Keltic Petrochemicals receives approval to construct a petrochemical complex in Nova Scotia
Keltic Petrochemicals Inc. announced its plans to develop, construct, and operate a world-scale petrochemical plant in Goldboro, Nova Scotia. When completed, the facility will consist of ethylene, polyethylene, propylene, and polypropylene plants as well as a supporting cogeneration plant and a receiving terminal for liquefied natural gas (LNG). The company received environmental approval from the Nova Scotia Minister of the Environment.
The petrochemical complex will be the first of its kind in Atlantic Canada. Keltic will extract the ethane and the propane from both LNG and natural gas that comes on shore at Goldboro. The ethane and propane will be converted into ethylene and propylene and further processed into polyethylene and polypropylene resin (plastic pellets). The resin will be sold to manufacturers for use in the production of consumer and industrial plastic products. Keltic will have an annual production capacity of 1,450 KT.
Comments: This seems to be one of the few investments in North America to add grass-roots capacity for olefins & polyolefins. The company seems to be planning to take advantage of feedstock in Canada. Keltic Petrochemicals Inc. was incorporated in March 2000 by W. Kevin Dunn, a native Nova Scotian, and long-time Calgary area businessman. Keltic Petrochemicals plans to use LNG as its source of feedstock. On December 15, 2005, Keltic entered into a Memorandum of Understanding with Petroplus International B.V. to advance the development of the LNG Terminal. On March 14, 2006, Keltic entered into definitive agreements with Maple LNG, the Canadian affiliate of 4Gas which is a European affiliate of Petroplus International B.V. Under these agreements, Maple LNG acquired 100% of the LNG project plus permits and land options in exchange for staged payments leading to acceptance of LNG cargoes. Maple LNG agreed to support Keltic’s Petrochemical Project through the option to provide feedstock.
Egypt’s SIDPEC considers the construction of a polyethylene facility in a joint venture with INEOS
Egypt’s Sidi Krir Petrochemicals Co (SIDPEC)’s announced that it is considering expansion plans that include a joint venture with chemicals firm INEOS for a polyethylene (PE) facility. The company plans to construct a capacity of approximately 200-300 KT per year. The company also plans to commence work on the third phase of an ethylene project, for which it plans to invite tenders. Work will commence when the company receives the necessary approval. The company will begin test production on the second phase of its 300 KT per year ethylene production facility. SIDPEC is Egypt’s sole producer of ethylene and propylene, with a combined production capacity of about 525 KT per year.
Comments: The petrochemical industry started in Egypt during the early 1950s in Suez through the production of ammonia from surplus fuel gas from refineries. In the early 1960s, it continued in parallel with the development of a coking plant based on onshore Belayim crude oil to produce dodecyl benzene, the primary material for detergent production. In the late 1960s, it was planned to construct two petrochemical complexes: Aromatic Complex in Suez and Olefins Complex in Amerya near Alexandria. Intensive feasibility studies were developed in this respect and it was finally decided to build a plant in Amerya to produce 80 KT of PVC by the end of the 1970s and production started in the early 1980s. This was followed by the construction of two plants for producing 300 KT of ethylene and 200 KT of polyethylene (HDPE, LLDPE). The polyethylene plant is based on BP technology.
SIDPEC is an Egyptian joint stock company established in November 1997. The Egyptene polymer portfolio includes linear low-density polyethylene (LLDPE) and high-density polyethylene. Capital investment in the polyolefin industry has shifted to emerging economies such as North East Asia, and South America, and feedstock-advantaged regions such as the Middle East. There has been a lot of speculation that Africa will be added to the list of “new regions” that will attract investment in the petrochemical industry.
Teknor Apex establishes a European Company for its compounding business
Teknor Apex Company has established Teknor Apex UK Holdings Ltd. as a holding company for its custom compounding units in Europe and formed the first of these units, Teknor Apex UK Ltd., to serve customers in all of the countries of the region.
Teknor Apex UK will begin small-lot manufacturing of thermoplastic elastomers (TPEs) during the first half of this year, with the startup of a new compounding line at a Teknor Apex facility in Oldbury, UK that is already used for engineering thermoplastics (ETPs). Also, underway is a program to expand representation through a network of agents ultimately covering all of Europe.
Teknor Apex UK is based in Oldbury and headed by managing director Simon Hubbard. He will oversee all Teknor Apex activities in Europe, including businesses involving vinyl, TPEs, ETPs, and other custom compounds. While the ETP operation has been known as Chem Polymer, that name will be phased out, but the well-known ETP trade names Chemlon® and Beetle® will be retained.
