Singapore Aromatics Maker Struggles

Jurong Aromatics, a Singapore-based petrochemical producer, has filed for bankruptcy reorganization slightly more than a year after starting up its facilities. The company, a producer of p-xylene, benzene, o-xylene, and various fuels, owes about $1.7 billion to a consortium of banks. Jurong’s downfall was unexpected. In 2011, it claimed to have found buyers of its output for the first seven years of operations. Media reports say that Jurong has been accumulating losses because the rapid fall in oil prices cut into its profit margins. The company is owned by a consortium that includes South Korea’s SK Energy, China’s Jiangsu Sanfangxiang, and the Singapore government.