S Korea's LG Chem to cut PE, PP op rates on weak demand

03 November 2011 04:08  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s LG Chem plans to cut production at its polyethylene (PE) and polypropylene (PP) plants in Daesan and Yeosu in end November or early December because of weak demand, a company source said on Thursday.

“We’ll cut production if demand worsens,” the source said.

He declined to comment on the exact operating rates.

Demand for different grades of PE and PP is weak in China, Europe and Latin America, particularly that for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE), he said.

LG Chem’s PE facilities at Daesan consist of a high density polyethylene (HDPE) plant and an LDPE/ethylene vinyl acetate (EVA) swing plant, each with a capacity of 150,000 tonnes/year. It also runs a 280,000 tonne/year PP line.

The company operates a 160,000 tonne/year low density polyethylene (LDPE) plant in Yeosu.

The producer has no plans to cut output at its 80,000 tonne/year elastomer plant at Daesan although demand for elastomers is also weak, because the plant is scheduled to shut on 7 November for a two-week turnaround, the source said.

For more on PE, PP visit ICIS chemical intelligence

By: Chow Bee Lin
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