Formosa shut PVC plants in the US as winter storm hit
Sources close to the producer said both of the units are expected to remain shut until the notice is lifted.
Formosa Plastics Corporation Texas has reportedly taken two of its PVC plants offline on 15 January 2024 as a cautionary measure after the authorities raised a winter storm alert for 15 – 17 January.
The producer owns two PVC plants in Texas, including the 798,000 tons/year plant in Point Comfort and the 513,000 tons/year plant in Baton Rouge, Louisiana. Sources close to the producer said both of the units are expected to remain shut until the notice is lifted.
“The risk of a short circuit at this extreme weather condition is very high. We expect other petrochemical complexes in the region to adopt a similar strategy to avoid catastrophic damages to the plants as seen in 2021,” an industry participant commented.
In February 2021, a brutal winter storm hit Texas, causing hundreds of fatalities and knocking out power supply for millions. Many of the petrochemical plants took months to repair the damages which led to huge financial losses.