Former Dow scientist convicted of selling trade secrets
A former Dow Chemical Co. scientist has been convicted of selling information on production of Tyrin-brand chlorinated polyethylene to Chinese firms.
Wen Chyu Liu–also known as David Liou–was convicted by a jury in U.S. District Court in Baton Rouge on Feb, 6 and now faces up to 15 years in prison. Wen, age 74, worked for Midland, Mich.-based Dow from 1965 until 1992, and conspired to sell the company’s trade secrets for an 8 year period between 1995 and 2003.
According to a 2005 indictment, Liu and three other former Dow employees used Dow information to create a proposal that would allow other firms to build and operate their own plants making material identical to Tyrin.
Liu attempted to sell Dow information through his own company, Pacific Richland Products Inc., which he formed in Baton Rouge before leaving Dow. In 1998 and 1999,Liu received payments of more than $375,000 from Chinese companies for this information, according to court documents.Liu made payments of more than $67,000 to former Dow employees during those same two years.
“Dow supports the conviction of [Liu] by a federal jury,” Dow officials said in a Feb. 8 e-mail response to questions. “Dow invests billions in R&D, and the technology that results from that investment has tremendous value.
“Dow is committed to protecting its intellectual property to the full extent of the law, and we are grateful to the U.S. Department of Justice for vigorously prosecuting this case.”
Schulman closing powder plants in Italy and Australia
A. Schulman Inc. is consolidating its rotational molding powders operations in Italy and Australia.
Officials with Fairlawn-based Schulman said in a Feb. 8 news release that the firm would be closing its specialty powders plants in Verolanuova, Italy, and Braeside, Australia. Work done in Verolanuova now will be done at a Schulman plant in Gorla Maggiore, Italy. Material produced in Braeside now will be made in Brisbane, Australia.
The closings will result in the elimination of between 40 and 60 jobs. The Verolanuova plant is being closed to leverage state-of-the-art facilities in Gorla Maggiore, officials said in the release. A business office will remain open in Verolanuova.
The Australian move is being made because of drop in demand from the water tank market in Australia. Demand for those products has declined as drought conditions have subsided and government rebates on water tanks have been withdrawn, officials said.
The move in Italy will be complete by early 2012. The Australian move will be done by the end os Schulman’s 2011 fiscal year, which concludes in August. Schulman acquired both the Verolanuova and Braeside plants when it purchased ICO Inc. Last year.
BP STRIKES $7.2 BILLION OIL DEAL WITH INDIAN COMPANY
British Petroleum (BP) has partnered with Reliance Industries Limited for a 30 percent stake in 23 oil and gas blocks in India, according to the Wall Street Journal. The deal, contracted for $7.2 billion, is worth a potential $20 billion in future performance payments and total investment depending on “exploration success” in the emerging market.
“India is one of the fastest growing economies in the world. By allying ourselves with Reliance, we will access the most prolific gas basin in India and secure a place in the fast-growing Indian gas markets,creating a genuinely distinctive BP position,” Bob Dudley, BP chief executive, told the news source.
Reliance Industries Limited is part of The Reliance Group, India’s largest private sector enterprise, founded by Dhirubhai H. Ambani in 1966.
The company is now run by Mukesh Ambani, Dhirubhai’s son, one of the wealthiest men in Asia.
BP was involved in the Deepwater Horizon oil spill in the summer of 2010, which drew international attention and harsh criticism. The incident led to BP’s first annual lossin nearly 20 years, reported the Associated Free Press (AFP).
After Dudley announced the new deal with India, he commented on the current developments of BP in Libya, reports Bloomberg.Due to increasing political instability in northern Africa, BP will be evacuating employees from Libya, although Dudley assured the press that BP “will remain committed to doing business in Libya.”
BP plans to reduce its refining business in the United States by half and has recently entered into a deal with Russia’s government-run oil company, Rosneft, in a bid for Artic oil, reported the AFP.
Idemitsu Lion Composites Acquires Kuraray’s Mica Reinforced Resin Business
Kuraray says its Kuraray Trading (Osaka, Japan) subsidiary has agreed to sell its mica reinforced resin business to Idemitsu Lion Composites (Tokyo). Idemitsu Kosan holds 50% stake in Idemitsu Lion Composites and Lion Corp. (Tokyo) holds the remaining 50%.The business transfer will be completed on April 1, 2011, and the sale includes assets related to the business, patents for production techniques and know-how. Financial details were not disclosed.
