DATE : 2013-10-09

Qixiang Tengda Chemical has been running its two Butadiene (BD) units in Shandong province at 25% of capacity since mid-May because of poor market conditions, a company source said on Wednesday.

The two BD units have a combined capacity of 150,000 tonnes/year, the source said.

"The cost of our production is too high. We just produce about 100 tonnes/day," the source said.

Qixiang Tengda Chemical produces BD through a butylene-hydrogenation process. Commercial production at the smaller BD unit started in May this year, while the bigger plant started operation in the same month in 2012, the source said.

"We just run at low rates and wait for [BD] prices to increase," the company source said.

SOURCE Icis News