China’s Danhua Chemical shuts acetic anhydride unit on soft demand

31 August 2012 07:11  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Danhua Chemical Technology has shut down its 70,000 tonne/year acetic anhydride plant at Danyang in Jiangsu province because of sluggish demand, the company said on Friday.

The time of the restart will be determined by market conditions and relocation plan of the plant, the company said in a statement to the Shanghai Stock Exchange.

The company’s 75%-held subsidiary Jiangsu Danhua Aceticananhydride - also operator of the plant - suffered a 60% year on year drop of both sales and production of acetic anhydride in the first half of the year, the statement said.

The subsidiary posted a loss of CNY25.6m ($4m) in the first half of the current year, it added.

Due to overall development plan of Danyang city, the company’s acetic anhydride plant will be relocated to the outskirts of its existing urban site.

However, timeframe and location have not been finalised yet, a company official told ICIS.

($1 = CNY6.35)

By: Fanny Zhang
+65 6780 4359

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