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Indian Acrylics shuts acrylic fiber plant for maintenance
Sep '08
Leading acrylic fiber (AF) producing company, Indian Acrylics, has announced a temporary shutdown of its manufacturing plants for a maintenance turnaround.

Official sources from the company confirmed to Fibre2fashion that, “the company has shut its acrylic fiber plant for maintenance which is likely to extend for about 10-12 days.”

The plant situated in Sangrur, to the east of Delhi, has an annual production capacity of 40,000 metric tons and went for a shutdown last week.

However, experts believe that poor margins and weak markets are two key factors affecting acrylic fiber production. Producers of acrylic fiber have failed to pass on high cost of acrylonitrile (ACN) feedstock to the consumers and at the same time prices for the fibre continues to drop.

Based on current market situation, AF producers require prices to rule around US $2.60 per kilogram in order to break even. But on the contrary, prices are presently ruling between 2.50-2.55 per kilogram, obviously leaving manufacturers at a loss.

As a result of dropping AF business in the market, ACN inventories in India are running high on stock.

Fibre2fashion News Desk - India

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