Deltech Polymers Corp. plans to restart styrenic polymer production at a plant in Troy, Ohio, later this year.
Whippany, N.J.-based Deltech recently received a loan of almost $340,000 from the Ohio Rail Development Commission to restore a rail-switch connection at the plant, which last was used for commercial resin production in 2003. The ORDC also gave Deltech a $24,000 grant to repair a rail spur at the site.
The repairs and restoration work are needed to allow full commercial rail access to the site, including deliveries of raw materials and outgoing shipments of finished products, Deltech spokesman Brent Reedstrom said Jan. 21 by phone.
No firm restart date has been set. When reopened, the plant will make styrene methyl methacrylate and other specialty resins for niche and specialty products, Reedstrom said.
We're evaluating the opportunity we'll have by restarting the polymerization unit, he said. The continued consolidation of styrenics manufacturers is what's led us to consider this project.
In the last five years, more than 1 billion pounds of styrenics capacity has been shut down in North America, mostly in the form of solid polystyrene. The shutdowns have been a result of a number of factors, including lower demand and declining profitability, largely tied in to higher prices for benzene feedstock.
Deltech operated 140 million pounds of capacity for crystal PS and SMMA in Troy before selling the business to Nova Chemicals Inc. in 2003. That sale included customer lists and product formulations, but no physical assets. Reedstrom said a non-compete agreement Deltech signed with Nova after the sale has expired.
Copyright 2010 Crain Communications Inc. All Rights Reserved.