QUANTUM TO SHUT DOWN THREE LDPE UNITS

Quantum Chemical Co., Cincinnati, plans permanent shutdowns of its three oldest, least efficient, autoclave low density polyethylene (LDPE) polymer reactors is the U.S.

Two of the units, which went on stream in the early 1960s at Quantum's La Porte, Tex., complex produce 60 million lb/year of LDPE. Both are unprofitable in today's weak market, the company said.

Quantum expects to shut down the reactors by Dec. 31, resulting in the loss of 28 jobs.

La Porte will continue to operate its newer LDPE reactors, which have a combined capacity of 395 million bbl year.

The third reactor to be closed, located at the company's Tuscola, III., site, manufactures LDPE, vinyl acetate ethylene (VAE) copolymers, and n-butyl acrylate (ENBA) copolymers. Built in the 1950s with a capacity of 15 million lb/year, this reactor's age and size make it no longer economically viable.

As a result of its closure, Quantum will halt production of some VAE products, while the others and all of the ENBA products manufactured at Tuscola will be produced at other Quantum plants. The Tuscola reactor is expected to close by the end of January 1994, resulting in the loss of 33 jobs.

Quantum said it will continue to be the largest U.S. producer of LDPE, with 1.55 billion lb/year of capacity.

The shutdown follow an announcement by Quantum to exit the ethylene oxide (EO)/ethylene glycol (Ed) business by December. Its 220 million lb/year plant, located in the Morris, Ill., manufacturing complex which has been in operation since 1970, will close as a result of Quantum's long range projections for surplus capacity in the EO/EG market.

Quantum is a wholly owned subsidiary of Hanson plc, which has operations in the U.S. and U.K.