ExxonMobil, Sabic choose new JV site
Saudi Basic Industries Corp. (Sabic) and ExxonMobil Chemical Co. have selected Al-Jubail, Saudi Arabia, as the location of a new joint venture plant that will include plastic production.
In a March 1 news release, officials with Riyadh, Saudi Arabia-based Sabic and ExxonMobil of Houston said they selected the site because of integration opportunities with Kemya Al-Jubail Petrochemical Co., a Sabic/Exxon-Mobil joint venture already locatedin Al-Jubail.
The new plant will have almost 900 million pounds of annual capacity for thermoplastic elastomers —including ethylene propylene diene monomer synthetic rubber and styrenic block copolymers —as well as for rubber and carbon black.
The project also will include a vocational training institute and a support center for developing product applications.
No date was provided for the opening of the new plant.
Solvay acquires Rhodia for $4.8 billion to create chemical giant
Belgian chemicals and plastics company Solvay SA has announced plans to acquire specialty chemical producer Rhodia SA in a deal valuing the French company at 3.4 billion euros ($4.8 billion).
Brussels-based Solvay is offering 31.60 euros for each Rhodia share in cash as part of a friendly deal. The new group will have sales of 12 billion euros.
“We have a shared vision in that we want to create a new group to achieve our goal of sustainable growth and development in chemistry”, Christian Jourquin, CEO of Solvay, said in a statement. “We see the possibility of doubling our [recurring earnings before interest and taxes, depreciation and amortization] to almost 2 billion euros and creating a major global chemicals platform under the banner of Solvay.”
The acquisition will be earnings accretive from 2011, with annual cost synergies of 250 million euros expected within three years, which will be achieved through the reduction of external costs and “without major downsizing plans.”
The aim of the deal is to create a global chemical company with an enlarged business portfolio. Solvay is a leader in high performance specialty polymers, soda ash and hydrogen peroxide, while Rhodia is strong on specialty materials (silica and rare earths), products for consumermarkets and engineering plastics based on nylon 6/6.
Solvay says the group will also concentrate on growth in emerging markets, which already generate 40 percent of sales for the combined group.
Jean-Pierre Clamadieu, chairman and CEO of Lyon, France-based Rhodia, will take on the role of deputy CEO once the offer is closed. He is also expected to succeed Solvay’s current CEO Christian Jourquin when he retires.
The deal is conditional upon approval from EU and US anti-trust authorities.
During the recession, Solvay announced major reorganisation plans, including the sale of its pharmaceuticals business to focus on chemicals and plastics. Last year it reorganized further, reducing annual costs by 65 million euros and making 800 redundancies.
France-based Rhodia has 14,000 employees worldwide and generated sales of 5.23 billion euros in 2010. Solvay had sales of 7.1 billion euros last year.
In related news, Solvay has also announced to plants to unite Solvay Advanced Polymers, Solvay Padanaplast, Solvay Solexis and SolVin PVDC as a single business unit: Solvay Specialty Polymers.
Headquartered in Bollate, Italy, the company’s activities employ more than 2,500 across 26 locations throughout North and South America, Asia and Europe.
Growth planned at Petronas-BASF venture
The Malaysian national oil corporation Petronas and BASF SE will commence a feasibility study for a new super-absorbent polymers plant in Malaysia
The companies said they have also decided to expand the production capacities of acrylic acid and n-butanol of their BASF Petronas Chemicals Sdn Bhd joint venture.
“With this capacity expansion and extension into super-absorbent polymers, we extract further potential of our acrylics value chain in BASF Petronas Chemicals,”said Martin Brudermüller, BASF director responsible for the Asia Pacific, in a news release.
The BASF Petronas venture was started in 1997, and operates an integrated complex situated in the Gebeng Industrial Zone in Pahang state on the East Coast of Peninsular Malaysia.
BASF owns 60 percent of the venture.
Schulman expanding Texas powder manufacturing plant
A. Schulman, Inc. is adding several production lines to its China, Texas, manufacturing plant,which makes specialty powders.
The Fairlawn-based company expects the lines to be operational by early 2012, the company said March 30.