Kuraray Trading expects that further expansion of its mica reinforced resin business, which it has been developing since 2003, would be difficult to achieve within the Kuraray group. Therefore, it has agreed to sell this business to Idemitsu Lion Composites, which is in a position to reap synergistic benefits from the acquisition in the areas of development, production and sales because of the complementary nature of its product lineup, Kuraray says. Idemitsu Lion Composites, which was established in 1979, develops, produces, and sells special composite synthetic resins.
Major applications for mica reinforced resins are in home appliances, office automation equipment and automobile chassis.
Shaw Awarded Contract for Ethylene Plant Expansion by Qapco
The Shaw Group says it has been awarded a contract by Qatar Petrochemical Co. (Qapco; Doha) to provide basic engineering services for the expansion of a 720,000-m.t./year ethylene plant at Mesaieed, Qatar. The project will provide the design needed for expanding the plant’s capacity by up to 25%, Shaw says. The value of the contract was not disclosed.
Mitsubishi and Asahi Will Form Limited Liability Partnership to Run Mizushima Crackers
Mitsubishi Chemical and Asahi Kasei have decided to establish a 50-50 limited liability partnership (LLP) for the integrated and unified management of their naphtha cracking operations at Mizushima, Japan. The companies announced the plans in May 2010.
Mitsubishi and Asahi intend to create the LLP, dubbed Nishi Nippon Ethylene, on April 1, 2011. It will be headquartered in Tokyo.
The partnership will downsize naphtha cracking capacity at Mizushima by 2012, based on a forecast 30% decrease in local ethylene demand. Mitsubishi and Asahi’s Mizushima crackers each have capacity for 500,000 m.t./year of ethylene. The plants will be consolidated on a single cracker, enabling joint procurement of feedstock, optimal use of utilities and energy, and joint utilization of infrastructure.
Heinz to convert ketchup to plant-based PET
Heinz ketchup will be the next product packaged in PET resin made from renewable materials.
Coca-Cola Co. and H.J. Heinz Co. announced Feb. 23 that Heinz’s 20-ounce ketchup bottles will use Coke’s PlantBottle packaging technology this year.
Heinz expects to sell 120 million of the PlantBottle packages in 2011 –and Atlanta-based Coke will use more than 5 billion this year.
Coke has already announced that it expects to transition all of its plastics packaging to PlantBottle materials by 2020. Heinz today said that “in time,” all of its plastic bottles sold globally will use the PlantBottle packaging.
Currently, PlantBottle is made using sugarcane ethanol from Brazil.
“This partnership is a great example of how businesses are working together to advance smart technologies that make a difference to our consumers and the planet we all share,” said Muhtar Kent, chairman and CEO of Atlanta-based Coke, in a news release.
Heinz will highlight its use of the plant-based PET with special labeling and a logo.
Purac and Indorama planning Thai PLA plant
Lactic acid derivatives producer Purac, a subsidiary of CSM NV, and Indorama Ventures plc are in discussions to set up a polylactic acid plant in Thailand.
The plant will have an initial capacity of 10,000 metric tons per year, with the potential to expand to 100,000 metric tons. Purac will provide the lactide monomer feedstock from its plant in Rayong, Thailand.
Singapore-based Indorama will market the PLA polymers.
“Purac gives us an opportunity to enter the space for a new generation of highly sustainable, biodegradable, low carbon footprint materials,” said Aloke Lohia, group CEO of Indorama Ventures, in a news release.
Dow signs Russian technology deal
Russian Corp. of Nanotechnologies (Rusnano) and Dow Chemical Co., through its wholly owned subsidiary Dow Europe, have signed a memorandum of understanding to evaluate potential cooperation in fast-growing areas such as light-weight materials and life sciences.
Through this agreement, both companies will evaluate and define potential joint venture projects to pursue collaborative investments in Russia. The parties have also agreed to exchange technical and commercial information on up-and-coming activities.
“Our goal is to develop commercially-meaningful joint projects that help to address key issues in Russia, and leverage Dow technology to support job creation and economic development,” said Heinz Haller, Dow’s executive vice-president and chief commercial officer.
The partners have already set priorities for joint potential projects. The emphasis will be on large-scale projects based on nanotechnologies with the aim of attracting cooperation from major corporations and regions in Russia and developing intellectual property.
Moscow-based Rusnano was established in 2007 with the objective of helping the Russian government develop nanotechnology.
Solutia to start China EVA solar plant
Solutia Inc. is set to launch a Chinese-based manufacturing facility for ethyl vinyl acetate (EVA) solar encapsulants, with plans of production trials in March and commercial production in the second quarter.
