Formosa faces ongoing PP operational difficulties in Texas

HOUSTON (ICIS)–Polypropylene (PP) producer Formosa Plastics will continue allocating PP out of its plant in Point Comfort, Texas, based on ongoing operational difficulties at the facility, the company told customers on Friday.

The company initially issued an “excuse of performance” letter to customers on 24 June, following an unplanned outage at the plant. The plant had since restarted, but in a 22 August letter to customers, the company said the unit that produces Formolene 6xxx series material has been “experiencing operational difficulties since the restart.”

The unit was shut down on 21 August, and the company will continue to maintain “excuse of performance” on all of its Formolene 6xxx impact copolymer series material, the company said.

The letter states that allocation levels will be announced at a later time.

Formosa Plastics has two PP units at its Point Comfort plant, each with a total production capacity of about 430,000 tonnes/year, according to ICIS plants and projects.