AMERICAS
Axiall chooses Louisiana for the cracker and derivatives project
Axiall has chosen Louisiana for a USD 3 billion ethane cracker and derivatives plant. Axiall is considering potential partners for this project in which Axiall expects to invest about USD 1 billion. The new plant could begin operations in 2018.
Comments: Axiall, formed after the merger of Georgia Gulf Corp. and the chemicals business of PPG in early 2013, is a leading producer of ethylene dichloride, vinyl chloride monomer, and polyvinyl chloride. Axiall currently operates two facilities in Louisiana, and the proposed cracker and derivatives project also in Louisiana will aim to take advantage of the low-cost feedstock available in North America and increase Axiall’s cost competitiveness in the EDC/VCM/PVC market.
Nova postpones PE project
Nova Chemicals has postponed plans for a new PE facility, based on the Advanced Sclairtech process, due to the uncertainty in the cost and availability of project resources. Currently, Nova is building a USD 1 billion PE plant at Joffre, Alberta as a part of the first phase of the Nova 2020 strategy. Instead of building the new plant, Nova will undertake a USD 300 million project to expand the Corunna cracker by 20%, debottleneck the LDPE line and retrofit the HDPE line at the Moore facility for the second phase, and the new PE plant will be investigated as the third part of Nova 2020.
Cooper Tire terminates merger agreement with Apollo Tyres
Cooper Tire has terminated the merger agreement with Apollo Tyres as the financing for the deal was no longer available. Cooper Tire hanged the merger agreement with Apollo Tyres in June 2013, for USD 2.5 billion.
EUROPE
Rosneft, Pirelli to form rubber R&D partnership in Armenia
Rosneft, Armenia’s Oil Techno, and Pirelli have signed an MoU for a joint R&D in styrene-butadiene rubber in Armenia. Rosneft will be the leading investor, while Pirelli will cooperate with Rosneft to develop styrene butadiene rubber with Oil Techno being the local partner.
Comments: The tire industry has been going through several changes for developing formulations to obtain grades for SSBR that would improve the low rolling resistance tires for lower fuel consumption. The industry has been developing grades by blending with silica to develop SSBR with functionalities for higher low rolling resistance. Pirelli’s decision to work with SBR producers will help them develop grades for the tire industry and will give them a competitive advantage.
Sibur expands butyl rubber capacity at Tol’yatti
Sibur has commissioned its third butyl rubber separation line at Tol’yatti synthetic rubber manufacturing complex. As a result of the new line, the capacity has expanded from 48 KTA to 53 KTA. The new line uses Tolyattikauchuk’s solution polymerization butyl rubber production technology.
Comments: Butyl rubber is an important raw material for tire production due to its air impermeability properties. The material is required for the production of inner liners for tires to prevent air leakage. The material in addition exhibits good flex and weather ability, properties that are necessary for this application. Tires consume over 80% of the total butyl rubber production. The current demand for butyl rubber is just over 1000 KT and growing at over 4%. In the last few years, the automotive industries in emerging regions have been expanding influencing this growth. Other applications for butyl rubber include pharmaceutical packaging, sealants, gloves, and others.
MIDDLE EAST & AFRICA
Hanwha Chemicals signs LOI for petchem complex in Iraq
Hanwha Chemicals has signed a letter of intent to build a USD 4 billion petrochemical complex in Iraq. The complex will include gas processing facilities, and ethylene and petrochemical production units. The total petrochemical production capacity of the plant is expected to be about 1,000 KTA and is expected to be completed in 2020-21.
Comments: There is a growing need in the petrochemicals industry to become ethylene oriented as high and volatile crude oil prices are undercutting profits using the conventional naphtha processing methods. Hanwha has been trying to diversify its manufacturing base to regions with low feedstock stocks and has already agreed upon a couple of deals in the Middle East region where the feedstock prices are more favorable as compared to feedstock prices in Asia.
Sabic opens Saudi Arabia research facility
Sabic has opened a new plastics application development center, SPADC, in Saudi Arabia. The center has been funded by Saudi Arabia’s government to encourage petrochemical research in the Kingdom. SPADC will focus on introducing innovative plastics solutions and delivering new applications for businesses.
