BASF lifts FM on EO production at plant in Louisiana

29 February 2012 21:48  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Germany-based BASF has lifted the force majeure (FM) on ethylene oxide (EO) produced at its plant in Geismar, Louisiana, the company said on Wednesday.

The FM was lifted on 22 February, said Maureen Paukert, a public relations representative for the company.

Participants in the ethylene glycol (EG) market expect feedstock EO to remain snug.

“EO supply is still tight,” an EG producer said. “It will take a little longer for market to recover from BASF's outage, even though they have lifted their FM.”

EO is primarily used to make EG, which is in turn is used to make polyesters and antifreeze.

The company declared FM on 2 January because of an extensive mechanical failure of a critical piece of equipment.

The force majeure covered EO and EO-containing Pluracol products, including conventional and graft products, the company said in January.

The BASF plant in Geismar has a capacity of 220,000 tonnes/year of EO, according to ICIS plants and projects.

By: Leela Landress
+1 713 525 2653

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