AMERICAS
Dow to build R&D facility in Texas
Dow Chemical plans to build a new R&D facility at Lake Jackson, TX, near its largest manufacturing site at Freeport, TX. The Texas Innovation Center will house laboratory facilities and technical expertise centers to enable ongoing innovation that supports the commercialization of solutions across high-growth end-use markets such as food packaging, automotive and personal care. The R&D facility is expected to be completed in 2016.
Comments: The new R&D center will be called Texas Innovation Center and will be Dow Chemical Company’s global R&D hub. The building of a global R&D center close to the company’s largest manufacturing site will strengthen the company’s research and development operations to focus on growth markets through the consolidation of research activities. The current R&D facilities in Freeport are over 30 years old and focused on polyolefins, polyurethanes, and basic chemicals. The newer facilities will be focused on end-use sectors, in addition to technologies.
Dow targets Q3 2014 for cracker construction
Dow Chemical expects to start construction of the 1,500 KTA ethane cracker in Freeport, Texas, by the third quarter of this year. Dow Chemical is currently in the process of securing permits. The ethylene production facility is scheduled to start up in 2017.
Comments: Currently, North America has the largest ethylene capacity in the world. North American ethylene manufacturers have rushed to take advantage of less expensive ethane from the shale gas revolution. Dow Chemical also expanded ethylene capacity at their Hahnville, LA facility in 2013.
Ethylene XXI project is 58% complete
The engineering, Procurement, and Construction of the Ethylene XXI project in Mexico are 58% complete. 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.
Teknor Apex expands thermoplastic elastomers range
Teknor Apex has expanded its range of thermoplastic elastomers by adding styrenic based thermoplastic elastomers to its Sarlink product lines. The new styrenics are aimed at automotive components and exhibit strength and elasticity comparable to that of TPVs. These styrenics provide smoother part surfaces and similar or better long-term UV stability than thermoplastic vulcanizates.
Comments: Sarlink range products consisted of only TPVs, until the introduction of TPE-S. Teknor Apex positions the new TPE-S as a cost-competitive alternative to TPVs, considering the price fluctuations of EPDM rubber, which is required for the manufacture of TPVs.
Shin-Etsu evaluating US ethylene investment
Shin-Etsu is evaluating plans to build a world-scale ethylene plant in the US. The capacity of the plant would be 1,000 KT and Shin-Etsu expects to make a final decision within the next six months to one year. Shin-Etsu is considering Louisiana as a probable location for the new plant.
Comments: Shin-Etsu is already working on increasing its VCM/PVC capacity in Louisiana which is set to be complete by 2015. Ethylene is the raw material needed to make EDC/VCM/PVC. Shin-Etsu currently does not produce its ethylene in the US but purchases it. If Shin-Etsu decides to integrate backward into ethylene production, the move will result in greater profit margins.
Occidental to separate and move HQ to Houston
Occidental Petroleum will separate its California oil and gas assets into an independently traded company. The headquarters will be moved from Los Angeles, California to Houston, Texas. Occidental Petroleum will have exploration and production operations in Texas, the Middle East, and Columbia, and include a midstream and marketing segment and Occidental’s chemical subsidiary OxyChem.
Cereplast files for bankruptcy
Cereplast Inc has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy code. Cereplast has made the move to realign its cost structures with the market demand. Cereplast reported a net loss of USD 34 million on sales of USD 2.1 million for nine months through Sep 30. Cereplast expects to redirect its operations toward traditional compounded products, recycling polyolefins, and towards bioplastics made of diversified feedstock including algae and polylactic acid.
Comments: Cereplast has been a pioneer in bioplastics, since its inception in the mid-2000s. Cereplast worked in several directions including compounding, processing, and blending to promote bio-plastics. They worked with all of the bioplastics developed including PLA. They have always felt that they are ready with technology, but people are not ready to accept bioplastics at the current costs. Finally, it caught up with them.
EUROPE
Lanxess, and Hankook to jointly develop synthetic rubber for tires
Lanxess and Hankook have signed an MoU to develop synthetic rubber technologies for high-performance tires. Lanxess and Hankook will also be jointly studying the development of high-performance synthetic rubber grades to increase tire performance.
Comments: Lanxess is one of the leading producers of synthetic rubber in the world. Lanxess produces polybutadiene, high-performance solution styrene-butadiene (S-SBR), and neodymium polybutadiene rubbers (Nd-PBR) for the manufacture of tires in their Performance Butadiene Rubber business. Lanxess invested in various rubber plants (Nd-PBR, EPDM, NBR) in Asia, and the new agreement will bolster the sales of its products in the region.
Clariant Q4 net income falls
Clariant reported a fall of 16.5% in net income to about USD 91 million for the fourth quarter of 2013 while sales rose 4% to about USD 1.78 billion. Clariant’s four business areas, Catalysis and Energy, Natural Resources, Plastics and Coatings and Care Chemicals, all recorded higher sales in Q4 2013.
MIDDLE EAST & AFRICA
Sipchem begins the start-up of a cable polymers plant
Sipchem has begun the initial start-up of the new cable insulation polymers plant at Al-Jubail, Saudi Arabia. The plant, owned by Sipchem’s affiliate Gulf Advanced Cables Insulation Co., will produce insulation polymers for the fabrication of electrical, and cable insulation materials. The plant will use LDPE-EVA feedstock, provided by International Polymers Co., a Sipchem affiliate.
Comments: Blends of LDPE and EVA result in a resin with good performance and process-ability characteristics. EVA (depending on the vinyl acetate content) improves the toughness and filler loading ability of LDPE. Also, polyethylene’s high dielectric strength and very low electrical conductivity make it an attractive material for cable insulation. This wire and cable polymers compounding plant is a joint project owned by Sipchem and Hanwha Chemical Corporation, and the products will be marketed in the Middle East and Europe regions. The new plant is a part of Sipchem’s third phase downstream expansion program and for Hanwha Chemicals, it would support the globalization process by extending Hanwha’s existing wire and cable polymers compounding business.
Orpic petchem plant expected by 2018
Orpic expects to complete three refineries, and petrochemicals projects by 2018, which includes the construction of a new petrochemical complex in Sohar. The Sohar petrochemical complex includes a steam cracker and associated downstream units which include HDPE, LDPE, and PP production. Among the other two projects, the Sohar Refinery Improvement Project aims to improve the existing refinery’s ability to process heavier crude by adding five new units, and the third project is the construction of a multi-product pipeline system between Oman’s two existing oil refineries.
Comments: The new polyolefin plants will be integrated into the existing refinery at Sohar. Like its neighbor, Saudi Arabia, Oman plans to strengthen the country’s economy by investing in downstream products such as PE, PP, and aromatics.
Total plans to build petchem complex in Iraq
Total has signed a preliminary agreement with Iraq’s industry ministry to explore the feasibility of building a world-scale petrochemical complex in the southern Iraqi port of Basra. Total intends to boost its refinery and chemical activities in the Mideast and Asian regions.
Comments: Total is looking to expand its footprint in the Middle East region, the reason being the increasingly slim margins in Europe due to high costs and intense competition. The Middle East region presents a comparatively better long-term prospect for Total, with Iraq’s abundance of gas resources which presents a more cost-effective option compared to feedstock in Europe.
Oil to chemicals complex planned in Yanbu
Saudi Arabia is planning to build a plant to convert crude oil directly into chemicals. A technology, to build its own oil-to-chemicals plant at Yanbu, is being studied by Saudi’s Petroleum and Mineral Resources Ministry in collaboration with SABIC.
Comments: Chemical companies typically process refined oil products such as naphtha into petrochemicals. ExxonMobil in Singapore first employed a new technology that bypasses crude oil refining and produces petrochemicals directly from crude oil. Middle Eastern countries that have a cost advantage through abundant feedstock availability will benefit more from this new technology, as it further reduces feedstock costs and energy consumption.
ASIA PACIFIC
Samsung Total develops eco-friendly PP catalyst
Samsung Total has succeeded in the mass production of a polypropylene catalyst that does not contain phthalates. Phthalates are known to cause interference with the mammal hormone system. The European Union is set to impose a ban on the use of phthalates starting next year.
Comments: Recently, there has been increased attention and interest in reducing the use of phthalates in view of the European ban on phthalate use starting in 2015. Several plastics producers have shown interest in developing phthalate-free polypropylene catalysts, but Samsung Total is among the first to commercially produce a phthalate-free PP catalyst.
Asahi to close several plants in Japan
Asahi will permanently shut several downstream plants in Japan and will go ahead with the consolidation of its naphtha cracker with Mitsubishi’s at Mizushima. Asahi will shut down a 24 KT styrene butadiene latex plant by the end of 2015; a 150 KTA acrylonitrile plant at Kawasaki by August 2014; a 320 KTA styrene plant at Mizushima by March 2016; a 65 KTA acrylonitrile butadiene styrene (ABS) plant at Mizushima will be closed by December 2015; and a 37 KTA epoxy resin plant by May 2015. Mitsubishi and Asahi’s naphtha crackers will be unified at the Mitsubishi facility in Mizushima. The unified cracker will be managed by a 50-50 joint venture and will have a capacity of 570 KTA.
Comments: Asahi is currently a major producer of acrylonitrile, styrene, and ABS in the Asian region. One of the major export markets for Asahi has been China, and due to the recent economic slowdown in China, the demand for these materials, especially acrylonitrile has taken a hit. The acrylonitrile market is currently oversupplied and the profit margins have eroded. Asahi will now focus on supplying the local Japanese market to reduce its risk of fluctuating market conditions in the Asian region.
Prime Polymer to scrap one LLDPE line
Prime Polymer will be scrapping one LLDPE in its production facility in Chiba Prefecture, Japan. The line will be scrapped in December 2014 and has a capacity of 60 KTA. Prime Polymer already scrapped a 130 KTA HDPE line in March 2013.
Comments: Prime Polymer is one of the major metallocene LLDPE producers in Japan. Demand for polyethylene has reached maturity in Japan resulting in poor demand growth. The demand for polyethylene in the region is expected to grow at a slow rate of 1.9% per year until 2020.
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