INEOS to slash PE production in Europe through end of 2011 as global economic instability weighs on demand; LDPE, LLDPE plants to run at 50% of capacity on average, HDPE output to be scaled back to 'meet reality of demand'
November 2, 2011
– INEOS Group Ltd. has announced it will be scaling back its polyethylene output in Europe through the end of the year, ICIS news reported Nov. 2.
The decision comes amid ongoing global financial uncertainty, especially in Europe, that has weighed heavily on PE demand.
Ineos sources estimated the U.K.-based company would reduce its low density PE and linear low-density PE production to 50% of capacity on average, while it will produce only enough high-density PE to “meet the reality of demand.”
The company expects to see a turnaround in January or February as buyers generally reduce their purchases at the end of the year. Shortages and a slight raise in prices are expected to come in early 2012, according to the article.
The Dow Chemical Co. said it would also decrease its PE production through the end of the year while Borealis AG's crackers are running at minimum rates.
The primary source of this article is ICIS news, Sutton, England, on Nov. 2, 2011.