Polychem Indonesia has shut down its MEG unit on back of weak demand and poor margins. The company makes purchase of Ethylene to manufacture MEG but has been concluding negative figures past few months.It margin is calculated as the MEG CFR China price minus the CFR Northeast Asian ethylene price multiplied by 0.605 and deducting additional operating costs of around $150/mt.This unit is based at Serang in Java and has the production capacity of 96, 000 mt/year.The company has another 145,000 mt/year MEG line at Serang that is currently running well.
