AMERICAS
Dow Chemical expansion projects on track
Construction of Dow Chemical’s US Gulf Coast and Latin America expansion projects are on-track and on a plan for a start-up. In Freeport, TX construction for the on-purpose propylene PDH project is over 50% complete; the project is expected to start in mid-2015. The construction for Dow’s ethylene production facility started in June and is expected to be completed in the first half of 2017. Starting in 2015, Dow also plans to expand capacity and increase production at its PE production units in Argentina.
EUROPE
Biaxplen Launces metalized BOPP film
Biaxplen has launched a new biaxially oriented heat sealable film, which extends the guaranteed printing period, enhances adhesion when laminated, and also substantially improves the barrier properties of the film. This film is produced in Biaxplen facilities at Kursk and Novokuybyshevsk.
Comments: Biaxplen is a major producer of BOPP films with an annual capacity of 150 KT. The improvement in the technology of the BOPP films will address some necessary concerns of consumers. In the new BOPP film, activation of the polymer film surface is intended to step up surface tension and consequently enhance the polymer adhesion to printing inks, lacquers, and glues; leading to increased resilience of the paint coat and strength of the film splicing. Activation of the BOPP film can be carried out both during the production line and at the printing and lamination facilities. Throughout the extended activation period, the film can be used for printing and lamination purposes to manufacture the final product, i.e. food packaging and non-food packaging.
Total to buy a majority stake in Polyblend
Total will buy a 68% stake in Polyblend GmBH, a subsidiary of Polymer-Chemie GmBH. Polybend currently has a compounding capacity of 83 KTA. Currently, Total does not produce the type of reinforced polyolefin compounds made by Polyblend, however, two production lines with a capacity of 30 KTA each are under construction in Total’s Carling site in France with start-up expected in Spring 2016.
Comments: The automotive manufacturing industry in Western Europe and North America has witnessed a turnaround in the last couple of years with an increasing number of automakers focusing on producing models with an emphasis on improved fuel efficiency which can be achieved via using lighter-weight materials. Plastics such as polypropylene are extensively used in automotive interior and exterior applications replacing heavier metal-based parts. PP is commonly used as a compound with other materials such as EPM/EPDM/ABS etc to impart strength and stiffness properties. Total’s acquisition of Polyblend enables them to participate in a lucrative market with changing dynamics, where constant innovation is taking place, presenting good growth opportunities.
Sibur to commercialize new grades of SSBR
Sibur has developed new grades of solution-polymerized styrene butadiene rubber. The new grades were developed by Sibur innovations R&D center in association with Voronezhsintezkauchuk (Voronezh, Russia). The process for the new grades – SSBR-HV and SSBR-LV is expected to be commercialized next year.
Comments: Sibur along with NKNK are the two leading synthetic rubber producers in Eastern Europe. Solution SBR is considered a high-performance material that finds several end uses in automotive applications such as gaskets, hoses, seals, etc where it contributes towards lightweighting increasing fuel efficiency. Sibur could potentially market these new products into Western Europe and Asian automotive markets.
EstPak Plastik plans mainland Estonian plant
EstPak Plastik, the food packaging manufacturer, is planning to build a new manufacturing unit in mainland Estonia. EstPak currently operates a plant on Estonia’s offshore island of Hiiumaa.
Comments: EstPak Plastik manufactures trays, containers, and films for food packaging based on polypropylene, APET, and polystyrene. EstPak is a major packaging supplier to the meat processing industry and over 60% of its products are exported to Baltic States and Nordic countries. The new plant in mainland Estonia will help EstPak expand its exports to the Nordic countries including Demark, Finland, and Sweden.
AkzoNobel divests stake in Eka Synthomer Oy
AkzoNobel divested its 50% stake in Eka Synthomer Oy to Synthomer. Eka Synthomer Oy is a non-consolidated joint venture between AkzoNobel Pulp and Performance Chemicals and Synthomer. Based in Finland, it produces and sells styrene-butadiene latex products for the paper and board industry, mainly in Nordic countries.
Comments: Eka Synthomer, formed as a JV in 2011, is one of the leading SB latex suppliers to the paper industry in Europe. The SB latex market in Europe has been witnessing a period of consolidation due to unfavorable market conditions. Also, this divestment completes AkzoNobel’s exit from the paper chemicals market.