The EVA plant is based at the company’s Suzhou China manufacturing center, which produces Saflex-branded polyvinyl butyral (PVB) films.
The move will strengthen Solutia’s position to supply high quality solar encapsulants and provide a platform to support rapid growth of solar manufacturing in China. Chinese solar module manufacturers currently produce more than half of all modules installed globally.
The plant is Solutia’s first new EVA production facility after the June 2010 acquisition of Etimex Solar GmbH, the leading supplier of Vistasolar-branded EVA encapsulants for the European photovoltaic market.
“By investing in growth markets, like China, it improves our ability to reduce the total cost of production for module manufacturers and enhances our service levels by reducing lead times,” said Tim Wessel, president and general manager of Solutia’s Advanced Interlayers division, in a news release.
Solutia claims to be the only manufacturer of all major module encapsulant technologies including EVA, PVB and thermal polyurethane (TPU).
Brussels clears Ineos takeover of Nova JV
The European Commission has fast-tracked regulatory approval of UK-based Ineos Group’s planned takeover of a polystyrene and expanded polystyrene joint venture operated with Canada’s Nova Chemicals Corp. since 2005.
The Ineos Nova LLC business has 11 manufacturing plants in six countries: the Netherlands, France, Sweden, Germany, Canada and the United States. The Commission examined the deal under its “simplified merger review procedure” and imposed no conditions to the takeover, as the European Union’s (EU) senior competition authority. Ineos Nova has been producing styrene monomer, polystyrene and expanded polystyrene, together with certain minor related products.
The joint venture was initially Europe-based, but incorporated North American plants in 2007. It is based in Channahon, Ill.
Lotte Group mulls US$5 bln investment in petrochemicals in Indonesia
South Korea’s Lotte Group is considering a US$5 bln investment in petrochemicals in Indonesia’s Java island, as per Reuters. Lotte currently owns two petrochemical production facilities in Indonesia through Titan Chemicals, that Lotte acquired last year via unit Honam Petrochemical. The project would be on Java island and take 4-5 years.
Iran commences construction of Marjan Petrochemical Complex
Construction of Marjan Petrochemical Complex started in Assalouyeh in cooperation with Denmark’s Haldor Topsoe Company. Topsoe’srole comprises licensing of technology, engineering design, catalysts and technical support services.
The Marjan Petrochemical Complex is being constructed in Pars Special Economic Energy Zone (Assalouyeh), the Mehr News Agency reported. The unit has the capacity to produce 1,650,000 tons of methanol and is estimated to come on stream by 2015 (the end of the Fifth Five-Year Development Plan) at the cost of 342 million euros and 2.12 trillion rials (US$212 mln).
Saudi Basic Industries Corporation (Sabic) plans mega investments in India
Saudi Arabian petrochemicals major Saudi Basic Industries Corporation (Sabic) is planning big investments in India for which it is pursuing talks with Indian petrochemical players for a joint venture, in a bid to tap the huge potential of the Indian market with cracker projects and downstream refineries, vice president Asia Pacific and member of the board of directors of Sabic Asia Pacific, told Business Standard.With annual petrochemical imports of over US$22 billion of petrochemical products, India offers Sabic the perfect platform to tap the potential for its core business areas like chemicals, fertilizers, innovative plastics, polymers and performance chemicals. Currently Sabic’s investments in India are limited to facility and technology centres acquired in Baroda and Bangalore through its global acquisition of GE’s plastics division a few years ago. Sabic has six offices in India. Alumar said Sabic was planning to expand its research and technology center in Baroda by hiring more than 280 research staff. The facility will be ready by the year-end or early 2012. The company isalso setting up a new muti wall sheet (MWS) facility in Baroda. This is expected to commence operations in July 2011.
Styron sells Brazil polystyrene plant
Styron LLC has sold its polystyrene plant in São Paulo to Gaxetas e Perfis do Brasil.
No purchase price was disclosed in the deal, which closed Dec. 31. Styron spokeswoman Catherine Maxey said the plant had been idle since August and “was not well-positioned to compete as part of Styron.”
“Styron believes the facility will be in a better competitive position as part of GPB and will have a greater opportunity to thrive as a result,” Maxey wrote in a recent e-mail.
Media reports listed the site’s PS capacity at 440 million pounds, but Styron declined to confirm that total. GPB is part of Brazilian petrochemicals maker Grupo Unigel, which previously had supplied styrene monomer feedstock to the PS plant.
