Lukoil-Neftekhim to construct polypropylene plant in Russia based on UNIPOL® process from Dow
The Dow Chemical Company and LUKOIL-Neftekhim announced that LUKOIL and Dow’s subsidiary, Union Carbide Chemicals & Plastics Technology Corporate, have signed a license agreement for Stavrolen to use UNIPOL™ PP process technology from Dow for a new polypropylene plant at Budennovsk, Russia. Construction of the plant, which will have a capacity of 120 KTA, is scheduled for completion in 2006. Stavrolen will also use the proprietary UNIPOL™UNIPPAC™ Advanced Process Control package from Dow, which is designed to seamlessly integrate with plant automation and company enterprise resource planning (ERP) Information Systems.
LUKOIL-Neftekhim will use UNIPOL PP process technology from Dow to produce impact-resistant and low-temperature polypropylene and also its various modifications used in medicine and agriculture. The polypropylene produced will be supplied to Russian chemical plants where fiber, thread, tubes, and other consumer goods will be manufactured. Total investments into the project will exceed US$70 million. In addition, the construction of the unit will create 400 new jobs in Budennovsk.
Comments: The latest announcement may refer to the expansion initially started in 1986 when the company announced the construction of an 80 KT plant. In 1992 a company named OAO Stavropolpolymerproduct was set up to complete and operate the line. However, in 1995 the construction works ceased as the state funding had stopped. The construction started back up in January 2005 and is anticipated to be completed in 2006, barring any further financial hurdles.
Polibrasil and Titan sign license agreements with Basell to increase PP capacity
Basell has signed two license agreements with Polibrasil and Titan Petchem that will increase polypropylene production by 310 KT annually in their existing plants using the Spheripol process.
Polibrasil plans to increase the capacity of its Spheripol process plant in Mauá, state of São Paulo, Brazil, in two stages. The first phase, scheduled for completion in early 2007, will increase the plant’s annual capacity from 240 KT to 360 KT; the second phase, scheduled for completion by 2008, will increase capacity to 450 KT per year.
Titan Petchem plans to increase the capacity of its Spheripol process plant at Pasir Gudang, Malaysia from 100 KT to 200 KT when the project is completed at the end of 2007.
Comments: The peak in the polyolefins industry business cycle has spurred an above-average growth in polypropylene capacity. Basell with its Spheripol and Spherizone process technologies has been quite successful in capturing the share of the planned capacity increases. Since the beginning of January 2005, there have already been announced capacity expansions of 1,740 KT based on Basell’s polypropylene technologies, including the latest announcements by Titan and Polybrasil. Last year was also a very successful year for Basell, having licensed several polyethylene and polypropylene technologies. The majority of these capacities are slated to come on-stream in 2007 and 2008. The Middle East is also gearing up to start up several polyolefins units during the same period. Historically, above-average capacity growth (which usually occurs at the top of the cycle) has been followed by a down cycle in the industry. The industry as a whole must expand prudently to minimize future downturns.
Nova Chemicals reports second quarter loses
Nova Chemicals reported a net loss of $25 million for the second Quarter of 2005. In the olefins and polyolefins segment, the company reported a Net income of $45 million in Q2 of 2005 compared to $112 million in Q1 2005. Polyethylene prices were 11% lower and volumes 4% lower, while co-product volumes were 8% lower.
The styrenics business of Nova Chemicals reported a net loss of $76 million in Q2 versus a net loss of $21 million in Q1 2005. Benzene feedstock costs negatively impacted reported results by $27 million, styrene monomer spot prices fell by 25% and polymer volumes declined by 6%. Polymer prices in Europe were down 6% versus Q1 due to weak demand, especially in construction markets where demand fell by more than 20%.
Feedstocks and Ethylene
NOVA Chemicals’ ethylene prices declined 5% from the first quarter, while USGC contract ethylene prices declined 8% from the first quarter. The USGC contract price fell to 37 cents per pound in June. The average price of WTI crude oil was up 7% to $53.17 per barrel and the average price of NYMEX natural gas was up 8% to $6.80 per MMBtu in the second quarter. NOVA Chemicals’ ethane-based crackers at Joffre, Alberta had a cash-cost advantage that averaged approximately 6 cents per pound for the quarter over typical ethane-based USGC ethylene plants.
