NPRA '07: EQUATE seeks cheaper raw materials

25 March 2007 21:01  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--EQUATE is looking for alternative suppliers of raw materials amid rising costs, a source close to the Kuwait petrochemical firm said on Sunday.

"Raw material costs have gone up by 5-10% since the start of last year," he said on the sidelines of the 32nd NPRA International Petrochemical Conference.

"We have been able to raise prices of polyethylene (PE) and ethylene glycol (EG) and keep margins but may not be able to do that the next time," he added.

He said that the company's representatives plan to meet both existing and new suppliers during their time in the south Texas city to see if cheaper raw materials can be secured.

EQUATE has the annual capacity to produce 800,000 tonnes of ethylene, 600,000 tonnes of PE and 400,000 tonnes of EG. Started in 1997, the company is also undergoing a major expansion of its facilities, which will more than double production capacity by early next year.

Dow Chemical and PIC own 42.5% each in EQUATE, with Boubyan and Qurain holding the remaining 9% and 6% respectively.

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Author: Abdul Hadhi
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