AMERICAS
Hexpol to boost synthetic rubber compounding capacity in Mexico
Hexpol plans to expand synthetic rubber compounding capacity in Mexico. The expansion will add a new advanced 135 L rubber compounding line into its Querétaro facility, Mexico, which will increase overall capacity to 70 KTA.
Comments: Sweden-headquartered Hexpol A.B. supplies advanced rubber and plastic compounding materials in North America and Europe as well as produces heat exchange systems for automotive and engineering industries. Mexico is witnessing the fastest growth in its automotive sector. The capacity expansion of rubber compounding is to capitalize on the growing demand for rubber compound materials used in automotive applications. In recent years, Hexpol has acquired several North American rubber and plastic compounders. Acquiring companies like Rhe Tech’s rubber compounding division and Portage Precision Polymers Inc. has strengthened its position in the North American compounding market.
Total Petrochemical and Refining USA selects Port Arthur for a new ethane cracker
Total Petrochemical and Refining USA is investing an estimated US$ 1.6 billion to build an ethylene production unit in Port Author, Texas. The planned facility is likely to begin operation as early as 2019.
Comments: The planned ethane cracker will utilize abundant and cheap shale gas and produce 1,000 KTA of ethylene. The produced ethylene allows Total to be self-sufficient in feedstock for downstream derivative production. Due to abundant and cheap shale gas, petrochemical players in North America enjoy cost advantages over competitors who still rely on naphtha. In addition to this ethane cracker announcement, there are already another seven ethane crackers in North America currently under construction and several other ethane projects in the feasibility stage or permitting stage.
Braskem evaluating a new PP plant in the US
South America’s largest petrochemical producer Braskem S.A. is considering building a polypropylene facility in the U.S.A. (either La Porte, Texas or Marcus Hook, Pennsylvania). If the project materializes, the PP facility would use low-cost shale-gas-based propylene as feedstock and have a PP capacity of at least 450 KTA.
Comments: BraskemS.A. became the largest polypropylene producer in North America after acquisitions of polypropylene assets from Sunoco and Dow Chemical. Due to the shale gas boom, abundant and low-cost gas liquids will be converted into propylene and then polypropylene. The planned PP facility will enable Braskem to take advantage of on-purpose low-cost feedstock. The final decision on plant location is primarily dependent on the availability of propylene.
Teknor Apex introduces new Monprene®TPE grades
Teknor Apex launches two series of thermoplastic elastomers under the family name of Monprene®CP. This product family offers a vivid color, tactile appeal, and soft-grip ergonomics while delivering excellent moldability. These two series are Monprene®CP-11000 low-density compounds and Monprene®CP-10100 high-density compounds, each of which consists of six grades with various target Shore hardness properties.
Comments: Teknor Apex is a Rhode Island-based compounder of thermoplastic elastomer, PVC, and nylon. Monprene®is a high-performance TPE product line designed for applications required for soft-tough feel, stretch, and flexibility. This product family is processed using standard processing, such as injection molding, extrusion, and blow molding while being compatible with polyolefins in over-molding and co-extrusion applications. These new grades are suitable for skin contact and have good resistance to cosmetics and household chemicals.
EUROPE
VESTOLIT to expand PVC capacity
VESTOLIT GmbH & Co KG will add a PVC production line and install newly developed energy-efficient drying technology at its existing facility in Germany. The PVC capacity at the facility will increase by 10% to 400 KTA.
Comments: VESTOLIT GmbH operates the largest fully integrated PVC (polyvinyl chloride) production plant in Europe at a capacity of 400KTA. The production of PVC takes place at one location, from the starting point of energy and the raw materials ethylene and rock salt via the intermediate products EDC (ethylene dichloride) and VCM (vinyl chloride monomer). VESTOLIT is a market-leading raw material supplier for the manufacture of window frames, as well as paste-making PVC for floor coverings, tarpaulin fabrics, and underbody coatings. With the increase of the current capacity by 40 KTA, VESTOLIT will be able to strengthen its market position in ultra-low viscous PVC and better serve its customer’s needs. At the same time, VESTOLIT will be building a newly developed energy-efficient drying technology platform, which can effectively be replicated at other sites around the world. VESTOLIT also produces Chlor-alkali and its derivatives used for a variety of chemical and industrial applications.
MIDDLE EAST & AFRICA
Gulf Advanced Cables Insulation begins commercial production of cable insulation polymer
Gulf Advanced Cables Insulation Company, a JV between Saudi International Petrochemical Co (Sipchem) and Hanwha, has launched the production of several cable insulation grades polymers. These polymers can be used to manufacture electrical cable insulators. Raw materials used for cable insulation polymer production, such as Sipchem will supply EVA and LDPE.
