Plants shut

Press, Volume CXV, Issue 33776, 24 February 1975, Page 13

Plants shut

(N.Z. Press Assn—Copyright) NEW YORK. Throughout Europe and Japan petrochemical plants are shutting down this winter for early and prolonged alleged maintenance — and this could get worse if prices do not recover, “Business Week” magazine reports. “Behind the shutdowns, some of which could become permanent, is the ‘ industry’s urgent desire to maintain prices. Four years ago an economic slump precipitated a cut-throat price war that the companies have no desire to refight. So despite 30 per cent sales declines that have reduced plant utilisation to an unprofitable 50 to 60 per cent, the companies are avoiding the price cutting route for now.

"The petrochemical industry’s customers are sitting on stocks they built up when supplies were tight and prices rising and the companies have their own stockpiles as well. . . . Many of the giants have chosen to close plants. Leading the way are Britain’s Imperial Chemical Industries, America’s Cyanide and Japan’s Showa Denko. Rotterdam-based Tiofine, 50 per cent owned by American Cyanide, already has closed its plant for six weeks to work off its mounting stock of the titanium dioxide that it sells to paint' producers.” j