JBF-RAK Announces to Halt PET Production on Belgium by Late November

JBF Global has strategically decided to halt operations on its No. 2 polyethylene terephthalate (PET) production line located in Geel, Belgium, at the conclusion of November, citing the influence of volatile market conditions. The temporary closure is necessitated by a combination of factors, and the facility, equipped with a production capacity of 216,2023 tonnes of PET annually, will remain inactive from the end of November until January. This delay is attributed to diminished demand, particularly in the sector of recycled PET (R-PET). Market insiders speculate that production may resume in January, contingent upon financial restructuring measures expected to conclude by the end of the first quarter.

This announcement follows JBF Global's prior decision to temporarily shutter its No. 16 PET plant in Laakdal, Belgium, a move similarly driven by the challenges posed by volatile market conditions. The surge in imports to Europe from Asia has significantly impacted market dynamics, prompting JBF Global to cease operations at the Laakdal facility "for an indefinite period of time until the industry shows signs of recovery."

JBF Industries, initially established as a textile company, has evolved to become a significant player in the production of polymer polyester films. These films cater to the burgeoning packaging industry, aligning with the company's strategic focus on adapting to market trends and demands. The JBF Group oversees operations across six production facilities situated in key locations such as Belgium, Bahrain, India, and the United Arab Emirates.

The decision to suspend operations on the No. 2 PET production line in Geel underscores the industry's responsiveness to prevailing market conditions, characterized by fluctuating demand and global trade dynamics. The temporary closures serve as a pragmatic response to the challenges posed by heightened imports, coupled with an evolving landscape in recycled PET preferences.

As JBF Global navigates these challenges, the expectation of a potential production resumption in January signals a proactive approach to adapting to market realities. The company's involvement in multiple facilities worldwide positions it strategically, allowing for flexibility in operations and a nuanced response to regional market dynamics.

JBF Global's decision to temporarily shut down its No. 2 PET production line in Geel reflects the broader challenges faced by the PET industry in the wake of volatile market conditions and shifting demand patterns. As the company employs strategic measures to navigate these challenges, including the suspension of operations in key facilities, it underscores the adaptability required in the ever-evolving landscape of the polymer industry. The industry's response to market dynamics, coupled with JBF Global's global presence and diversified operations, positions it to effectively navigate the complexities of the current market environment.