Other Teknor Apex initiatives in recent years include the acquisitions of Singapore Polymer Corporation and Chem Polymer and the establishment of Teknor Apex Suzhou, with a new grassroots manufacturing facility in China. The details of each of the company’s product ranges are listed below:
Engineering thermoplastics – Teknor Apex produces ETPs in the UK, the U.S., and Singapore and plans to do so in China. Teknor Apex UK will focus on the company’s core strengths in reinforced, filled, and specially modified compounds of polyamide 6 and 66, PBT, and specialty grades of PET for automotive, appliance, electrical and electronics, and other industrial applications.
Thermoplastic elastomers – The establishment of TPE production in the UK will add to the capacity already in place in the U.S., Singapore, and China.
Vinyl – Teknor Apex produces flexible and specialty rigid PVC compounds in the U.S., Singapore, and China. Its chief product ranges are Apex® flexible vinyl, Flexalloy® elastomers based on ultra-high molecular weight PVC, and Fireguard® highly flame retardant, low-smoke compounds for plenum cable.
Comments: This is a step in the right direction to compete globally with Teknor Apex via international expansion and diversification. By this strategic move, Teknor Apex is not only aiming for brand recognition but also planning for the long run in Europe – to expand its new production capacity, comprehensive sales service and technical support, and strategic acquisitions. Teknor Apex had similar initiatives not too long ago in other regions – Singapore and China. Also, Technor Apex is hoping to become a preferred supplier of brand-name products to any globalized company based in Europe. Teknor Apex TPEs have been moving into the European market by distributors in several EU countries and the company hopes to add local, customized service and Global capabilities.
Honeywell signs supply agreement for PE waxes with Gong Myoung Technologies
Honeywell announced a multi-year supply agreement with Gong Myoung Technologies (GMT), a manufacturer of specialty chemicals, under which Honeywell will be the exclusive marketer of GMT’s waxes in all markets except South Korea.
The supply agreement includes high-density polyethylene waxes used primarily in inks and coatings, PVC (polyvinyl chloride) processing, and floor polish. Under the arrangement, Honeywell and GMT also will work together to commercialize new products, such as oxidized polypropylene waxes, which will enable Honeywell to offer these new products to its customers worldwide.
GMT also produces specialty chemicals for oil refineries and petrochemical plants. GMT is based in South Korea.
Honeywell’s specialty additives business continues to boost manufacturing and research and development capabilities in Asia, including China. As part of this effort, the business recently installed a state-of-the-art PVC extrusion line and testing operation at Honeywell’s Shanghai-based Asia Technology Center.
Honeywell is a leading manufacturer of low molecular weight polyethylene (PE) polymers, which act as additives to help inks and coatings perform better and lubricants to improve throughput when processing vinyl. Honeywell’s A-C® wax brand is recognized globally as the industry standard
Comments: Polyethylene waxes are a type of synthetic wax that are either manufactured on purpose or recovered as a by-product during the manufacture of PE resins. The demand for PE waxes has been increasing continuously over the last few years.
Metallocene-based PE waxes were introduced by Dow and produced by Marcus Oil in Houston. The plant was destroyed in a fire.
Honeywell is one of the leading suppliers of PE waxes in North America. This relationship with GMT will help Honeywell utilize GMT’s expertise in Asian markets and ease their supply of PE waxes.
Arkema and Scarpa develop ski boots from a thermoplastic elastomer of renewable origin
Arkema and Scarpa’s R&D teams have been working closely together to design and develop a more ecological boot: Scarpa Hurricane. For the first time, the shell, strap band, and tongue of the boot use Pebax® Rnew, a high-tech thermoplastic elastomer derived from over 80% renewable raw materials. Italian sports equipment manufacturer Scarpa, which specializes in top-of-the-range skiing, mountaineering, and rock-climbing boots, wants to show that it is possible to take environmental issues into account and still fulfill performance requirements.
Most ski fans are indeed aware of environmental issues, not least because climate change now poses a direct threat to their favorite sport. Accordingly, they are willing to invest in environmentally sounder products, albeit without jeopardizing the level of performance of their equipment. Processed for the most part from vegetable oil, Pebax® Rnew offers the same outstanding properties as traditional Pebax®, both being high-tech polymers.
Compared to traditional elastomers used in ski boots, like TPU, Pebax® is 20% lighter in weight, affords superior impact strength, and does not rigidify at low temperatures. Thanks to its outstanding properties, Pebax® is used in the manufacture of equipment for demanding snow sports such as freestyle skiing, long-distance skiing, telemark skiing, and snowboarding.
