Cyclone Hudhud damages Andhra Petrochemicals' Vishakhapatnam facility

Cyclone Hudhud that hit Andhra Pradesh on October 12, 2014 has caused partial damage to Andhra Petrochemicals’ Vishakhapatnam facility, forcing the company to continue with the closure of the facility. The facility, which manufactures oxo alcohols, has been temporarily shut down since May 26, 2014, in the face of increasing low-cost imports into the country.
 
“The recent cyclone viz, Hudhud at Visakhapatnam had partially damaged some of the assets, roofings, compound wall and glasses of the company’s plant at Visakhapatnam thus leading to continuation of shut down period. These damages are covered under insurance. Required further reporting will be done in due course,” said Andhra Petrochemicals in today’s BSE filing.
 
The company had to face production challenges last year due to non-supply of major raw material propylene from its supplier Hindustan Petroleum Corporation Ltd (HPCL). As a result, Andhra Petrochemicals was forced to shut down twice – in September and November – in 2013.