Taiwan's Shinkong runs PET lines at reduced rates on poor margins

11 October 2012 08:42  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan's Shinkong Synthetic Fibres is running its polyethylene terephthalate (PET) bottle chip lines with a combined capacity of 400,000 tonnes/year at 85% capacity after reducing the operating rates because of squeezed margins, a company source said on Thursday.

The overall capacity for the PET bottle chip lines, located in Zhongli, was cut by 15% on the morning of 9 October, the source added.

“The margins are very bad and it is very difficult to pass on the high raw material costs,” said the source.

PET is derived from purified terephthalic acid (PTA) and monoethylene glycol (MEG). It is used in the manufacturing of mineral water and carbonated soft drink bottles.  

Other Asian PET producers include China's Jiangsu Sanfangxiang, South Korea's KP Chemical and Thailand-based Indorama Ventures.

By: Yu Guo
+65 6780 4359

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