Ineos Olefins & Polymers USA plans to shut down two polypropylene (PP) bulk phase units at La Porte, TX by early 2009. One of the two lines at La Porte will close by the end of 2008; the other line will close at the end of January 2009. The closure represents approximately 236,000 tpa of homopolymer and random copolymer capacity, and the shutdown will strengthen the competitiveness of its US PP assets. The ages and technology of the production lines are sufficiently old that their variable costs make them uneconomic.
With a capacity to produce 2.8bn lbs/year of PP in USA, Ineos Olefins & Polymers, is the second largest producer of PP in the US. The future of the individual units will be determined by their continuing ability to operate cost competitively and profitably to meet the needs of our long term strategy.