Schulman bought the China plant from ICO Inc. in 2010.
Gustavo Perez, the company’s general manager and chief operating officer of the Americas, said the project will allow the plant to improve efficiency by consolidating several processes into one area.
“As we continue to strategically broaden our presence in new and existing markets, this investment will allow us to meet existing demand and provide us the flexibility to take advantage of growth opportunities in our specialty powders business,” Perez said in a news release.
ExxonMobil Chemical opens Shanghai tech center
ExxonMobil Chemical Co. officially has opened its Shanghai Technology Center.
The $90 million facility in Shanghai’s Zizhu Science-Based Industrial Park will help the firm work more closely with its Asian customers on products tailored for the local market, said Will Cirioli, vice president, global technology, for ExxonMobilChemical.
The facility contains analytical and testing laboratory equipment and commercial-scale product processing equipment, including blown and cast film extrusion, injection molding, compounding and packaging, Houston-based ExxonMobil Chemical said.
Dow and Chemtura sign flame retardant agreement
Dow Chemical has signed a licence agreement with Chemtura to produce a new brominated polymeric flame retardant. Chemtura will build a new production facility for the substance.
BASF says it has been investigating the use of this polymer, which Dow developed as a replacement for HBCD (hexabromocyclododecane).
HBCD is used as a flame retardant to ensure that expandable and extruded polystyrene foam insulation (EPS and XPS) meets high fire safety standards. Dow’s new polymer ensures the same flame retardancy as HBCD while offering a superior environmental profile, says BASF.
“Polystyrene-based foam insulation like BASF’s Styropor, Neopor and Styrodur C make a significant contribution to increasing the energy efficiency of buildings –one of the major challenges of the 21st century,” said Dr Giorgio Greening, senior VP of BASF’s global business unit for PS foams.
“Extensive test series with the new flame retardant on a small to medium scale haveyielded very promising results. We are therefore very confident that this polymer will become a suitable replacement for HBCD in the coming years.”
As soon as sufficient amounts of the polymer are available, BASF plans to test new product formulations on a larger scale.
Bulgarian government pushes the leva on carrier bags
The Bulgarian Government is imposing a new eco-tax in July, adding to the cost of retail plastic carrier bags in a bid to phase out their use in the country.
Bulgaria’s parliament has adopted amendments to an order fixing a charge for the bags, aimed at deterring their widespread use. Consumption of this packaging is high in the country and the measure is designed to help deal with a growing waste problem.
The progressive legislation is scheduled to impose a tax of 0.15 Bulgarian leva (€0.07) per plastic bag in 2011, increasing to 0.35 leva (€0.18) next year, to 0.45 leva (€0.23) and in 2013 and up to 0.55 leva (€0.28) a year later.
It was late last year that the country’s environment ministry began to draw up legislation aimed at dealing with the national proliferation of plastics packaging waste.
The Bulgarian parliament has also amended other refuse related orders, including other regulations on packaging and packaging waste, automotive waste, the treatment and transportation of waste from batteries and accumulators and the treatment of end of life electrical and electronic equipment.
But the proposed schedule for the clamp down on carrier bags was criticised by local businesses as being too short for manufacturers and retailers to adjust their operations, according to Bulgaria’s Dnevnik news agency.
The government has proposed that packaging waste recycling, which stood at just 30% in 2006, should increase to between 55% and 80% by 2014.
Teijin-DuPont restarts plant damaged in earthquake
The Teijin DuPont Films joint venture said 25 March it has restarted operations of its PET film factory in Ibaraki, Japan, after it was shut down in the wake of the 11 March earthquake and tsunami that struck the country.A second Teijin-DuPont PET film plant shut down after the disaster, in Utsunomiya, Japan, remains closed but the company said operations were expected to resume in late April and then gradually return to full-scale production.
A Teijin spokesperson said its Gifu, Japan, PET film plant increased production to make up for losses at the other two factories, and that other plants in the joint venture, in China, India and the United States, were also used as temporary backup.
Tokyo-based Teijin said in the statement that the impact of the disaster on its overall business remained unclear.
