Japan Polypropylene to shut Kawasaki PP facililty in April 2014

29 June 2012 12:09  [Source: ICIS news]

TOKYO (ICIS)--Japan Polypropylene plans to permanently shut its 89,000 tonne/year polypropylene (PP) facility at Kawasaki in April 2014, the Japanese chemical producer said on Friday.

"The business environment surrounding PP has become very difficult with a decline in domestic demand, increased exports of commodity products due to the appreciation of yen, and new plants starting up in the Middle East and Asia," the company said in Japanese.

"To take measures for such a harsh business environment, we have decided to stop our PP line at Kawasaki,” it added.

The producer also has PP plants in Kashima, Ibaraki prefecture, Goi, Chiba prefecture, Yokkaichi, Mie prefecture, and Mizushima, Okayama prefecture, which produce a total of 1.075m tonnes/year including the only facility at Kawasaki.

The current combined operating rate at the plants were about 80-85%, the official said.

“We hope to be able to raise the operating rates after closing the Kawasaki unit,” the official added. 

Japan Polypropylene is a joint venture between Japan Polychem and Japan Polyolefin, while Japan Polychem is a 100% subsidiary of Mitsubishi Chemical.

By: Tomomi Yokomura
+65 6780 4359

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