The São Paulo PS plant was included in Dow Chemical Co.’s spinoff and sale of Styron to Bain Capital LLC in 2010. Other businesses belonging to Dow in São Paulo are not affected by the sale.
Mexico promotes tomato mulch films
Mexico’s plastics industry association is launching a campaign to promote padded polyethylene ground sheets as a means to increase crop yields in the country.
The Mexican sector is a world leader in the technology but needs government financial backing to accelerate its use, industry leader Eduardo Martínez Hernández said Feb. 8.
Padded ground sheets are used on only 247,100 acres in Mexico, said Martínez. Yet tomato crop yields, for example, are 10 times greater when the technology is applied, he added.
Mexico is the world’s largest exporter of tomatoes, shipping 1.1 million tons, 44 percent of the total, in 2007, according to Global Trade Information Services Inc. of Columbia, S.C.
About 15 companies manufacture padded plastic sheets for agriculture in Mexico, Martínez, president of the Asociación Nacional de Industrias del Plástico AC (Anipac), told Plastics News.
They include Olefinas SLP SA de CV, of San Luis Potosí, 250 miles northwest of Mexico City, and Plásticos del Futuro SA de CV, of Naucalpan, an industrial suburb of the Mexican capital.
Canada’s Northwest Territories expands plastic bag tax
The Northwest Territories has expanded its non-reusable bag fee program to include all retail stores. The region in Canada’s far north last year imposed a C$0.25 fee on plastic and paper grocery bags but it expanded the program effective Feb. 1, 2011.
“The main concern by residents was plastic bags blowing around,” said government spokeswoman Ella Stinson in a telephone interview from the Northwest Territories capital Yellowknife. “Residents say they’ve seen a huge reduction in litter.”
Stinson said the bag fee has had little impact on the amount of waste going to landfill. The territory is huge at 1.3 million square miles but it only has about 43,500 residents.
The northern government uses fees from the bag program to help pay for waste reduction programs. Exceptions to the fees include small bags for produce, bags for prescriptions and prepared food and dry cleaning bags. The program is part of the territory’s Waste Reduction and Recovery Act.
Shell Receives Offer from Indian Firm for U.K. Refinery
Shell confirms that it has received a $1.3-billion offer from Essar Energy (Mumbai) to acquire Shell’s refinery at Stanlow, U.K. The companies have signed an exclusivity agreement until April 1, 2011 under which break fees would be payable if either company fails to sign an asset sales agreement. The acquisition deal is expected to close by mid-2011, Shell says. Shell also plans to enter an exclusive five-year contract to supply crude oil to Essar at Stanlow, and to receive products from Essar in the U.K.
Shell put the Stanlowrefinery up for sale in 2009 and entered exclusive negotiations to sell it to Essar. The refinery has capacity to process 272,000 bbl/day of crude. The proposed acquisition includes petrochemical plants at the Stanlow site that make products including ethyl benzene, propylene, and toluene. The deal does not include Shell plants at Stanlow making alpha-olefins, and detergent and plasticizer alcohols, the company says.
The divestment forms part of Shell’s strategy to cut its refining capacity by 15% in response to a steep fall in refining margins, particularly in Europe. Shell agreed to sell its refinery and petchem complex at Heide, Germany last year to private equity firm Klesch & Co. as part of the same program.
Iran’s petrochemical capacity to cross 95 mln tpa by end of Fifth development plan in 2016
With the implementation of Bushehr and Marjan petrochemical complexes construction projects Iran’s petrochemical production capacity will cross 95 mln tpaby the end of the fifth development plan (2011-2016), Shana news agency reported quoting Iranian minister of petroleum Seyed Masoud Mirkazemi.
The electricity and steam units of Mobin petrochemical plant in Assaloyeh (onshore installations of the South Pars gas field in southern part of Iran) have been launched-including two electricity units each with 123 megawatt production capacity and two steam production units each capable of producing 330 tons of steam per hour.
Other petrochemical projects are slated to come online shortly, increasing Iran’s petrochemical production capacity to 51 mln tpa.
Chemtura’s debottlenecking at PAO plant completes next stage
Chemtura has announced the pending completion of the next stage of its multi-stage capacity increase plan for its line of high viscosity Synton 40 and Synton 100 polyalphaolefin (PAO) products at its facility in Elmira, Ontario, Canada. The debottlenecking process equipment will be completely operational in the second quarter of 2011, with some of the increased capacity coming by the end of the first quarter. Synton polyalphaolefin products are high-viscosity, highly saturated polymers used in automotive and industrial applications.
