Hexion to shut BPA production at Texas unit on low demand

12-May-09

Hexion Specialty Chemicals, Inc. (USA) has announced to indefinitely shut its BPA3 production unit, part of its manufacturing complex in Deer Park, Texas citing shortfall of demand led by downturn. The unit has rated capacity of 190 mln pounds per annum of BPA, or bisphenol-A, which is used as a raw material in producing epoxy resins, certain plastics and other products. The company said it will carry on production at its newer BPA4 unit in Deer Park, as well as our BPA unit in Pernis, The Netherlands. The company indicated to resume production at its larger BPA4 unit following a complete maintenance turnaround. The unit has a rated production capacity of 310 mln pounds per annum. The BPA3 unit will be taken off line and idled once the BPA4 unit is operating. Hexion is a leading global producer of BPA. The majority of its output is consumed internally in the production of epoxy resin products that are used in a wide range of coatings, adhesives, composites and other applications.