MIDDLE EAST & AFRICA
SOCAR oil-gas processing and petrochem complex project on track
The State Oil Company of Azerbaijan is expecting to commence operations at the planned oil-gas processing and petrochemical complex (OGPC) in 2020. The project, which is played with an investment of USD 17 billion, includes a petrochemical complex with a capacity of 1,700 KTA, an oil refinery, and a gas processing plant. About 90% of the petrochemical products from the plant including, polyethylene, polypropylene, and butadiene will be exported to Turkey and other European and Asian markets.
Comments: Azerbaijan has large reserves and established production of oil and gas, which are two of the country’s most important exports. Azerbaijan exports about 820 thousand barrels per day of crude oil and about 7 billion cubic meters of natural gas. For a country with a population of 9 million, the government is fully aware of the importance of developing the non-oil sector of the industry. So far, the only polyolefin production is the two HDPE plants at Sumait with a total capacity of 150 KTA.
Petkim Launches expanded ethylene plant
Petkim has completed the expansion of its ethylene plant in Aliaga, in the western Izmir province of Turkey. The capacity was increased by 13% to about 3,600 KTA.
Comments: The demand for petrochemical products in Turkey has been increasing faster than that of the global average. On the other hand, domestic supplies have not increased at the same rate. In order to meet the rapidly growing demand, Petkim’s expansion and modernization investments that increase its capacities significantly have been underway over the past few years. The most significant advantage of the Turkish petrochemical industry, despite the proximity of feedstock-rich countries with big petrochemical producers, is the level of domestic demand, which allows the establishment of production facilities in world-scale capacities.
ASIA PACIFIC
Samsung to sell subsidiaries to Hanwha Group
Samsung will sell a 57.6% stake in Samsung General Chemicals and a 32.4% stake in Samsung Techwin for a total of about USD 1.71 billion. Through this deal, Hanwha will have an 81% stake in Samsung General Chemicals. As a result of the deal, Samsung Thales and Samsung Total Petrochemicals will be jointly controlled by Hanwha along with France’s Thales Group and Total respectively, which own the other half of the stakes.
Wipak Group opens new factory in China
Germany-based packaging company Wipak has opened its factory in Changshu, China. Wipak Changshu will focus on the production, printing, and lamination of high-quality composite films for the food and healthcare markets.
Comments: Wipakgroup, part of the Finland-based Wihuri Group, is a major producer of multilayer packaging films in Europe. The new unit is Wipak Group’s first in the Asia-Pacific region. The new factory will help Wipak Group strengthen its presence in the fast-growing Asian region.
Jindal introduces BOPP-based sealant film
Jindal Films has introduced biaxially oriented polypropylene-based sealant film for stand-up pouches. Bicor 50 SuP490 offers stiffness for stand-up display, transparency, and moisture barrier. The film combines Jindal’s sealant technology with a modified core to provide puncture resistance for stand-up pouches.
Comments: Jindal Film is a global leader in the development and manufacture of specialty-oriented polypropylene (OPP) films, including multilayer white opaque films, metalized films, and coated films, for flexible packaging and labeling applications. Jindal Films has affiliated production plants in Europe (Virton, Belgium; Kerkrade, The Netherlands; and Brindisi, Italy), and in the United States (LaGrange, Georgia; and Shawnee, Oklahoma).Bicor™ 50 SuP 490, the first OPP-based sealant film for stand-up pouch applications. The film offers excellent stiffness for stand-up display, high transparency for optimum visibility, and an outstanding moisture barrier. Metallyte™ MM688 OPP film, with a very low-temperature seal coating, can replace lamination while maintaining moisture, flavor, and aroma barriers to keep products tasting and smelling fresh. Label-Lyte™ 52LLC247 film is a white lightweight oriented PO film offering excellent converting characteristics, conformability, and flexibility for pressure-sensitive label applications. The conformability and squeezability of the film allow the label to remain intact and appear new even after multiple squeezes of the container.
Sabic to broaden the supply of LGFPP
Sabic Innovative Plastics is proceeding with an investment in a production line for Stamax long glass fiber-reinforced polypropylene at its site in Shanghai, China. The new capacity is expected to be on-stream in the second half of 2015.
Comments: SABIC STAMAX is a long glass fiber reinforced polypropylene, which is sold primarily to the system or tier-one suppliers and producers of molded plastic parts and components for the automotive industry. SABIC STAMAX has outstanding properties and numerous advantages in processing. STAMAX is a high-performance product that offers cost-effective solutions, offers lower density & lower weight, and is suitable for a very wide range of load-bearing applications. Sabic operates two production plants for Stamax, at Genk, Belgium, and Bay St. Louis, Mississippi. Given the growing trend towards lightweight, the new production line in Shanghai will help Sabic cater to the needs of the Asian market.