AkzoNobel opens Indian coatings plant
AkzoNobel’s plan to accelerate growth and increase revenue in India to EUR 1 billion within the next five years was aided by the official opening of a new Industrial Coatings plant near Bangalore. The facility, which will produce coil and specialty plastic coatings, is located in Hoskote on an existing AkzoNobel site which already manufactures marine and protective coatings, automotive coatings and powder coatings. “India will develop into one of the world’s economic powerhouses and it ranks very highly on our list of priority high growth countries,” said Leif Darner, the AkzoNobel board member responsible for performance coatings. “We are already well represented in India, but as the largest global producer of coatings, we are committed to making a significant contribution to the country’s continued development.
Bayer Starts-up Pilot for CO2-to-Plastics; Eyes Full Production in 2015
Bayer earlier today started-up a pilot plant at Leverkusen that uses CO2 as a raw material for making plastic. The plant produces a chemical precursor into which CO2 is incorporated and then processed into polyols for use in polyurethanes (PU); a material used in many everyday products. “If the testing phase goes well, the industrial production of plastics based on CO2 should start in 2015,” Bayer says. CO2 -a waste gas and key contributor to climate change -can now be recycled and used as a raw material and substitute for petroleum, the company says.
The process has been developed as part of a project dubbed ‘Dream Production’ in a joint effort between industry and academia. Energy firm RWE is supplying CO2 for the pilot production process. Other project partners are RWTH Aachen University (Aachen, Germany) and the Catalytic Center (CAT), which is run jointly by the university and Bayer.
The researchers recently made a break-through in the laboratory with the development of a catalytic system which, for the first time makes it efficient to use CO2 as a raw material for making plastic, Bayer says. The catalyst is based on zinc. Further details about the composition of the catalyst have not been disclosed. Experts have been searching for such a catalyst for four decades, Bayer says. This research breakthrough was made by scientists at Bayer and CAT.
The pilot plant has been designed and built and is being operated by Bayer Technology Services. Bayer MaterialScience is testing PU foams made from the pilot facility. CO2 used in the project is generated by RWE Power’s lignite power plant at Niederaussem near Cologne, Germany. The company operates a CO2 scrubber at its Coal Innovation Center where CO2 is separated from flue gas.
RWTH Aachen University is subjecting all stages of the new process to comprehensive ecological and economic scrutiny, and is also comparing it with conventional processes and products.
“There is an opportunity to establish Germany as a market leader for these technologies and secure ourselves a leading role in a competitive international environment,” says Bayer board member Wolfgang Plischke. He addressed representatives from the media, government and academia for the opening of the plant. “The inauguration of this pilot plant is another milestone in a long line of Bayer projects that have used innovative technologies to develop sustainable production processes,” he adds.
CO2 may offer an alternative to petroleum, which has until now been the chemical sector’s main source of the key element carbon. Polyurethanes themselves also help to reduce energy consumption and protect the climate. When used to insulate buildings from cold and heat, they can save approximately 70 times more energy than is used in their production, the company says.
The Dream Production project has received approximately €5 million ($6.8 million) in funding from the federal government. The project’s total budget, including investment from Bayer and RWE, is €9 million.
“The debate on climate change has portrayed CO2 as the villain of the piece in the public eye. Now we are supporting research into alternative solutions that could make good use of CO2 as a raw material,” says Thomas Rachel, parliamentary state secretary for the German Federal Ministry of Education and Research.
Other companies developing plastics from CO2 include joint activities by Novomer and DSM to develop a range of resins. DoE in mid-2010 awarded a total of $106 million to six separate projects to convert captured CO2 emissions into useful materials including cement, fertilizers and polymers.
DuPont helps Nike tee off golf ball
DuPont Co. and Nike Inc. are joining forces to make golfers’ dreams come true —with a golf ball that goes farther and straighter, thanks to a core made from a DuPont plastic material.
Wilmington-based DuPont and Nike —the sports giant based in Beaverton, Ore. —unveiled the Nike 20XI golf ball on Feb. 15. The ball —which will be commercially available in late April —has a core made of DuPont’s HPF-brand ionomer, a specialty thermoplastic resin.
In testing, the HPF core increased ball speed by an average of two to three miles per hour. Each mph gained typically adds two to three yards to the length of a golfer’s drive off the tee, DuPont’s James de Garavillasaid in a Feb. 15 phone interview.