Comments: Green-based ski boots are part of the Global trend in back-to-nature products promoting Global environmental concerns.
Arkema has leveraged its expertise in renewable-based Rilsan of polyamide 11 to develop these products. Arkema’s renewable-based product portfolio is developed and marketed under the ‘Renewables’ label, which applies to products involving at least 20% renewable origin.
Pebax Rnew TPEs are said to feature the same performance as petroleum-derived Pebax TPEs and were introduced during the K-show last October. The current application to Ski boots is a step forward to the successful commercialization of the product.
BASF introduces new grades of Ultraform® for blow molding
Be it hairspray bottles, paint cans, or oil tanks – thanks to BASF’s new Ultraform® E3120 BM, hollow objects with demanding requirements can now be made of polyoxymethylene (POM) by means of extrusion blow molding. In comparison to containers made of polyethylene (PE), they display considerably better barrier properties against gases such as oxygen, hydrogen, and carbon dioxide. Ultraform E3120 BM is resistant to many types of media such as alcohol, oil, and hydrocarbons, and it can be sterilized with hot steam. This product is now available in commercial quantities.
According to BASF, the new Ultraform exhibits a very high melt stiffness which means that it is ideal for processing using extrusion blow molding. Consequently, it opens up completely new possibilities for the production of hollow objects and containers. Due to the optimized crystallization behavior, the material offers a wide processing window so that the blow molding process can be cost-efficiently automated. The high stretchability of the plastic melt gives access to applications with thin-walled sections. Since this translucent material accurately replicates the mold surfaces and is easy to dye, bottles for nail polish removers and other cosmetics, cans for solvents and paints, tanks for coolants and brake fluids as well as pressurized containers such as spray cans now can be smartly designed. Another option would be to add barrier layers to co-extruded films. The hollow objects made of the new POM grade are cost-effective to manufacture and weigh less than containers made of metal or glass.
The brand name Ultraform® relates to BASF’s plastics belonging to the POM family (polyoxymethylene, also polyacetal). Due to their high strength and stiffness, chemical resistance, and good resilience properties, these materials cover a wide range of applications. Ultraform can be used to manufacture technical parts such as gear wheels, ball bearings or clips, also fuel pumps, loudspeaker grills, parts for toys as well as the brewing units of many commercially available coffee machines.
Comments: Copolymer acetal (POM) is currently used in the automotive market for fuel systems with an end-use applications such as fuel caps, fuel filler necks, lifetime filters, valves, fuel pumps, and medical applications that include dry powder inhalers, insulin syringes electrical toothbrush and others. The advantages POM brings include (1) inherent lubricity / low coefficient of friction (2) high fatigue strength / good creep resistance (3) good toughness/impact resistance (4) hard surface with good appearance (5) high strength and stiffness (5) excellent dimensional stability (6) excellent chemical resistance.
BASF has in recent years seen some growth in their POM with 4% growth in Europe and 6% growth in Asia and has recently expanded their POM capacity from 41KT to 55KT. The blow molding capability of their new grades will allow them to expand their market for hollow applications such as bottles and tanks. POM’s better barrier properties against gases such as oxygen, hydrogen, and carbon dioxide will allow it to be used for applications such as alcohol, oil, and hydrocarbons.
Ukraine’s petrochemical firm to construct new PVC Plant
Ukraine’s biggest petrochemical company, KarpatNaftoKhim, started construction of a new polyvinyl chloride (PVC) production facility in Kalush. The new 300,000 metric tons/year PVC facility, worth about $210 million, would be the first in Ukraine and the most advanced such facility in Eastern Europe, the company said. The Kalush-based KarpatNaftoKhim is majority owned by Lukoil-Neftekhim, a petrochemical arm of Russian oil major Lukoil.
The new facility, after it is launched into operation in 2009, will improve environmental conditions in the region as it will be using vinyl-chloride monomer (VCM) as raw material for PVC production, instead of shipping the raw material for exports, the company said. KarpatNaftoKhim is the only producer of VCM in Ukraine, but also the country’s major producer of polyethylene, ethylene, propylene, caustic soda, and other petrochemical products. The company is capable of producing about 370 KT of VCM/year. KarpatNaftoKhim plans to increase VCM output by 15.1% year-on-year to 197.4 KT in 2008, up from 171.5 KT produced in 2007.
Comments: Russia is one of the fastest-growing regions for PVC. The demand for rigid PVC is expected to grow at a higher rate as compared to flexible PVC. For more information, please refer to our multiclient on PVC.