LG Chem may invest $1.3bn in Kazakhstan plant
LG Chem, one of South Korea’s largest chemical manufacturers, may invest up to $1.3bn. (€1bn) in the second stage of an integrated chemical complex in the Atyrau oblast of Kazakhstan.
According to Aset Magauov, the Kazakh vice-minister of oil and gas, the government is currently looking for a partner for the project and is considering International Petroleum Investment, based in UAE.
Total investment in the project is estimated to be $4bn (€3.5bn), of which $2.7bn (€23bn) is expected to come from South Korean banks. The remaining part will be invested by the participants of the project.
The first phase of the project involves production of 500,000 tonnes of polypropylene per year, while launching of the second phase will allow up to 800,000 tonnes of polyethylene per year.
The volume of investments in the first stage of the project is estimated at $1.3bn (€1bn), which were allocated through the credit line, provided by China’s Exim Bank.
Arkema buys Total’s coatings business
Arkema will take ownership of Total’s coatings and photocure resins activity by mid October. This latest deal will further promote the company’s global coatings reach. No figure was given for the value of the transaction.
“In the last five years, our development investments, combined with our targeted acquisitions, have confirmed our commitment to the coating and paint market,” said Thierry Le Hénaff, chairman and CEO of Arkema. “2011 will be a pivotal year for Arkema –we will become one of the major suppliers to this market thanks to one of the most comprehensive international product and technology offerings.
“We will then be in a position to fulfil the specific technological requirements of our customers, wherever they are based in the world.”
Last year, France-based Arkema said it hoped to boost sales to €7.5bn in 2015, up from around €5.8bn in 2010, thanks to new acquisitions and buildingon growth in emerging markets.
By 2015, ebitda is projected to reach €1bn –or 14% of projected sales. That compares with an ebitda goal of €740m in 2010.
Westlake’s plans include ethane-based ethylene capacity expansion at Lake Charles and Calvert City
Westlake Chemical Corporation has announced an expansion program to include increasing the ethane-based ethylene capacity at Lake Charles, LA, and the evaluation of expansion options and the upgrade of ethylene production facilities at Calvert City, KY in a bid to capitalize on new low cost ethane and other “light” feedstocks being developed in North America.As part of this program each of the company’s two light feedstock ethylene crackers in Lake Charles will be expanded. These expansions will commence asplanned maintenance turnarounds occur in order to provide ethylene for existing internal derivatives units and the merchant market. The first cracker expansion will increase capacity by approximately 230-240 mln lbs per year, while also increasing feedstock flexibility. It is expected this project would be completed by late 2012 and a second expansion concluded by the end of 2014. At Calvert City, the company is evaluating conversion from propane to ethane feedstock that is becoming available from increasing North American gas liquids reserves from sources such as shale gas. Additionally, expansion options are being evaluated for the site and engineering and design studies are underway.
“New technical developments in the natural gas industry make expansionin North America attractive and we are accelerating engineering and feedstock sourcing efforts in order to reduce our external purchases of ethylene and provide for attractive future Westlake growth,” said Albert Chao, Westlake President and CEO. “These projects provide an exciting opportunity to capitalize on advantaged feed sources expected from shale gas reserves at two of our core production sites.”
Status of naphtha crackers in Japan
Platts reported that Japan’s IdemitsuKosan plans to restart its 374,000 tpa naphtha-fed steam cracker in mid-May after its annual maintenance. Of the four naphtha-fed crackers that were taken offline in the wake of the March 11 earthquake, two –Maruzen Petrochemical and JX Nippon Oil and Energy –have already been restarted. Maruzen’s 550,000 tpa Chiba cracker was restarted with an initial run rate of 70-80% while JX’s 404,000 tpa Kawasaki cracker has been up since late March, with a run rate of 70%. The remaining two crackers, which belong to Mitsubishi Chemical and are based at Kashima, are likely to remain shut till at least late May.
Mitsubishi Chemical’s No. 1 cracker is able to produce 375,000 tpa of ethylene, while the No. 2 cracker has an ethylene output 476,000 tpa.
