18 September 2013 06:23 [Source: ICIS news]
MELBOURNE (ICIS)--China’s Rizhao Jiahong Biological Technology plans to increase the operating rate at its 100,000 tonne/year ethyl acetate (etac) plant at Rizhao in Shandong province to 60% of capacity in late September, a company source said on Wednesday.
The producer has capped its etac plant run rate at 40% since early September because of unfavourable economics, the source said.
The economics of manufacturing etac have deteriorated because prices have failed to keep pace with the gains in feedstock acetic acid and ethanol, the company source said, adding that the company is focusing on selling etac in the domestic market this month.
Rizhao Jiahong’s etac output was at about 60% of capacity in late August, after the producer restarted its plant on 25 August following maintenance.
China, with an etac nameplate capacity of about 3m tonnes/year, is the world’s largest producer and exporter of the chemical.
Major etac makers in China include Jiangsu Sopo, Wuxi Baichuan Chemical Industrial, Shandong Jinyimeng, Jiangmen Handsome Chemical Development, Jiangsu Lianhai Biological Technology and Shanghai Huayi Group.
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