What exactly is the reason behind the shutdown of Bayer’s 6 global polycarbonate plants?
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Business Today, May 5 – Large-scale shutdowns at Bayer worldwide – Bayer’s recent large-scale shutdowns across the globe have once again highlighted the severe impact of the economic crisis on Bayer MaterialScience. Six polycarbonate (PC) plants, with a total global production capacity of 300,000 tons per year, have also been shut down. In the fourth quarter of 2008, Bayer’s Materials Science business suffered a severe setback. EBITDA, excluding one-time items, dropped to 54 million euros (73 million dollars) from 367 million euros in the same period of 2007. What exactly is the reason behind the shutdown of Bayer’s 6 global polycarbonate plants? Debt problems? Is it a problem with the product itself? The issue of blind construction? Experts in this field, please give some advice! Let’s discuss it together!
It is predicted that the use of polycarbonate will continue to increase. The main reason for the shutdowns is the economic crisis, which has led to a decline in profits and dealt a severe blow to Bayer. Not only polycarbonate, but MDI production in Germany has also been halted, according to reports.
MDI in Germany might have a significant impact, but Bayer’s MDI production is still okay; it was shut down for over a month at the end of last year. Production seems to be good this year. As for PC, it is said that Bayer has never made a profit from it – it seems to be used mainly in optical discs, with little use in other applications. It’s really a shame, given how useful this material is
It’s likely that the capital chain is too long, resulting in difficulty in attending to everything; naturally, it’s necessary to give up those devices that are not very important at the moment but can be brought back online easily.
It’s surprising that such a powerful chemical giant would also face economic problems! If Bayer reduced the costs associated with licensing out many of its technologies, it could yield benefits; I wonder if Bayer is willing to do that !
Experts, what other facilities has Bayer shut down globally, and is there any intention to sell them as a whole?
What’s the reason? Market demand has shrunk significantly, leading to an oversupply; prices have dropped dramatically, revenues are not enough to cover costs, so production had to be halted.
No company can remain unscathed in the face of a storm. The same is true for Bayer and BASF. It’s hateful – there are foolish economic experts who predict that the economy will recover and that things will be great in the country. In the face of the storm, everyone is in fear
It is said that the crisis has ended and the economy is recovering, but it seems that the recovery of the chemical industry is also a slow process. Chemical companies need to seek new avenues for development; those in the coal chemical industry are also considering entering areas other than coal! The engineering plastics industry? The biochemical industry? Every industry has its challenges! ! ! :$
There is an oversupply in market demand; shutting down operations is in line with economic principles! ! !
The shutdown of 10# njdjw is an inevitable outcome, but which company will do it? That’s the suspense! If Bayer shuts down, it’s less surprising if any other company does the same! So what are the options for chemical companies nowadays? Could someone with more experience give me some advice? !