Basell to shut down approximately 500KT of polypropylene capacity

20-Dec-2000

Basell NV announced today that it plans to shut down temporarily polypropylene production lines in Germany, the United Kingdom and the United States with a total annual capacity of approximately 500KT due to a serious supply/demand imbalance in the polypropylene industry.

“We are taking these steps because the excess capacity is causing unacceptable financial losses in Basell’s polypropylene business,” said Kees Linse, Basell’s chief operating officer for polypropylene. “Since we do not expect current conditions to change in the near future, we must take action now to bring our business back to profitability and ensure its long-term success.”

The shut-downs will be at Wesseling, Germany; Carrington, UK, and Bayport, Texas, USA. “We will stop production as soon as it is feasible after discussing alternative supply options with our customers,” said Linse.

“Production on two Novolen gas phase lines at Wesseling will be shut down for 12 to 18 months,” said Robert Genin, president of Basell’s European polypropylene business. “The Carrington homopolymer line will go into a prolonged shutdown in January for an undefined period.”

Genin said that the decision to close plants in the UK and north west Europe had been strongly influenced by the sluggish market and the recent addition of new capacity.

In Bayport, a Spheripol process homopolymer line will be idled. “This is the right business decision,” said Charles E. Platz, president of Basell North America. “We will now have the time and opportunity to do maintenance and technology upgrades so the line will be a more cost effective unit with enhanced capability when the situation improves.”

Employees who currently work on the lines being shut down will be largely redeployed within the sites so the impact on staff will be minimised. However, the number of contractors employed will be reduced.

https://www.chemeurope.com/en/news/556/basell-to-shut-down-approximately-500kt-of-polypropylene-capacity.html