Honam Petrochemical Corp to establish PP manufacturing facility in Auburn
Honam Petrochemical Corporation is to establish a manufacturing facility for polypropylene resin materials in Auburn, its first US manufacturing operation. HPM Alabama Corporation will initially invest an estimated US$9.25 million dollars and create 30 jobs by next year. HPM will also collaborate with Auburn University for R&D projects. Honam is part of the Lotte Group. With annual revenue of approximately US$50 bln and 35,000 employees, the Lotte Group is the 5th largest conglomerate in Korea.
Mitsui Chemicals and Scientex Form Solar Cell Encapsulants Production Joint Venture
Mitsui Chemicals Tohcello (MCTI), a wholly owned subsidiary of Mitsui Chemicals, and Scientex Berhad (Kuala Lumpur) have agreed to form a joint venture to build a plant in Malaysia to manufacture Solar EVA solar cell encapsulants. The product, a sheet made of ethylene vinyl acetate copolymer, is used to attach a cell and glass or a backsheet in solar panels. The equally owned joint venture, MCTI Scientex Solar Sdn Bhd, will be capitalized at ringgit 45 million ($14.7 million) and will be established next month. It will begin production at Malacca within Scientex’s complex in early 2012. The new facility will bring MCTI’s capacity to 50,000 m.t./year, strengthening its position as a global leader in solar cell encapsulants, the company says.
Sibur expanding TPE production in Russia
Russian petrochemicals group SiburLLC plans to expand production of styrene-butadiene thermoplastic elastomers at its plant in Voronezh, in southwestern Russia.
The company controlled by Russian billionaire Leonid Mikhelson, intends to more than double the capacity of its 35,000 metric ton-per-year TPE plant to 85,000 metric tons per year by 2012.
The TPEs will be used for applications including road construction, roofing materials, mastics, adhesives, and sealants.
French team works on isocyanate-free route for PU
A team at the University of Rennes, France, has developed a laboratory route which would potentially allow polyurethanes to be made without using isocyanates.
As reported in the latest issue of Green Chemistry, Marion Helou, Jean-François Carpentier and Sophie Guillaume describe making poly(carbonate-urethane) with an isocyanate-free procedure, using a di(cyclic carbonate) –telechelic poly(trimethylene carbonate)s.
The paper abstract says “a simple isocyanate-free method to synthesize poly(trimethylene carbonate hydroxy-urethane)s is described.”
The strategy first involves the synthesis of the di(cyclic carbonate) telechelic polycarbonate precursors via ring-opening polymerization of trimethylene carbonate using a cyclic carbonate alcohol as chain transfer agent. This is followed by the ring-opening polyaddition of the terminal cyclic carbonate with a diamine.
The Rennes researchers note that such poly(carbonate-hydroxyurethane)s exhibit macromolecular carbonate segments of tunable length/molar mass.
Japanese expandable foam manufacturer gets its first foothold in Latin America / Acquisition of Fagerdala’s Brazilian office
Taking its first foray into Latin America, Japanese foam manufacturer JSP International(Tokyo;www.jsp.com) has acquired the Brazilian office ofFagerdala World Foams(Gustavsberg / Sweden;www.fagerdala.com). The financial terms of the deal were not disclosed.
In the future, JSP will be manufacturing its “Arpro” family of expandable polypropylene (EPP) at its new offices in Sao Paulo, from where it will attend to the entire Latin American market. Output is mostly geared towards the continent’s growing automotive demand.
European Union mulls plastic bag ban
The European Commission plans to assess whether a European Union-wide ban on plastic bags is feasible and a good idea in principle, an official has told Plastics & Rubber Weekly.
Monica Westeren, a spokeswoman for the EC environment directorate general, said: “There’s a willingness to look into the issue. The next question is what are we going to do?”
She said Brussels could launch a detailed feasibility study or more general report on whether an EU-wide ban on plastic bags was appropriate.
The issue has been sparked by the Italian government’s introduction on Jan. 1 of a national plastic bag ban, without notifying the Commission. This was a breach of the EU’s packaging and packaging waste directive, said Western, and probably also EU internal market rules, which ban restrictions of movements of goods and services between member states without consulting Brussels.
“You can’t just introduce a measure like that without talking to the commission. We have made it clear that we expect them [the Italian government] to make a formal notification.”
She said the Commission would then assess the law and launch legal action against Italy, if it concluded “it did not comply with EU law,” which has precedence over national legislation.
Westeren noted that the Commission was ready for a “broad revision” of the packaging and packaging waste directive would be undertaken taking the issue of plastic bags into account.
“One of the options would be a European ban on non-biodegradable bags but there would be other options like price and tax incentives,” she said.
The issue was debated at yesterday’s EU Council of Ministers for the environment, where the Austrian government raised complaints about the Italian bag ban. EU environment Commissioner Janez Potocnik later told journalists Brussels might launch a feasibility project assessing an EU-wide ban.
