AMERICAS
Shintech seeks permit for ethylene plant
Shintech has applied for a permit from the Louisiana Department of Environment Quality for the construction of a 500 KT ethylene plant. A site for the plant has not been chosen yet.
Comments: Shintech, the U.S. subsidiary of Shin-Etsu Chemical has recently focused on a strategy of backward integration for its PVC business. Shintech operates three PVC production facilities — a 590 KT plant in Addis, Louisiana, a 600 KT plant in Plaquemine, Louisiana, and a 1,450 KTA plant in Freeport, Texas. Construction of its ethylene plant on the U.S. Gulf Coast would allow Shintech to manufacture ethylene from cost-advantaged ethane derived from shale gas and ultimately reduce production costs of PVC.
Lanxess opens high-tech plastics plant in Brazil
Lanxess has opened its high-tech plastics plant at the company’s site in Porto Feliz, Brazil. The USD 28 million plants will have a capacity of 20 KTA to produce the high-tech plastic product lines Durethan and Pocan.
Comments: The automotive industry in Brazil and Latin America is among the fastest growing in the world, and Lanxess’ new plant will cater to the needs of the automotive industry by supplying its Durethan and Pocan brand materials. These materials were developed to eventually replace metal in vehicles to aid in lightweighting. The main demand push comes from global automotive companies that seek to maintain uniformity in their manufacturing processes globally.
Mexico Ethylene XXI to reach 85% completion
Construction of the Ethylene XXI project in Mexico is expected to be 85% complete by the end of 2014. The project is a joint venture between Braskem and Mexico’s Groupo Idesa. The project will produce 1,050 KTA of polyethylene from ethane and is expected to commence operations in the third quarter of 2015.
Comments: The project construction began in 2010 and is on track for completion by its target date of mid-2015. The project consists of an ethane cracker with and capacity for 750 KTA of HDPE and 300 KTA of LDPE. Mexico is currently an importer of polyethylene and this project once completed will reverse the current situation.
Synthos to build Nd-PBR plant
Synthos will be investing in a USD 170 million synthetic rubber plant at Triunfo, Brazil. The plant will produce neodiyum catalyzed polybutadiene (Nd-PBR) rubber based on Michelin’s technology. The raw material for the plant will be supplied by Braskem. The plant will have a capacity of 80 KTA and is expected to be complete by 2017.
Comments: Brazil is one of the fastest-growing regions for automotive sales in the world. Considering the country’s expected double-digit growth rate, the building of a new Nd-PBR plant is a strategically significant move by Synthos. Tire manufacturing is the biggest application market for Nd-PBR. Nd-PBR is also used for polymer modification in the manufacturing of high-impact polystyrene for injection molding applications, manufacturing of sports equipment, and conveyor belts.
EUROPE
Borealis plans XLPE expansion in Sweden
Borealis plans to expand crosslinked polyethylene production at Stenunsgund, Sweden by 20 KT. The capacity is expected to be on-stream by 2015. This investment would apply to Borlink extra-high-voltage (EHV), high-voltage direct current, and high-voltage (HV) polyethylene compounds produced in closed-loop or controlled-loop processes.
Comments: Borealis is a leading cross-linked PE producer for wire and cable applications. The latest capacity increase will enable Borealis via Borouge to expand its market presence in the Middle East and also use the Ruwais location as an export hub for Asian markets.
Styron to convert Ni-BR line to Nd-BR
Styron plans to convert its Nickel butadiene rubber (Ni-BR) production line in Schkopau, Germany to Neodymium Butadiene Rubber (Nd-BR). The conversion is expected to begin this year and would be completed by end of 2015.
Comments: Nd-BR is used mainly in the production of tires. Nd-BR tires offer improved rolling resistance which contributes to improving fuel efficiency. The increase in regulations across the globe towards improving fuel efficiency has raised the demand for ultra-high-performance tires. The new Nd-BR production line will complement Styron’s existing S-SBR production towards satisfying the global demand for high-performance tires.
MIDDLE EAST & AFRICA
Taghleef buys Spain’s Derprosa Film
Taghleef Industries will be acquiring Spain’s Derprosa Film, adding to Taghleef’s BOPP capacity. The transaction is expected to close in April. Taghleef has eight production facilities spread across Italy, Hungary, UAE, Oman, Egypt, Australia, the US, and Canada with a nominal capacity of 385 KTA for the production of BOPP, BOPLA, and cast PP films.
Comments: Taghleef Industries is one of the largest BOPP manufacturers in the world, and has recently followed a strategy of aggressive international acquisitions and capacity expansions, culminating with its purchase of AET Films in 2013. Deprosa films offer a recent history of innovative products made at its 30 KTA plant in Alcala la Real, Spain. As a result of the deal, Taghleef receives access to cutting-edge technology and specialty high-value BOPP film products, and Deprosa gains a foothold in markets on every continent.
Sabic develops new stretch film
Sabic has developed a stretch film made using a combination of PP and LLDPE. The film is designed with better load stability to help the beverage industry reduce transportation loss.
Comments: SABIC currently manufactures about three LLDPE stretch wrap grades using butene and hexene comonomers. The new grade is developed specifically to improve the holding force and load stability for beverages in transit. The new PP-LLDPE blend allows downgauging and improved optical properties. The food and beverage industry is fast moving toward sustainable packaging practices, and this grade potentially reduces the amount of plastic film used without compromising clarity, which is crucial for brand exposure.
ASIA PACIFIC
Petronas approves Rapid project
The Board of Petronas has granted final approval to the Pengerang Integrated Complex (PIC) project in Johor, Malaysia. This includes the RAPID production complex which would consist of a 300,000 bbl/day refinery and a petrochemical complex with a total capacity of 7,700 KTA. The products from the petrochemical complex would include synthetic rubbers and high-grade polymers. The refinery is expected to start up by 2019.
Comments: Approval of the refinery indicates a significant milestone in the development of the complex, as the project was delayed by land acquisition issues. Decisions on downstream chemical plants are expected to follow. The project includes a liquefied natural gas (LNG) regasification terminal, and feedstock for the project is partly expected to be supplied by imported LNG in addition to refinery output. Technip is under contract to do the front-end engineering and design (FEED) for the project.
Zhejiang Weitai Rubber plans to start a new SBR plant
Zhejiang Weitai Rubber plans to start a new styrene-butadiene rubber in Zhejiang, China. The plant is expected to have a capacity of 100 KTA to produce emulsion-SBR.
RIL to start commercial production at a butadiene rubber plant
Reliance Industries Ltd plans to start commercial production at its 40 KTA butadiene rubber plant at Hazira, Gujarat. The new plant would increase Reliance Industries’ total butadiene rubber capacity to 120 KTA.
Comments: Reliance Industries Limited supplies polybutadiene rubber to the tire industry. RIL already operates an 80 KT PBR plant in operation at Vadodara, Gujarat. The new capacity will help RIL cater to the growing automobile demand in India. Also, Reliance entered into a joint venture with Sibur for the production of butyl rubber. The joint venture plant which is expected to start operations in late 2015, will have a capacity of 100 KTA and will be located at Jamnagar.
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