Polyethylene
NOVA Chemicals’ total polyethylene sales volumes for the second quarter were down 4% from first quarter sales volume, impacted by demand reduction and plant outages. As reported by the American Plastics Council (APC), the industry reported second-quarter operating rates were reduced to 89% in North America versus 95% in the first quarter. NOVA Chemicals’ North American volumes were down 7% compared to the first quarter, and international volumes were up 11% at 126 million pounds.
International sales represented 17% of NOVA Chemicals’ total polyethylene sales volume this quarter. Second quarter weighted-average benchmark polyethylene prices were down about 7 cents per pound from the first quarter of 2005. NOVA Chemicals’ polyethylene inventories were down from 23 days on March 31, 2005, to 18 days of sales on June 30, 2005.
Advanced SCLAIRTECH Technology Polyethylene
NOVA Chemicals sold 183 million pounds of Advanced SCLAIRTECH polyethylene in the second quarter of 2005. Sales of Performance Products, including new rotational molding and thin-wall injection molding products increased to 50% of plant capacity for the quarter for the first time.
Comments: Comments: Nova Chemical was on a great trend of ever-increasing earnings from mid-2003 through the first quarter of 2005 when the company earned $94mm. The polyethylene/ethylene side of the company was still profitable in the second quarter and made $45mm but prices were down 11% and volumes were 4% lower. However, the styrene side of the business fell from a $21mm loss in the first quarter to a $76mm loss in the second quarter, more than a three-fold increase in negative earnings.
Thank to the extreme volatility in the aromatics/benzene markets for this performance, benzene costs alone impacted NOVA’s styrenics business by $27mm in the red. Nova points out that the benzene-related loss occurred during a period when the market was experiencing sharply lower benzene prices and slack demand which combined to move the entire market in styrenics down. With about 45 days of inventory, NOVA’s FIFO accounting system prevented its benzene cost from tracking styrene prices as directly as North American competitors that use the LIFO system. Why then does Nova use a FIFO system in such volatile markets?
The company points out that compared to the first quarter, increased benzene costs (in a falling market) impacted styrenics costs by up 14% compared to a cost decrease of 3% if they had been on a LIFO inventory cost system.
This added total delta of 17% (14% + 3%) shift in second-quarter costs would have negated the entire quarterly loss experienced by the whole company – all because of accounting. Usually, a company on LIFO will make an inventory adjustment annually or periodically but a FIFO system makes the adjustment almost monthly depending on inventory levels. Benchmark benzene prices fell from $3.75/gallon in March to $2.50/gallon in June – corresponding styrene monomer spot prices in the second quarter fell by 25% or more.
Nova, unlike most other petrochemical organizations, declared itself a “commodity” company with less emphasis on innovation and new product development. Case in point – the AST program despite its superior technology is slow in adoption. In the area of styrenics, Nova’s so-called innovative product is still the SMA – the Dylark® developed by Arco Chemical Company in the mid-80s. There have been very few new developments that contribute to the sales potential. Nova, by its own choice, is a commodity company and is subject to the ups and downs of the commodity organizations with more emphasis on supply/demand/price and manufacturing costs.
Nova’s quarterly reports indicate majority of the financial results are tied to “Consultant Indexes”, for prices and operating rates that are based on communication with other companies, rather than the true market conditions. Overall, any organization that can show losses for almost thirteen quarters in a row and still be in business deserves a compliment from its sponsors, the Canadian Government.
Dow reaffirms its commitment to specialty elastomers following the dissolution of the joint venture
The Dow Chemical Company reaffirmed its commitment to leadership in the specialty elastomers marketplace following the formal dissolution of the DuPont-Dow Elastomers (DDE) nine-year joint venture.
Dow moved to exercise its option to end the joint venture last December. As part of the move, DDE’s ENGAGE™ polyolefin elastomers, NORDEL™ethylene propylene rubber, and TYRIN™ chlorinated polyethylene product lines have been reintegrated into Dow’s Specialty Plastics and Elastomers portfolio and will now be available exclusively from Dow. These products will compliment Dow’s existing lineup of market-leading specialty plastics and elastomer brands.
Dow will continue to support all former DDE customers in key markets such as automotive, wire and cable, and building and construction with a full portfolio of materials and services. The three products returning to Dow’s portfolio are:
ENGAGE Polyolefin Elastomers, which offer the flexibility and toughness of synthetic rubber with the processability of plastics and are often used to modify other materials for impact resistance or improved low-temperature performance. Since its development by Dow, ENGAGE has become the modifier of choice for automotive TPO (thermoplastic olefins) applications as well as auto interior components and innovative interior designs.
