11 June 2012 13:47 [Source: ICIS news]
TOKYO (ICIS)--Japanese chemical producer Mitsubishi Chemical plans to permanently shut its 390,000 tonne/year No 1 naphtha cracker and 90,000 tonne/year No 1 benzene plant at Kashima in 2014 as part of its structural reform, the company said on Monday.
Both plants were expected to be terminated at the time of the scheduled maintenance at the Kashima petrochemical complex in 2014, the company said in a statement.
In accordance with the closures of these facilities, Mitsubishi Chemical plans to increase the production capacity of its 490,000 tonne/year No 2 cracker at Kashima by 50,000 tonnes/year, and at the same time upgrade its 150,000 tonne/year olefins conversion unit (OCU) as well as arrange the pipe work for a total of yen (Y) 9.8bn ($123m), the company said.
All construction work was expected to be completed by the time Mitsubishi Chemical’s maintenance shutdown of its plants at Kashima in 2013 is completed, it said.
The planned structural reform at Kashima would cut the producer’s fixed cost by about Y4bn/year and enable the maintenance of high operating rates of the cracker even when ethylene demand shrinks, Mitsubishi Chemical said.
($1 = Y79.73)
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