So, in essence, golfers can expect a gain of almost 10 yards thanks to the new miracle ball.The HPF core also creates a steeper spin slope on a struck ball, which means the ball will have a flatter and straighter trajectory, improving both its accuracy and distance, added de Garavilla, who serves as DuPont’s global golf ball technology leader.
“The ionomer [core] creates unprecedented balance and resiliency,” he said.
DuPont and Nike began working on the golf ball project together in 2007. The two firms long had been partners on numerous footwear projects, where Nike uses various DuPont materials. The grade of HPF used in the new golf balls also contains up to 40 percent renewable content.
“DuPont has been the ideal partner for us on the 20XI ball,” Nike golf product development director Rock Ishii said in a Feb. 15 news release. “They are the world leader when it comes to materials, science and innovation.”
Previously, DuPont’s Surlyn-brand ionomer had been used on the covers of numerous golf balls, but not on balls used on the PGA Tour. The 20XI ball —which already is being played by touring pros —does not have a Surlyn cover.
The ionomer used in the 20XI balls is made at a DuPont plant in Orange, Texas. Nike operates golf ball-making facilities in both the U.S. and Asia.
“There’s a tremendous amount of excitement about what [the 20XI ball] brings to the game,” DuPont global golf ball marketing leader Jon Kemp said by phone Feb. 14.
Neither de Garavilla or Kemp have tried the ball themselves, but Kemp said he’d like to.
“I’m not that great a golfer, so [the 20XI ball] would help,” Kemp added.
Kureha’s PGA plant 60-75 days from production
Japan’s Kureha Corp. is mere weeks away from taking orders at its West Virginia plant for its Kuredux polyglycolic acid resin, a high-strength polyester that can be used as a barrier resin in multilayer PET bottles.
Production at the site in Belle, W.V., could begin in March or April, Jeff Sherry, vice president and general manager for packaging materials at New York-based Kureha America Inc., said Feb. 8 at The Packaging Conference in Las Vegas.
Kureha expects the plant, which is on part of DuPont Co.’s site in Belle, to have more than 50 employees and a $1 million annual payroll. According to local media, as many as 300 construction workers have been involved in building the factory, which Kureha announced in 2007.
PGA, which has been used for 40 years in synthetic dissolving surgical sutures, has been a pet Kurehaproject for biodegradable packaging applications since the 1990s, Sherry said.
In 2002, Kureha built a pilot PGA plant in Iwaki, Japan, that produces about 110 tons of resin annually. The $100 million Belle plant will have a 4,400 ton annual production capacity and is built to be scalable up to 2-3 times its current size, Sherry said.
Kureha’s current targeted application for PGA is multilayer PET bottles for carbonated soft drinks and beer. Since PGA offers a carbon dioxide gas barrier 100 times higher than that of PET, it is possible to reduce the amount of PET used in these bottles and is 2-3 times better than formulated nylons and polyester in terms of processability and end use, Sherry said.
“When you put this material through typical recycling processes, and it goes through an alkali detergent wash, you will literally in seconds degrade the PGA back into glycolic acid, which is water soluble,” he said.
That means PGA won’t muck up the PET recycling infrastructure the way other multilayer bottles do, hesaid.
Kureha’s Japanese plant has partnered with Boxmore Plastics SA Pty. Ltd. of Harrismith, South Africa, on a project to mold PET preforms containing a thin ribbon of about 3 percent PGA, utilizing Kortec co-injection systems, for Coca-Cola bottles for distribution in Africa.
“With a material that’s 100 times better than PET, we can do an awful lot of lightweight,” Sherry said.
While awaiting the U.S. plant’s startup, Kureha is testing additional bottles, brands and African markets, he said, and testing other global applications for packaging containing PGA, including barrier film and sheet.
Sherry said the New York-based Biodegradable Products Institute; Vilvoorde, Belgium-based Vinçotte; and the Japan BioPlastics Association have certified PGA as biodegradable; the material is awaiting certification by the Washington-based Association of Postconsumer Plastics Recyclers.
European Union threatens to impose tariffs against PET from Saudi Arabia and Oman
The European Union (EU) has threatened to impose tariffs against PET from Saudi Arabia and Oman, saying EU producers may be victims of subsidies and price undercutting, as per Bloomberg. The EU opened probes into whether Saudi and Omani makers of polyethylene terephthalate (PET) get trade-distorting government aid and sell in the Euro 3 bln (US$4.1 bln) European market below cost, a practice known as dumping. The inquiries will determine whether EU producers of PET have suffered “injury” as a result of any unfair Saudi and Omani competition, the European Commission, the 27 nation EU’s trade authority in Brussels, said today in the Official Journal.
