ADI Chemical Market Resources Newsletter
March 31, 2008

 

Rumor mill – “Daulat” – the new name for Dow Chemical JV with Kuwait Petroleum???

There are rumors about the new name for a joint venture between Dow Chemical and Kuwait Petroleum. The new JV Company is rumored to be called Daulat. The word Daulat means wealth and prosperity in Arabic.

The joint venture between Dow Chemical and KPIC was announced late last year.

INEOS licenses its PP Innovene® process to Sibur

Sibur LLC has selected INEOS’ Innovene PP Process for a new 200 KT per year polypropylene plant to be constructed at the production site of Tomskneftekhim LLC, Tomsk, Russian Federation.

The Tomsk plant will be the nineteenth to use the Innovene PP process. It will produce a full range of homopolymer, random, and impact copolymers and is expected to commence production in 2012.

The Innovene PP process is licensed by INEOS Technologies, which is the specialist technologies development and licensing division of INEOS Group.

Sibur previously licensed a 500,000 tpa plant based on Innovene PP technology at its industrial complex in Tobolsk, Tyumen Region, Russian Federation.

INEOS Technologies provides Sibur with a complete and flexible technology that will help it to secure a long-term competitive position.

Comments: Amoco and Chisso collaborated on polypropylene production technology beginning in 1967, and ending the relationship in 1995. Amoco developed a gas-phase process for producing homopolymers in the mid-1970s, and Chisso completed the development of a gas-phase technology for producing copolymers in 1987. What is now known as the Innovene polypropylene process was co-developed by Amoco and Chisso, came to be owned by Amoco, and was assigned to BP Amoco when that venture was consummated. When BP Amoco reorganized its polyolefins production process technology licensing groups, putting them both under one roof, it named the Amoco process, which theretofore had not been given a proper name, the Innovene polypropylene process.

The SIBUR group is Russia’s leading petrochemical company, with a total of 34 plants and subsidiaries producing over 100 petrochemical products.

The Company has three business units formed based on the similarity of the production processes and products: (1) Hydrocarbon Feedstock Business Unit, (2) Synthetic Rubbers Business Unit, and (3) Plastics and Organic Synthesis Business Unit.

The SIBUR group has six polymer production companies: (1) Sibur-PETF JSC, (2) Sibur-Neftekhim JSC, (3) Sibur-Geotekstil LLC, (4) Sibur – Khimprom CJSC, (5) Tomskneftekhim LLC, (6) Plastik JSC. These plants manufacture more than 30 types of products in the following broad categories.

(1) Polymers: high- and low-density polyethylene, polypropylene, and propylene copolymers with ethylene, ABS plastics and compounds based on them, polystyrene, polyethylene terephthalate (PET), polyvinyl chloride, and cable plasticate. (2) Processed polymer products: polyethylene sheet, polyvinyl chloride sheet, packaging materials, automobile parts, and consumer goods. (3) Other products: butylene-butadiene fraction (BBF); wide range of permeable and thermally reinforced materials such as Agrotex, Geotex, Paroizol; heavy pyrolysis resin, ethylene, propylene, formaline, and carbamide formaldehyde resins, ethylene oxide, ethylene glycols (MEG, DEG, TEG), polyethylene glycols, butyl spirit, etc.

In the plastics segment, the company has plans to expand production of low-density polyethylene, linear polyethylene, polypropylene, general-purpose polystyrene, and expanded polystyrene, and to grow production of PVC. This expansion is just one of the planned expansions.

New petrochemical complex planned for Abu Dhabi by Borealis and IPIC

The International Petroleum Investment Company (Abu Dhabi, U.A.E) and Borealis AG have signed a memorandum of understanding along with the Abu Dhabi Investment Council to prepare jointly for the first phase of the development of a planned new Chemicals Industrial City to be located in Abu Dhabi, the United Arab Emirates.

The multi-billion-dollar project comprises a world-scale naphtha cracker, downstream propylene, and ethylene derivatives; a world-scale reformer, xylene, benzene, cumene, phenol, and derivatives units. Upon completion of the first phase, expected in 2013, the complex will be the largest and most integrated of its kind in the world, supporting the Abu Dhabi government’s strategy of diversifying its economy. The output from the planned complex will also offer a wealth of new opportunities for further development of the downstream industries in the country.

Comments: Borealis already has a presence in Abu Dhabi via its Borough joint venture. This complex will help Borealis strengthen its cost position and overall competitiveness. The output from the planned complex is expected to bring new opportunities for further development of the downstream industry in the country. Upon completion of the first phase, expected in 2013, the complex is expected to be the largest and most integrated of its kind in the world.

