Equistar Chemicals LP said it will stop production of low density polyethylene at its Pasadena, Texas, tubular process unit by the end of the year.
``The decision to stop producing LDPE at this facility was made after an extensive review, which demonstrated that the unit was no longer financially viable,'' Jerry Parker, Equistar vice president of polyethylene for the Americas, said in a June 27 news release.
Pasadena's production will be shifted to other sites. Equistar also owns and operates LDPE facilities in Clinton, Iowa; La Porte, Texas; and Morris, Ill. Equistar's parent, LyondellBasell Industries AF SCA of Rotterdam, owns a refinery and three other facilities that make chemicals and polyolefins in Pasadena.
Parker said high operating costs contributed to inadequate financial returns for the Pasadena LDPE unit.
``With the challenging market conditions in North America, continued growth requires economies of scale, low conversion costs and the ability to produce value-added products,'' Parker added.