Cangzhou, Hebei –Dahua halted TDI production at its Juhai subsidiary in Cangzhou, Hebei province in early October. The stoppage was caused by China’s coal shortage.
‘The temporary production suspension is because of an extreme national undersupply of coal, which has made our company’s steam supplier stop all their engines and unable to provide industrial steam,’ said a Dahua announcement, dated October 9.
‘The steam suppliers are exerting all efforts to procure coal, but the exact time to resume supply still cannot be determined,’ it said. China has ordered its coal mines to boost output as its power shortage spreads.
Dahua has 150kT/year TDI capacity, and the Juhai subsidiary has 120kT/year. In 2020 Dahua produced 131kT, accounting for nearly 10% of China’s total production.
Over the first half of 2021, the Juhai subsidiary recorded CNY228m ($35m) net profit over CNY1.2bn sales. This compares with CNY175m net profit for the parent company over approximately the same sales size
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