Sabic Europe, a subsidiary of the Saudi company Sabic in Europe, announced force majeure on February 16 to supply certain grades of low density polyethylene (HDPE) from its Geleen plant in the Netherlands, the company said in a letter to its customers.
According to the letter, the force majeure was caused by unexpected technical problems on line No. 3 with a capacity of 175 thousand tons of HDPE per year, and it is currently not known how long it will last.
Sabic Europe in Gelene operates a HDPE plant with a total capacity of all lines of 350 thousand tons per year, as well as an enterprise for the production of high-density polyethylene (LDPE) with a capacity of 480 thousand tons per year, a linear polyethylene (LLDPE) plant with a capacity of 120 thousand tons per year. and a plant for the production of polypropylene (PP) with a capacity of 585 thousand tons per year.
Earlier it was noted that in October last year the company closed one of the PP lines with a capacity of 350 thousand tons per year at the plant in Gelene for a two-week maintenance.
According to MRC’s ScanPlast, by the end of December, the estimated consumption of HDPE in Russia increased to 135.48 thousand tons against 125.35 thousand tons a month earlier. Domestic producers increased their output, and imports also increased. In 2020, the total volume of HDPE supplies to the Russian market amounted to 1,232.1 thousand tons, which is 3% more than a year earlier. The volumes of production and exports have increased several times, imports have decreased by a third.
Sabic Europe (Netherlands) includes three refineries in Europe: Geleen (Netherlands), Teesside and Wilton (Great Britain) and Gelsenkirchen (Gelsenkirchen, Germany).
Sabic is a diversified company manufacturing chemicals, industrial polymers, fertilizers and metals. It is the largest state-owned company in Saudi Arabia. Sabic is currently the world’s second largest producer of ethylene glycol, the third largest polyethylene producer, and the fourth largest polypropylene producer.