MOSCOW (MRC) -- Borealis (Vienna, Austria) says it is running its polyolefins production at Schwechat, Austria, at reduced rates until “at least the end of the third quarter” following an incident at majority owner OMV’s integrated refinery in Schwechat, said Plasteurope.
The reduction by Borealis of its polyolefins output follows an incident earlier in June at OMV’s refinery that resulted in damage to the main crude distillation unit during a water pressure test on 3 June. OMV supplies the majority of monomers, including ethylene and propylene, to Borealis for the company’s polyethylene (PE) and polypropylene (PP) production. Borealis says polyolefin production rates were subsequently “significantly reduced,” with disruption expected until the end of the third quarter.
"Borealis has not declared force majeure on its polyolefins production in Schwechat. The company is currently working on a multi-sourcing strategy for polymers in order to limit supply disruptions,” it says. “However, reduced production will imply delays for Borealis polyolefins deliveries and reduced availability of specific grades."
OMV says that steam cracker operating rates at Schwechat were reduced, though naphtha is being sourced to feed the cracker from the Amsterdam-Rotterdam-Antwerp region, Germany, Romania, and the Black Sea, according to S&P Global. The refinery is expected to be repaired and fully operational in second half of the third quarter, it has previously stated. OMV’s steam cracker has a nameplate ethylene capacity of 500,000 metric tons/year.
Borealis produces low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), and PP at its petchems site in Schwechat.
As per MRC, Borealis is investing around EUR200 mln to upgrade and expand its XLPE and semicon assets at existing production locations in Europe. This ambitious initiative will serve the W&C market by safeguarding the reliable supply of high-quality insulation and semiconductive materials in the long term, and particularly those required to support global offshore wind and interconnector projects.