ADI Chemical Market Resources Newsletter
February 10, 2015

 

AMERICAS

 

ExxonMobil Chemical introduces new Vistamaxx grade

 

ExxonMobil Chemical is introducing a new grade to its Vistamaxx portfolio. The new grade, Vistamaxx 3588FL provides excellent seal performance in cast PP and heat-sealable BOPP films designed for fast and reliable packaging operations.

Comments: Exxon has introduced the new grade to cater to the fast-growing general packaging and food packaging markets in Asia Pacific. The company sees an opportunity for easy processing grades especially in the food packaging industry in Asia Pacific, as this region is the center of capacity and demand growth.

 

EUROPE

 

Styrolution launches pilot SBC plant at Antwerp

 

Styrolution has launched a pilot styrene-butadiene copolymer plant at Antwerp. The new plant will help Styrolution further its R&D, support the existing 65 KTA SBC plant, and will enhance specialty styrenics in Antwerp. The plant will be capable of producing all of Styrolution’s SBC grades.

Comments: Styrolution was formed as a 50/50 joint venture between BASF and Ineos. Ineos acquired BASF’s 50% stake in the joint venture for USD 1.47 billion in 2014. Ineos currently runs Styrolution as a standalone company within the group. The company’s product line includes styrene monomers, ABS, polystyrene, styrene-butadiene block copolymers (SBCs), and others. The new pilot plant is in line with Styrolution’s ‘Triple Shift’ strategy which aims to strengthen the company’s market position in styrenic specialties and ABS Standard, with a focus on emerging global regions and high-growth industries.

 

SoloFilmz plans new films plant in Russia

 

SoloFilmz will be investing about USD 4 million to construct a new plant in the Samara region of Russia. The new facility will produce PE and PP packaging films, tape, and labels. The plant is expected to go on-stream in late 2016.

Comments: The polypropylene films market in Russia is dominated by Biaxplen, which is a wholly-owned subsidiary of the vertically integrated petrochemical giant Sibur. Biaxplen has invested heavily in recent years to increase capacity and technical capability to completely dominate not only the Russian but also the regional markets. While Biaxplen is well-positioned in the market in terms of feedstock availability and film production, the picture from the converter point of view is much murkier. Russia only has a few large international converters who only have a small market share, with most of the industry fragmented and lagging in technical capability. As a result, global packaging conglomerates like Coca-Cola, Japan Tobacco, and Philip Morris International prefer to use their suppliers and import finished packaging into Russia. SoloFilmz may not be a major polyolefin film producer in the region, but by having its supply source of high-tech multilayer packaging films in addition to already being an established consolidated converter, the company may become the first to persuade the largest international packaging groups to switch to Russian-made packaging films.

 

Repsol offers phthalate-free block copolymers

 

Repsol now offers phthalate-free block copolymers as a part of its non-phthalate polypropylene grades. Repsol’s block copolymers can cater to all sections of injection applications as well as extrusion applications.

Comments: Repsol first started to research polypropylene grades using non-phthalate catalysts in 2006. Homopolymer grades for the non-woven hygiene sector were commercialized in 2009, and non-phthalate random copolymers for injection applications and high-transparency blow molding and the film entered the market in 2012. The new phthalate-free block copolymer portfolio targets all sectors of injection molding and extrusion applications.

 

Sibur reviewing plans for the ZapSibNeftekhim project

 

Sibur is reviewing the cost of its large petrochemicals project -ZapSibNeftekhim. The USD 9.5 billion project, is expected to include a steam cracker with an ethylene production capacity of 1,500 KTA, 500 KTA propylene, 100 KTA butane-butylene fraction, and 500 KTA each for PE and PP.

Comments: Sibur is reconsidering its investment in the ZapSibNeftekhim project due to increasingly unfavorable economic conditions and logistical difficulties of working with multiple Western companies caused by Russia’s political situation. Sibur is currently partnering with Linde AG for the steam cracker construction, and licensing of Ineos’ PE and LyondellBasell’s PP processes. The declining value of the Russian ruble relative to the euro has also contributed to the rapid cost escalation of the project.

 

Innovia launches new BOPP film

 

Innovia Films has launched the production of its first BOPP film which can provide up to one and a half years of protection from mineral oil migration. The new product, Propafilm, has properties favorable for use in markets such as snacks, confectionery, dried food, tea, and cereals.

Comments: Several European regulatory agencies have recently determined that mineral oil residues, considered carcinogenic, frequently exceed safe levels in packaged food. These residues are thought to come into contact with food as they migrate from printing inks on the package. Propafilm has been shown in a peer-reviewed study by Innovia researchers to provide an effective barrier to mineral oil migration due to an optimized proprietary acrylic coating. The new film will target packaging for biscuits, bakery, confectionary, dried foods, tea, and cereals—the majority of the polypropylene food packaging market.