Comments: Sabic is leading the way in petrochemical research in the Middle East region, with this latest research facility planned in Saudi Arabia following the recent openings of other research centers in India and China. Sabic aims to attract new investment in Saudi Arabia along with promoting research and innovation by tying up with universities in Saudi Arabia. In recent years, Sabic has developed a reputation for having one of the highest numbers of patents per researcher amongst global petrochemical companies.
ASIA PACIFIC
BASF to start compounding plant in South Korea
BASF will be starting a new compounding plant at Yesan, by the end of 2015 to make compounds based on BASF’s Ultramid –brand nylon resins and Ultra dur-brand polybutylene terephthalate resins. The plant will have a compounding capacity of approximately 36 KTA.
Comments: PBT is most commonly consumed in electrical applications due to its very good electrical insulation. The material is often used in fire retardant applications, auto parts, switches, and others. The economic growth in Asia has resulted in the expansion of various industries, including construction, and as a result demand for electrical and electronic parts has increased. BASF has over the last few years been taking advantage of the growth and following its strategy of increasing its presence in the region.
New SSBR plant in Thailand to begin commercial operations
JSR, BST Elastomers is likely to start commercial operations at the new solution-styrene butadiene rubber plant by the first half of 2014. The plant is located in Map Ta Phut, Thailand, and has an initial production capacity of 50 KTA. The plant capacity can be expanded to a total production capacity of 100 KTA. The plant is a joint venture between Japan’s JSR Corp (51% ownership) and Thailand’s Bangkok Synthetics.
Comments: The demand for SSBR in South East Asia is close to 200 KT and is growing at 4%. It is influenced by the growing need to produce fuel-efficient tires. The recent rise in demand for solution SBR production is driven by government regulations for automotive tire producers to label their products indicating fuel efficiency. This legislation in some form has already been implemented in Japan, South Korea, and Europe whereas other regions such as the United States, Brazil, and China have measures to head in that direction. Thailand has a large and growing automotive sector that will need SSBR to sustain fuel-efficient tire growth.
ExxonMobil expands Singapore facilities
ExxonMobil has inaugurated the world’s first facility that directly converts crude oil into petrochemical products, in Singapore. The expanded facilities include a 1,000 KTA steam cracker, two 650 KTA PE units, a 500 KTA PP unit, a 300 KTA specialty elastomers unit, and a 340 KTA benzene extraction unit. With this expansion, ExxonMobil now can produce 2,500 KT of derivative products.
Comments: ExxonMobil has so far invested over USD 3 billion in its facility on Jurong Island in Singapore. Singapore has been extremely successful in attracting petrochemical investment with Mitsui, Shell, and BASF all operating world-scale facilities in Singapore. ExxonMobil’s latest expansion is in keeping with the rapidly increasing growth in demand for petrochemicals in the Asian region. Singapore is located centrally to be able to supply most Asian countries efficiently.
PTT Global Chemical plans USD 4.5 billion investment
PTTGC plans to invest about USD 4.5 billion, from 2014 to 2018, focusing on expanding the company’s businesses outside Thailand. This investment would enable PTTGC to increase its business presence in other countries including China, Indonesia, Malaysia, and Vietnam. Also, PTTGC aims to double its revenue by 2020.
Comments: This massive capital investment would enable PTTGC to pursue several new projects. Last year, PTTGC signed a joint venture with Pertamina for a petrochemical project in Indonesia. This project involves the construction of a steam cracker and downstream derivatives plant. The project is expected to come on stream in 2018. PTTGC is also exploring the possibility of a petrochemical project as a joint venture with Petronas in Malaysia. In China, PTTGC is assessing the market situation for polymers along with Sinochem. These projects would give PTTGC a strong foothold in the fast-growing South-East Asian market.
Indian Synthetic Rubber Ltd., to start commercial production at the new SBR plant
Indian Synthetic Rubber Ltd plans to start commercial production of SBR at its new plant in Panipat, India in January 2014. Indian Synthetic Rubber Ltd is a joint venture between Indian Oil, Taiwan’s TSRC Corporation, and Japan’s Marubeni Corporation. The capacity of the plant is 120 KTA and it is expected to be enhanced to 220 KTA by 2015. The technology for the manufacture of SBR is provided by TSRC.
Comments: The automotive industry in India has been growing at over 8% over the last few years with current production of 4 million cars per year. With this growth the demand for raw material for tire production has been growing and will continue to increase. India is one of the largest producers of natural rubber globally, with availability depending on supply/demand scenario and weather condition. The new plant will help with continuous supply of raw material.
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