Price and market trends: INEOS ChlorVinyls to halt production at three plants

25 January 2013 10:44  [Source: ICB]

INEOS ChlorVinyls will discontinue production at three plants in the UK and Germany because of difficult economic conditions.

 

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The Switzerland-headquartered chlor-alkali producer said the move followed an internal asset review in light of the impact of the prolonged economic downturn on European market demand.

INEOS ChlorVinyls will focus all UK polyvinyl chloride (PVC) production at its Newton Aycliffe site, which will mean the closure of its small-scale PVC unit at ­Runcorn. The Runcorn unit has capacity of 105,000 tonnes/year, according to ICIS data. The firm will also reconfigure its Runcorn vinyl chloride monomer (VCM) plant to produce ethylene dichloride (EDC) intermediate for internal use.

In Germany, it will advance the closure of its mercury chlorine cellroom at Wilhelmshaven.

As demand for PVC in particular continues to be very weak, the firm said it needed to address its current overcapacity in chlorine, VCM and PVC.

"We are taking these measures in light of current and expected economic conditions impacting demand across Europe," said company CEO Chris Tane. "We are confident these measures, along with other ongoing improvement initiatives, will help secure our business in the long term by improving profitability and cashflow during these very difficult times."

The company expects to achieve the changes without ­involuntary redundancies.


By: Glynn Garlick



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