French Total dispute threatens 10% of European styrene capacity, 15% of MX

17-Dec-13

A four-day old dispute between French energy company Total and one of France's biggest unions, CGT, could choke European supply of styrene and mixed xylenes, according to Platts data. Workers at Total's France-based refineries -- with a combined capacity of more than 1 mln bpd -- remained on strike on Monday after walking out on Friday in a dispute over wages that is threatening to close the company's Gonfreville refinery and petrochemical site. A union source said that operations at the site were badly affected with 80% of the workforce on strike. The petrochemical site is also on strike, with the site, like the nearby refinery, is gradually closing production. A prolonged closure at the site would likely have the biggest impact on Europe's styrene and mixed xylenes market, as the site accounts for 10% of styrene and 15% of mixed xylene capacity in Europe. The petrochemical site, one of France's biggest, can produce around 525,000 tpa of ethylene, 600,000 mt of styrene, 590,000 mt of mixed xylenes, 135,000 mt of paraxylene and 400,000 mt of polyethylene a year, according to Platts data.