AMERICAS
Borealis to invest in PP compounding in Brazil
Borealis has completed the expansion of its PP compounding facility in Itatiba, Brazil. The expansion was completed with an investment of about USD 48 million. The expansion project included the addition of two new lines; the output from the new lines will be sold to automotive and appliance manufacturers in South America.
Comments: Borealis is trying to become the leading supplier of PP compounds to the growing South American automotive industry. The company has a long-standing partnership with Volkswagen, which has used TPOs from Borealis’ Daplen portfolio in door panel production in Europe. Volkswagen’s recent selection of a Daplen grade for South American vehicle production marks the first use of such material by Volkswagen in South America.
Polymax introducing new TPE grades
Polymax has introduced new grades of sensory-sensitive thermoplastic elastomers. The new materials offer low extractable, neutral organoleptic, clarity, and good sealing properties.
Comments: Polymax TPE develops specialty thermoplastic elastomeric compounds and formulations for packaging, healthcare, electrical & electronics, and automotive markets. With the new sensory-sensitive adhesives, Polymax TPE is targeting food and beverage packaging, transport, and storage applications. These new grades are expected to provide better organoleptics and clarity, in addition to the sealing properties they provide.
Eastman Chemical launching new APO grades
Eastman Chemical plans to launch new amorphous polyolefin grades later this year. The new grades are expected to include butane-free APO grades for use in hygiene and packaging markets.
Comments: Eastman produces Eastoflex™ amorphous polyolefins for markets including roofing, flooring & carpet construction, adhesives & sealants, wire & cable. Amorphous polyolefins are used as base polymers in products that are used in applications. Amorphous polyolefins provide good adhesion, bonding, and hot-tack properties in addition to barrier properties in the end-uses such as pressure-sensitive adhesives, hot melt adhesives, paper laminating, sealants, etc.
Braskem backs out of comprj Project in Brazil
Braskem is backing away from the Comperj project, a multi-billion dollar investment in Brazil. After studying the investment costs, Braskem will opt to expand production capacity at its plant in Duque de Caxias rather than starting a new plant. The Comperj project was expected to include production units for polyethylene, polypropylene, styrene, butadiene, and benzene as well as second-generation products and resins from Braskem’s portfolio.
Comments: The Comperj project has been on hold for several years, as Braskem has been unable to secure the natural gas liquids feedstock required for a world-scale cracker. The Rio Polimeros cracker is already running at a lower capacity than market conditions dictate due to feedstock availability. Braskem and Petrobras have been unable to reach an agreement on feedstock, and the recent corruption turmoil at Petrobras further delays any possible deal. Petrobras currently supplies over 70% of Braskem’s naphtha feedstock. The company is also considering importing ethane and LPG from the United States to accommodate the capacity expansion.
EUROPE
Repsol to undertake modernization project
Repsol has launched a USD 68.5 million plant upgrade and modernization program at its Puertollano Industrial Complex in Spain. Repsol aims at increasing the output of EVA resins, increasing the production capacity of the olefins plant, and increase propylene processing at the PP unit.
Comments: Repsol is undertaking a strategic investment to maximize profits from the plant by adjusting the product portfolio and cutting down on energy costs. The olefins’ output will decrease significantly, as nameplate capacity for both ethylene and propylene will be cut by more than 50%. The ethylene will be used to produce value-added EVA and LDPE grades. The HDPE unit has been shut down due to a lack of profitability.
Total acquires majority stake in Polyblend
Total has acquired a 68% stake in Polyblend, a manufacturer of plastics for the automotive industry. Polyblend produces blends of PE, PP, and other ingredients such as mineral fillers, glass fiber, elastomers, and additives.
Comments: Polyblend is a subsidiary of Polymer-Chemie GmbH that produces reinforced polyolefin compounds for films and injection molding applications. These compounds are usually reinforced with fiberglass. The company currently has a capacity of 80 KTA. Total SA is currently building two PP compounding plants in Carling, France for start-up in 2016. Considering Total SA’s current lack of presence in the reinforced polyolefin compounds business, the acquisition of Polyblend will allow Total SA to strengthen its PP compounding business through Polyblend’s expertise in the packaging and automotive markets that Total SA is targeting.
Borealis and Borouge develop new Daplen grade
Borealis and Borouge have developed a new Daplen grade, Daplen EE112AE. The new grade is a 12% mineral-filled elastomer-modified PP compound. This grade was developed for the production of the top-of-range electric sports car BMW i8, as a lightweight bumper material.
Comments: The new Daplen grade, developed in cooperation with BMW, fulfills BMW’s strict paint adhesion quality requirements in the company’s cost-saving primer-less paint systems. It is marketed as having improved processability for low scrap rate during production and reduced density while maintaining a good balance of impact and stiffness. Daplen EE112AE became commercially available in 4Q 2014.
Lanxess evaluating strategic options for synthetic rubber business
Lanxess is evaluating strategic options for its synthetic rubber program and is in talks with potential partners regarding the formation of alliances or joint ventures for its synthetic rubber business.
Comments: Lanxess has recently undertaken steps to improve efficiency as sales in its Performance Polymers business segment, which includes the synthetic rubber business, have declined in the past year. Lanxess’ operating rates are unlikely to improve in the next two years as the company brings up a 160 KT EPDM plant in China into a market already suffering from overcapacity and a 140 KT Nd-PBR plant in Singapore. Lanxess will look to cut some of its costs by trying vertically integrate into a source of raw material supply.
MIDDLE EAST & AFRICA
Borouge targeting on-spec LDPE production in March
Borouge is expecting to produce on-spec LDPE by the end of March from its facility in Ruwais. The new Borouge 3 facility is expected to produce 350 KTA of LDPE.
Comments: Borouge is a joint venture between Austria’s Borealis and the Abu Dhabi National Oil Company. The borough-3 project includes six new petrochemical plants that produce a total of 1,500 KTA of ethylene, 1,430 KTA of PE, and 960 KTA of PP. All polyolefins will be produced using the company’s Borstar technologies. Borouge-3 will more than double the current polyolefins capacity of the company to 4,500 KTA.
Sadara Chemical JV to start up in 2015
Aramco and Dow Chemical plan to start production at their USD 20 billion joint venture, Sadara Chemicals. Ethylene and polyethylene will be the first products of Sadara Chemical Co. and the plant is expected to reach full output in 2017.
Comments: Dow’s and Saudi Aramco’s Sadara Chemical remain on schedule to start up this year despite a much more unfavorable economic environment than during its start of construction in 2011. Shell and Qatar recently terminated their own massive Al Karaana petrochemical project due to low oil prices. The Sadara plant is being built as part of Saudi Arabia’s strategy to increase its presence in downstream petrochemical markets. Almost half of the project’s chemical production is planned for exports to Asia.
ASIA PACIFIC
China considering a merger of CNPC and Sinopec
The government of China is considering the merger of certain state-owned energy companies. Merger of China National Petroleum Corp (CNPC) and Sinopec as well as the merger of China National Offshore Oil Corp and Sinochem are being studied.
MRPL commissions new PP unit
MRPL has started the commissioning process for an integrated polypropylene unit at its refinery in Mangalore. The unit has a polypropylene production capacity of 440 KTA.
Comments: India is the fastest-growing region for polypropylene in Asia. Demand for polypropylene in India is forecast to surpass the demand growth rate in China during the next ten years. MRPL’s polypropylene plant is in line with the country’s plan to become self-sufficient and meet the growing demand for thermoplastic in the region. The plant will use Novelen® Technology.