China DME firms resume production after quake

15 May 2008 09:31  [Source: ICIS news]

SHANGHAI(ICIS news)--Three dimethyl ether (DME) producers in southwest China have resumed normal production after Monday's earthquake but logistics problems remain in some badly damaged areas, company sources said on Thursday.

 

Lutianhua, the largest DME producer in southwest China, shut down for only two hours after the quake before resuming operations, the source said, adding the plant was running at 50%.

 

“Our end-users were mainly located in neighbouring provinces, east and south of Sichuan, on which the quake had barely a limited impact. Some expressways to those regions have reopened.

 

“DME transportation mainly uses trucks and some roads in quake-hit areas were still disrupted,” he said.

 

The company, based in Luzhou city, Sichuan province and listed on the Shenzhen Stock Exchange, was still suspended from trading on Thursday.

 

Another two producers, Tianyu Chemicals in Sichuan province and Guizhou Xingyi Chemicals in Guizhou province were also operating normally, sources said.

 

Producers will likely reduce operation on high inventories as DME transportation was halted due to disrupted road transport, some traders said.

 

Relief workers were rushing to reopen the roads to Wenchuan county, the epicenter of the 7.9-magnitude earthquake, from four directions.

 

“We have made a large breakthrough this morning,” the Ministry of Communications said.

ICIS Copyright © Reed Business Information 2009

Author: Judith Wang
+65 6780 4359

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