Evonik Industries starts up new high-purity isobutene facility at Antwerp
Evonik Industries, Essen (Germany) has started up a new facility to produce high-purity isobutene at its site in Antwerp (Belgium). The new plant, which involved investment of tens of millions euros, can produce up to 110,000 metric tons isobutene p.a. and forms part of the site’s integrated C4 production platform. The investment has tripled Evonik’s production capacity for isobutene, which is used, for example, for butyl rubber for applications such as inner liners with low air permeability in automotive tires. “The new production plant strengthens our position as one of Europe’s leading suppliers of isobutene,” said Thomas Haeberle of Evonik’s Executive Board. Isobutene from Antwerp enables the Group to reliably meet rising demand from customers.This investment marks a further cornerstone of our worldwide growth strategy and strengthens our market position in Europe.”
Sidi Kerir to set up 460,000 tpaethylene plant with two partners
Sidi Kerir Petrochemicals Company, along with two other firms, is setting up a petrochemical plant to produce 460,000 tons of ethylene annually. Sidi Kerir will have a 20% stake in the joint venture which is expected to cost around US$1.18 billion. The project is anticipated to be completed within three years. Sidi Kerir is a producer of linear low density polyethylene (LLDPE) and high density polyethylene (HDPE).
Huntsman acquires LaffansPetrochemicals (4-4-2011)
Huntsman Corp has acquired Gujarat-based chemicals producer Laffans Petrochemicals, and has also taken the ownership of the company’s 60,000 ton ethylene oxide derivatives facility at Ankleshwar. Laffans ethylene oxide derivatives unit set up in 1994, had revenues in excess of $50 million in 2010. The Ankleshwar plant was set up under technical assistance from Reliance Industries and is in proximity to the Hazira plant. The unit operates the largest loop reactor in the country andits glycol ethers and acetates unit has a capacity of 30,000 tpa.
Huntsman India has its facilities at Navi Mumbai and has been having a technical collaboration with Laffans for the past two years. India contributes to a little over 3% of its global revenue of US$9.2 bln in 2010.
News of the Laffans acquisition follows another recent Asian announcement from Huntsman Performance Products outlining a US$70 mln investment in a capacity expansion program at its polyetheramine plant in Singapore. Commenting on the acquisition, Peter R. Huntsman, President and Chief Executive Officer of Huntsman Corporation, said, “This acquisition is a continuation of our strategy to build our Asian business. We look forward to integrating this business and further expanding our Indian business.”
Supreme Petrochem to commission EPS units at Nagothane in April-May
Supreme Petrochem expects to commission one of its new expandable polystyrene (EPS) units at Nagothaneby 16 April and second unit a month later, as per ICIS. The first unit, which will produce commodity-grade EPS, will start up first, and the specialty-grade unit will go on stream later. Sustained supply from the two units with 25,000 tpa capacity is expected only in July. The units will have a designedcapacity to double their size.
The company also operates a 30KTAEPS plant at Chennai and a 272,000 tpa PS plant in Nagothane, which produces high impact PS (HIPS) and general purpose PS (GPPS).
Chevron Phillips advances feasibility study to construct ethane cracker by developing shale gas reserves
In a bid to capitalize on the advantaged feedstock position that shale gas resources could bring to the US chemical industry, Chevron Phillips Chemical Company LP is advancing a feasibility study. The feasibility study is for a project to construct a world-scale ethane cracker and ethylene derivatives unit at one of its existing facilities in the U.S. Gulf Coast region using advantaged feed sources expected from development of shale gas reserves. “We are finalizing our evaluation of potential sites and advancing discussions with EPC contractors,” said Tim Taylor, COO for Chevron Phillips Chemical. “Our company is already a leadinglight cracker operator in the U.S. Gulf Coast region and an established supplier of olefins, polyolefins, and alpha olefins globally. Our technology portfolio, organizational capability, integration with our parent companies, and petrochemical infrastructure make us uniquely suited to execute this potential investment.”
