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13 August 2010
Styron plans to idle a Brazilian polystyrene (PS) plant indefinitely following a maintenance turnaround scheduled to start on 23 August, a company spokesperson said on Friday.
The 200,000 tonne/year plant is in Guaruja, Sao Paulo.
Styron told customers that they would continue to receive product, the spokesperson said, but this was expected to happen only while supplies last.
Market sources in Brazil said that Styron could have enough stock for 35-45 days.
Styron declined to comment on stock levels.
Recently, the status of the Styron plant has been the source of persistent speculation in Brazil.
Unigel, the styrene monomer (SM) supplier for Styron, was still supplying feedstock to its client, although at a reduced rate, a source at Unigel said without elaborating.
Styron declined to comment on supplier arrangements.
A source with Dow Chemical, a minority stake holder in Styron, reaffirmed that the plant was running, but said PS sales volumes to Argentina and Brazil were now at only 30-40% of their typical volumes.
The shutdown could become permanent if Styron's owner, Bain Capital, does not find a buyer or another economically viable arrangement for the plant, said market observers in Brazil.
For years, Brazil has had too much PS capacity. Intense competition for market share has kept margins down, prompting players such as BASF and Dow Chemical to exit this market.
BASF sold its Brazilian PS business to Unigel.
Dow Chemical sold Styron to private-equity firm Bain Capital earlier this year. Dow retained a 7.5% equity position in Styron.
Source: www.icis.com
Styron plans to idle a Brazilian polystyrene (PS) plant indefinitely following a maintenance turnaround scheduled to start on 23 August, a company spokesperson said on Friday.
The 200,000 tonne/year plant is in Guaruja, Sao Paulo.
Styron told customers that they would continue to receive product, the spokesperson said, but this was expected to happen only while supplies last.
Market sources in Brazil said that Styron could have enough stock for 35-45 days.
Styron declined to comment on stock levels.
Recently, the status of the Styron plant has been the source of persistent speculation in Brazil.
Unigel, the styrene monomer (SM) supplier for Styron, was still supplying feedstock to its client, although at a reduced rate, a source at Unigel said without elaborating.
Styron declined to comment on supplier arrangements.
A source with Dow Chemical, a minority stake holder in Styron, reaffirmed that the plant was running, but said PS sales volumes to Argentina and Brazil were now at only 30-40% of their typical volumes.
The shutdown could become permanent if Styron's owner, Bain Capital, does not find a buyer or another economically viable arrangement for the plant, said market observers in Brazil.
For years, Brazil has had too much PS capacity. Intense competition for market share has kept margins down, prompting players such as BASF and Dow Chemical to exit this market.
BASF sold its Brazilian PS business to Unigel.
Dow Chemical sold Styron to private-equity firm Bain Capital earlier this year. Dow retained a 7.5% equity position in Styron.
Source: www.icis.com
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