Saudi Kayan expects SAR 425 mln impact from planned shutdown

Saudi Kayan Petrochemical Co. will shut down some production units starting from Nov. 11 to begin its debottlenecking project and to perform scheduled maintenance, the company said in a bourse statement on Wednesday.

It expects a financial impact of SAR 425 million during Q4 to result from this shutdown.

The olefins plant will be shut down for 41 days for the debottlenecking process to increase ethylene production output to at least 93,000 tons annually.

The ethylene glycol/ ethylene plant oxide will be closed for 46 days for the debottlenecking process which is expected to raise output of pure ethylene oxide to at least 61,000 tons annually.

The shutdown of olefins and ethylene glycol/ ethylene oxide plants will lead to the shutting down other production units that depend on those two plants’ products as feedstock. The polycarbonates plant will be shut down for 56 days, phenols plant for 31 days, amine plant for 53 days while ethoxylates unit is to halt production for 49 days.

Periodic maintenance will be performed for those plants during the shutdown period.

The company said it would work on limit the financial impact by using available inventory. It will also work with other petrochemical companies in Jubail Industrial City to continue the operations of polypropylene, low density polyethylene and high density polyethylene units during this period.