AMERICAS
Borealis to expand in South America
Borealis is expanding its activity in its plant at Itatiba, Brazil. The expansion project includes the construction of two PP compounding extruders, besides the improvement of plant facilities. All the improvements along with the expanded PP compounding extruders are expected to be online by the fourth quarter of 2014.
Comments: Borealis made the investment and started construction of the plant while the Brazilian automotive market was in a growth phase. Recently, the market has been in a recession due to a slowdown in domestic demand and clumsy government trade policies that keep 85% of automotive production within the country. The biggest importer of Brazil’s cars, Argentina, is also going through a recession. Long-term prospects of the industry, however, are still good, and Borealis has gained an important foothold in an important regional market with high potential for future growth.
DuPont investing in capacity expansion for ethylene copolymers
DuPont Packaging and Industrial Polymers is planning to invest USD 100 million to increase production capacity of its ethylene copolymers assets at its Texas manufacturing facilities. The capacity expansion plans include a series of investments of about USD 100 million to be completed over the next three to four years. The investment would support growth in DuPont™ Surlyn® ionomer resins, DuPont™ Nucrel ® ethylene acid copolymer resins, DuPont™ Elvaloy® ethylene copolymer resins, DuPont™ Vamac® ethylene acrylic elastomers, and special grades of DuPont™ Elvax® EVA copolymers.
Comments: DuPont’s ionomer resins, acid copolymer resins, ethylene copolymer resins, ethylene acrylic elastomers and EVA copolymers are used in a wide variety of applications in packaging, automotive and polymer modification segments. North America is expected to witness a steady growth in demand for such high performance polymers, especially in the flexible packaging and automotive sectors. For instance, within the food packaging segment, flexible packaging solutions such as stand-up pouches are increasingly used in applications which traditionally used rigid packaging. The capacity increase will help DuPont, as one of the leading suppliers of ethylene copolymers, to support the needs of the growing market.
Polymax Elastomer launches production in Illinois
China’s Polymax Elastomer has started up its production site and headquarters in Waukegan, Illinois. Polymax Elastomer produces styrenic block copolymer-type thermoplastic elastomers as well as thermoplastic rubber.
Comments: Polymax Elastomer Technology Co. Limited produces thermoplastic elastomers and thermoplastic rubbers based on styrenic block copolymers. The company’s main customers in the US include GM, Nike, Adidas, and Stanley Tools. The new plant is Polymax’s strategic plan to reduce delivery times of their products to customers and increase regional presence. The new plant will expand Polymax’s capacity by 20%. Waukegan, Illinois will be Polymax’s second headquarters, the first being Nantong, China.
Zotefoams expanding US production
Zotefoams is planning to undertake a USD 22 million expansion at its Walton, KY., plant. The investment would consist of high pressure gassing capacity as well as extrusion capacity. The Walton site currently runs only the final expansion part of Zotefoams’ three-stage manufacturing process.
Comments: Zotefoams is a polyethylene foams manufacturer based in Croydon, England. The company supplied polyethylene foams in North America through imports until the establishment of a manufacturing plant in Walton, KY. Zotefoams manufactures crosslinked and non-crosslinked polyethylene foams based on LDPE, HDPE, and LLDPE, including metallocene polyolefin foams. The outlook for polyolefin foams in North America looks promising and Zotefoams plans to capture the increasing market through this expansion.
Dow Elastomers launches next generation technology for footwear
Dow Elastomers is introducing its Infuse Olefin Block Copolymers for use in athletic shoe midsole. Infuse Olefin Block Copolymers are expected to enhance flexibility, adhesion and foaming compared to conventional EVA-based midsole foams.
Comments: Infuse™ OBCs are used as modifiers for EVA foams in shoe soles. Dow developed Infuse™ OBC based shoe sole that offer greater softness, increased elasticity, higher temperature resistance, improved compression set when compared against conventional EVA foams based shoe sole. These OBC can also be used floats, kickboards, sports & recreational goods. Infuse™ OBCs are polyolefins with alternating blocks of rigid and elastomeric segments using INSITE technology which is based on Dow’s proprietary catalyst.
Braskem develops new PE grades for pipes
Braskem has developed new polyethylene grade for application in pipes. The new resin offers enhanced mechanical properties such as creep, impact strength and rapid crack propagation. Target applications for this resin include water pipes, natural gas distribution pipes, pipes to transport ore slurry and oil, sewage networks and water mains.
Comments: HDPE is the main resin used in polyethylene pipes. HDPE pipes are segmented into two markets (1) solid wall pressure pipe and (2) corrugated and smooth wall drainage pipes. Solid-wall pipes account for 80% of the HDPE pipe demand while corrugated pipes account for 20% of the global HDPE pipe demand. The major application for solid-wall pipes include: (1) oil/Gas production, (2) industrial/sewer pipes, (3) water pipes, (4) gas distribution, (5) conduits & others. Technical requirements for pipe resins include resistance to crack growth and propagation, ability to operate at higher temperatures and pressures, high creep rupture strength, and long-term hydrostatic strength.
EUROPE
SIBUR to proceed with ZapSibNeftekhim project
SIBUR will be proceeding with the USD 9.5 billion ZapSibNeftekhim project. The project is expected to produce 1,500 KTA ethylene, 500 KTA propylene, 100 KTA butane-butylene fraction as well as 1,500 KTA of polyethylene grades and 500 KTA of polypropylene grades.
