Japan Firms Walking Tightrope to Keep Ethylene Plants Running

Tokyo, April 8 (Jiji Press)--Major Japanese chemical makers are working desperately to avoid halting factories for ethylene, a material for plastics and synthetic fibers, amid the ongoing Middle East crisis.

Ethylene production facilities take over a month to restart once suspended, so manufacturers are reducing output instead to keep their plants running.

They are trying to procure naphtha, a crude oil-based material used in ethylene production, from regions other than the Middle East, while passing on higher costs to prices in order to maintain profitability from continued plant operations.

"Having no choice but to stop (production facilities)" would be the worst-case scenario, Koshiro Kudo, chairman of the Japan Petrochemical Industry Association and president of Asahi Kasei Corp., suggested at a press conference March 24.

"I think we can manage to make it through April, and each company is working hard to keep operations running until after the (Golden Week) holiday period (from late this month to early May)," he added.

[Copyright The Jiji Press, Ltd.]