02 May 2013 09:57 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Hengli Petrochemical restarted its 2.2m tonne/year No 1 purified terephthalic acid (PTA) unit at Dalian in Liaoning province in early May, a company source said on Thursday.
The No 1 PTA unit was shut in early April to reduce the producer’s PTA inventory levels and minimise its operating loss, the source added.
Inventory levels were low as planned by end-April, according to the source.
The producer also shut its 2.2m tonne/year No 2 PTA unit at the same site, because of poor margins and an uncertain market outlook, the source added.
The No 2 PTA unit will be off line for one month.
Supply to contract customers will not be affected by the No 2 PTA plant shutdown, the source has confirmed.
The source explained that Hengli Petrochemical will reduce the supply to its downstream subsidiary Hengli Chemical Fibre if there is a shortage of PTA for its contract customers.
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