Texas Petrochemicals to Trim C4, Butadiene Production on Ailing Demand04 May 2009 • by Natalie Aster
Texas Petrochemicals, Inc. (USA), announced to cut its overall C4 processing and butadiene production capacity, including headcount, through the idling of certain assets at both its Houston and Port Neches, Texas facilities. The measures are part of a cost reduction initiative announced by the company to enhance profitability and cash flow by US$25 mln annually. "Market conditions continue to be extremely challenging, particularly in our C4 Processing segment where we have experienced and anticipate continued reductions in contract crude C4 supply due to olefins operating rates and lighter olefins feedstocks," said Charlie Shaver, president and CEO of Texas Petrochemicals.
"The idling of some of our C4 processing assets marks a continuation of the proactive efforts we started in 2008 in all our businesses as the economy began to deteriorate, which have included a substantial decrease in capital spending, the elimination of discretionary spending, a reduction in working capital and cuts in headcount," continued Shaver.