Plastics Complex will not be affected by the closing of the PP units, according to a release from the company.
Despite the end of the joint partnership, Chevron Phillips said it remained committed to the PP business, adding that its network of marketing affiliates will market PP produced by the Saudi Polymers joint venture scheduled to start up during the second half of 2011.
Phillips Sumika is one of 10 PP producers operating in the US. While it is not a major player in the market, one market participant said it produces large volumes of high-end product.
For more on Phillips Sumika's plants, visit ICIS plants and projects
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections