AMERICAS

 

Shintech to build new ethylene unit at Iberville Parish facility

 

Shintech, the largest PVC producer in North America, will invest USD 1.4 billion for a new ethane cracker installed at its facility in Iberville Parish, Louisiana, as well as infrastructures that connect ethylene output to VCM and PVC units. The new plant is expected to break ground in the second quarter of 2015, with start-up scheduled for the first half year of 2018.

Comments: Shintech Inc., a wholly owned subsidiary of Tokyo-based Shin-Etsu Chemical Co. Ltd., has grown over the years through a series of production capacity expansions that combined aggressive domestic and export business plans with extensive analysis of market conditions and customer needs. Shintech has a manufacturing process that incorporates its original large vessel for polymerization and non-scale technologies. In the first stage of the PVC production process, ethylene and chlorine are combined to produce an intermediate product called ethylene dichloride. Ethylene dichloride is then transformed into vinyl chloride, the basic building block of polyvinyl chloride (PVC). The polymerization process links together the vinyl chloride molecules to form chains of PVC. PVC produced in this way is in the form of a white powder. This PVC powder is not used alone but blended with other ingredients to give formulations for a wide range of products. Shintech is nearing its expansion plans for PVC production capacity at its Plaquemine complex. With the new ethylene production capacity being added, Shintech will have the advantage of having the raw material for its PVC plant with extended production capacity. This will further expand Shintech’s position in PVC Industry.

 

Eastman Chemical launches a new polyolefin resin for hot melt adhesives

 

EastmanChemicalhas introduced a new polyolefin resin, Aerafin™, for use in hygiene construction hot melt adhesives. The new grade delivers a broad processing temperature window, low-temperature playability, and compatibility with a wide range of hydrocarbon tackifiers. The material is available to customers in molten as well as pelletized forms.

 

Comments: Hot melt adhesives provide better hold properties and offer better manufacturing flexibility compared to current waterborne or solvent-based adhesives. Hot melt adhesive systems consist of a high molecular weight polymer backbone, a tackifier that controls the adhesion properties, and a plasticizer that controls the viscosity of the blend. The new polymer from Eastman Chemical, Aerafin™ is primarily targeted for use in hygiene applications. Nonwoven products such as baby diapers, and adult incontinence are the major end uses for hot melt adhesives within the hygiene segment. Hot melt adhesives for hygiene applications should have an optimal blend of peel strength, low processing temperatures, low odor, low color, and thermal stability. With broad tackifier compatibility, low odor, low-temperature spray ability, and high-speed production, Aerafin™ is a potential alternative for Styrene Butadiene Copolymers (SBC) based polymers in hygiene applications.

 

Goodyear to set up a new tire plant in Mexico

 

Goodyear will invest an estimated USD 550 million to set up a new tire production facility in San Luis Potosi, Mexico. The plant is scheduled for start-up in 2017 with a production capacity of six million tires per year. This Mexican facility, along with Goodyear’s existing factories in U.S. and Canada, will enable Goodyear to catch on to fast-growing market demand for ‘high value add’ tire markets throughout the Americas.

Comments: Mexico currently is the seventh largest global automotive manufacturer by production and the fourth largest car exporter. Due to cheaper natural gas imports from the U.S., along with Mexico’s low wages and more than 40 free-trade deals, car manufacturers and their support supply chain companies have invested more than USD 21 billion in Mexico in the past two years. For example, Toyota announced a USD 1 billion investment for a new plant in the state of Guanajuato, and Ford Motor Company announced USD 2.5 billion expansion project at two existing sites in Mexico. Goodyear’snew plant in Mexico will allow it to capitalize on the fast-growing demand for a tire in this region.

 

Proxy Biomedical launches a new PP resin for medical implantable application

 

Proxy Biomedical has released its new medical grade of PP resin, ProTEX Med™, aiming at implantable applications. The material offers equivalent performances as current implantablePP resins while addressing using traditional PP resins for long-term implantation concerns. In addition, the company provides custom synthesis services to clients who seek specific performances to match other PP grades available on the marketplace.

Comments: Proxy Biomedical’s new grade is important from a marketing standpoint to alleviate concerns of Western European consumers about using traditional non-implant grades of polypropylene. The company is a custom manufacturer of biomaterials implants. Proxy has in-house capabilities beginning with conception stage product development to customer manufacturing volumes. As a result, Proxy is flexible in providing the product from any step in the value chain—from the resin itself, fiber/textile, to finished devices. Proxy Biomedical has proprietary technologies for the design, manufacturing, and post-processing of textile constructs.