Following Coke’s lead, PepsiCo introduces PET made from plant materials
PepsiCo has introduced its answer to Coca-Cola Co.’s PlantBottle –a PET bottle made completely from plant-based materials.
By comparison, Coke’s PlantBottle, introduced in 2009, sources 30 percent of its material from plants.
“This breakthrough innovation is a transformational development for PepsiCo and the beverage industry, and a direct result of our commitment to research and development,” said PepsiCo Chairman and CEO Indra Nooyi.
“PepsiCo is in a unique position, as one of the world’s largest food and beverage businesses, to ultimately source agricultural byproducts from our foods business to manufacture a more environmentally preferable bottle for our beverages business,” Nooyi said in a news release.
Currently, the company said the bottle is made from bio-based raw materials, including switch grass, pine bark and corn husks. PepsiCo is working to expand sources for the raw materials to organic waste from its food businesses, including orange peels, potato peels, oat hulls and other agricultural by products.
Currently, Coke’s PlantBottle is made using sugarcane ethanol from Brazil.
While Pepsi is trumping Coke on the percentage of bio-based resin in its bottles, Coke has a significant head start on the technology.
The Pepsi bottle will first appear on the market in pilot production in 2012, the company said, and it will move to full-scale commercialization upon successful completion of the pilot.
Atlanta-based Coke, on the other hand, expects to use 5 billion PlantBottle packages in 2011 —and it has already teamed up with food giant H.J. Heinz Co. to start packaging Heinz ketchup in PlantBottle packaging this year.
Both Coke and Pepsi say their bottles are recyclable in the existing PET stream. Dave Cornell, technical director of the Association of Postconsumer Plastic Recyclers, said he expects recyclers to have no problem with either bottle.
“The Coke bottle certainly is fully compatible. The ethylene glycol used to make the resin is chemically identical to that from natural gas liquids,” Cornell said.
“We don’t know much about the Pepsi bottle. The expectation is the ethylene glycol situation is the same as for Coke. The terephthalic acid part of the PET very probably will have the same chemical identity as that from conventional paraxylene.
“There are several potential routes to terephthalic acid from plants. It will be interesting to hear which one has been chosen. But as far as compatibility goes, we fully expect the PET to be identical with the PET commercially made today.”
The March 15 PepsiCo announcement is reminiscent of a dual that the cola giants had over sustainable PET packaging more than 20 years ago.
On Dec. 4, 1990, both Coke and Pepsi each announced that they planned to commercialize cola in bottles made from recycled PET.
Just like today, Coke ended up being first to market –its bottles hit store shelves in Charlotte, N.C., on March 12, 1991. Pepsi introduced its recycled-content bottle in Sacramento, Calif., about eight months later.
Plastics News editor Don Loepp contributed to this report.
Lubrizol Corp. purchased by Berkshire Hathaway Corp.
Berkshire Hathaway Inc. this morning announced it will buy Wickliffe-based specialty chemicals maker Lubrizol Corp. for $9.7 billion in cash.
The transaction, which has been approved unanimously by the boards of both companies, values Lubrizol at $135 per share. Lubrizol shares closed trading last Friday, March 11, at $105.44. The purchase price represents a 28 percent premium over Lubrizol’s March 11 closing price and is 18 percent higher than Lubrizol’s all-time high closing price, Berkshire Hathaway said.
Lubrizol will remain located at its Wickliffe headquarters and will continue to be led by its current management team, Omaha, Neb.-based Berkshire Hathaway said.
The companies expect the transaction to be completed during the third quarter of 2011.
“Lubrizol is exactly the sort of company with which we love to partner —the global leader in several market applications run by a talented CEO, James Hambrick,” said Warren Buffett, Berkshire Hathaway CEO, in a statement. Buffett said in the statement he had only one instruction to Hambrick: “Just keep doing for us what you have done so successfully for your shareholders.”
Hambrick said the transaction “provides compelling value to our shareholders and is a clear endorsement of the growth and diversification success Lubrizol has achieved.
“We are very excited to have the opportunity to become part of the Berkshire Hathaway family,” he said in a statement. “We believe its philosophy of supporting long-term global investments in technology, assets and employees will enhance execution of our growth strategies. Such a long-term commitment is more important than ever in today’s global economy to deliver true market-leading products and services for our customers.”
The transaction is subject to the approval of Lubrizol’s shareholders and the satisfaction of customary closing conditions. After the close of the transaction, Lubrizol will operate as a subsidiary of Berkshire Hathaway.
Citi and Evercore Partners are acting as financial advisers to Lubrizol, which is using Jones Day as its legal counsel. Leaders of the Jones Day deal team are Lyle Ganske and James Dougherty, both Cleveland partners.
Berkshire Hathaway’s transaction counsel is Munger, Tolles & Olson LLP.
Lubrizol was founded in 1928. Its technologies include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, and fuel additives for gasoline and diesel fuel.