NORDEL Hydrocarbon Rubber significantly expanded the performance boundaries for EPDM products and set new and higher standards for EPDM performance and processing productivity. The NORDEL IP family of products brings improved yield, reduced scrap, and outstanding polymer cleanliness, while NORDEL MG delivers unparalleled mixing performance.
TYRIN Chlorinated Polyethylene is a performance polymer used in a wide range of elastomer and thermoplastic applications. As an elastomer, TYRIN provides an excellent balance of chemical, heat, and flame-retardant properties in automotive, wire and cable, and other applications. In thermoplastic applications, TYRIN serves as a cost-effective impact modifier for building materials such as vinyl siding, window profiles, and PVC pipes as well as electrical connectors and fittings.
The dissolution of the joint venture was completed on June 30, 2005.
Comments: Dow and DuPont together contributed global elastomer sales of about $ 1 billion – 80% from DuPont and 20% from Dow. DuPont’s contribution included (1) EP Elastomers – Nordel, (2) Chlorinated Elastomers – Neoprene and Hypalon, (3) Fluorinated Elastomers – Viton, Kalrez, and Zalak. Dow’s contribution included (1) Chlorinated Polyethylenes – Tyrin, (2) part of metallocene-based polyolefins – Engage, and (3) specific product technology capability around INSITE catalysis. Although Dow’s initial contribution represented 20% of the joint venture, the growth potential and future contribution were quite significant.
The major incentive for DuPont for forming the joint venture included (1) access to INSITE® technology for the EPDM product line, (2) some synergies between CPE and CSPE, and (3) benefit from Engage-based products. In addition to technology and R&D, Dow brought a unique way of conducting business in terms of development and speed to market. The major incentive for Dow included (1) access to the global elastomers customer base, (2) market knowledge, (3) development capabilities, and (4) an experienced base of employees.
The break-up brings the Dow operations closer to the core groups. The integration of DuPont Dow’s operations (notably EP Elastomers) back into Dow will be a seamless operation. The loss of DuPont’s portion moves Dow one step backward in their quest for the ideal Global elastomers organization.
Borealis introduces new Borecene Compact™ powder grades for roto molding applications
Borealis has launched two new Borecene Compact™PE grades to meet rotomoulders’ needs for polyethylene (PE) resins that provide enhanced flow properties, as well as improved economics and handling.
The new grades, which use Borealis patented technology eliminating pellet grinding, offer significant advantages for technical products used in high-performance applications such as parts for the automotive industry with intricate shapes.
Black Borecene Compact RM 8346-9004 represents a step advance in Borecene technology, particularly in respect of flow in complex molds with narrow spaces and threads, and replaces Borecene Compact grades RM8346 and RM8346RC. The main application for this new grade will be diesel fuel tanks, where their barrier performance is superior to standard linear and crosslinked resins.
Borealis is also launching a new natural color Borecene Compact grade RM8346-1000, which provides extra high UV resistance. Introduced in 2002, the Borecene Compact family was the first-ever black polyethylene in a form that eliminates pellet grinding.
This provides for a dust-free working environment, higher product quality, and improved consistency, including better carbon black homogenization. And, as its name suggests, Borecene Compact has increased bulk density and therefore takes up less volume, making its transport and storage more efficient.
It enables rotomolders to improve productivity through shorter cycle times and it gives improved dry-flow for easier mould filling, narrower particle size distribution to achieve a better surface finish with fewer wall bubbles, and enhanced mechanical properties in the finished product.
Comments: Borealis has been one of the leading suppliers of roto-molding resins for several applications. There are other competing technologies such as micropellets that offer a dust-free environment and eliminate the powder grinding step. These new powder grades should help Borealis position itself with the competing materials and maintain its market share.
Phoenix project under review by Pemex & partners
Mexico’s Energy Ministry announced that the government and private partners are still reviewing options for the project.
According to the ministry, the Phoenix project for the Mexican petrochemicals industry continues under analysis. Government officials, state oil company Petróleos Mexicanos (Pemex), and private investors are now discussing alternatives to the original plan to build a facility centered on a 1.2 million metric-ton-per-year ethylene cracker.
“Currently, proposals for are being studied, including options based on different technologies that allow for the same production levels of ethylene, polyethylene, and propylene,” according to the ministry.
