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JAPAN'S recent safety scandal has dented not just the reputations but also the halfyearly financial performances of one of the country's petrochemical majors.
And the reasons given for an acrossthe-board disappointing Hl 2002-03 are: high feedstock prices, sluggish domestic demand, except in certain niche areas, a strengthening yen, and in some sectors, the perennial Japanese problem of overcapacity.
Mitsui Chemicals said that the extended shutdown of the company's Osaka petrochemical complex because of Ministry of Economy, Trade and Industry safety inspections cost it about YenBbn (US$65.9m) in operating profit. The complex should have been back onstream on August 10 following a turnaround that began in july. However, plants, including a 455 000 tonne/year cracker and urea/ammonia facilities remained idled because of the inspections. The inspections took place because of Mitsui's admission that it falsified safety reports in 2000-02.
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