The company has about 6,900 employees around the world. Lubrizol owns and operates manufacturing plants in 17 countries. Revenues in 2010 were $5.42 billion, an 18 percent increase from sales of $4.59 billion in 2009.
Lubrizol sells its products in more than 100 countries.
LyondellBasell promises money to Japan relief fund
LyondellBasell is to contribute up to $250,000 toward relief efforts in Japan by matching employee contributions to agencies providing disaster relief services.
“We extend our heartfelt sympathies to the people of Japan who have been so greatly impacted by these twin calamities,” said LyondellBasell CEO Jim Gallogly. “Our employees are responding individually to help the people of Japan who are in need and that is why we will be matching their generous contributions up to $250,000.”
The company said that its matching programme for Japan will contribute dollar for dollar donations made by its 13,000 employees worldwide toward relief efforts in Japan. The company’s contributions will be directed to the American Red Cross, Save the Children, International Medical Corps and UNICEF.
Poland’s Kalibra plans to expand packaging plant
A Polish flexible packaging manufacturer intends to expand production at its site in south-west Poland creating around 350 new jobs.
Kalibra was granted official consent to proceed with a plan to enlarge its existing operation in the Kamienna Góra Special Economic Zone (SEZ) in Lower Silesia. The firm is installing a line to produce plastics packaging for the food industry, reports Palilz, the Polish Information and Foreign Investment Agency.
The project, which is set to take shape later this year, is also scheduled to include the addition of a new packaging research and development unit.
Plastics packaging manufactured by Kalibra is understood to include oriented mono and multilayer film designed for the food sector.
Kamienna Góra SEZ currently has 44 companies already operating or in the process of taking up sites there. In 2009, it only granted two new permits for development but this rose to seven last year. They included investors from Austria, Belgium, Germany and Poland who together created 200 jobs and invested nearly €15m, according to Palilz.
The SEZ is located close to the German border and around 97km south west of the Polish city of Wroclaw.
Sibur subsidiary to invest €219m in ethylene capacity
Russian Sibur-Neftekhim, a subsidiary of SiburHolding, is considering investing up to RUB8.8bn (€219m) in expanding capacity of its ethylene plant EP-300 in the Nizhny Novgorod region.
As part of the project, the company plans to increase capacity of the plant by up to 430,000 tonne of ethylene per year. This will create more than 73 new jobs.
Most of the future production of the plant is expected to be supplied to RusVinyl, one of Russia’s largest producers of polyvinylchloride (PVC).
The main area of activity of Sibur-Neftekhim is the production of ethylene, propylene, benzene, ethylene oxide, ethylene glycol, caprolactam, PVC and other chemical products.
The company currently operates three production facilities in Russia.
Investment is catalyst for innovation says Borealis
From left to right: Alfred Stern, Borealis senior vice-president Innovation & Technology; Governor Upper Austria Josef Pühringer; Mark Garrett, Borealis CEO.
Borealis has broken ground at a new semi-commercial plant for catalysts in Linz, Austria. With move represents an investment of approximately €75m.
The plant will be used to develop new types of catalysts as well as improve processes for catalyst production. It will not only serve research purposes but will produce commercial batches for Borealis’ locations worldwide. Completion is scheduled for summer 2012.
“This plant enables us to develop new catalysts based on the results of basic research we do at our Innovation Centre in Porvoo, Finland. In addition, we will be able to produce semi-commercial batches for our own needs for example in the pilot plant, delivering an innovation and competitive advantage,” said Alfred Stern, Borealis senior vice-president for Innovation and Technology.
“Research and innovation are core to our successful Value Creation through Innovation strategy,” added Borealis chief executive Mark Garrett. “With the new plant, we strengthen our research capabilities in the area of catalyst development and production. This investment marks a further cornerstone of our worldwide growth strategy and strengthens our market position in Europe.
Popular’ Welsh bag tax takes force in 200 days
In 200 days’ time Wales will become the first UK country to introduce a charge for ‘single-use’ carrier bags. A minimum charge of five pence will be introduced on 1 October. The move is part of the Assembly Government’s goal of reducing the number of carrier bags given out to shoppers.
This week Welsh retailers are being sent a pack by the Assembly Government that explains the main points of the charge and attempts to answers the questions most often asked by retailers about the charge. It also directs them to a website for more information and includes a poster that can be displayed in shops to raise awareness of the incoming charge.
Welsh environment minister Jane Davidson said: “We have worked closely with the British Retail Consortium, Federation of Small Business, CBI and others in developing our charge for single use carrier bags and delayed introducing the charge by six months to accommodate the requests of retailers.
“This charge has always been popular with the public and I am certain that it will help us to significantly reduce the number of carrier bags given out in Wales.
“There is no doubt in my mind that such a reduction is needed. In Wales during 2009 we took home on average 273 carrier bags per household from the major supermarkets alone. Add to this the number of bags we pick up when shopping on the high street or at smaller stores and you are left with an even higher figure.
