Shandong Chambroad Halts PP Production on Binzhou No.1 Line for Maintenance

Shandong Chambroad, a prominent Chinese company, has recently made a significant decision to temporarily suspend its polypropylene (PP) production activities on Line 1, located in Binzhou, Shandong Province, China. The reason behind this unexpected pause in production is the need for unscheduled repairs. This particular production line, known as Line 1, boasts an annual production capacity of a substantial 400 thousand tons of PP. The company initiated the closure of this line for repair work on October 10, and unfortunately, there is no fixed timeframe for when the repairs will be completed, making the duration of this production halt indefinite.

In a noteworthy historical context, it's worth noting that back in 2018, Shandong Chambroad Sinopoly New Materials entered into a partnership with LyondellBasell Industries (LBI), an American company known for its expertise in various chemical technologies. The objective of this collaboration was to incorporate LBI's cutting-edge technologies into their new polypropylene (PP) manufacturing facility, situated in Binzhou, Shandong Province, China.

For a more detailed breakdown, it's important to highlight that the more potent of the two production lines, known for its annual output of 400 thousand tons of PP, operates using the Spheripol technology. Meanwhile, the second production line, which has a capacity of producing 200 thousand tons of PP each year, relies on Spherizone technology for its operations.

To put this development into a broader context, a review conducted by ScanPlast has provided insights into the supply of polypropylene to the Russian market for the first eight months of 2023. During this period, the supply of PP to the Russian market amounted to a substantial 1,034.76 thousand tons. This figure is calculated by taking into account the total production and imports while subtracting the volume of exports.

As for the company's background, Chambroad Zhongju, which is at the center of this production halt, was established relatively recently in 2016. This company stands as a wholly owned subsidiary of Chambroad Petrochemicals, indicating its close affiliation with the larger parent organization.

Shandong Chambroad's collaboration with LyondellBasell Industries in 2018 to integrate advanced technologies into its Binzhou facility demonstrates the company's commitment to innovation and excellence in the field of PP production. This facility, with two production lines, has an impressive annual capacity of 600 thousand tons of PP, with each line utilizing distinct technologies for their operations.

The review of polypropylene supply to the Russian market in the first eight months of 2023, conducted by ScanPlast, reveals a notable 10% increase compared to the previous year. This increase in supply is a significant indicator of the industry's growth and the evolving market dynamics. The company at the center of this development, Chambroad Zhongju, is a subsidiary of Chambroad Petrochemicals, established in 2016, further underlining the organization's presence and influence in the industry.