PTT Group plans further consolidation of downstream petrochemical businesses
PTT Group will further consolidate its downstream petrochemical businesses later this year after completing the merger of its upstream units. The merger of PTT Aromatics and Refining and PTT Chemical should be finalized just before September, creating a new upstream petrochemicals unit.
Later, PTT Group will go ahead with consolidation of its downstream businesses, namely the merger of HMC Polymers and PTT Phenol. HMC Polymers, which produces polypropylene, is 41.44% cent owned by PTT. PTT Phenol, which is 40% owned by the company, produces and distributes phenol and acetone. A new company will be set up as part of the consolidation process so that PTT Group can further boost its efficiency and competitiveness in the downstream sector. PTT’s downstream units have combined annual sales of Bt1.3 trillion, accounting for 13% of the country’s gross domestic product and creating jobs for more than 1.3 mln people.
Pratya Pinyawat, chief operating officer of the downstream business, said mergers would increase economies of scale and help lower costs. PTT Group aims to further expand its downstream businesses in order to be a key regional player, and not just a local operator, he said. Sukrit Surabotsopon, another top executive of PTT Group, said the firm is conducting a feasibility study into investment in a joint venture with Mitsubishi Chemical, which holdpatents on bioplastics production knowhow. Ownership of the joint venture would be split equally between Mitsubishi and PTT, with the factory being set up on a 1,500rai site at an industrial estate in Map Ta Phut, in Rayong province. Other biobased production plants would be set up within the same downstream industrial complex, said Sukrit.Biobased products are regarded as more friendly to the environment. The group’s top executives yesterday attended the opening of “PTT Group Downstream Expo 2011”, which runs until Friday and highlights the concept of “Power of Infinite Synergy”. In addition, PTT is unveiling “Group Integrated Supply Chain Management & Optimisation (GISMO)”, which aims to highlight the linkage of its various business strategies. The group has adopted six strategies, covering oil and petrochemical supplychain management, logistics optimisation, a group logistics master plan, and Indochina and group trading.
Kuraray to Partially Restart Kashima Plant
Kuraray says it is preparing to partially resume production at the company’s facility at Kashima in Ibaraki prefecture by mid-April using raw material inventory available at the plant. Operations at the facility were suspended following the earthquake.
The company says it is conducting a detailed inspection of the plants at the Kashima site and has so far not identified any damage to the facility that could cause serious problems in resuming production. Partial supply of electricity and steam to the plant is expected to resume in a few days. The company is not currently planning to resume the procurement of raw materials required for full-fledged production, Kuraray says.
All the other plants of Kuraray in Japan are functioning normally.
Lanxess Establishes Company in the Mideast
Lanxess says it has established a dedicated company for the Mideast dubbed Lanxess Middle East, headquartered at Dubai.
“The markets of the Middle East offer Lanxess interesting prospects, both in terms ofraw material supply and because of the increasing demand there for quality products. Through an increased presence we would like to more effectively evaluate and exploit this strategic potential,” says Werner Breuers, member of the Lanxess board. “Dubai is an ideal location in this regard,” he says.
Lanxess currently supplies customers in the Mideast primarily with specialty chemicals, color pigments for the construction industry, and high-tech plastics and rubbers.
Mitsubishi Chemical and PTT Form JV for Biodegradable Plastic
Energy company PTT (Bangkok) and Mitsubishi Chemical have established PTT MCC Biochem, a 50-50 joint venture company for the production of polybutylene succinate (PBS), a biodegradable plastic. The investment is in accordance with PTT’s strategy to enter the bioplastic business in order to ensure a sustainable green environment, the company says. Further details of the jv were not disclosed.
Mitsubishi and PTT signed an agreement in 2009 to jointly conduct a study for business development of bio-polybutylene succinate, a biodegradable polymer made from biomass resources in Thailand. Mitsubishi made efforts in research and development of bio-based polymers as part of its ‘sustainable resources’ products. Mitsubishi produces its polybutylene succinate from petro-based succinic acid in Japan. Mitsubishi developed a process to produce succinic acid made from biomass resources by utilizing its strengths in biotechnology and studied the business development of its polybutylene succinate made from the bio-succinic acid. PTT has also been involved in the development of bio-related businesses such as biofuels, and bio-based polymers.
