20 February 2013 03:18 [Source: ICIS news]
SINGAPORE (ICIS)--Indonesia’s Polytama Propindo has pushed back the restart of its 380,000 tonne/year polypropylene (PP) plant at Balongan, West Java in Indonesia to 21 February, from 10 February, because of feedstock issues, a source close to the producer said on Wednesday.
The restart is part of its tolling agreement with local plastics distribution company Bukitmega Masabadi, the source said.
Under the tolling agreement, Polytama Propindo has to produce 15,000 tonnes/month of PP for Bukitmega from February to April, with the option to extend the contract until June, the source said.
The plant could not be restarted on 10 February as planned because its feedstock supplier Pertamina could not supply propylene on time, he said.
Polytama Propindo would be producing 500 tonnes of PP, mainly isotatic PP (IPP) and thermoforming grade PP, from 21 February to 3 March, he said.
If Pertamina can maintain the propylene supply, the PP plant will continue to produce 500 tonnes/day after 3 March, he said.
Pertamina had not been able to supply propylene to Polytama Propindo regularly because of production issues, he said.
Local state-owned energy firm Pertamina has an agreement to supply 9,000 tonnes/month of propylene to Bukitmega to produce PP at Polytama Propindo’s plant, the source said.
Bukitmega plans to source propylene in the spot market through Pertamina to cover its monthly shortfall of 6,000 tonnes from March to June, he added.
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