Comments: What else can PEMEX say at this time? Certainly, they don’t want to give up their optionality on the project their economy so desperately needs. PEMEX gave a presentation in Houston in late 2004 that shows the curve of shortfall in petrochemicals to Mexico is daunting. The petrochemical market in Mexico currently exceeds $18B of which about 60% is imported. PEMEX forecasts petrochemical growth to 2010 to be 8-10%/year which will more than double the market. PEMEX also points out that if this trend continues in petrochemicals, Mexico will import as much value in petrochemicals equal to more than 50% of the value exported in crude oil at $50/bbl.
The sticking point is reported that the Mexican Treasury will not approve a discount to market for the condensate C5+ feedstocks to Phoenix’s cracker. These feedstocks are currently sold mostly into the USGC market at prices higher than the petrochemical project investment can justify. Reportedly, to “protect” the project’s $1.9B investment, the feedstock advantage will have to be somewhere in the range of 20% lower than market prices. This is not as deep a discount as those historically offered in the Middle East but in Mexico, partners to the Phoenix project have repeatedly referred to the “feedstock advantage”.
The Mexican Treasury is saying no discount and that is the stand-off.
The other issue is that for the Phoenix project to start up in 2009 as envisioned, approvals and engineering needed to be well underway by 2005 and they are not. There is a Presidential election coming soon and according to the major press reports out of Mexico, nothing will happen on the project when national politics are in flux. Either way, the project is already delayed for years. Some projects like Phoenix will ultimately be built in Mexico but right now it is a guess as to when and where.
Reliance subsidiary IPCL starts ethylene expansion
Reliance subsidiary, Indian Petrochemicals Corp. Ltd. (IPCL) is implementing the second phase of a debottlenecking to hike the capacity of seven downstream products. The second phase of expansion will be completed by October 2006, costing Rs4.85 billion ($111 million). The first phase, which increased the capacity for three products, was completed over the last few months for Rs1.25 billion.
The second phase will increase ethylene capacity by 65,000 metric tons per year to 365,000 metric tons at IPCL’s gas-based complex at Gandhar in Gujarat, and by 12,000 metric tons per year to 142,000 metric tons at the naphtha-based complex at Baroda, but the gas-based complex at Nagothane in Maharashtra will not be expanded. The company’s annual ethylene capacity after the expansions will total 907,000 metric tons. In addition, the gas processing capacity at Gandhar will be increased to 11 million standard cubic meters per day, up from 9 million standard cubic meters a day, to improve the availability of ethane and propane.
The company also plans to raise the capacity for benzene at Baroda by 12,000 metric tons per year to 35,600 metric tons, for polyvinyl chloride and vinyl chloride monomer at Gandhar by 70,000 metric tons per year each to 315,000 metric tons each, for polybutadiene rubber at Baroda by 6,000 metric tons per year to 56,000 metric tons, and for dry spun acrylic fiber by 6,000 metric tons per year to 30,000 metric tons. Under the first phase, mono ethylene glycol capacity at Gandhar was raised by 157 percent to 188,000 metric tons per year, caustic soda by 25 percent to 170,000 metric tons, and acrylonitrile by 17 percent to 42,000 metric tons.
Comments: Reliance, after acquiring IPCL, has been focusing on streamlining IPCL’s assets. Reliance undertook various initiatives to improve the operations of IPCl, debottlenecking being one of them. The chemical industry in India has been experiencing double-digit growth and there will be a need for basic 6 chemicals such as benzene and ethylene in the foreseeable future. This increased capacity will be absorbed by the downstream facilities of IPCL or Reliance.
The major ethylene suppliers in India include (1) GAIL, (2) Haldia, (3) IPCL (now Reliance), (4) NOCIL, (5) Oswal Agro., and (6) Reliance Industries. IPCL was the largest supplier of ethylene before its divestiture and Reliance was the second largest supplier of ethylene. With Reliance’s acquisition of IPCL, Reliance is now the largest supplier with a total combined capacity of over 1,700 KT. Haldia is the next largest supplier with a total ethylene capacity of approximately 500 KT.
Reliance is the fastest-growing private sector company in India and will be among the top 10 petrochemical producers in the world in a few years. In the last three decades, Reliance has grown at an exponential pace and become the largest private-sector industrial house in India in terms of assets, turnover, and profits. Reliance is the domestic market leader in most of the markets it competes. The company has a 60% market share in HDPE, 70% in PP, and 40% share in PVC. The company also has interests in various other sectors. Reliance has increased its dominance in the petrochemical industry by acquiring its closest competitor IPCL.
