Idemitsu Kosan slashes paraxylene output over weak demand
22 Sep '08
1 min read
Japan's third-biggest oil refiner, Idemitsu Kosan Co, would cut paraxylene output at its Chiba plant by 25 percent in the next two months due to economical reasons like worsening margins and slackening global demand.
A company official revealed to fibre2fashion that, it would reduce the operating rate of the unit from September 25 till the end of November. However, if the Asian market gets dampened further, it will continue to slash production till end of December.
The plant has the capacity to produce 265,000 tonnes of paraxylene per year, and presently is running at full capacity.
The official added by saying, “The second paraxylene plant at Tokuyama in western Japan, which has capacity of 214,000 tonnes per year will not be affected”.
Idemitsu Kosan Co, is supplying paraxylene to North East Asian Countries including Japan.
Paraxylene is a petrochemical used to manufacture polyester and other products. Other companies producing paraxylene have also cut their production due to low market demand.
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