18 April 2012 16:28 [Source: ICIS news]
SHANGHAI (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) will cut the operation rates at its polypropylene (PP) plant at Ningbo, in China's Zhejiang province, and focus on developing special-purpose PP materials to recover from a challenging 2011, a senior company executive said on Wednesday.
The executive said: “We [have] met many challenges since 2011, from cost, demand and supply. The crude oil price and the price of feedstock propylene [were] rising, adding [to] the cost of our plant. However, as the global economy growth has slowed down, downstream demand was weak.”
The executive added: “Several domestic PP producers [have] expanded their capacities or started up new plants, such as Ningxia Shenhua’s new 500,000 tonne/year PP plant. Ningbo Heyuan will start up its new 400,000 tonne/year PP plant in 2012 or 2013.”
He concluded: “To conquer [these] challenges, we [will] focus on developing new special-purpose PP materials, and cut the operation rate of PP at Ningbo.”
FPC's Ningbo plant has a capacity of 450,000 tonnes/year.
Chinaplas 2012 – an international exhibition covering the plastics and rubber industries – runs from 18–21 April in Shanghai.
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