Australian olefins and polyethylene (PE) producer Qenos has entered into voluntary administration following a cash liquidity crunch.
Australian advisory firm McGrathNicol has been appointed as voluntary administrators, with its first meeting with creditors, including employees, expected to be held on 30 April. A follow-up meeting will be held for the administrators to present the results of their investigation into the Qenos Group and offer recommendations.
Qenos was formerly a joint venture between China's state-controlled ChemChina and US private equity group Blackstone. Qenos' new owner LAOP BidCo will provide funding to the voluntary administrators, employee wages and other necessary costs to shut the Botany plant in New South Wales. Qenos was "unable to confirm whether there will be sufficient assets available to meet employees' pre-appointment claims", in a circular released to employees.
Qenos operates a 250,000 t/yr ethane cracker, a 90,000 t/yr low-density PE plant and a 130,000 t/yr linear low-density PE/high-density PE (HDPE) swing plant at Botany. Qenos stopped its ethylene and PE production at Botany in February 2023 after damage to a cooling water tower at its olefins complex. Qenos earlier planned to restart its Botany ethylene and PE plants in phases from late January this year but this failed to materialise.
It separately in 2021 closed and mothballed one of its two ethylene units and one of its two 100,000 t/yr HDPE units in Altona, Victoria. This came after the closure of ExxonMobil's 90,000 b/d Altona refinery in August 2021 that supplied feedstock to Qenos' Altona cracker.
No decision has been made on Qenos' ethylene and PE plant in Altona.
Qenos' distribution arm eXsource will continue to operate normally. It supplies a range of polymers manufactured by Qenos, Bluestar, LyondellBasell and others within the domestic Australian market.