Nova Chemicals and Grupo Idesa form styrenic polymers joint venture in Mexico
Nova Chemicals announced it has reached an agreement in principle to form a 50:50 joint venture (JV) in Mexico with Grupo Idesa. The new venture, to be called NOVIDESA, SA de CV, plans to be a market leader in high-value expandable polystyrene (EPS) for applications such as construction and packaging in the growing Mexican market. NOVIDESA will also distribute NOVA Chemicals’ solid polystyrene in Mexico. The new JV will be formed by a cashless transaction and is expected to commence operations in September 2005.
EPS production for the new JV will come from GRUPO IDESA ́s Apizaco facility in the state of Tlaxcala. The JV plans to convert solid polystyrene (SPS) production to higher-value EPS production to meet the expected growth in construction application demand.
Comments: This joint venture is a win-win for both IDESA and NOVA Chemicals. It looks remarkably like NOVA’s other similar combined joint venture last year where in Europe, NOVA’s polystyrene capacity was combined with Innovene’s (former BP) to produce many efficiencies.
GRUPO IDESA (“GI”) has been in the polystyrene business, mostly EPS, for the past 26 years. In addition to EPS, however, GI also produced solid polystyrene (SPS) in crystal, impact, and copolymer grades. This looks remarkably like a “mini” NOVA but South of the US/Mexican border. The venture has announced that GI will curtail non-EPS production and concentrate on higher growth and higher-valued foam product. This means NOVA will give up some EPS export sales to Mexico but GI is going to represent NOVA’s solid polystyrene sales into Mexico.
Therefore, NOVA gets an established local representation in their SPS sales grades (polystyrene and copolymers) and picks up the SPS sales that were being made by GI from their 100mm lb/yr plant.
From the press announcement, it says that the SPS capacity in crystal, high impact, medium impact, and co-polymers production capacity will be converted to EPS production so the likelihood is that most all of GI production capacity is suspension based which is of course best suited exclusively to EPS bead foam. Also, since NOVA is a net monomer seller with large capacity, it would seem logical that they will provide feedstock to GI’s plant which should also improve economics. The GI deal was a cashless transaction just like NOVA did with Innovene in Europe. Both new partners in Mexico will win because this is a good way to rationalize the market.
BASF launches TPU product line for elastic nonwovens
BASF’s Elastollan® thermoplastic polyurethanes (TPU) business has launched its product line for elastic nonwoven applications in North America and Europe. The technology was jointly developed at the company’s Elastollan TPU operations in the United States and Germany.
Melt-spun nonwovens are mainly produced from polypropylene or polyester resins, which are not inherently elastic. As such, achieving the desired elastic properties with these materials requires mechanical manipulation or incorporating elastic bands or tapes into their structure.
According to the company, elastic nonwovens made from Elastollan TPUs can be produced by standard spun melt processes, such as melt blowing or spun bonding, in many cases without the need for secondary bonding processes, and that the flow characteristics of Elastollan TPUs are also better suited to these processes. Potential elastic nonwoven applications for BASF’s Elastollan TPUs include hygienic, medical, and filtration webs, and apparel. Serhatkulu said that BASF will develop new Elastollan TPU products specifically formulated and manufactured for the elastic nonwovens market for applications with unique requirements.
Comments: Thermoplastic polyurethane (TPU) is traditionally used for applications that require good properties such as abrasion resistance, chemical resistance, cold temperature flexibility, cut and tear resistance, high load bearing, and others. Typically TPU is normally used in applications such as (1) automotive, (2) film and sheet, (3) hoses and tubes (4) mechanical goods (5) wire and cable (6) wheels and casters (7) adhesives (8) coatings (9) medical applications and other. TPU is regarded as a specialty elastomer and is used in high-end applications that require better properties.
Nonwoven fabrics typically made from polypropylene find use in durable and disposable end-use applications in the marketplace. Nonwoven fabrics used for disposable applications include (1) baby and adult diapers, (2) feminine sanitary products, (3) surgical gowns and masks, (4) filters, and others. Nonwoven fabrics used for durable applications include (1) carpet, (2) geotextiles, (3) subsoil covers for road beds, (4) furniture interlining, (5) industrial – filtration, and others. Hygiene has the highest demand with close to 40% of the total nonwoven demand and growing at close to 3.6%.
