SK Energy, a South Korea based petrochemical manufacturing enterprise has slashed production by 20-25 percent of its No.1 naphtha cracker due to weak margins.
The move follows the decision of Japanese petrochemical firms to cut operations due to weak demand for ethylene in the market, which has in turn, led to an excessive supply of naphtha in the regional markets, since naptha is the main feedstock for production of ethylene.
However, Wookyung Kim from SK Energy informed Fibre2fashion that “the capacity of No.1 unit is much less compared to other naphtha crackers and therefore a slight reduction in throughput is unlikely to affect the overall production and utilization level which would still remain above 70-80 percent.”
She further added saying that the No.2 Naphtha Cracking Center (NCC) is running at its full capacity so the company's regular customers would not experience any difficulties in making purchases for their requirements.
Moreover, since SK Energy has always operated its facilities at optimal rates and based on market conditions, it would not incur heavy losses.
Fibre2fashion News Desk - India
marketing@alchempro.com