Bayer MaterialScience acquires remaining shares in its polyurethane joint venture BaySystems BÜFA
Bayer MaterialScience announced the acquisition of the remaining shares in the 50:50 systems house joint venture BaySystems BÜFA Polyurethane GmbH & Co. KG from Büsing & Fasch GmbH & Co. KG. In 2003, Bayer MaterialScience acquired 50 percent of the shares of BÜFA Polyurethane GmbH & Co. KG, headquartered in Oldenburg. Since its integration into the global systems house network of BaySystems® – the umbrella brand for the global polyurethane systems operations of Bayer MaterialScience – the company offers tailor-made system solutions to customers in Germany, Austria, Switzerland, the Benelux countries and Northern Europe under the name BaySystems BÜFA. Its activities are geared towards systems for the production of integral skin foams, elastomers, and rigid foams for innovative applications e.g. in the automotive, electrical/electronics, footwear, sports, leisure, and medical technology sectors.
Bayer MaterialScience’s network of systems houses in the Europe, Middle East, and Africa region (EMEA) also includes BaySystems Northern Europe A/S for Scandinavia and the Baltic countries, BaySystems CentralEurope for Central European countries, BaySystems RUS for the CIS countries, BaySystems Italia S.p.A. for Italy, BaySystems Iberia for the Iberian peninsula, BaySystems Hellas for the southern part of Eastern Europe, BaySystems Pearl for the Middle East, and the systems house in Nigel for southern Africa.
Comments: Bayer’s polyurethane business is one of the core units of MaterialScience. The company is planning to increase its position globally to overcome the effects of raw material price increases and improve profitability.
DSM invests in the development of bio-based materials in China
DSM Venturing, the corporate venturing unit of Royal DSM N.V., today announced that it has participated in a USD 20 million financing round in Tianjin Green Bio-Science Co., Ltd (China). The proceeds will be used to build China’s largest manufacturing plant for Polyhydroxyalkanoates (PHA) in the Tianjin Economic Development Area (TEDA).
The investment is in line with DSM’s ambitions to develop bio-based performance materials to meet customers’ growing needs for improved performance and environmental benefits at competitive costs. PHA offers, in response to the growing market need for eco-friendly solutions, a new renewable polymer platform for a broad range of applications from automotive to biomedical and electronics, including multiple forms like fibers, films, and foams.
In parallel with the venture investment, DSM and TGBS intend to work together to create new businesses in bio-based performance materials.
This investment brings the total number of current company participations of DSM Venturing to 20. Venturing forms an integral part of DSM’s open innovation approach focused on teaming up with innovative players all over the world. The company has earmarked up to EUR 200 million for venturing investments until 2012. China is one of the core regions in the global investment strategy of DSM Venturing.
The plant’s construction will commence in Q2 2008 and is expected to start production in early 2009. It will have an annual production capacity of 10,000 tons of PHA.
Comments: The investment is in line with DSM’s ambitions to develop bio-based performance materials to provide eco-friendly solutions. The investment in Tianjin Green Bio-Science is a confirmation of DSM’s global venturing strategy, in which China is one of the core regions. Moreover, it shows the company’s commitment and dedication to actively promoting China’s sustainable development initiatives, as one of the important elements in building a strong business position in China.
As PHA is produced through fermentation by micro-organisms, it also offers the opportunity for DSM to extend its competencies in both Life Sciences and Material Sciences to a new family of biopolymers.
Iran completes and inaugurates three petrochemical projects
Three petrochemical projects came on stream at Razi, Laleh, and Shahid Tondguyan petrochemical complexes in Mahshahr, southern Iran.
The low-density polyethylene (LDPE) producing unit of Laleh Petrochemical Complex, in which 240 million dollars and 250 billion rials (26.7 million dollars) have been invested, will produce 300,000 tons of LDPE yearly.
The third ammonia-producing unit of Razi Petrochemical Complex, in which 142 million euros and 540 billion rials (57.7 million dollars) have been invested, will produce 680,000 tons of ammonia annually.
The project is under the license of a Swiss company and Iran’s Petrochemical Designing and Engineering Company does logistical affairs.
The second pure terephthalic acid/polyethylene terephthalate (PET/PTA) producing unit at Tondguyan Petrochemical Company has the capacity of producing 750,000 tons of polyethylene terephthalate annually, the executive operations of which started in 2000 in an area of 18 hectares.
The National Petrochemical Company (NPC) boosted its output to 23 million tons in 2007 from 15 million tons in 2004, its managing director said.