BASF’s new product, TPU-based nonwoven will allow it to open new markets for nonwovens, especially in high-end applications that require better elastomeric properties that are inherent to TPU.
Chevron Phillips to construct new Ryton® PPS plant at Borger, TX
Chevron Phillips Chemical announced that Borger, Texas will be the location of its new polyphenylene sulfide (PPS) plant. The new plant will have a 22 million pound-per-year capacity with startup anticipated in mid-2007. Built side-by-side to the existing PPS plant in Borger, the new facility will expand the company’s total PPS capacity at the site to 44 million pounds per year.
Construction of the facility is subject to final board approval, which will be sought later in the year. Ryton® PPS is Chevron Phillips Chemical’s high-performance engineering resin known for its dimensional stability and resistance to corrosive and high-temperature environments.
Comments: Polyphenylene sulfide (PPS) is a semicrystalline material that offers an excellent balance of high-temperature resistance, chemical resistance, flowability, dimensional stability, and electrical properties. PPS can be loaded with reinforcement fibers and fillers for injection molding. Because of its low melt viscosity, PPS can be loaded as high as 70% with a variety of fillers and reinforcements. PPS, which can be compounded or reinforced, is usually injection molded.
The total demand for PPSs in North America in 2004 was about 40 million pounds. Injection molding constitutes almost 95% of the total PPS demand. The biggest application for PPS is in electrical and electronic parts. The primary use of PPS is electrical connectors and compounds because of the material’s high heat deflection temperature, flame retardance, and ability to fill long, thin sections. PPS is also used in automotive applications such as engine sensors and halogen lamp sockets.
Other applications for PPS include appliance applications such as small switches, heater internal housings, electric motors, end bells, and brush holders.
Chevron Phillips, Ticona, and Dainippon Int. and Chemicals (DIG) are the global suppliers for PPS. Chevron Phillips controls over 40% of the global capacity followed by Ticona and DIG. With this new plant, the company will increase its market share.
Korean firm Lotte Daesan to invest $975 million in petrochemicals by 2008
Lotte Group, comprising of Honam Petrochemical Corporation & Lotte Daesan Petrochemical Corporation has announced its plans to invest about $975 million in petrochemicals by 2008.
The group plans to invest in several projects including:
NCC; Ethylene 350,000 MT/year (Total capacity after the finished investment is 1,720,000MTA) Polycarbonate – Investment amount of KRW370 billion Styrene monomer – 330 KT Ethylene Glycol – 300 KT LDPE – 200 KT, and PP – 250 KT.
Another fire at BP’s Texas City refinery
There was a second fire at BP’s Texas City refinery on 28th July 2005. No injuries were reported in Thursday’s blast, which occurred about 6 p.m. in a part of the sprawling 1,200-acre complex far removed from the unit that exploded in March.
The explosion occurred along a hydrogen line in a part of the refinery called the Resid Hydrotreating Unit, which removes sulfur from heavy crude oil. The unit — one of 30 at the 1,200-acre site — was completed in 1984 and built by Amoco with a capacity of processing 60,000 barrels of oil per day.
Formosa Pays $1.3 Million to Settle EPA Vinyl Chloride Charges
EPA announced it has reached an agreement with Formosa Plastics that will require Formosa to pay $450,000 in fines, and another $840,000 in upgrades at its Delaware City, DE plant. The agreement requires Formosa to meet state and federal vinyl chloride emissions limits and to spend the $840,000 in plant upgrades that reduce the company’s vinyl chloride emissions significantly below state and federal limits.
Violations at Formosa’s Delaware City plant include excess emissions of vinyl chloride and other violations of the Clean Air Act’s monitoring, reporting, and leak detection requirements; violations of federal and state hazardous waste storage regulations; and Clean Water Act violations, including inadequate water pollution monitoring and failure to undertake an oil-spill prevention and control plan, DOJ says.
Dow appoints new chief technology officer
William F. Banholzer has been appointed corporate vice president and chief technology officer of The Dow Chemical Company.
Reporting to Liveris, Banholzer will join the Office of the Chief Executive and will lead Dow’s research and development activities across the globe, with direct responsibility for the Company’s existing R&D Council.
Banholzer joins Dow from General Electric Company, where he was vice president of global technology at GE Advanced Materials, responsible for worldwide technology and engineering. He will relocate from Pittsfield, Massachusetts to Midland, Michigan.