 

Synthos puts the Brazilian synthetic rubber project on hold

 

Synthos has put its USD 170 million synthetic rubber development in Brazil on hold. Originally the new synthetic rubber plant targeted for 2016 or 2017 plant start-up was reported based on Braskem butadiene feedstock.

Comments: The market for synthetic rubber and SBR has shown promising growth potential in the tire, footwear, and construction industries globally, particularly in Asian markets. Synthos plans to cater to this increasing demand by expanding its capacity in South America with the addition of an 80KTA plant. The potential deal was dependent on target date-specific securing feedstock from Braskem to gain internal approval to go ahead with the project. However, Braskem is currently involved in a corruption scandal issue with its oil supplier Petrobas. There has been a delay as a result. Braskem has not been able to confirm the butadiene supply. Synthos is being cautious when they announced that the project will be put on hold. However, there is no clear indication the project has been shelved at this point.

 

PolyOne expands long-fiber thermoplastic capacity

 

PolyOne has expanded the production of its OnForceTM long-fiber thermoplastics (LFT) at the Avon Lake, Ohio site. PolyOne’s OnForceTMLFT compounds are formulated for metal replacement and structural applications, offering better physical and mechanical properties over conventional short-fiber materials.

Comments: PolyOne is one of the leading compounders of thermoplastic materials in North America. Long-fiber Thermoplastics’ (LFT) higher performance and better aesthetics make it the preferred material replacing metal components driving higher demand when compared to its metal counterparts. LFT is typically used in automotive (powertrain, underhood, and body components) and industrial (housing pumps, brackets, and structural components) applications. PolyOne’s OnForceTMLFT series material can be processed on standard injection molding machines without requiring any additional investment. PolyOne offers its OnForceTMLFT in North America, Europe, and Asia Pacific markets. LFT’sare currently available in a range of base polymer combinations which include PP, PA66, and TPU resins. OnForceTMLFT products exhibit enhanced physical and mechanical properties which are improved impact strength, elastic modulus, and material strength across wide temperature ranges. With the newly added manufacturing capacity forOnForceTMLFT products, PolyOne will be able to cater to the growing needs of the market.

 

Braskem evaluating options for PP expansion in the U.S.

 

Braskem is evaluating PP capacity expansion in the United States through building a greenfield PP facility and/or brownfield debottlenecking options at five existing units, which will target long-term demand growth for automotive for light-weighting vehicles. Currently, the average amount of PP used in cars is 60-70 kg in Europe, whereas in the United States, it is only 30-35 kg. The 450-500 KTA Greenfield plant is very dependent on the availability of feedstock.

Comments: The amount of propylene produced from steam crackers in the US has been decreasing due to the increasing percentage of ethane in the feedstock mix. This led Braskem America to purchase a propylene splitter from Sunoco in 2010 and secure a reliable source of feedstock for its existing PP plants in the US. The company has also reached a deal with Enterprise Products to buy propylene from their PDH plant in Texas. Currently, there are eight PDH plants announced/planned in the US. The present prices of propylene are expected to sharply decrease when all the PDH plants being built become operational. Currently, the number one North America PP producer, Braskem is looking to capitalize on the region’s feedstock cost advantage.

 

EUROPE

 

Several PE plants planned in Russia and CIS

 

There are nine PE facilities currently on construction in various stages throughout Russia and the Commonwealth of Independent States (CIS), all of which are expected to gradually come on stream till 2022.

  • Uz-Kor Gas Chemical is on schedule to launch 387 KTA PE facility in Uzbekistan later this year.
  • Shurtan plans to double its PE capacity at its existing complex in Uzbekistan to 250 KTA by 2016
  • Gazpromeyes 2017 for a new PE plant with a capacity of 400 KTA start-up at Novy Urengoy gas and chemical complex in Russia.
  • Nizhnekamskneftekhim has a 600 KPAPE pyrolysis unit in Russia due on stream in 2017.
  • Rosnefthas a 345 KTA PE plant in Russia scheduled for online in 2018.
  • SANORS targets 2019 for a 1060 KTA PE facility in Samara, Russia.
  • ZapSibNeftekhim has a 1530 KTA PE plant in Russia that is expected for completion in 2019.
  • Lukoil has a 255 KTA PE unit due online in 2022 at its existing complex in the Caspian Sea region.
  • Kazakhstan Petrochemical Industry plans to bring a 800 KTA HDPE/LLDPE swing plant online in 2019.