IPIC controls 65 per cent of Denmark-based Borealis, while the rest is owned by IPIC’s partner, OMV Aktiengesellschaft of Austria. Borealis owns 40 per cent of Abu Dhabi’s Borouge company, which said last year it would pump more than $2.5 billion (Dh9.1bn) into expansion projects at its Ruwais petrochemical complex to lift output capacity to nearly three million tons per year to face surging demand by its Middle East and Asian clients. The company, which is 60 per cent owned by the Abu Dhabi National Oil Company (Adnoc), has completed a debottlenecking project to boost its polyethylene output from around 450,000 to nearly 600,000 tons per year after a sharp increase in demand. The expansion means Borouge, which was established in 1998, will become one of the biggest polyolefins producers in the region as the projects cover ethylene, polyethylene, and polypropylene.

This project has been in the works/pipeline for two years.

ExxonMobil Chemical introduces new Enable Metallocene™ polyethylene for better performance properties

ExxonMobil Chemical Company has introduced a new metallocene polyethylene (mPE) platform, Enable™ mPE, to help converters enhance their extrusion operations while providing excellent film performance. Enable mPE can help converters: achieve more stable operations, extend film line output, simplify resin sourcing, and generate downgauged films.

A single unique resin, Enable mPE offers an unprecedented combination of film processing and higher alpha-olefin performance benefits for a range of flexible film solutions including collation shrink, pallet shrink, cast stretch hand wrap, agricultural greenhouse films, heavy-duty bags and lamination film applications.

Enable mPE has a broad, robust operating window on both LLDPE and LDPE equipment. The ability to Enable mPE to extrude at lower melt temperatures yields extrusion energy savings, promotes greater bubble stability, and leads to stable, worry-free operations for efficiency-focused converters.

Enable mPE facilitates faster film processing which increases film line capacity. When replacing LLDPE-rich blends, Enable mPE can increase output by up to 20 percent, which may result in increased revenue and the postponement of future equipment investments.

As a single resin solution, Enable mPE is designed to replace blends. This simplifies sourcing and lowers inventory costs, as the number of resins needed is reduced. It also helps to eliminate costly errors associated with complex blends which reduces film waste.

While often surpassing the mechanical performance requirements of LLDPE-rich structures, Enable mPE can significantly improve the toughness of LDPE-rich structures, making downgauging by more than 20 percent a possibility. Enable mPE opens up new application opportunities on LDPE equipment.

The versatility offered by Enable mPE makes it suitable for a wide range of flexible film applications including (1) collation shrink for bottled water, beverages, canned goods, hand soaps, detergents, health products, and beauty aids; (2) large load unitization – pallets; (3) multi-layer cast stretch hand wrap film; (4) agricultural greenhouse film; (5) medium to heavy duty bags; and (6) lamination packaging film.

Comments: This is a welcome development by ExxonMobil Chemical (EMC) and especially to the converting industries in achieving improved operations, production output, simple resin sourcing, and better films. Since this new resin – Enable mPE has a wide operating window on both existing LLDPE and LDPE equipment, EMC promoting this new resin as the simple substitute for the more complex LLDPE blends and significant cost-saving opportunities for LDPE-rich blends. By offering this new version in complement with its existing Exceed™mPE, EMC hopes to build a leadership metallocene portfolio in catering to the needs of the value chain across a broad range of flexible film applications. Given the tough competitive nature of the mPE landscape, we expect similar product developments by other mPE producers soon.

BASF and SINOPEC submit a feasibility study for $900 million expansion in China

BASF and China Petroleum & Chemical Corporation (Sinopec Corp.) submitted the technical and commercial feasibility study for the approval of the planned $900 million expansion of their joint chemical Verbund site in Nanjing to the Chinese government. The site is operated by the joint venture BASF-YPC Co. Ltd. (BYC).

The completion of the study was formalized by Wang Tianpu, President of China Petrochemical Corporation (Sinopec Group), and Dr. Martin Brudermüller, member of the Board of Executive Directors of BASF SE, at a signing ceremony in Beijing today.

