Leadership & People

Sabic Slashing Production in Europe

Sabic Europe is operating polymer plants at reduced capacity because of a lack of demand, according to company officials. "One of our three crackers--a 600,000 m.t./year unit at Geleen (the Netherlands) is down and our polymer plants are running on about 75% capacity," Boy Litjens, CEO of Sabic Europe tells CW. Litjens was speaking on the sidelines of the Gulf Petrochemicals and Chemical Association (GPCA) Forum in Dubai, co-organized by Chemical Week. "We are looking at the situation on a weekly basis, and will adjust capacity according to demand," he says.

Litjens says this is the worst situation that he can recall in 30 years in industry. "There is just no demand and December will be a difficult month," he says. But inventories will have to be rebuilt and early next year it will become more apparent when the industry will rebound, he says.

The temporary closure and reductions in capacity are in addition to previously announced plans to permanently shut down an aromatics complex in the U.K. Aromatics 1 was closed on November 1, Litjens says. About 10 of Western Europe’s 44 crackers were shut as of late November, says one analyst. Several were down for planned maintenance and are in no rush to return, he adds.

Source: Chemical Week