Japan to shut 7 naphtha crackers in 2016 -sources

Tosoh

15/01/2016 04:47

TOKYO, Jan 15 (Reuters) - Seven naphtha crackers in Japan are set to be shut 
in 2016 for scheduled maintenance and other purposes, industry sources said. 
    Asahi Kasei Chemicals will begin shutting down furnaces gradually from late 
February and the cracker will be shut completely sometime in March, a company 
spokeswoman said, before the cracker is officially scrapped in April. Asahi 
Kasei and Mitsubishi Chemical Corp  4188.T  have decided to integrate their two 
crackers in Mizushima, western Japan, from April by closing Asahi Kasei's 
cracker amid falling domestic demand and cheaper imports from Asia. 
    The manufacturers include oil refiners Idemitsu Kosan Co  5019.T  and JX 
Nippon Oil & Energy  5020.T , and Osaka Petrochemical Industries Ltd, a 
wholly-owned unit of Mitsui Chemicals  4183.T . 
    The Osaka cracker has no scheduled maintenance this year, but it is likely 
to be shut for about a month from mid- to late-June due to the shutdowns of 
derivatives-making lines, a spokesman for parent Mitsui Chemicals said. 
    Keiyo Ethylene is 55 percent owned by Maruzen Petrochemical Co and 45 
percent by Sumitomo Chemical Co  4005.T . Asahi Kasei Chemicals is part of Asahi 
Kasei Corp  4005.T . Maruzen Petrochemical is 40 percent owned by Cosmo Energy 
Holdings  5021.T  group. 
    Tonen Chemical Corp is part of TonenGeneral Sekiyu  5012.T  group. Others 
are Showa Denko  4004.T  and Tosoh Corp  4042.T  . 
     
     
    The following table shows manufacturers' nominal ethylene production 
capacity per year. Figures are in 1,000 tonnes per year. Capacity is based on 
the trade ministry's data and the companies. 
     
     Firm        Cracker   Capa                     Shutdown period 
  M'bishi   Kashima No.2    539            Around May 7 to end-June 
  M'bishi      Mizushima    570                                none 
   Mitsui       Ichihara    612                                none 
    Osaka          Osaka    500     Likely to be shut in June-July  
 Idemitsu          Chiba    414                                none 
 Idemitsu       Tokuyama    687                     around Sept-Nov 
  Maruzen          Chiba    525                 early May-late June 
    Keiyo          Chiba    768                                none 
    Showa           Oita    691                                none 
    Tosoh      Yokkaichi    527              mid-March to mid-April 
    Tonen       Kawasaki    540                                none 
    Asahi      Mizushima    504     To be shut permanently in March 
       JX       Kawasaki    443                            Aug-Sept 
    Total                 7,320                                     
    
 
 (Reporting by Osamu Tsukimori in TOKYO and Seng Li Peng in Singapore; Editing 
by Ed Davies) 
 ((osamu.tsukimori@thomsonreuters.com, +813 6441 1857)(Reuters Messaging: 
osamu.tsukimori.thomsonreuters.com@reuters.net)) 
 
Keywords: NAPHTHA JAPAN/MAINTENANCE