Japan’s Nissan Chemicals to shut melamine plant for turnaround

15 May 2013 05:09  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Nissan Chemicals Industries plans to shut its 50,000 tonne/year melamine plant in Toyama prefecture for annual maintenance that will last 40 days, a company official said on Wednesday.

The turnaround is likely to begin on 30 June and be completed by 8 August, the official added. The plant was previously scheduled to shut in July.

Nissan Chemicals is currently running the melamine plant at a high operating rate of 80% capacity to build up its inventories, so it can fulfil contractual obligations during the shutdown period, the official said.

“Spot supplies [of melamine] would be limited,” the official added.

The other major producer of non-Chinese melamine in Asia is Mitsui Chemicals, which has a 40,000 tonne/year melamine plant in Osaka.

According to market players, the supply of Japanese melamine is tight because Mitsui Chemicals’ plant has been shut since end-September last year.

However, with Mitsui Chemicals’ plant having come on stream in April this year, the impact of Nissan Chemicals’ plant shutdown would be minimised, the market players added.

By: Daphne Ho

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