Ineos Phenol is working to reduce operating costs in order to boost margins
Due to challenging market conditions, INEOS Phenol plans to cut production costs by 30 percent at its Doel production site in Belgium. Unfortunately, this may impact 56 jobs. However, INEOS Phenol is also proposing investments in process technology, energy efficiency, and logistics.
INEOS Phenol is the biggest producer of phenol, acetone, and alpha-methyl styrene (AMS), with a manufacturing capacity of about 4 million tonnes per annum. Cumene is transformed into phenol and acetone at their Doel's site. Phenol and acetone are further widely employed in various industries, such as automobile, textile, electronics, construction, and many others.
Request Access For the Latest Price Trends of Phenol
The industrial demand for chemical products has weakened due to a combination of unpredictable energy prices, high inflation, and a cyclical slowdown. As a result, end-users of phenol and acetone have significantly reduced their production, and customers are facing increased competition and imports from Asian suppliers.
Read More About Phenol Production Cost Reports - Get Free Sample Copy in PDF
Moreover, Europe has transformed into a net importer of Phenol and Acetone from a net exporter over the past 12 months. A decrease in the utilization rate of these products and their derivatives has also been observed to an average of 50 percent in 2023 which was 80 percent before the European gas crisis. Hence, the Doel plant did not resume production after the turnaround work last autumn.
According to Procurement Resource, the initiative of reducing the operational cost by INEOS Phenol aims to secure the site's competitive position. The phenol market is hindered due to the decreasing demand. Therefore, the modifications in organizational structure will enable them to efficiently manage costs while providing high-quality services.
Recent News & Articles
Methyl Vinyl Ether Buyers Review Regulatory Fit Before Supplier Approval
Feed Barley Procurement Tightens as Australian Output Is Expected to Drop
Diethyl Sulfate Procurement Requires Hazardous Substance Cost Checks
Castor Oil Procurement Needs Quality Review Before June Contracts
Zinc Sulfate Procurement Tightens as Zinc Rally Raises Supplier Offers
Tags
- Access independent price trends and market intelligence for thousands of raw materials.
- Request customised production cost and prefeasibility reports for specific plants or locations.
- Explore subscription dashboards for continuous tracking of prices, indices, and news.
- Commission bespoke research on categories, suppliers, or trade flows tailored to your brief.
Our Team will be happy to assist you
We are Just a Text away