The main pillars of the expansion are (1) the Expansion of the steam cracker from 600,000 to around 750,000 metric tons of ethylene per year, (2) the Expansion of the ethylene oxide (EO) plant and development of EO derivatives to strengthen the ethylene value chain by producing non-ionic surfactants for detergents and the solvent butylglycol ether. New projects regarding the production of ethanolamines and ethylene amines for agrochemicals, (3) Development of the C4 value chain including C4 specialties: Butadiene and isobutene as chemical raw materials, 2-propyl heptanol for a new-generation plasticizer and polyisobutene as fuel and lubricant additives, (4) Extension of the acrylics value chain to produce superabsorbent polymers (SAP) for hygiene and industrial applications, and (5) Expansion of the existing oxo-alcohol and propionic acid plants.

The new activities are expected to come on stream stepwise starting already this year; the cracker expansion is scheduled for 2009/2010.

Both companies also agreed to integrate another joint operation Yangzi-BASF Styrenics (YBS) in Nanjing into BYC to increase efficiency and make full use of existing synergies

Comments: The joint venture started up its operations successfully and now they are planning for expansions to capitalize on the growing market. From, Sinopec’s perspective, BASF is a good partner with a lot of experience in the downstream industry and availability of capital. BASF’s advantage of the JV is its ability to capture growth in Chinese markets.

ExxonMobil Chemical introduces new specialty elastomers with better performance properties

ExxonMobil Chemical plans to introduce a new portfolio of specialty elastomers for wire and cable applications. Vistalon™ EPDM* rubber, Exact ™plastomers, and Santoprene™ thermoplastic vulcanizates (TPVs) can improve flexibility in polyolefin-based compositions. In addition, these specialty elastomers cost competitive and all are available in pellet form for easier processing. They are all compliant with the Restriction of Hazardous Substances (RoHS) and Waste Electrical and Electronic Equipment (WEEE) directives, and a wide range of the grades are Underwriters Laboratories (UL) approved.

Metallocene-based Vistalon EPDM rubber provides added flexibility and improved processability in medium- and low-voltage compounds with the inherent metallocene property of cleanliness. ExxonMobil Chemical recently introduced Vistalon™EPM* rubber 722 which can improve processing costs and cable flexibility in medium- and low-voltage wire and cable applications. Compared to conventional EPDM, this metallocene-based product can provide processing improvements while exhibiting similar performance. It offers improved flexibility at low temperatures compared with cross-linked polyethylene (PE). Cables with Vistalon 722 EPM rubber have passed long-term electrical tests (AEIC).

With many consumer electronics manufacturers now specifying the use of PVC-free and halogen-free cables, ExxonMobil Chemical’s Exact plastomers are proving successful as they are a good blend partner for ethylene vinyl acetate (EVA) in thermoplastic halogen-free flame retardant (HFFR) formulations. When used in combination with other polymers, Exact Customers cost-effectively increases flexibility while exhibiting low density, good mechanical properties, high toughness, and excellent environmental stress crack resistance. They accept high filler loadings, which is important for HFFR formulations, and process well on thermoplastic extrusion lines. As a result, Exact plastomers are being used in a range of electrical applications including insulation, jacketing, bedding compounds, and semi-conductive compounds.

Santoprene TPVs are flexible, ready-to-use compounds ideal for electrical insulation and jacketing applications. They exhibit excellent environmental resistance to ozone, chemicals, and UV light; resistance to extreme temperatures (minus 60 C to 105 C); better low-temperature flexibility than thermoplastic polyolefins (TPOs) and PVC; good oil resistance; outstanding electrical performance through high dielectric strength; and, excellent wet electrical properties.

Comments: ExxonMobil has an extensive experience in the wire & cable industry with a broad portfolio of specialized resins that are currently been marketed in the industry today. ExxonMobil’s introduction of its product to the Chinese market is taking advantage of the high growth the industry is facing currently. China has currently become the second largest cable producer in the world, after the USA with the wire and cable industry growing at over 15%.

Braskem develops bio-based technology to manufacture butane and LLDPE

Brazilian chemicals group Braskem is claiming a second significant breakthrough in the bioplastics sector with the development of a bio-based route to produce butene, allowing it to develop a bio-derived LLDPE.

The company has already delivered pilot-scale quantities of HDPE into the market using bio ethylene derived from sugar cane. It is on course to begin commercial production of bio-HDPE with a 200,000tpa plant in Brazil in 2010.

Development of a bio-butene will enable Braskem to extend its bio-derived resin slate to include linear PE grades, according to Antonio Morschbacker, head of biopolymers technology at the company. It will also open the door to applications in flexible film packaging. LLDPE requires ethylene and butane monomers.