“Whilst I know that reducing our use of single use carrier bags is not going to solve all our environmental problems the charge delivers an important message about the need for us to live much more sustainable lives.”
The level of the carrier bag charge has been set at a minimum of 5p. The Assembly Government believes this is high enough to encourage people to change their shopping habits but not so high that it will deter impulse shopping or place a significant burden on shoppers who have forgotten their reusable bags.
The minister added: “The idea of the charge is not to make people pay for carrier bags. Rather it is to encourage shoppers to make use of the bags they already have. No one has to pay the charge; it can be simply avoided if we remember to carry bags with us when we do our shopping.”
To encourage shoppers to re-use bags, the Assembly Government is giving away jute bags to members of the public.
Sabic signs up to Saudi development deal
Sabic and the Saudi Industrial Property Authority (Modon) signed a three-way agreement with the Boston Consulting Group (BCG) in Riyadh on Sunday with the aim of developing industrialization strategies for the Saudi cities of Al-Jouf, Tabuk, Hail, Jizan, Najran and Arar.
The agreement, under which Sabic will be the sole sponsor, was signed by Mohamed Al-Mady, the firm’s vice-chairman and CEO, Dr Tawfig Alrabiah, director general of Modon, and Thomas Bradtke, partner and managing director of BCG.
Commenting on the agreement, Al-Madysaid: “We have already experienced the establishment of the two industrial cities of Jubail and Yanbu. These cities have seen phenomenal growth over the years and stand as role models for industrial success in Saudi Arabia.”
Poland’s plastic industry forms technology club
The Plastics Technology Club, an industry body for plastics professionals in Poland and Central Europe, will hold its inaugural conference on 23 March in Poznań, during the second day of the EPLA Fair.
So far more than 250 members have joined, predominantly plastics processing engineers from both large and medium-sized companies operating in Poland. The hope is to double that figure by the end of 2011.
The aim of the club is to act as a platform for the region’s polymer community to exchange news and views on education and training as well as exchange professional experience. It will also collaborate with other similar organisations around the globe.
The drive forces behind the Plastics Technology Club are Marek Szostak from the PoznańUniversity of Technology and Waldemar Sobański from the industry-related Business Image publishing house.
“Starting the club has ended an anomaly. Poland, the sixth largest plastics market in Europe, was previously unable to create a large organisation representing the interests of one of the most dynamically branches of the Polish economy,” said Szostak.
Sobański added: “In the face of the rapid growth of the polymer industry we needed an organisation that would integrate our community. The idea of the club met the expectations of a large group of people associated with the polymer business in Poland. We have not copied any existing models, although we are aware that there are strong and well-organised polymer communities in US, German and Italy.”
Korea Kumho in butadiene JV with JG Summit Petrochemical Corp.
Korea Kumho Petrochemical Co. has inked an agreement for a 50:50 butadiene JV with JG Summit Petrochemical Corp. (JGSPC) of the Philippines. The JV will be located in Bantangas, about 110 kilometers south of Manila.
Total inks framework agreement on joint development of CTO project in Inner Mongolia
French energy giant Total, China Power Investment Corp. (CPIC) and the People’s Government of Inner Mongolia Autonomous Region have signed a framework agreement on joint development of a coal-to-olefin (CTO) project in Inner Mongolia’s Ordos. With the signing of the agreement, Total and CPIC will accelerate the feasibility study and other preparatory work for coal based petrochemicals JV project in Inner Mongolia in line with relevant industry plans and policies. A formal project application will be submitted to the Chinese authorities for approval soon.
Saudi Arabia sets up technical panelto defend itself in anti-dumping row with EU
Saudi Arabia has set up a technical panel as part of its drive to defend itself in an anti-dumping row with the 27-member European Commission. The high-level technical panel will work and coordinate with an international consulting office to explain the position of the Saudi government and exporters, as per Arab News. This announcement follows the EU’s recent move to launch an investigation against Saudi exporters of the polyethylene terephthalate (PET). The PET market of the EU, where Saudi PET are allegedly being dumped, exceeds US$4.1 bln annually.
The complaint claims that the Saudi producers of petrochemicals receive unfair support from the Saudi government in PET exports that contravenes the provisions of the agreement made by the World Trade Organization. The European Commission had initiated anti-dumping and anti-subsidy investigations following a complaint by the Committee of PET Manufacturers in Europe with respect to imports of PET originating in or exported from Oman and Saudi Arabia. An allegation has been made against the Saudi Basic Industries Corp. (SABIC) that the company allegedly dumps products in EU markets. The EU claims its producers may be affected by subsidies and price undercutting. The European bloc has threatened to impose tariffs against PET.
PetroChina and Saudi Aramco Sign MOU to Build Grassroots Refinery in China
Aramco Overseas Co., a subsidiary of Saudi Aramco, and PetroChina have signed a memorandum of understanding (MOU) to build a 10-million m.t./year grassroots full conversion refinery in Yunnan Province, China. The move follows an MOU signed by the two partners late last year to expand crude oil trade and strengthen cooperation on refinery and petrochemical projects.
