08 October 2012 10:24 [Source: ICIS news]
BUDAPEST (ICIS)--Momentive is in the process of closing its solid epoxy resins (SER) plant in Wesseling, Germany, a source at the US-based specialty chemicals producer said late on Sunday.
"We are in the process of closing the plant down, there are only a few weeks left," the source said on the sidelines at the European Petrochemical Association (EPCA) conference.
Momentive announced in March 2012 that it intended to close the plant permanently. They will close one of the SER lines at the end of October, while the other line will close mid-November. The plant has an annual nameplate capacity of 25,000 tonnes.
Competitors said they will easily pick up the shortfall and there will not be any problem with SER supply during the fourth quarter and the first quarter of 2013. However, if demand picks up during the second quarter next year, the SER market could tighten.
SER is used in the coatings and paint industries. The peak season for paint and coating producers is during the second and third quarters of the year when construction demand traditionally picks up.
"Consumption is not very strong for now so I don't expect an immediate impact from the closure, but during early next year the market could tighten," a central European producer said.
October SER prices have not settled yet. September contract prices are at €2,470-2,500/tonne ($3,208-3,247/tonne) free delivered (FD) northwest Europe (NWE).
($1 = €0.77)
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