SINGAPORE: ExxonMobil plans to wind down operations at the older of its two steam crackers on Singapore’s Jurong Island from March, four sources familiar with the matter said, part of a global petrochemicals sector trend to reduce capacity amid industry losses.
The shutdown of the plant, which opened in 2002, is expected to be complete by June, two of the sources said. The sources asked not to be identified because they were not authorised to speak to the media.
The imminent shutdown of the United States major’s first cracker in the Asian oil trading hub comes as chemical producers grapple with losses from overcapacity led by China, the world’s largest consumer of petrochemicals used to make products ranging from plastics and clothes to shoes and cars.
“As a matter of practice, we do not comment on market rumours or speculation,” an ExxonMobil spokesperson said in response to Reuters’ queries.