Comments: Russia has recently invested in olefins and derivatives to leverage its abundant supply of oil and associated gas into petrochemical production for both the domestic and export markets. Russian domestic petrochemical producers will also marginally benefit relative to imported polyethylene on a cost basis from the decline in Russian currency caused by low oil prices and Western sanctions. Former Soviet Union countries like Uzbekistan, Kazakhstan, and Turkmenistan are on a similar pathway, as they have relatively well-developed Oil & gas upstream and midstream infrastructure, but almost no domestic downstream petrochemical production. South Korea-based Lotte Chemical and LG Chem are taking advantage of these investment opportunities in Uzbekistan and Kazakhstan. These Korean companies will benefit from proximity to cost-advantaged feedstock, low labor costs, and encouragement from local governments. Uzbekistan and Kazakhstan receive access to world-class engineering and an opportunity to become regional polyolefin production centers, especially given Russia’s uncertain status in international trade.

 

Synthos joins Pirelli and Rosneft for a potential synthetic rubber facility in Russia

 

Pirelli and Rosneft have selected Synthos, a Poland-based chemical raw material supplier, as their technical partner for potential synthetic rubber (SR) project in Nakhodka, Russia. These three companies have signed an MOU to begin an aSR facility feasibility study in Far Eastern Russia within the framework of the Far East Petrochemical Company petrochemical cluster.

Comments: There have been activities in the synthetic rubber market recently with Synthos currently exploring its expansion and JV options. Similarly, Repsol has reached an agreement with GroupKuo to strengthen its JV Dynasolthrough the expansion of its product portfolio. Synthos is among the leading global synthetic rubber producers and Pirelli intends to supply its tire factories in Asia with synthetic rubber made in Russia. Synthos will provide the technical know-how.

 

 

ASIA PACIFIC

 

Asian petrochemical producers invest non-oil based projects

 

Several Asian petrochemical producers have been expanding their non-oil-based businesses, including natural gas, shale gas, and condensate and liquefied petroleum gas (LPG), in a bid to overcome cost disadvantages compared to oil-producing countries such Middle East and North America. For example, Hyosung has a new propane dehydrogenation (PDH) unit using LPG in Ulsan, South Korea, scheduled for operation in 2016. LG Chem is scheduled to start up a natural gas based 840 KTA ethylene production unit and an 800 KTA PE plant in Kazakhstan in 2019. SK Gas is building an LPG-based propylene production plant in Ulsan, South Korea. Lotte Chemical plans to build natural gas-based chemical plants in Surgil, Uzbekistan, which will produce 390 KTA of HDPE and 80 KTA of PP.

Comments: The advantaged feedstock cost position for the Middle East and North America has had a major impact on the Asian petrochemical industry. North American shale gas has revolutionized the petrochemical industry in the region. The Middle East has been a global low-cost producer for many years. These impacts have forced Asian petrochemical companies to diversify their feedstock to remain competitive in the cost-sensitive petrochemical industry. Asia’s economic changes and demographic trends have translated the region into a fast-growing and large demand center of the world. This megatrend is expected to hold for the next decade.

 

Zeon to boost TPE capacity in Japan

 

Zeon Corporation plans to boost the production capacity of Quintac®styrene isoprene block polymers (SIS) at the Mizushima facility in Japan to 60 KTA. The expansion is scheduled for completion in 2016.

Comments: Zeon Corporation is a Tokyo-based elastomer supplier with subsidiaries under the name of Zeon Chemicals around the world. Zeon’s Mizushima facility produces styrene isoprene block polymers consisting of high-purity isoprene monomers extracted via its proprietary C5 fraction technology. Zeon’s Quintac®SIS elastomers are designed for adhesives. Asia represents the largest market for pressure-sensitive adhesives, followed by North America. Both regions are witnessing growing demand for adhesives from the electronics and automotive industries. The expansion of SIS elastomers production is to respond to growth in the adhesives market.

 

Shenhua Ningxia Coal Industry develops a high-value-added PP resin

 

Shenhua Ningxia Coal Industry Group has developed a new polypropylene resin for injection molding. The2240Sgrade is reported to have high crystalline with a high melt index and is designed for containers, appliances, and auto accessories.

Comments: China is dedicated to developing a coal-to-chemicals industry that will reduce dependence on imported raw materials in line with China’s 12th Five Years Plan. However, Shenhua Ningxia Coal Industry is in western China where many of the coal-to-chemicals facilities focus on the production of commodity resins like polyethylene and polypropylene resins. The additional capacity will lead to oversupply and in turn impact price competition. The development of this new grade for injection molding will allow the company to move toward higher-end market segments.