Chevron Phillips, Sumitomo JV closing down Texas polypropylene plant
US chemical maker Chevron Phillips has actually gotten to an arrangement with Sumika Polymers America Corporation for the long-term closure of their polypropylene joint endeavor, Phillips Sumika Polypropylene Business, as well as plant in Pasadena, Texas, CP Chem introduced Tuesday.
Sumika Polymers America Corporation is a wholly-owned affiliate of Japan-based Sumitomo Chemical Company, Ltd
. The confirmation by CP Chem places an end to month-long rumors in the polypropylene market regarding the future of Phillips Sumika.
Phillips Sumika intends to make the shift as smooth as feasible as well as is dealing with consumers during this duration, CP Chem stated in a statement.
All other operations at the Chevron Phillips Chemical Pasadena Plastics Complicated are untouched by the closing of the Phillips Sumika polypropylene plant at that center, the firm added.
" The business stays focused on running our procedure securely for our workers and also the neighborhood in which we run. We are analyzing the influence to staff members impacted by this closing and will work to redeploy as several as feasible in various other parts of our company," CP Chem COO Tim Taylor stated.
Chevron Phillips worried it stays committed to the polypropylene company, and also it will certainly continue to distribute polypropylene generated by the Saudi Polymers Carbon Monoxide (SPCo) set up to launch during the 2nd half of 2011 in Al-Jubail, Saudi Arabia.
edta is jointly possessed by Arabian Chevron Phillips Petrochemical Co as well as National Petrochemical Co (Petrochem).
Rumors of Phillips Sumika's permanent shutdown initially emerged last month before the producer revealed it was seeking a 10-cent/lb walk on all Marlex homo- and arbitrary co-polymer grades for September 1. The rise would be in addition to any kind of predicted rises for September.
Both feedstock polymer-grade propylene as well as polypropylene wound up clearing up level for September at 78 cents/lb and 87-88 cents/lb, respectively, according to Platts information.
One market resource stated after that he thought the step was likely part of an approach by Phillips Sumika to enhance margins on items from among its lower-yielding lines.
One more polypropylene resource not connected with Phillips Sumika believed there might be extra to the story.
" The entire point is little weird," the resource said. "We're going to need to wait as well as see what they intend to do."
CP Chem did not define the reason for the PSPC closure, however market individuals last month pointed to profitability concerns as a likely factor for a feasible shutdown.