The new bio-derived LLDPE resin, which was developed at the Braskem Technology and Innovation Centre in Brazil, has been certified by international testing house Beta Analytic as produced from 100% renewable resources. Braskem has filed process patent applications.

The company said it is currently supplying laboratory-scale volumes of the LLDPE resin to key customers to enable them to assess performance and environmental benefits.

Braskem has the advantage over its rivals in the bioplastics sector of Brazil’s well-established sugar cane ethanol industry. The country is the world’s largest producer of bioethanol, turning out some 17m m3 each year from 6m hectares of cultivated sugar cane.

Braskem claimed that its route to bio-HDPE had the potential to cost less than current petrochemical technology. However, pricing will initially be determined by the value in the market rather than the cost to manufacture.

Comments: Last year Braskem announced its successful production of HDPE utilizing bio-based ethanol. The route mainly entailed the production of the ethylene monomer from ethanol. Production of butene-1 utilizing similar route(s) has materialized Braskem’s ambitions of making renewably sourced LLDPE. While the process and cost economics is unclear, it puts Braskem in a leading position in terms of bio-based polyolefin development. The key advantage of bio-based polyolefins in comparison to other bioplastic materials is that the market is easily receptive to these materials which they are more than familiar with, given the right cost economics. Further, Brazil being a leader in ethanol production, multiple utilization platforms for bio-ethanol are strategic to the region.

Idemitsu and Mitsui to participate in JV in Vietnam along with Petro Vietnam

Idemitsu Kosan Co., Ltd. (Idemitsu) and Mitsui Chemicals, Inc. (Mitsui) hereby announce that each company has decided to participate alongside Kuwait Petroleum International (hereafter “KPI”) and Petro Vietnam (hereafter, “PVN”) in the joint venture “Nghi Son Refinery & Petrochemical Limited Liability Company (tentative name)” to conduct detailed engineering design and construction of the “Vietnam Nghi Son Refinery & Petrochemical Complex.”

The location of the complex will be in Nghi Son Economic Zone, Thanh Hóa Province, Socialist Republic of Viet Nam. The joint venture company will be established after acquiring an investment license in June 2008. The investment by the JV partners will be Idemitsu 35.1%, KPI 35.1%, PVN 25.1%, and Mitsui 4.7%.

The refinery to be constructed will have a refining capacity of 200,000 bbl per day and will cost about USD 5.8 billion.

Comments: The demand for petrochemical products is significant in Vietnam and this refinery is the country’s first. To maintain earnings and capture the growth potential in Vietnam, Idemitsu and Mitsui have announced this decision.

Alloy Polymers acquire a toll compounding facility from A. Schulman

Alloy Polymers, Inc. has completed the acquisition of A. Schulman, Inc.’s Orange, Texas, toll compounding facility. The acquisition positions Alloy Polymers to meet the rising demands of its customers, expanding the company’s compounding capacity by more than 100 million pounds and immediately enabling additional service capabilities that include blending, break-bulk repackaging, high-speed bagging, and distribution services.

The acquisition also bolsters Alloy Polymers’ operations on the Gulf Coast. Together with the company’s existing Crockett, Texas, facility, Alloy Polymers now offers a diversified spectrum of services ranging from engineered polymers to commodity resins, black masterbatches to sophisticated color products, railcar to bag packaging, and lot sizes from under 5,000 pounds to over 100,000 pounds.

The transaction includes a long-term service agreement with A. Schulman to provide high-quality compounding and related services from Alloy Polymers’ North American facilities.

Comments: Alloy Polymers was founded in 1975 and has currently become a major player in the specialty, high-value-added compounding market for the thermoplastics industry. Alloy Polymers currently has plants in Richmond, VA, Gahanna, OH, Crockett, TX, and Orange, TX. The current compounding capacity for Alloy polymers is over 500 million pounds per year that cater to applications such as automotive, small appliances, medical equipment, packaging, film, electronics, medical equipment, building and construction, leisure, fibers, wire, and cable. The Richmond, VA, and Orange, TX plants have twin screw compounding facilities and the Gahanna, OH, and Crockett, TX both have a combination of batch and continuous-compounding equipment. A. Schulman is a global supplier of high-performance plastic compounds and resins with 17 manufacturing facilities and caters to markets such as consumer, industrial, automotive, and packaging applications.

A.Schulman’s sale of its 135 million capacity plant, will allow the company to concentrate on its core products and move away from the tolling business the facility was used for. The acquisition will also allow Alloy Polymers to better meet its customer’s demands with increased services.

 

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