BP To Reduce Linear Alpha Olefin Production

03-Mar-2003
BP announced today that it is to idle its 500,000 tonne per year linear alpha olefins (LAO) plant in Pasadena, Texas. BP has taken the decision to idle the plant due to recent dramatic increases in production costs, according to BP LAO general manager Ralph Lerner. "Given this extremely difficult business environment, which is facing the whole LAO industry, we felt we had to take steps to improve the performance of our business," Lerner said. "In addition to idling the plant, we are taking other steps to control costs and improve cash flow. BP is one of the world's largest LAO producers and we intend to continue to be a reliable supplier to our customers." Restart of the plant will be determined by economics and market conditions, Lerner said.

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