In 2010, the EU imposed anti-subsidy tariffs on PET from Iran, Pakistan and the UAE for five years and renewed PET anti-dumping levies against China until late 2015 to curb import competition for European producers including Spain’s Novapet. In 2007, the bloc re-imposed for five years anti-dumping duties on PET from India, Indonesia, Malaysia, South Korea, Thailand and Taiwan as well as separate anti-subsidy levies against India.
Under EU rules, the commission can impose provisional anti-subsidy duties for 4 months and provisional anti-dumping levies for 6 months. The EU’s national governments -acting on a commission proposal -can turn those measures into “definitive” five-year duties at the same or different rates. The commission has 9 months from the start of an investigation to decide on provisional measures. EU governments have 13 months from the beginning of a probe to impose five-year anti-subsidy -or “countervailing” -duties and 15 months to impose definitive anti-dumping measures.
BP to Increase PTA Capacity in China; Announces Plans for Third Plant
BP says it is proceeding with its project for a major increase in purified terephthalic acid (PTA) production capacity at the BP Zhuhai Chemical Company site at Zhuhai, China. BP Zhuhai is a joint venture between BP and Zhuhai Port Co., formerly known as Fu Hua Group. BP says the planned debottlenecking of its second PTA plant at the Zhuhai site will increase capacity by more than 200,000 m.t./year, taking the total PTA production capacity at the site to about 1.7 million m.t./year. BP says it is also planning to build a third PTA plant at the site which will have a production capacity of 1.25 million m.t./year. BP has completed the engineering design work for the debottlenecking of the second plant and expects the expansion to be fully operational in the first quarter of 2012. The third PTA plant is under pre-engineering planning, and it will be the first to use BP’s latest PTA technology. The third plant is expected to come on stream by 2014 to meet PTA demand growth in China, the company says.
Government statistics shows that China’s PTA consumption in 2009 exceeded 18 million m.t., of which only about 65% was supplied by domestic production, BP says.
“This investment will be the world’s largest single train PTA plant, built in the world’s largest and fastest growing PTA market,” says Sue Rataj, BP’s chief executive in petrochemicals.The new technology will help reduce both greenhouse gas emissions and other waste streams significantly, BP says.“With the deployment of this new technology, we will be the most competitive PTA producer in the world,” says James Yim, president of BP Aromatics Asia and China Olefins & Derivatives. “We will actively pursue additional PTA investment options in other area of China as well as other growing markets in Asia,” Yim says.
BP has 85% stake in BP Zhuhai, which was established in 1997, and Zhuhai Port has the remaining 15%. The venture’s first and second PTA plants, with total capacity of about 1.5 million m.t./year, began production in 2003 and 2008 respectively.
BP hasa global PTA market share of 15% on an equity basis, or 18% including joint ventures. BP operates 21 PTA plants located in Asia, the Americas and Europe with a combined production capacity of more than 10 million m.t./year.
IPIC to Acquire Total’s 48.83% Stake in Cepsa for €3.7 Billion
Total says it has signed an agreement with the International Petroleum Investment Co. (IPIC; Abu Dhabi), whereby Total will sell its 48.83% stake in Cepsa (Madrid) to IPIC for €3.7 billion ($5 billion). IPIC currently has a 47.06% stake in Cepsa.
This sale will take place pursuant to a public takeover bid over the entire share capital of Cepsa that IPIC has undertaken to file with the Spanish Securities Commission CNMV, Total says. IPIC will offer €28/share of Cepsa and a dividend of €0.50/share will be paid to existing shareholders.
Cepsa is the second largest oil company in Spain with a refining capacity of 528,000 barrels/day, and a hydrocarbons production of about 55,000 barrels/day. Cepsa is also involved in the businesses of petrochemicals, gas distribution and power.
Total and IPIC also signed a memorandum of understanding in exploration and production to develop projects of common interest in the upstream oil and gas sectors.
IPIC has made other acquisitions in the chemicals space in the past. IPIC acquired Nova Chemicals in 2009 for about $2.3 billion. IPIC is also the major shareholder in Borealis. IPIC had a 20% stake in Oman Polypropylene Co., which the company says it divested in 2010. Abu Dhabi National Chemical Co. (Chemaweyaat) is a joint venture in which Abu Dhabi Investment Council and IPIC each have 40% and Abu Dhabi National Oil Co. (Adnoc) has the rest.