Banholzer joined GE in 1983 as a staff chemical engineer in the company’s Corporate Research and Development Laboratory. In 1989, he led the R&D Center’s chemical vapor deposition material program and later was promoted to laboratory manager for Advanced Inorganic Materials. In 1992, Banholzer transferred to GE’s Superabrasives business, where he held numerous management positions culminating in responsibility for the division’s worldwide engineering and quality efforts. Banholzer was named a company officer and moved to GE Lighting as vice president of Global Engineering in 1997. He assumed his current role with GE Advanced Materials two years later, leading a worldwide team responsible for process and product engineering, new capacity technology, and product quality initiatives.
Banholzer graduated from Marquette University with a bachelor’s degree in chemistry and subsequently earned a master’s degree and a doctorate in chemical engineering from the University of Illinois.
Comments: Dr. Banholzer is well known in the technology circles and had been at the forefront of his innovative developments at GE.
European Union opens anti-dumping probe into plastic bags from China, Malaysia, and Thailand
The European Commission announced on June 30 an anti-dumping investigation into imports from China, Malaysia, and Thailand of plastic bags and sacks. The probe was prompted by a complaint from 30 European bag-makers. The bags are described by the Commission as containing at least 20% of polyethylene and a thickness not exceeding 100 micrometers. In October 1997, the EU set definitive anti-dumping duties of up to 60.8% on imports of plastic bags from India, Indonesia, and Thailand after an investigation showed the EU’s consumption of the bags increased from 43,000 tons in 1992 to 47,000 tons in 1995.
Comments: European Union is essentially taking the same course of action as the US plastic bag producers. USITC had imposed anti-dumping duties ranging from 19.79 to 77.57 percent for China, from 84.94 to 101.74 percent for Malaysia, and from 2.26 to 122.88 percent for Thailand. The outcome of this investigation may be the same as in the United Sates.
South Australia to ban plastic bags from January 1, 2008
South Australian State Government announced its plans to introduce regulations to ban polyethylene bags – mostly issued by supermarkets, video stores, and fruit and vegetable sellers – from January 1, 2008.
The Australia-first move aims to eradicate about 500 million “single-use” bags issued mainly by supermarkets, fruit and vegetable sellers, and video stores. Such bags have become a major problem, with vast numbers ending up as rubbish, clogging waterways and blighting the landscape.
Thicker plastic bags, which are used mainly by department and clothing stores, will be exempt – but the Government yesterday signaled they were likely to be targeted in the future. Small plastic bags, known as “barrier bags” and used to separate meat, fruit, and vegetables, are also exempt for hygiene purposes.
Comments: The concerns related to pollution could prompt other countries to impose similar restrictions. This will be especially true for countries that do not have a good recycling infrastructure. Countries like India and China that do not have an extensive recycling problem will eventually face similar problems of bags ending up as rubbish, clogging waterways, and blighting the landscape.
This ban could impact some of the consumption of polyethylene in Australia. However, since China is the major exporter of polyethylene bags the impact will be more in terms of a decrease in imports than the decrease in domestic consumption of polyethylene resins. The economic impact of the ban on the polyolefins industry in Australia might be very little.
But, the fact remains, the trend will continue to expand to other countries that currently do not have an efficient infrastructure to collect, process, and dispose of plastic garbage bags.
Case in point – The National Forests in India show the greenest trees with multicolored large flowers all through the year along the railway tracks – plastic bags are disposed of by the train passengers – No way of collecting them.
Lawsuits filed against DuPont over Teflon Chemical risks
A $5 billion class-action lawsuit is being filed against DuPont Co. saying the company long failed to warn consumers on the dangers of a Teflon chemical.
The lawsuits were filed in federal courts in eight states on behalf of 14 people who bought and used cookware with the nonstick Teflon. It is made using perfluorooctanoic acid and its salts, known as PFOA, or C-8. The plaintiffs want DuPont to spend $5 billion to replace the cookware, impose a Teflon warning label and create two funds to pay for medical monitoring and more scientific research.
DuPont said that the company will defend itself against the allegations raised in this lawsuit. According to the company, cookware coated with DuPont™ Teflon® non-stick coatings does not contain PFOA. This has been verified by an independent peer-reviewed study of consumer products published in April 2005 in Environmental Science and Technology. Approved standard FDA tests also show that non-stick coatings used for cookware sold under the Teflon® brand, do not contain any PFOA.
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