Wave of cracker shutdown continues

The declining petrochemical market has compelled Asian ethylene producers to shut down operations instead of just cutting production. In November 2008, Thai firm PTT Chemical suspended operations of its naphtha cracker, which can produce 520,000 tons per year (tpy) of ethylene, and its ethane cracker with a capacity of 400,000 tpy. IRPC P.L.C. of Thailand shuttered its naphtha cracker in December 2008. Taiwanese producer Formosa Plastics intends to halt operations of its no.1 line, which has a capacity of 735,000 tpy of ethylene. South Korea‘s SK Energy already ceased operations at its 200,000 tpy superannuated no.1 ethylene line, and Yeochun Naphtha Cracking Center is contemplating closing its 875,000 tpy and 555,000 tpy units. (November 20, 2008)