Reliance denies shut-down of polyester units at Patalganga
06 Nov 2008
Mumbai: Reliance Industries Ltd has refuted newspaper reports that it had shut five of its seven polyester and petrochemical plants at Patalganga near Mumbai due to a fall in demand.
In a clarification filed with the Bombay Stock Exchange (BSE) on the report published by the Business Standard newspaper, Reliance said the news item, `RIL shuts five polyester units', was factually incorrect.
''The PTA and LAB facilities are currently operating at full capacity in Patalganga. Some of the polyester plants are shut for routine maintenance and enhancing product capabilities. The company expects to restart from this month', the company said in its filing.
''There are no plans currently to shift any plants from Patalganga to Nagothane,'' it added.
The Patalganga site had announced a voluntary retirement scheme on 5 October 2008 as part of its normal cost optimisation exercise and over 400 people had opted for the same, the release said.
The report, which said the company had shut plants for manufacturing polyester filament yarn, polyester staple fibre, paraxylene, purified terephthalic acid (PTA) and linear alkyl benzene (LAB), had triggered concerns over the company's earnings and prompted selling in its shares, pushing them down 12.8 per cent to Rs1,269.45.
Reliance last month reported a 7.4 per cent rise in quarterly profit at Rs4,122 crore, but the economic slowdown and falling crude oil prices are likely to put pressure on RIL's refining margins.
