SET Announcements
18 July 2013
Notification on the Shutdown of LDPE Plant
(Translation)
Ref. No. 01-496/2013
July 18, 2013
Subject Notification on the Shutdown of LDPE Plant
To President
The Stock Exchange of Thailand
PTT Global Chemical Public Company Limited (the "Company") would like to inform
that the Company's LDPE or Low Density Polyethylene Plant (Production capacity
of 300,000 tons per year) had shutdown since July 10, 2013 to repair the
cylinder of the Booster/Primary Compressor. The Company expected to take
approximately three and a half months to repair the LDPE plant.
To mitigate the impact occurred, the Company will do as follows;
1. Impact on LDPE customers: The Company will use LDPE resins from existing
inventory and if needed, will partially import to supply to customers.
2. Excess Ethylene: (Ethylene is the main feedstock for the production of LDPE
receiving from the Company's olefins plant). From the LDPE plant shutdown, it
will cause the Company to have excess ethylene which will need to be managed
within the group, including external sales. However, during LDPE plant shutdown
period, it is the same time that I4/1 Olefins plant will be shutdown for
planned maintenance for 44 days (August 1 - September 13, 2013). Therefore, the
excess ethylene volume shall be reduced.
The Company expects that the shutdown of the LDPE plant will mainly affect
profit margins in terms of LDPE and ethylene spread and from the current price
of the product and mitigation plan to be implemented, the impact is expected to
not exceed 2% of net profit of the year.
In addition, the Company has insurance coverage under Machinery Breakdown and
Business Interruption Insurance Policy. Currently, the Company and the insurer
are in the process of appraising the claim value.
Please be informed accordingly
(Anon Sirisaengtaksin)
Chief Executive Officer
Corporate Finance and Investor Relations
Tel. +66 (0) 2 265 8421, +66(0) 2 265 8574, +66 (0) 2 140 8712-14
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