The proposed refinery will be designed to process 200,000 bbl/day of Arabian crude oil and will produce “high-quality” refined products, including ultra low-sulfur gasoline and diesel that meet current and future Chinese products specifications. The agreement enhances a strategic partnership between a major producer and a major consumer of hydrocarbons and presents an opportunity for additional energy security and increased industrialization in the inner part of China. “This agreement is a significant step forward in our expanding relationship with CNPC and in our global downstream strategy,” says Khalid A. Al Falih, Aramco’s president and CEO. Jiang Jiemin, president of CNPC says, “As the national oil company of the world’s largest developing country, CNPC joins hands with Saudi Aramco to establish a long term, stable and reliable partnership between the two companies.
Aramco will supply the project company with up to 200,000 bbl/day of Arabian crude oil via a long-term contract while PetroChina will contribute its refined products retail network assets in the targeted market to the project company.
Materia to Build Catalyst Plant in Singapore
Materia (Pasadena, CA), a catalyst start-up, has disclosed plans to build a catalyst manufacturing plant and R&D facility in Singapore. The company says it expects to choose a site for the facility during the third quarter of this year and begin construction by year-end. Financial details were not disclosed.
Materia’s planned facility is set to have an initial operating capacity of 10 m.t./year of olefin metathesis catalysts by the end of 2012. In addition to catalyst manufacturing, the plant will house R&D, and technical service resources. The Singapore site will be operated and controlled by Materia’s newly formed subsidiary, Materia Singapore Pte. Ltd.
The announcement for the new facility follows completion in January of a deal to raise $17 million from investors.
“This expansion represents the first step in our strategy to better serve our customers’ needs through regional catalyst supply,” says Michael A. Giardello, Materia’s CEO. “Industrial demand for our Grubbs catalyst technology is growing globally, particularly in Asia,” he says.
Algae-Oil Producer Solazyme Files for $100-Million IPO
Algae oils firm Solazyme (San Francisco) filed plans March 11 for an IPO of up to $100 million, which the company says it will use to fund research and development and capital expenditures. The company did not disclose pricing or a timeline for the offering. According to the SEC document, Solazyme says it plans to “accelerate [its] commercial strategy in multiple geographies, which includes accessing feedstock arrangements and establishing manufacturing capacity with partners…when the returns are justified.”
Solazyme reported 2010 revenue of $38 million and a net loss of $14 million, and says in its filing that it expects losses to continue for at least the next few years as it expands capacity and builds out its pipeline. The company uses microalgae to convert biomass directly into oil and other biomaterials, “tailored not only for biofuel production, but also as replacements for fossil petroleum and plant oils and compounds in a diverse range of products from oleochemicals to cosmetics and foods.” The company does not use the common open-pond and photobioreactor approaches, but instead feeds its algae sugar in a dark fermentation tank.
Solazyme says its oils can address the major markets served by conventional oils, which represented a market opportunity of over $3.1 trillion in 2010. The company will initially focus on fuels and chemicals, nutrition, and skin and personal care. Solazyme recently signed a development deal with Dow Chemical for biobased dielectric insulating fluids that includes a potential supply agreement. It also has a development deal with Unilever for personal care products, and in November formed a jv with starch company Roquette Frères (Lestrem, France) to produce microalgae food ingredients. On the biofuels development side, Solazyme has deals with Chevron, Qantas, Ecopetrol and the U.S. Navy. The filing also mentions a non-binding letter of intent signed in December between Solazyme and “one of the largest sugarcane processing companies in Brazil”to form a joint venture and co-locate oil production at one or more of the company’s sugarcane mills, which Solazyme believes would provide sufficient sugarcane crush to support manufacturing capacity of over400,000 m.t./per year of oil.
Solazyme’s announcement follows recent IPOs by biobased fuel and chemicals firms Amyris (Emeryville, CA) and Gevo (Englewood, CO), which raised $85 million and $95.7 million, respectively. PetroAlgae, a Melbourne, FL-based firm with algae-based technology for the production of fuels and proteins, filed for a $200 million IPO in August, but has yet to announce any terms and was recently delisted from the OTC Bulletin Board due to inactivity. Though the IPO was underwritten by Goldman Sachs (New York), UBS (New York), and Citi (New York), PetroAlgae had yet to report any revenue.
Bayer MaterialScience Invests €100 Million to Expand MDI Plant in Germany
Bayer MaterialScienceplans to invest about €100 million ($137.7 million) to expand capacity for methylene di-para-phenylene isocyanate (MDI) at the Brunsbüttel industrial park in Germany. The project forms part of a previously announced phased optimization concept for Bayer’sisocyanate production in Europe. The first phase involves the construction of a new toluene di-isocyanate (TDI) plant at Dormagen, Germany with an annual capacity for 300,000 m.t. by 2014. Following completion of this project, capacity of the existing MDIplant at Brunsbüttel will be expanded from 200,000 m.t./year to 420,000 m.t./year. The TDI plant at the site will be converted to MDI produciton as part of that plan.