Comments: Sipchem will use cost-advantaged LDPE and EVA from its affiliate, the International Polymers Company, to make these value-added products for Middle Eastern and European markets. Hanwha owns a 25 percent stake in IPC, which has a 200 KTA capacity of LDPE/EVA using ExxonMobil technology. With the start-up of the cable insulation plant, Hanwha receives access to the fast-growing Middle East region in addition to being able to capitalize on synergies with its existing wire and cable compounding business.
SIBUR releases new grades of LDPE
SIBUR has introduced six new film grades of low-density polyethylene (LDPE), 153B, 158B, 153BZ, 158BZ, 153BF, and 158BF, for various applications, from general-purpose to multilayer applications. Grades 153B and 158B have improved resistance to oxidative aging and are suitable for greenhouse films or multilayer films. 153BZ and 158BZ LDPE-containing additives are designed for applications where high production speed is desired. The other grades, 153BEF and 158BEF, are resistant to oxidative aging and consist of special additives to improve slip.
Comments: The Russian polyethylene film market was growing rapidly before the crude oil price decline, with many of the 20-30 market players choosing to invest in capacity increases. The packaging sector uses the overwhelming majority of LDPE films in the country. SIBUR’s new grades offer improved durability, processing, and anti-slip properties mainly for packaging applications. The plant in Tomsk is undergoing a production overhaul with a 30 KTA increase in capacity using LyondellBasell technology to be completed in 2016.
ASIA PACIFIC
Mitsubishi Chemical expands its polymer business network into Turkey
Mitsubishi Chemical Corp. has established a new marketing and sales unit for thermoplastics elastomers and PVC compounds in Istanbul, Turkey. This new unit called MCPP Turkey Liaison is meant to serve customers in Europe and the Middle East.
Comments: Japan-based Mitsubishi Chemical Corp. currently has 23 performance polymer locations in China, Japan, Southeast Asia, India, Europe, and North America. With the establishment of a new office in the sales office in Turkey, Mitsubishi Chemical can not only build a completely global business network for its TPEs and PVC compounds business but also better serve clients in the Middle East area.
India to boost its PE production
Several new Indian PE facilities are coming online in 2015. This will increase India’s self-sufficiency in polyethylene. ONGC Petro Limited has two 360 KTA HDPE/LLDPE swing plants and one 340 KTA HDPE facility at the Dahej Special Economic Zone in Gujarat. All will come on steam by July 2015. Additionally, Brahmaputra Cracker and Polymer Limited’s 220 KTA HDPE/LLDPE swing plant and GAIL’s 400 KTA PE plant in Uttar Pradesh are scheduled for start-up in July.
Comments: ONGC Petro Additions Limited (OPAL) and Brahmaputra Cracker & Polymer Limited have been major producers of polyethylene for India’s market. India has grown in recent years as one of the major consumers of polyolefin in the Southeast Asian region. With the demand set to increase in the coming years, India’s new projects with world-class capacities will be able to cater to the domestic demand and also be able to export to China and other Asian countries.
Oman to invest in Indonesia’s petrochemical sector
Oman will invest US$7 billion to build a refinery and a petrochemical facility in Riau province, Indonesia. Oil products produced by the planned complex will be purchased by state-owned Pertamina. Currently, Oman is in the permit application phase and is expected to break ground in 2016.
Comments: Indonesia’s current crude oil refining output is about 800k bpd, which is about 50% lower than domestic demand. The country is currently a net importer of crude oil and the situation is likely to change with this investment from Oman. The investment is expected to boost the growth of the oil and gas industry in Indonesia which has suffered from a lack of investments after the construction of its last refinery in 1994.
Westlake buys out INEOS ’stake in its Shanghai PVC JV
Westlake has acquired INEOS Chlorvinyl’s 35.7% stake in Suzhou Huasu Plastics Co. and now holds a 95% stake in the PVC joint venture.
Comments: Westlake has two principal businesses –Olefins and Vinyls. In the past few years, Westlake has strategically strengthened its vinyl business via acquiring vertical integration, such as CertainTeed’s PVC pipe business, German specialty PVC maker Vinnolit Holdings GmbH, as well as Suzhou Huasu Plastics Co., a PVC resin and downstream fabrication company in Shanghai, which mainly serves clients in China and Southeast Asia. Suzhou Huasu Plastics’ facility is Westlake’s only vinyl business production in Asia. Majority share ownership not only gives Westlake nearly total control of the important site in Asia but also allows Westlake to prepare for any further expansion in line with corporate strategies.