Cangzhou, Hebei – Cangzhou Dahua, a leading maker of TDI and fertiliser in China, announced on 25 November 2019 it is to suspend production at one of its TDI subsidiaries.
The subsidiary has 30kT/year TDI capacity, out of the parent company’s 150kT/year total.
‘In 2019 Chinese TDI producers had ample supply. The price has been low with fierce competition,’ said the announcement. ‘The 30kT/year facility couldn’t turn profit given its small size.’
Dahua will determine the time to resume production in light of market conditions, the announcement added.
Over the first nine months of 2019, the subsidiary recorded a CNY 33m ($4.7m) net loss on CNY 114m revenue, or 7% of Dahua’s total revenue during the period.
Dahua estimates that if production were suspended for a full year, the plant would generate CNY300m less revenue and CNY50m less net loss.
Earlier this year Dahua revealed its plan to add 265kT/year to its current TDI capacity. The company declined to comment on the project’s progress.
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