Japan's Ube Industries to end production of caprolactam at Sakai site

05 February 2013 17:19  [Source: ICIS news]

TOKYO (ICIS)--Japanese chemical producer Ube Industries plans to end the production of caprolactam and its derivatives at its Sakai factory in Osaka, Japan, by the end of March 2014, the company said late on Tuesday.

The producer will permanently stop production at the 100,000 tonne/year caprolactam plant because the caprolactam business has become less profitable, Ube said in a statement.

“… growth in demand for caprolactam has weakened while market conditions for caprolactam have been heavily eroded by the entry of new manufacturers and successive production expansion of existing manufacturers centering on Chinese companies,” the producer said.

Prices of feedstock benzene also rose, Ube added.

Other plants at Sakai to terminate production include 200,000 tonne/year ammonia, 99,000 tonne/year liquefied carbon dioxide, 160,000 tonne/year ammonia sulphate and 5,000 tonne/year 1,5 hexanediol, according to the company.

As a result, the producer plans to record an extraordinary loss of yen (Y) 12.6bn ($136.3m, €100.8m) financial results for a full-year ending 31 March, 2013, it said.

Ube industries also produces caprolactam in Ube, Yamaguchi prefecture, Spain and Thailand.

($1 = €0.74, $1 = Y92.42, €1 = Y124.95)

By: Tomomi Yokomura
+65 6780 4359

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