AMERICAS
Formosa considering a new PE unit in Point Comfort
Formosa Plastics is considering the construction of a PE unit at its Point Comfort complex in Texas. This will be the second new PE plant to be built at Point Comfort. Construction on the new PE unit is expected to begin in the last quarter of 2015 and the unit should begin its operations in December 2017.
Comments: The United States is currently undergoing massive increases in ethylene capacity with 11 new steam crackers in various stages of planning and construction in addition to debottlenecking and expansion of several existing crackers. Formosa is on track to build its 1,200KT grassroots ethylene cracker to leverage inexpensive ethane and other natural gas liquids derived from shale gas along with a 625 KT LDPE plant by 2017. Those plants received greenhouse gas permits from the EPA in August 2014.
Braskem completes metallocene LLDPE expansion in Brazil
Braskem has completed the expansion of LLDPE production capacity at the Camaçari petrochemical cluster in Bahia, Brazil. The total LLDPE production capacity was expanded by 120 KTA, of which about 100 KTA is for Braskem’s Flexus-brand Metallocene LLDPE. The project was completed at an investment of USD 18.9 million.
Comments: Demand for metallocene film resins has shown high growth potential in Latin American markets in Brazil and Argentina where consumers and converters are demanding improved packaging film structures. The region is currently reliant on imports from North America to take care of domestic metallocene film grade demand and with the increased capacity, Braskem will be able to capture a large section of this market.
Sirmax setting up U.S. production
Sirmax SpA will be setting up U.S. operations in Indiana with three twin-screw extrusion lines with a production capacity of 27 KTA, primarily for polypropylene compounds. The unit will be set up with an investment of about USD 25.6 million.
Comments: Sirmax SpA has three PP compound production plants in Italy. Outside Italy, the company has production plants in Poland and Brazil. Sirmax SpA is expanding its operation into North America with a production plant in Indiana. The US is witnessing a series of polymer compound plants in the region in recent times where the demand growth is significant. Earlier, Asahi Kasei and So.F.Ter announced PP compounding plants in Alabama and Tennessee respectively.
Hexpol completes RheTech acquisition
Hexpol AB has completed the acquisition of the plastics compounding business of RheTech Inc. for USD 112 million. RheTech primarily produces PP compounds for the automotive market.
Comments: Hexpol Compounding, a division of Hexpol Group, primarily focuses on rubber compounding and thermoplastic elastomer compounding. The company is highly focused on expanding and strengthening its business position in North America, mainly through acquisitions. RheTech is the company’s fifth acquisition in North America and its first in 2015. In 2014, they acquired Portage Precision, Vigar Rubber Compounding, and Kardoes Rubber spending over USD 68 million for all three acquisitions. In 2010, they also acquired Burton Rubber for USD 200 million from PolyOne.
Dow launches new HYPERTHERM™ resin for PE-RT pipe
Dow Chemical has launched a new HDPE resin HYPERTHERM™ 2399 for commercial hot and cold water plumbing pipes. The new resin enhances the flexibility of plastic pipe so installers can bend water lines at turning joints allowing for ease of installation.
Comments: Hypertherm™ resins are bimodal HDPE developed by Dow, especially for domestic hot and cold water pipes. Dow markets Hypertherm™ as highly chlorine-resistant, good organoleptic resins. Hypertherm™ 2399 is the second commercial grade that will be available after Hypertherm™ 2399 NT.
EUROPE
Poligal starts construction of new BOPP plant in Poland
Poligal has started construction for a new BOPP plant at Skarbimierz, Poland. The new plant is being constructed with an investment of USD 37.1 million and will have a capacity of 40 KTA. The plant is expected to be operational by the third quarter of 2016.
Comments: Demand growth for BOPP film has been bleak in Europe over the past five years, but the last two years have seen a return on investment in new capacity to the region. Spain’s Poligal is trying to capitalize on Poland’s promising flexible packaging market as well as an attractive location for potential exports. The 8.7-meter extrusion line from Brückner will produce 5-layer coextruded films for applications in food and medical packaging. Poligal is also expanding its capacity for cast polypropylene film closer to home in Portugal.
Ukraine’s Karpatneftekhim to relaunch PE production
PE and SPVC production at Ukraine’s Karpatneftekhim is expected to relaunch this year after the production was halted in 2013. Karpatneftekhim has a production capacity of about 110 KTA PE, and 300 KTA SPVC.
Comments: Falling oil prices have returned profitability to naphtha-based petrochemical producers that were not competitive a year ago. Karpetneftekhim, Ukraine’s only PVC and PE producer, has been forced to close several times in the past few years over Lukoil’s inability to win enough concessions over transport and energy costs to operate the plant at a cost-efficient production level. The latest shutdown occurred because Lukoil’s main negotiating partner, Ukraine’s former president Viktor Yanukovych, was ousted and forced to flee the country. The combination of a slightly more stable political situation (the plant is located far away from rebel-held territory) and, more importantly, advantageous economic conditions proved enough to restart production.
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.
Elasto Sweden develops TPE for medical applications
Elasto Sweden, a division of Hexpol TPE has developed new compounds from the Mediprene range of TPEs for medical device applications. The Mediprene compounds are transparent but also colored. These transparent TPEs can be used in applications such as face masks, tubing, and dental applications.
Comments: Growing consumer demand for PVC-free medical products has prompted medical device manufacturers to seek alternate materials. While alternatives are usually more expensive than PVC without significant advantages in performance properties, labeling products “PVC-free” provides a marketing/public relations advantage, as concerns over health risks from plasticizers used in flexible PVC are firmly entrenched in public opinion. TPEs for medical applications have greatly improved in clarity and mechanical properties over the past five years. Hexpol is targeting infusion devices, catheter parts, syringes, medical tubing, and other applications with the new series of Mediprene compounds.
Poliom releases new PP grades
Poliom, a unit of Titan’s plant in the Omsk region, has expanded its PP production to include two new grades -PP H031 FF and PP H033 FF. The new grades are used in raffia for the production of woven PP container liners.
Sibur reviewing plans for the ZapSibNeftekhim project
Sibur is reviewing the cost of its large petrochemicals project -ZapSibNeftekhim. The USD 9.5 billion projects are 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.
ASIA PACIFIC
Pucheng Clean Energy starts PE plant
Pucheng Clean Energy Chemical has started up a new PE plant in Shaanxi Province, China with a production capacity of 300 KTA.
Comments: China is investing in coal-to-olefins projects to boost the country’s petrochemicals and polymers production. The country sees coal as an advantaged feedstock compared to naphtha. The push for CTO plants in China will result in an increase of polyethylene capacity in China by over 2,500 KT by the end of 2015.
JSP Corp to build EPP plants in China, Thailand
JSP Corp will be investing USD 15.2 million for the production of expanded polypropylene in China and Thailand The new plant in Wuhan, China will be the fourth JSP plant in the country when it opens in 2017. The new plant will have a production capacity of 3 KTA of Arpro-brand EPP. JSP will also be constructing a plant in Bangkok, with a production capacity of 1.8 KTA of Arpro. The new plant in Thailand is expected to open in January 2016.
Comments: JSP International is a major polyolefin foam producer in Japan. The company produces Arpro® EPP beads, mainly for automotive applications. The new plant in China will be it’s fourth in the country. JSP is expanding its operations globally through manufacturing plants in major automotive-producing regions such as USA, Brazil, and Thailand.