Borealis has decided to shut down two melamine low pressure plants with an overall capacity of 30 kilotonnes (kt) per year at its site in Linz, Austria. The 10 kt production plant was decommissioned already in January 2010, whilst the second plant with a capacity of 20 kt will follow on June 27.
Continuous investments to improve the efficiency of the state-of-the-art melamine high pressure plants are made within the scope of the EUR 145 million investment project for the production site in Linz. These measures sustainably compensate a large portion of the capacity closure by introducing modern technology. The decision process has been accelerated due to the need for major investments in the melamine low pressure plants, as such investments in low pressure technologies do not pay off in Europe. Borealis will continue to supply its customers with the same reliability and quality as before from its sites in Linz, Austria and Piesteritz, Germany.
Major customers have announced to switch their production to high pressure melamine. Customers who can only use low pressure melamine will continued being supplied at optimum levels through the remaining low pressure melamine production plant with a capacity of 20 kt. Logistics and warehousing have been optimised internally to secure timely deliveries to our customers.
“This decision is a major milestone on our mission to improve our competitiveness in a global business environment,” explains Markku Korvenranta, Executive Vice President Base Chemicals, Borealis. “Our clearly defined goal to focus on sustainable market leadership in Europe will strengthen Borealis’ position through quality, delivery service and cost competitiveness.”
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