MOSCOW (MRC) - Ukrainian producers amid uncertain conditions in 2012 reduced production of large volume polymers by 22%. BY now only one of the three petrochemical complexes works - Stirol, according ot MRC SkanPlast.
After a successful 2011 the last year for the Ukrainian makers of large volume polymers become catastrophic. Only one of three petrochemical complexes currently operates - Stirol (DF Group), which produces polystyrene (PS). The largest of them complex - Karpatneftekhim (Lukoil Group) stopped production for indefinite time. Linik (TNK-BP) may resume operation only at the end of Q3 2013. The production of large volume polymers in 2012 amounted to 238,000 tonnes, down 22% from 2011.
Linik was the first, which stopped production of polypropylene in April 2012 because of economical inexpediency. Company management made statements regarding the suspension of production at LINIK in the beginning of 2011, but the real stoppage of refining took place in March 2012, the production of polypropylene was closed a month later.
Over the less than four months in 2012 Linik produced 23,600 tonnes of polypropylene, while the total score of production in 2011 amounted to 94,000 tonnes. Currently Linik is under a change of ownership, and unofficially the new owner is planning to resume polypropylene production in September.
The largest producer of polymers in Ukraine - Karpatneftekhim (annual capacity of 300,000 tonnes of PVC, 100,000 tonnes of PE) due to unprofitability was forced to stop production of polymers in September last year. Among the main reasons of the closure company mentioned non refund VAT, high excise duties on feedstock, as well as high energy tariffs. Totals production of PVC and PE for the year 2012 amounted to 121,600 tonnes and 73,500 tonnes respectively. The question of resuming production of polymers Karpatneftehim is not considered.
The oldest chemical complex - Stirol continues production of polystyrene, but last year it was forced to cut production due to limited supply of styrene and low demand for polystyrene. In 2012, the company produced about 19,000 tonnes of polystyrene, which is 16% lower than in 2011.
MRC