AMERICAS
Borealis to consolidate plastics compounding operations in Brazil
Borealis is planning to restructure its operations in Brazil, by transferring production from its plant at Triunfo to the recently upgraded facility at Itatibain in early 2015. Borealis invested about USD 57.3 million to expand the Itatiba facility with the construction of an additional production building, PP compounding extruders, blending and raw material silos, warehouse facilities, and a bagging line.
Comments: Borealis currently has polypropylene compounding plants in Itatiba and Triunfo in Brazil. Transfer of production from Triunfo to Itatiba will help Borealis consolidate its production at a location that is close to Sao Paolo where the majority of its customers, automotive manufacturers, and OEMs are located.
Sasol to proceed with investment in Louisiana
Sasol has decided to proceed with the ethane cracker and derivatives project at Lakes Charles in Louisiana. The USD 8.1 billion projects will include the production of ethylene derivatives including polyethylene, ethylene oxide, ethylene glycol, specialty alcohols, and ethoxylates. Plans to include an alpha olefins unit have been postponed.
Comments: The latest approval from Sasol to go ahead with the Louisiana project will enable Sasol to become one of the first players to finish building their cracker and derivative units taking advantage of shale gas in the United States. Dow, ExxonMobil, Chevron Phillips, and others have all announced plans to build crackers in the US as well based on shale gas feedstock. Low-cost ethane availability in the US was one of the driving factors in Sasol’s decision to invest in Louisiana and will enable them to become a major net supplier as well as exporter of PE derivatives in the near future.
Westlake plans ethylene expansion
Westlake plans to expand its ethylene facility in Lake Charles Louisiana by about 114 KT. Westlake plans to invest over USD 330 million in the project. The expansion is expected to be completed in late 2015 or 2016.
Lyondell Basell evaluating further ethylene capacity expansion
LyondellBasell is evaluating a project to expand ethylene capacity at its plant in Channelview Texas. The project is expected to increase LyondellBasell’s ethylene capacity by 250 KTA. Preliminary engineering work is underway to study the feasibility and if LyondellBasell proceeds with the project, it is expected to be completed in 2017.
So.F.Ter opens its first US plant
Italian compounder So.F.Ter has started production at its first plant in the United States in Lebanon Tennessee. The plant will make compounds primarily based on polypropylene, nylon, and polyesters. So.F.Ter will also be installing new lines to make compounds based on thermoplastic elastomers next year.
Comments: Italy-based SO.F.TER is a producer of engineering plastics based on polyamide, polypropylene, and thermoplastic elastomers. This will be the company’s first plant in the US. The plant produces compounds based on nylon 6, polypropylene, and other thermoplastics for the automotive end-use. SO.F.TER strategically located the new plant close to major automotive manufacturers such as Honda, Toyota, Nissan, Volkswagen, and automotive OEMs, which are located in the states of Alabama and Tennessee.
EUROPE
Songwon and UTS to supply additives to Sibur
Songwon Industrial Co., Ltd and its distributor United Trading System has signed a long-term cooperation agreement with Sibur to supply additives used for polypropylene, polyethylene, rubbers, thermoplastic rubbers, and PVC. Sibur will also engage in developing and implementing joint projects aimed at improving polymer characteristics with its partners.
Comments: South Korea-based Songwon Industrial Co. Ltd is one of the largest manufacturers of stabilizers and polymer additives in the world. The company has steadily expanded its global presence since 2009 to North America, China, South East Asia, and the Middle East through sales and manufacturing. The agreement with will help Songwon strengthen its market position in Eastern Europe while helping Sibur with technology support from its partner.
Biaxplen broadens exports
Biaxplen has expanded the supply of BOPP film for export to the European market and the first lot of products has been shipped to Spain, Bosnia, and Herzegovina. Last year, Biaxplen launched two new production lines in Tomsk and Novokuybyshevsk, increasing its capacity by over 60%.
Comments: Biaxplen Limited, a subsidiary of Sibur currently produces 180 KTA of BOPP from five production sites in Novokuybyshevsk, Kursk, Balakhna, Zheleznodorozhniy, and Tomsk. The company has expanded its capacity with a focus on exporting the material to Bosnia, Herzegovina, and Spain, as the present production exceeds domestic demand. The company’s other export markets include France, Germany, Greece, Italy, Poland, Spain, and the Baltic states.
Rosneft and Pirelli to find partners to develop synthetic rubber production
Rosneft and Pirelli have signed an MoU for the production and sales of synthetic rubber in the Nakhodkaregion of Russia’s Far East. Pirelli and Rosneft will identify within three months new partners to develop rubber materials including the production of styrene butadiene rubber.
Comments: Rosneft and Pirelli have consolidated their manufacturing and marketing operations after Rosneft acquired a 13% stake in Pirelli. Rosneft and a future partner are expected to analyze the joint production of styrene-butadiene rubber, with Pirelli collaborating in research and development. The deal will expand Pirelli’s market presence in Russia and ensure a consistent supply of raw materials for its tires.
MIDDLE EAST & AFRICA
Qatar to reassess petro chemical expansion plans
Qatar has put its Al-Sejeel project on hold and is looking to reassess its petrochemical expansion plans intending to remove new polymer capacities in the pipeline owing to excessive supply in the Middle East. Qatar planned to invest about USD 25 billion to boost its petrochemical capacity to 23,000 KTA.
ASIA PACIFIC
Celanese and Setsunkasei sign a letter of intent
Celanese Japan Limited has signed a letter of intent to pursue an agreement with Setsunakasei Co Ltd; with this agreement, Setsunan will compound Celanese-engineered polymers at its facility in Japan.
Comments: Celanese manufactures thermoplastics (PBT, PET), acetal polymers, liquid crystal polymers, and ultrahigh molecular weight polyethylene for various processes including injection molding, blow molding, rotational molding, and compression molding. Setsunan will compound these engineering polymers with glass fiber, minerals, fillers, etc.
IRPC plans to expand petrochemical capacity
IRPC plans to expand its capacity for polypropylene and value-added products. IRPC plans to invest USD 308 million in 2015 for the project. The project is expected to increase IRPC’s PP capacity by 300 KTA.
Comments: IRPC licensed its Horizon polypropylene technology from JPP in 2012, and is planning a capacity expansion due to the strong growth in demand for polypropylene and polypropylene compounds in Thailand and neighboring Asian countries such as Indonesia and Vietnam. Vietnam in particular is a net importer of polypropylene, having a severe supply deficit due to the lack of PP production facilities there. The main demand driver for polypropylene growth in the region is from automotive end uses such as bumpers, dashboard fascias, and other automotive interior/exterior applications. Thailand is a leading automotive manufacturing hub for several global automakers who have set up production facilities in Thailand to cater to export markets.
Indian Oil mulls cracker based on shale gas
Indian Oil is considering the construction of an ethane cracker, at Paradip, based on shale gas from the United States. The cracker could have a production capacity of 1,000-1,200 KTA.
Comments: Indian Oil plans to supplement its Paradip refinery following Reliance’s efforts to secure ethane supply from the United States. Reliance has invested in shale gas assets in the US via partnerships and acquisitions with multiple companies. Reliance has also initiated talks for capacity allocation at a terminal for the export and liquefaction of ethane in North America to begin sometime in 2016. Indian Oil can follow a similar route to import ethane and ensure competitiveness in the domestic Indian market.