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Chemical Companies Quietly Retire as the Olympics are Coming

http://markets.chron.com/chron?GUID=6074549&Page=M [2008-7-23]

Tag : foam Materials
 Engaging in concept of environmental protection for the "Green Olympics," the chemical industry isquietly retiring under the vision of the people, since the officialopening of the Beijing Olympic Games is in less than 20 days.

The polyurethane industry is heavily impacted. As the embargo and the cut-off orders areissued in various cities, companies that produce basic rawmaterials for polyurethane, foam, flexible materials, adhesives andother production have already suspended production in the Beijing -Tianjin-Tangshan region. TDI is the main raw materials forpolyurethane, although its producers, including ST Canghua Group,have not stopped yielding it and the maintenance program is justroutine. According to Tootoo.com network marketing analysis, thesematerials are experiencing problems in transportation, as there aresevere restrictions on the transport of dangerous goods in the sixassociated Olympic cities including Beijing . Consequently, TDI can not be normally exported, resulting in the shutdown of somedifficult to reach places, and the suspension of some tradebusinesses.

In addition, the main products liquid chlorine and caustic soda inthe chlor-alkali industry are also considered dangerous goods, andcannot be stocked in large quantities. Transportation of dangerousgoods has also been restricted around Beijing during the Olympic Games. This has all caused a great impact onthe chlor-alkali enterprises. Some propylene oxide enterprises in Tianjin and Hebei Province will limit production of raw materials for a short period oftime, and some propylene oxide producers in Shandong will reduce the operating rate.

Officials from Jiangsu Tianyin Chemical Industry Co., Ltd. told interviewers from Tootoo.com that companies cannot maintainthe supplies of certain chemical products, especially dangerouschemicals such as isocyanates and acrylic monomers, for Beijing , Tianjin , and other Olympic cities. Therefore, clients in these cities haveto stock up in advance; otherwise they would stop producing. Alsodeclaration for imports of chemicals has ceased, and manyenterprises' production schemes have been pushed back.

However, due to the special nature of the Olympic Games, theaccumulated demand and orders during the Olympic Games, chemicalcompanies are expected to receive a boost after the game, and it'sbelieved that they will gain a new industry pinnacle.



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