The availability of raw materials, precursors and infrastructure played a major role inBrunsbüttel being chosen for the MDI investment. Bayer will, as part of the project, expand capacity of the exisitng MDA plant and build a new aniline production facility to feed the expanded MDI capacity.
Bayer will start the permitting process in May this year, and subject to the length of that process and developments in the market, the plant is scheduled to be completed in 2015-16. “The plastics industry expects the global demand for MDI and TDI to continue to rise,” says Peter Vanacker, member of the executive board of Bayer MaterialScience/polyurethanes. “With the phased implementation of our optimization concept, we hope to further expand our leading position in this global market, which is expected to experience long-term growth,” he says.
Shell Takes Singapore Ethylene Plant Offline Due to “Operational Issues”
Shell Chemicals has confirmed that its 800,000 m.t./year ethylene plant on Pulau Bukom, Singapore, has been taken offline due to “operational issues” and the company has declared force majeure on some of its chemicals contracts. “This [is] because the ethylene cracker unit on Pulau Bukom manufacturing site was facing operational issues and this has affected our ability to supply product to some of our customers,” a Shell spokesman says. The rest of Shell’s operations on Bukom is not affected, he says. Shell’s Bukom chemical complex, completed in March 2010, is designed to produce 800,000 m.t./year of ethylene, 450,000 m.t./year of propylene, 230,000 m.t./year of benzene and 155,000 m.t./year of butadiene. Shell also operates a 750,000-m.t./year ethylene glycol plant on Jurong Island, which uses ethylene from Bukom,via a pipeline.
Shell says it is working hard to resume normal operations and supply as soon as possible, so as to minimise potential impact on its customers. The company did not say how long it will take to bring the cracker back online. This is an unexpected interruption and it is not related to the planned maintenance on the cracker, which was recently completed, the company says. The cracker has been offline since Friday, sources report. The maintenance started in mid February and lasted approximately one month.
Grace Opens Technical Center in India
W. R. Grace says its Grace Davison Discovery Sciences business has opened a new technical service Knowledge Centre at Genome Valley near Hyderabad, India for customers in the pharmaceutical and biotechnology industries. Genome Valley is a growing biopharmaceutical area with more than 100 biotechnology companies and major generic pharmaceutical manufacturers, Grace says. The Knowledge Centre will support Grace’s customers in the areas of laboratory separations, bulk purification, excipients and pharmaceutical intermediates.
“To better meet our customer demand, we are geographically expanding where it will benefit our growing client base the most,” says Joanne Green, v.p. and general manager of Grace Davison Discovery Sciences. “The new facility is part of our strategy to build on our footprint in the region and to position for further expansion in the future.”
The center will serve as a resource for Indian customers, as well as being an Asia/Pacific support hub for the region, Grace says. It will be a global Knowledge Centre for product development and applications support for Grace Davison Discovery Sciences. Other services provided will include customer training, validation and testing for various products and product demonstrations.
The center is one of several recent additions to Grace’s global presence, the company says. In the past seven months, the company has opened new 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.
Dow and Haier launch advanced PU insulation
Dow Polyurethanes and appliance maker HaierGroup claim a breakthrough rigid polyurethane insulation technology for household refrigerators and freezers, which the two companies presented on March 16 at the World Appliance Expo in Shanghai.
Midland-based Dow claims its patented “Pascal” technology is “an advanced combination of excellent polyurethane insulation and efficient appliance case filling,” to meet the productivity needs of manufacturers and cope with consumers’ energy efficiency demands.
No further details of the technology were so far revealed.
According to Dow, the Pascal technology increases energy efficiency in appliances, helping manufacturers to meet global energy efficiency standards for the next 25 years.
“We’re excited to have Haier as the first to invest in and feature Pascal technology in their household refrigerators and freezers,” said Bruno Barbet, Dow’s global polyurethane appliance market leader, in a March 21 company announcement.
Barbet claims that the technology will “truly revolutionize current refrigerator and freezer insulation methods.
”Qingdao, China-based Haier, a Dow customer for more than 20 years and the first to use this technology, announced that it would implement Pascal technology in its appliances. Dow said it will launch Pascal technology commercially in the coming months.
Pactiv to close Belvidere, Ill., plant
Pactiv. Corp. appears poised to shed another U.S. packaging plant in Belvidere, Ill., as restructuring continues under new ownership.
The Rockford Register Star reported March 21 that the Lake Forest, Ill.-based company will close the plant in May. About 50 employees would be affected, according to the newspaper.
Employees were told of the impending closure March 19, the newspaper reported, and some received pay cuts effective March 21.
Pactiv officials and representatives of the International Association of Machinists and Aerospace Workers, which represents union workers in Belvidere, did not return calls seeking comment.
The Belvidere closing is part of a whirlwind of change that has blown through Pactiv since the packaging and Hefty bag maker was sold to New Zealand’s Reynolds Group Holdings Ltd for $6 billion in November.