Gholamhossein Nejabat added five million tons of products worth 2.4 billion dollars have been added to the NPC’s production capacity since 2006.
Comments: Iran has the highest proven reserves of both oil and gas right behind Saudi Arabia and Iraq. The petrochemical development and downstream value addition were hampered by Global politics and the U.S. position.
The downstream petrochemical development in Iran, if and when developed, will impact the Global petrochemical industry. At present, the impact of Iranian petrochemicals will be insignificant.
Hexion Specialty Chemicals announces post-merger leadership
Hexion Specialty Chemicals, Inc. today announced the post-merger senior leaders for the company, contingent on the close of its acquisition of Huntsman Corporation. The transaction is expected to close during the second quarter of 2008, pending receipt of regulatory approvals and the satisfaction of other closing conditions.
Once the merger transaction is completed:
(1) Peter R. Huntsman, President and CEO of Huntsman Corporation, will become Chairman of the Board for the combined company; (2) Craig O. Morrison, Chairman, CEO, and President of Hexion Specialty Chemicals, will become President and Chief Executive Officer; (3) Donald J. Stanutz, Division President, Performance Products, of Huntsman Corporation, will become Chief Operating Officer; (4) William H. Carter, Executive Vice President, and CFO for Hexion will assume that role in the new company.
Mr. Huntsman has served in his current role with Huntsman Corporation Polypropylene Corporation as Vice President before serving as Senior Vice President and General Manager. He has also served as President of Olympus Oil, Senior Vice President of Huntsman Chemical Corporation, and Senior Vice President of Huntsman Packaging Corporation, a former subsidiary of the company.
Mr. Morrison joined Borden Chemical, Inc., a predecessor company of Hexion Specialty Chemicals, in March 2002 as President and CEO. He was named Chairman in 2005. Before joining Hexion, he served as President and General Manager of Alcan Pharmaceutical and Cosmetic Packaging, a division of Alcan, Inc., and as President and General Manager of Van Leer Containers, Inc.
Mr. Stanutz has served in his current role as Division President, of Performance Products since 2004. He also has served the Huntsman organization as Executive Vice President and Chief Operating Officer of Huntsman LLC, as Executive Vice President, Global Sales, and Marketing, and as Executive Vice President, Polyurethanes, PO, and Performance Chemicals.
Mr. Carter has served as Executive Vice President and Chief Financial Officer of Hexion Specialty Chemicals, Inc., and its predecessors, Borden Chemical, Inc., and Borden, Inc., since 1995. Before joining Hexion, he served as the Price Waterhouse engagement partner for Borden.
Comments: Huntsman Corporation started with expandable polystyrene beads on an advance loaned styrene monomer from Arco and has grown to be a Global player under the leadership of Mr. Jon Huntsman and the Huntsman family. Huntsman grew through strategic acquisitions including the facilities of Nova, Rexene, ICI, etc., to be a Global Player. The legacy continues with the Hexion Corporation which started its operations through the acquisition of Borden. The new corporation’s focus will be on performance functional products.
Inventor of STYROFOAM™ inducted into National Inventors Hall of Fame
Former Dow research chemist Otis Ray McIntire, inventor of STYROFOAM™ brand extruded polystyrene insulation, is among 18 new members of the National Inventors Hall of Fame who were announced and honored at a ceremony on Capitol Hill. Formal induction ceremonies for the new members will take place in May at the National Inventors Hall of Fame in Akron, Ohio.
McIntire’s recognition is timely since one of the key requirements for election to the Hall of Fame is that the nominee’s invention must have contributed to the welfare of society and promoted the progress of science and the useful arts. Installed in millions of residential and commercial applications around the world, STYROFOAM™ brand insulation products are estimated to reduce energy costs by more than $10 billion annually. One square foot of properly installed STYROFOAM™ brand insulation can save up to one ton of CO2 emissions over the life of a home.
Nearly 65 years after STYROFOAM™ brand insulation was first patented, Dow continues to leverage the extensive research and development infrastructure of The Dow Chemical Company to build upon the flagship brand and expand its portfolio of innovative solutions. Dow Building Solutions is a leader in the building industry and demonstrates its ongoing commitment by combining technical know-how and a deep understanding of market needs to help customers solve their toughest construction challenges. STYROFOAM™ brand products also play an integral role in helping Dow achieve its 2015 Sustainability Goals related to energy efficiency and reducing global carbon emissions.
Comments: Styrofoam™ has become a generic name for the foamed polystyrene – No one needs a better endorsement than this.
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