Feedstock shortage keeps Kumho’s butadiene runs at 50% capacity

22-May-14

Kumho Petrochemical will continue to operate its two butadiene plants in South Korea at reduced rates of 50% for the time being, due to an ongoing lack of crude C4 feedstock, as per a company source in Platts. South Korea's crude C4 supplies are tight as domestic steam cracker operators have been using lighter feedstock like LPG recently rather than naphtha. The company has a 150,000 tpa butadiene plant in Yeosu and a 90,000 tpa butadiene unit in Ulsan. The two units have been operating at 50% of capacity since March, from 100% previously, due to a feedstock shortage, Platts reported previously. LPG cracking [versus naphtha] reduces butadiene production in South Korea by 5-10. Due to lower butadiene output, Kumho has also been operating its synthetic rubber plants in South Korea at reduced rates since March. The company is running its 327,000 tpa butadiene rubber plant in Yeosu at 49% of capacity, and its 481,000 tpa styrene-butadiene-rubber plant in Ulsan at around 85% of capacity.