Reynolds Group is the packaging subsidiary of Rank Group Ltd., the investment firm founded by media-shy New Zealand billionaire Graeme Hart. Auckland, New Zealand-based Reynolds’ plastics-related businesses include Pactiv, Reynolds Food Packaging and machinery manufacturer Sig Combibloc.
Richard Wambold, chairman and CEO of Pactiv, left the company in January, along with John Schwab, the senior vice president who ran its consumer business.
Wambold was in line to receive severance and performance-based stock grants worth $14.6 million, and held stock and options worth $21.4 million. Schwab was to receive a severance package of about $3.8 million. Other top executives’ contracts also contained provisions for millions in severance payments if they were let go after Pactiv’s sale.
In addition to management, Pactiv’s marketing department has been cut back since the first of the year, according to sources at the company. Matthew Gonring, the firm’s chief spokesman, was among those whose position was eliminated.
Another recently-announced plant closing will see Pactiv shuttering its City of Industry, Calif., packaging plant by the end of March, affecting 250 employees.
The company is in the final phase of a two-year, $12 million equipment upgrade to increase capacity for expanded PS food-processor trays. The program to update extrusion, thermoforming, padding and packaging equipment at four U.S. plants is expected to be complete within months.
Pactiv ranked No. 11 on Plastics News’ most recent survey of North American film and sheet manufacturers, and No. 1 in the PN thermoformers ranking.
New resins for caps from Nova
Nova Chemicals has introduced a new PE resin –Surpass 1Gs153-A –specifically for the caps and closures market. Surpass is a lightweight, high purity performance resin with superior organoleptic properties, says the company.
In addition, caps and closures made with Surpass are recyclable and support short-height bottle finishes, meaning manufacturers can use up to 40% less resin, says Nova.
“With Surpass 1Gs153-A resin, moulders will be able to produce the lightweight closures at ultra-fast cycle times while allowing brand owners to address the product performance and sustainability expectations of customers,” says Nova.
Northern Indian state bans booze in PET bottles
The government of the Indian hill state of Himachal Pradesh has decided to do away with plastic liquor bottles beginning 1 April.
Last year the government imposed a partial ban on PET liquor bottles, according to Bhim Sen, principal secretary for excise and taxation, in a telephone interview from the state capital of Shimla. The aim, he said, is to reduce the use of plastics in day-to-day life.
“Plastic and PET bottles have been completely banned. Till last year it was 50 per cent each for plastic and glass bottles,” Sen said. “Besides environmental issues, the move would also curb smuggling of liquor in PET bottles, which much easier compared to smuggle it in glass bottles.”
Earlier, the state government also banned single-use polyethylene carry bags. It also launched a campaign called “Polythene Hatao Paryavaran Bachao” (Remove Polythene Save Environment) on Earth Day to raise awareness of the issue.
The government’s Himachal Information Department has undertaken an effort to clean the hills of litter, buying plastic waste from rag pickers for a nominal amount, for eventual recycling. The state has also given fiscal incentives to municipalities to collect and recycle plastic.
Out of 1,200 to 1,500 metric tons of solid waste collected during the first phase of campaign, 50 to 60 metric tons contained plastic waste that was used in road repair.
The state government has also decided to ban on use of plastic plates and cups starting 15 August.
Yulex secures funds for expansion
Yulex, a manufacturer of bio-based elastomer products derived from guayule, announced that it has closed on a $15 million private placement, led by Argonaut Private Equity, to expand its natural rubber production capabilities. Construction has been initiated and increased commercial production of guayule natural rubber and feedstocks for bioenergy is expected to commence by early 2012. The new production facility is located within the Lone Butte Industrial Park in Chandler, AZ, and is part of the Gila River Indian Community, offering Yulex tax savings and Enterprise Zone Status. The site is five acres with the possibility to expand to 20 acres, and includes two large, clear-span buildings totaling 60,000 square feet for production use and an office building for staff. In addition to building this expansive new facility, the investment will also be used to ramp up Yulex’s commercialization infrastructure by recruiting key executives in product development, marketing and engineering to the organization. “We look forward to completing this significant expansion to our production capability and enabling Yulex to begin meeting the increasing demand for our elastomeric biomaterials,” said Jeff Martin, president and CEO.
Thailand halts rubber exports
Thailand’s Deputy Prime Minister and Chairman of the National Rubber Policy Committee Suthep Thaugsuban said he has ordered a temporary halt to rubber exports until the price improves, the Bangkok Post reported. Suthep said the current decline in the rubber price was not in line with its trading nature. The price of rubber is down from a record high of 187 baht a kilogram to 95 baht. The decline has been attributed to weak demand from China, a major rubber importer, and the massive quake and deadly tsunami in Japan. Asked about the rubber farmers’ call for the government to provide a price guarantee of 100 baht per kilogram, Suthep said when the government first stepped in to settle the problem of low rubber prices, the targeted price was set at 80 baht. The current price is still higher than the set target, but a suitable market price was about 120 baht a kilogram, he added.