Comments: Government policy, abundant domestic natural gas supply, and rising uncertainty in exports of oil and gas are driving Russian oil/gas/petrochemical giants to focus on development on downstream development of petrochemical products, especially polyethylene, polypropylene and derivatives. Another trend along with increases in capacity is an emphasis on matching Western producers in resin quality. SIBUR recently started up a PP plant using Ineos technology, and local buyers and converters responded positively to the improvement in resin quality relative to other domestic PP plants. Using leading technology licenses will allow SIBUR PE and PP grades to compete on a performance and not just cost basis on the export market.
BASF starts up new butadiene extraction plant
BASF has started up a new butadiene extraction plant at its site in Antwerp. The plant has an annual production capacity if 155 KT.
Comments: BASF’s new 155 KT butadiene plant is a result of increasingly tight availability of butadiene supply on global markets. As a result of shale gas abundance in North America, ethane as steam cracker feedstock has increased tremendously in the region, resulting in decline of butadiene extraction as co-product. This has led many producers in Europe to invest in butadiene capacity expansions/on-purpose butadiene. LyondellBasell has expanded its butadiene capacity in Wesseling, Germany in 2013. BASF is also developing on-purpose butadiene extraction technology jointly with Linde. North America will depend on Europe to meet the increasing butadiene demand. European manufacturers are increasing their butadiene production capacity to capitalize on the decrease in North America’s butadiene production.
MIDDLE EAST & AFRICA
Sabic’s PP used for medicine dosage cups
Sabic’s new medical grade PP, PCGR40, has been used for liquid medicine dosage delivery system launched by Bormioli Rocco, a pharmaceutical packaging company. Bormioli Rocco estimates that up to 20 million dosing cups will be produced in the remainder of this year alone, with production expected to increase further from 2015.
Comments: Bormioli Rocco’s choice of SABIC’s PCGR40 PP grade for the new medicine delivery dosage cups highlights the importance of constant communication between OEM and resin supplier in the healthcare market today. Medical products producers face dual pressure to improve product performance in spite of rising resin costs and comply with increasingly stringent government regulation limiting which polymers can be used in healthcare products. Close work between Bormioli Rocco’s product design team and SABIC researchers resulted in a new source of demand for SABIC’s PP and a high-performance, tailored product with a stable supply source for the pharmaceutical packaging company.
Al Sejeel petrochemical project shelved
Industires Qatar has decided to shelve the Al-Sejeel petrochemical project at Ras Laffan, Qatar. Al Sejeel is a joint venture between Qatar Petroleum and Qatar Petrochemical Co. The USD 6.3 billion project was expected to be on-stream in 2018. Industries Qatar is currently studying a new downstream petrochemical project which is expected to yield better economic returns.
ASIA PACIFIC
Shandong Shouguang Luqing Petrochemical Co. licenses UOP technology
Shandong Shouguang Luqing Petrochemical Co. Ltd., has licensed UOP’s C4 Oleflex process to produce isobutylene. The new plant is expected to start up in 2016 and will produce approximately 170 KTA of isobutylene.
Comments: The UOP Oleflex process has found a home in China—this is the 4th Oleflex C4 project in the past 2 years and the 16th UOP project in the country overall. The UOP Oleflex™ process will be used for the catalytic dehydrogenation of isobutane to isobutylene. The isobutane will be sourced from SSLPC’s integrated refinery and petrochemical complex in Shandong Province. The complex includes a 2,600 KTA catalytic cracking plant, a 1,600 KTA unit to convert LPG to aromatics, a 600 KTA gas separation plant, a 200 KT polypropylene plant, a 100 KTA MTBE plant, and a 50 KTA sulfur recovery unit.
PTT and Saudi Aramco consider collaboration for Vietnamese project
PTT and Saudi Aramco have submitted a USD 22 billion refinery and petrochemical complex in Vietnam. PTT and Saudi Aramco are considering a 40% stake each in the project, with the remaining 20% owned by the Vietnamese government. The project would include an olefin and aromatics petrochemical plant with a combined capacity of 5,000 KTA.
Comments: The Vietnamese economy and demand for petrochemicals have recently shown some of the fastest growth in the region while the domestic petrochemical industry has yet to take off. There are no polyethylene plants currently in Vietnam, and only one polypropylene plant with a capacity of 150 KT owned by PetroVietnam. Construction of two large integrated petrochemical complexes is underway, but both have already experienced significant delays due to investment and environmental issues. This proposal by PTT and Saudi Aramco would give Vietnam a world class production base for many downstream products, since the plants will be integrated into a refinery with FCC and hydrocracking units with a steady supply of crude. If the project is approved, Vietnam’s reliance on petrochemical imports will decrease drastically.
Advanced Petrochemical approves PDH investment in South Korea
Advanced Petrochemical’s equity investment in a propane dehydrogenation project planned by SK Gas at Ulsan has been approved by the board of directors. Advanced Petrochemical will invest through Advanced Global Investment Company and will have a 35% stake in the plant. The plant will have a production capacity of 600 KTA of propylene and will use the Lummus PDH technology and Clariant’s catalyst.
Comments: Growing demand for propylene and the influx of propane from gas-rich regions has sparked massive investments in PDH plants in several regions as the spread between propane and propylene prices is projected to remain large enough to make the technology profitable. In North America, seven PDH plants are currently in planning or construction stages driven by decreased propylene production due to cracker feedstock changes and by the surge in propane production from shale gas. In China, eleven plants are in planning or construction stages, as the country pushes to catch up to domestic demand and rely less on foreign imports. U.S. propane exports have increased drastically in the past year, with several Asian companies signing long-term contracts with U.S. midstream producers. SK Gas will likely import propane from the U.S. to run its plant, which will use Catofin PDH technology from CB&I. The venture will also help Advanced Petrochemical Co. establish a more global presence.