Dalian Fujia starts shutting down 700,000 tpa PX plant

18-Aug-11

Dalian Fujia Petrochemical Co Ltd has begun shut down procedure of its 700,000 tpa paraxylene plant following orders of Chinese authorities after thousands of local residents demonstrated, demanding relocation of the factory at the center of a toxic spill scare, as per Reuters. Although the order was issued on Sunday, safety reasons did not allow the plant to stop immediately due to the complexity of the production cycle. Since the paraxylene plant is China's leading importer of heavy naphtha, its closure would mean additional availability in the Asian market, currently short on heavy naphtha. Monthly naphtha imports total to 100,000-120,000 tons, with term supply agreements with Iran and Papura New Guinea.