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LBI closes 100,000 tonne/year HDPE line at Wesseling, Germany

ICIS News : 4-Oct-13 10:51


LONDON (ICIS)--LyondellBasell Industries (LBI) has closed a 100,000 tonne/year high density polyethylene (HDPE) line at Wesseling in Germany, a company source confirmed on Friday.

“The HDPE unit at Wesseling was shut down at the end of September, as planned,” said the source.

This permanent closure was the second European polyethylene (PE) line to close since the end of 2012, and more are planned, as European producers close old, unprofitable lines in the face of increased competition from low-cost units in the Middle East and, increasingly, the US as shale gas investment ramps up.

HDPE is under particular pressure, but a couple of closures involving low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) are also concerned.

European PE closures

Company

PE grade

Location

Capacity kt

Status

Date

Dow

HDPE

Tessenderlo, Belgium

190

Closed

End 2012

Versalis

LLDPE

Priolo, Italy

150

Closed

Sep 2013

LBI

HDPE

Wesseling, Germany

100

Closed

End Q3 2013

Eni

LDPE

Gela, Italy

150

To close

Not given

Borealis

HDPE

Burghausen, Germany

175

To close

End 2014

Total

HDPE

Antwerp, Belgium

70

To close

2014

Repsol

HDPE

Puertollano, Spain

90

To close

2015


Repsol was the latest company to add a plant to the list last week, when it announced the closure of a 90,000 tonne/year HDPE unit at Puertollano in Spain.

HDPE buyers are not too concerned over the closures as many have already entered into long-term contracts with Middle Eastern producers.

PE prices are moving down in October, the first downward price move since June, on lower upstream costs.

($1 = €0.73)



By Linda Naylor
+44 20 8652 3214
icisnews.europe@icis.com

 
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