Petrochemical plants in Thailand considering output cut

21-Jul-05

Acute water shortage in Thailand caused by prolonged drought has affected operations at factories in industrial areas on the eastern seaboard, including petrochemical plants, oil refineries and power plants. The various industries seem to be aware of the fact that there will not be enough water, and are preparing to adjust to the situation by gradually reducing production. As the government's emergency plan to tackle the water crisis seems to have met with very little success, industrialists at the Map Ta Phut Estate in Rayong are considering a plan to reduce their petrochemical production by around 40%. This follows Siam Cement Group's warning of last month that it might need to reduce its petrochemical production by 40% as a result of the looming water crisis. At that time, the government promised immediate relief and asked Siam Cement and all other petrochemical firms in the eastern seaboard to carry on at full production levels. Last week, PTT warned that there were 12 days left before water supply in the region fell to a critical level.