 

MIDDLE EAST & AFRICA

 

Advanced Petrochemical signs PP offtake agreements

 

Advanced Petrochemical Co, has signed long-term offtake agreements for the sale of PP with Mitsubishi Corp and Domo Investment Group. Mitsubishi Corp will sell 150 KTA and Domo Group will sell 100 KTA of PP from the Jubail plant as of January 1, 2019, for ten years after the expiry of Advanced’s existing offtake deals. Advanced also signed a short-term offtake agreement with Domo Chemicals Asia and Mitsubishi Corp for the sale of an additional 50 KTA of PP each for four years, effective from February 1, 2015.

Comments: Western Europe and Japan are the two most cost-disadvantaged regions in the world for petrochemical production due to high energy and labor costs. Petrochemical companies in those regions have been looking for ways to gain access to cheaper production either through deals with companies in cost-advantaged regions or through setting up their plants in those regions. Mitsubishi and Domo have already been off taking polypropylene from the Advanced Petrochemical facility since the plant’s completion in 2008. Advanced sources its propylene feedstock through an agreement signed last year with the Satorp refinery and aromatics complex, a JV between Saudi Aramco and Total

 

Shell signs deal to build a petrochemicals complex in Iraq

 

Shell has inked a deal with Iraq to build a petrochemical complex near Basra. The complex will include a world-scale crackers derivative complex. The project will be built at an investment of about USD 11 billion.

Comments: Shell’s investment in the proposed Iraq petrochemical project is expected to be one of the largest in the region and could potentially make Iraq a leading petrochemical producer in the Middle East. The plans for this project are in its nascent stages and there lies a long road ahead, potentially up to 2021, before the complex is built.

 

ASIA PACIFIC

 

Zhejiang Shaoxing Sanjin Petrochemicals Co. commissions propylene plant

 

Zhejiang Shaoxing Sanjin Petrochemical Co., Ltd has commissioned a UOP C3 Oleflexprocess unit for the production of propylene. The new facility will have a propylene production capacity of 450 KTA.

Comments: China has recently invested heavily in domestic olefin capacity to lessen its dependence on imports. Zhejiang Shaoxing Sanjin’s facility is the second plant in China to use UOP’s C3 Oleflex technology. A stable, reliable source of high-quality domestic resin also benefits Chinese polypropylene producers and other chemicals producers down the C3 chain, as well as various converters. Zhejiang Fuling Holding Group, the parent company, specializes in the production of polypropylene and biaxially-oriented polypropylene films.

 

Dynasol opens synthetic rubber JV in China

 

Dynasol will be starting production at Liaoning North Dynasol Synthetic Rubber Co Ltd, its Chinese joint venture with Shanxi Northern Xing’an Chemical Industry Co Ltd. The unit will have a production capacity of 100 KTA of solution-styrene butadiene rubber and thermoplastic rubber.

Comments: Dynasol strengthens its position in the synthetic rubber market by setting up production in all the major regions of the world –North America, Europe, and Asia. Dynasol plans to focus on the fast-growing, large Chinese market in the construction, healthcare, automotive, and appliances industries through their current product capability: solution-SBR, thermoplastic-SBS, and hydrogenated-SEBS. Dynasol produces a combined 200 KTA of SSBR, SBS, and hydrogenated SEBS at its existing facilities in Mexico and Spain.

 

 

Indian Oil launches new HDPE grade

 

Indian Oil launched a new HDPE polymer for injection molding applications. The new grade, Propel HDPE 080M60 offers improved performance in injection molding applications such as material handling crates, caps, closures, household articles, and thin-walled products.

Comments: Indian Oil currently produces 300 KTA of dedicated HDPE using LyondellBasell’s Hostalen Slurry Technology and 350 KTA of swing HDPE/LLDPE using Nova’s Sclairtech Solution Technology. The company’s new grade 080M60 is manufactured using Sclairtech Solution Technology. Indian Oil is focused on capitalizing on the growth momentum in the petrochemicals industry in India as well as in the rest of Asia. To achieve this, the company is planning to invest over USD 5 billion between now and 2022 in niche and specialty petrochemical products.

 

Thai company to set up BOPP plant in Bangladesh

 

Thailand’s PM Group will be investing about USD 150 million in Bangladesh to set up a BOPP plant. The plant will be built in collaboration with Bangladesh’s Meghna Group and an MoU has been signed.

Comments: Southeast Asia is expected to be the fastest-growing region for flexible packaging and polypropylene films. PM Group’s BOPP film plant will be the first in Bangladesh and will aim to dominate the emerging packaging market that is currently supplied by imports. PM Group has direct experience in film production through its ownership of Thai Film Industries in Thailand