PETRONAS to close Malaysia PP plant permanently - sources

05 December 2012 11:22  [Source: ICIS news]

SINGAPORE (ICIS)--PETRONAS plans to permanently shut its 80,000 tonne/year polypropylene (PP) plant in Kuantan, Malaysia because of poor economics, industry sources said Wednesday.

“The producer has informed its customers that the plant will be shut in end December,” said a local converter who buys PP from the Malaysian producer.

PETRONAS was not immediately available for comment.

It has become unviable for the PP plant to operate at the current prices of PP and propylene feedstock, a source close to the company said.

PP producers in southeast Asia have been facing squeezed margins this year because of weaker downstream demand and high energy costs, industry sources said.

Cash margins for southeast Asian PP producers were estimated at $64/tonne (€49/tonne) for integrated naphtha-based plants; minus $73/tonne for integrated propane-based facility; and $106/tonne for standalone plants, according to ICIS.

($1 = €0.76)


By: Chow Bee Lin
+65 6780 4359



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