Ineos cuts run rates by another 10%: ACN plant now operates at 60% capacity

21-Jul-08

Following last weeks decision to slash operating rates by 30%, Ineos has announced yet another 10% scaling back of operations. Inability to cope with lofty feedstock costs on one hand and eroding demand on the other, Ineos now operates its ACN plant at 60% capacity. A 10 cents/lb increase for July propylene brought squeezed producers' margins to the breaking point. As part of its revised strategy, Ineos will still meet its contract customers' orders, but will avoid the spot market until prices pick up or input costs come down from record-high levels. Ineos also plans to further reduce production at its 460,000 tpa Green Lake plant in Texas and its 200,000 tpa Lima line in Ohio. Downstream demand as the US economic slump keeps downstream demand sluggish from acrylic fibre (AF) plants that have reduced runs or shut down, and from acrylonitrile-butadiene-styrene customers.