Poland's Zachem closes 30,000 tonne/year Bydgoszcz ECH unit

13 February 2013 10:03  [Source: ICIS news]

LONDON (ICIS)--Poland-based epichlorohydrin (ECH) producer Zaklady Chemiczne Zachem (Zachem) has closed its 30,000 tonne/year ECH plant in Bydgoszcz, Mariusz Babula, a spokesman at Zachem's parent company Ciech said on Wednesday.

"A decision to shut down the ECH unit, that was hitherto related to the production of toluene diisocyanate (TDI), was necessary due to the sale and transfer of intangible assets related to the production of TDI [to BASF]," Babula said.

Ciech’s subsidiary Zachem stopped producing TDI in December at its 75,000 tonne/year facility in Bydgoszcz and is no longer active in the European TDI market. The plant closure resulted from a deal which saw Ciech sell Zachem’s TDI business to Germany-based chemicals major BASF.

The ECH unit stopped production in December 2012 but the company only now declared it publicly because it was still in negotiations with workers' representatives and other parties.

The main recipient of ECH manufactured by Zachem was Zaklady Chemiczne Organika-Sarzyna (Organika-Sarzyna), a member of the Ciech Group which produces epoxy resins.

Organika-Sarzyna, based in Nowa Sarzyna, Poland, will now buy ECH from other sources in the market, Babula said.

"This will not affect the operation of the company. [Because the epoxy market is long] and because the company has long-term contracts, Organika-Sarzyna expects favourable prices and stability of ECH supply," Babula said.

ECH producers in Europe said the closure of the plant will help balance the market, while buyers that were customers of Zachem are now worried they will have to pay more for ECH.

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By: Janos Gal
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