Ineos May Build Ethylene Oxide Plant on U.S. Gulf Coast
Ineos Oxide, an Ineos subsidiary, says it is considering plans to expand its ethylene oxide (EO) and ethylene oxide derivatives capacity on the U.S. Gulf Coast as part of a larger strategy to grow its global business over the next few years. “The U.S. is an obvious location for Ineos Oxide to consider its next expansion,” says Hans Casier, Ineos Oxide CEO. “It is a market we know well, where Ineos Group already has a well placed manufacturing presence that is capable of taking full advantage of competitively priced feedstocks.”
The project would have at least 500,000 m.t./year of EO capacity, as well as “appropriately sized” glycol and derivatives units. Various sites are under consideration, the company says. Ineos Oxide already has manufacturing plants atFreeport, TX and Plaquemine, LA. Ineos Oxide says it is also considering adding EO and derivatives capacity at another site elsewhere in the world. The company expects to announce the site of the U.S. plant later this year.
The company has total EO manufacturing capacity of 920,000 m.t./year with operations at Antwerp; Cologne; and Lavéra, France.
Meanwhile, Ineos Oxide confirmed that its previously announced deepsea ethylene terminal at the company’s Zwijndrecht, Belgium facility is on schedule to start up in 2012.
Evonik Builds Biodiesel Catalysts Plant in Argentina
Evonik Industries says it has completed basic engineering for a 60,000-m.t./year biodiesel catalysts plant, which it plans to build at Puerto General San Martin, Argentina. Construction work on the facility will start in July with completion scheduled for the end of 2012. The plant will produce ready-to-use alcoholates for use as catalysts in the production of biodiesel from renewable raw materials. The project still needs the approval from the relevant authorities, the company says.
“This investment is part of our strategy to enable us to participate in regional growth in South America,” says Patrik Wohlhauser, chairman of Evonik Degussa. It will supply the South American region, particularly Argentina and Brazil, and forms part of Evonik’s expansion of its catalysts for biodiesel business. The plant will be located in the center of Argentina’s biodiesel industry and will be adjacent to Terminal 6 SA, which operates a large biodiesel facility. This will allow Evonik to use the existing infrastructure and established logistics connections.
Evonik in 2009 started up a 60,000-m.t./year biodiesel catalysts plant at Mobile, AL, which serves the growing North American biodiesel market. The facility in Argentina will use the same technology to produce alcoholates by reacting alcohol with lye. The company forecasts “strong double-digit growth in the biodiesel market” in South America in the mid-term. Evonik, in addition to the U.S. facility, also makes biodiesel catalysts at Niederkassel-Lülsdorf, near Cologne.
Shell Signs Agreement for Sale of U.K. Refinery to Essar
Shell says it has signed a sales and purchase agreement for the previously announced $1.3-billion divestment of the company’s Stanlow, U.K. refinery to EssarOil U.K., a subsidiary of Essar Energy (Mumbai). The companies signed an exclusivity agreement in February for the transaction. Shell expects to complete the deal in the second half of 2011.
The Stanlow refinery has a capacity of 270,000 bbl/day, 15% of total U.K. refining output. Shell put the Stanlow refinery up for sale in 2009 as part of a broader plan to cut capacity due to a decline in refining margins. “The decision to sell Stanlow is part of our drive to concentrate our global manufacturing portfolio on larger assets and, on completion, means we will have reduced our global refining exposure through a combination of asset sales and closures by a total of 1.6 million barrels since 2002,” says Mark Williams, downstream director at Shell.
The deal doesnot include Shell plants at Stanlow making alpha-olefins, and detergent and plasticizer alcohols, the company says.The center is one of several recent additions to Grace’s global presence, the company says. In the past seven months, the company has openednew facilities at Chongqing, China, and Hai Duong, Vietnam, and completed the acquisition of a manufacturing company at Wuhan, China, Grace says. Grace also began expansions at existing manufacturing facilities at Sorocaba, Brazil, and Kuantan, Malaysia at the end of 2010.
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