Thirumalai Chemicals Shuts down Maleic Anhydride Plant due to dumping by China

Thirumalai Chemicals Ltd has announced that, in view of rampant dumping of Maleic Anhydride (MA) into the country from China, the Company, which is the only manufacturer of MA in the country, has taken a shutdown of the Maleic Anhydride Plant.

The Company which has been producing about 1000 MT of MA every month has been captively consuming about 300 MT monthly for its downstream value added products.

The Company is taking appropriate steps including representing to the authorities. In the meanwhile, to meet the Company’s captive requirement, the Company will operate the MA Plant and for meeting the market demand of MA, the MA Plant will start operations as soon as the dumping stops or the market conditions improve.

Considering the prevailing buoyant market conditions for Phthalic Anhydride (PA) which is the Company’s main product, as also the demand for other value added products based on PA/MA, this shutdown is unlikely to impact the profitability of the Company.

Source : Equity Bulls

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