Total expected to close ethylene operation at Carling petrochemical plant

04-Sep-13

Total is expected to announce a decision to close the ethylene manufacturing operation at its Carling petrochemical plant, which faces surplus supply in eastern France and competition from cheap U.S. ethylene, as per union officials, as reported by Reuters. Total will present its project on the future of Carling's 550-strong workforce on Wednesday afternoon during a works council at the group's headquarters in Paris. Closing the unit would bring the production of ethylene and propylene to a halt. Total plans to invest in boosting polystyrene output instead. Cheap U.S. ethylene is forcing European and Asian plants to rethink their output mix. Shale gas crackers in the United States can produce ethylene at less than half the cost of oil-based naphtha-fed crackers.