Klöckner buying rigid films business in Italy
Global packaging films producer Klöckner Pentaplast Group boosted its core activity through the acquisition of the rigid films business of the Italian company AMB srl for an undisclosed sum.
The deal sees Klöckner Pentaplast of Montabaur, Germany, taking over AMB’s polypropylene and polystyrene mono-and multi-layer rigid films commercial activities. The AMB products are aimed mainly at food packaging and thermoforming applications.
“For Klöckner Pentaplast, this investment supports our strategic growth plan for 2011 and further demonstrates our continued commitment to servicing our core markets and customers,” commented Giles Peacock, vice-president, packaging business unit of Klöckner Pentaplast Europe.
Ina joint statement, the companies made clear AMB will continue to manufacture its other blown and flexible film products at its San Daniele del Friuli plant in northeastern Italy.
The Italian firm’s Ambar rigid barrier films are used for vacuum and modified-atmosphere packaging, as well as for form-fill-seal lines in the pharmaceutical and food sectors and for technical applications.
“The transaction is strategic for AMB. It will enable AMB to focus on its other product lines. We are confident that customers will be well services by Klöckner Pentaplast, the leading global rigid film producer with over 40 years of manufacturing experience,” said AMB chief executive Bruno Marin.
AMB was founded in 1968 and, through a well developed international sales network exports around 60 percent of its output.
Klöckner Pentaplast, formed in 1965, is owned by affiliates of New York-based Blackstone Group.
Dow, Milliken expand clear PP options
Walk down the aisle of any big-box store, and you can see food containers, storage boxes, plastic glasses and pitchers boasting their “glasslike” appearance.
“Everybody is focused on shelf appeal, and that clear look really pops,” said Jason Eckel, market manager for thin-wall rigid packaging and durables with Dow Chemical Co. of Midland, Mich.
Now Dow and Milliken Chemical of Spartanburg, S.C., have teamed up to introduce the Agility NX line of clear polypropylene to give brand owners and molders more material options on clear plastics.
A container made of Agility NX PP with Milliken clarifiers, left, compared with standard “clear” PP (Dow Chemical Co. photo)
“What we’ve been able to do here is to help our customers look at what is out there and tweak what they’re offering and be more competitive,” Eckel said in a March 6 interview at the International Home + Housewares show in Chicago.
The Agility line is geared at housewares and packaging uses, with its first products coming onto the market now. Molder F&M Tool & Plastics Inc. of Leominster, Mass., is launching its new line of Bella NX storage containers using Agility, and others will be introduced through the coming months, he said.
The Milliken clarifier used in the Agility line stands out among other PP blends that claim to be clear but are cloudy in comparison, according to Brian Burkhart, global market manager for Milliken’s PP clarifiers. The improvement gives molders more low-cost options, and the ability to stick with a familiar material.
“Being able to take 10 percent or so out of the cost in comparison to some of the other materials is a big thing,” he said. “Then you’ve got the impact of lower energy cost in the press, which lends itself to improved cycle times, and it adds up.”
Molders can also easily drop Agility material into existing molds and processes, Eckel said.
“Clear products are growing faster than the standard PP material,” Burkhart said. “Now they’re going to have another opportunity to use PP.”
The companies are developing other Agility lines for use in other processes and other industries, and expect to introduce them soon, Eckel said.
Ube to Establish Subsidiary in Korea
Ube Industries says it will establish a subsidiary in Korea and the new wholly owned subsidiary dubbed Ube Korea (Seoul) will begin operations in April 2011. Korea is home to several leading semiconductor companies and electrical and electronic manufacturers and offers great potential as a market particularly for products handled by the Specialty Chemicals & Products business of Ube, the company says. The Korean market is also home to many leading manufacturers in the automotive and shipbuilding sectors, Ube says.
The decision to establish a subsidiary is based on the recognition that the Korean market will continue to grow in importance to the future business development plans of Ube, the company says. The subsidiary will work closely with the Korean market and develop stronger ties with leading corporate groups in order to strengthen market development and sales and further expand the company’s business in Korea.
Asahi Kasei Plants Remain Shut
Asahi Kasei says it is unable to predict when operations can be restarted at the plants that were suspended as a result of the powerful earthquake and tsunami that struck northeastern Japan on March 11. The operation of plants of some of its affiliates was suspended, and the degree of damage to the facilities is currently under investigation, Asahi Kasei says. The plants that are shut are Asahi Kasei Construction Materials’s Sakai plant and its phenolic foam insulation panels plant in Ibaraki prefecture; Asahi Kasei Metals’ plant at Tomobe in Ibaraki prefecture; and Asahi Kasei Toko Power Devices’ plant at Ishinomaki in Miyagi prefecture. The impact of the earthquake on the financial results of the Asahi Kasei group is not clear yet, the company says.
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