ZPC Implements Temporary Closure of Styrene Production in Zhejiang

On December 13, 2023, Zhejiang Petrochemical (ZPC), a key player in China's petrochemical sector, embarked on an unscheduled maintenance shutdown at its No. 2 styrene production facility. This facility, integral to a sophisticated petrochemical complex in Zhejiang Province, underwent unexpected maintenance expected to last approximately 14 days, temporarily halting operations on a production line with an annual styrene capacity of 600 thousand tons.

The focal point of this development is the No. 2 styrene production facility, a cornerstone of ZPC's styrene production capabilities. Each line individually contributes 600 thousand tons to the annual styrene production capacity, highlighting the strategic significance of the facility in fortifying ZPC's capabilities.

Beyond the No. 2 styrene production facility, the encompassing petrochemical complex houses additional critical units that enhance its versatility and efficiency. Among these units is a cracking unit with an annual capacity of 1.4 million tons of ethylene. Additionally, the complex engages in benzene production with a capacity of 500 thousand tons and paraxylene production, boasting an impressive annual capacity of 4 million tons. These interconnected units create a dynamic and multifaceted environment within the complex.

Styrene, the primary product of the No. 2 styrene production line, holds pivotal importance as a fundamental raw material for the production of polystyrene (PS). Polystyrene, a versatile plastic polymer, finds widespread applications across various industries, from packaging materials and disposable containers to consumer goods. This underscores the centrality of styrene in the petrochemical production chain.

Zhejiang Petrochemical, categorized as a private enterprise, is actively involved in constructing an advanced petrochemical complex in eastern China. The ownership structure is noteworthy, with the majority shareholder being Rongsheng Petrochemical, holding a substantial 51% stake. Alongside Rongsheng Petrochemical, other significant stakeholders include China's Juhua Group and Tongkun Group, reflecting a diversified and cooperative approach within the Chinese petrochemical industry.

The decision to implement unscheduled maintenance at the No. 2 styrene production facility aligns with ZPC's unwavering commitment to ensuring the reliability and efficiency of its operations. This strategic move serves as a testament to the industry's dedication to maintaining the integrity of production facilities and safeguarding overall output quality. While the temporary disruption poses operational challenges, it underscores the proactive stance taken by ZPC to address and rectify potential issues promptly.

As Zhejiang Petrochemical navigates this maintenance period, industry stakeholders, analysts, and market observers will closely monitor developments. The anticipation is for the timely resumption of operations at the No. 2 styrene production facility and the sustained success of this dynamic petrochemical complex in eastern China. The industry recognizes the dynamic nature of such operations, and this strategic pause for maintenance ultimately contributes to the long-term reliability and efficiency of ZPC's styrene production capabilities.