DSM to Buy Majority Stake in UHMW-PE Fiber Manufacturer in China
DSM says it has signed an agreement to acquire a majority shareholding in Shandong ICD High Performance Fibre (ICD; Laiwu, China). ICD is a manufacturer of ultra-high molecular weight polyethylene (UHMW-PE) fiber and a potential strong player in the Chinese market for high performance fibers, DSM says. Financial terms of the transaction were not disclosed. The transaction is expected to close later this year.
The agreement with ICD concludes an extensive selection process by DSM to find the right company in the Chinese market, and the acquisition of the stake in ICD will bring complementary manufacturing and technology assets to DSM in addition to strengthening the company’s presence in this key market, DSM says.
“China is a key market for DSM and we will continue to grow our long term commitment to it. We have invested significant time and effort to identify the right partner to ally with for this acquisition and we are extremely excited about the prospect of bringing ICD into the DSM portfolio,” says Nico Gerardu, member of the DSM managing board and responsible for DSM’s Performance Materials cluster.
The acquisition of a majority stake in ICD represents a key milestone in the global development of DSM’s high performance materials business, DSM Dyneema, the company says.
“China is an important market in terms of both UHMW-PE fiber production and consumption and this acquisition further develops our position and will help us grow and succeed in this market,” says Gerard de Reuver, president of DSM Dyneema.
Clariant Acquires Süd-Chemie
Clariant has agreed to acquire almost all of Süd-Chemie (Munich) in a deal valued at €2 billion. Clariant expects to complete the transaction in the first half of 2011. The company announced the acquisition at its annual results presentation, held today in Zurich.
Clariant will buy One Equity Partners’ (OEP) 50.4% stake in Süd-Chemie for €121/share and acquire about 45% from Süd-Chemie’s family shareholders, giving Clarianta stake of just more than 95%. The family shareholders will swap their Süd-Chemie shares for Clariant shares at a ratio of 1:8.84. OEP put its Süd-Chemie stake up for sale last year and attracted bids from several companies.
Buying Süd-Chemie takes Clariant into two completely new specialty chemical businesses: adsorbents and process catalysts. The acquisition is nevertheless an ideal one for Clariant, CEO Hariolf Kottmann told journalists at today’s presentation. “We are convinced that Süd-Chemie isthe right strategic fit for Clariant,” Kottmann says. “It complements our portfolio with high-growth businesses and less cyclicality.” The deal also heralds the end of Clariant’s phase of heavy restructuring, which was initiated during the last few years,and it signals the company’s renewed focus on growth. “Süd-Chemie will further drive our profitable growth forward in the coming years,” Kottmann says.
Süd-Chemie is the market leader in process catalysts, Clariant says. Süd-Chemie generated 2010 sales of €1.2 billion, Ebitda of €191 million, and an Ebitda margin of 15.6%, according to preliminary figures. The deal is set to boost Clariant’s sales by about 20%. Süd-Chemie’s businesses will be managed as separate business units within Clariant, sharing Clariant’s corporate platform and infrastructure. Clariant currently has 10 business units including industrial and consumer specialties, masterbatches, pigments, textile chemicals, oil and mining services, leather services, and performance chemicals.
Süd-Chemie’s promising R&D pipeline in areas linked to global megatrends, such as lithium-ion battery materials and second-generation bioethanol, also make it attractive, Clariant says. “This ideally meets our ambitions to transform Clariant into an innovation-driven specialty chemicals company,” Kottmann says.
The proposed share exchange with family shareholders is valued at SF700 million. Clariant will finance the rest of the deal with a SF400-million share issue; SF900 million of debt financing; and SF500 million in cash. The share issue is subject to approval from Clariant’s shareholders. Clariant expects to achieve annualized savings in administrative costs of about €25 million from the deal, and is “confident” of generating additional, annualized savings of €60 million-€70 million from the integration of Süd-Chemie, Kottmann says. The acquisition will be earnings accretive in 2013, Kottmann says.
Clariant will continue to invest in profitable growth following the Süd-Chemie acquisition, based on “the solid foundation we have created in the last two years,” Kottmann says. “We will invest a substantial amount of money in the next few quarters and years,” he says. “Having just finished restructuring, we want to keep the flexibility to invest in profitable growth going forward.” The company’s plans will most likely feature further acquisitions and focus on emerging markets, he adds.
Clariant’s sales slipped 1% in the fourth quarter of 2010, compared with the same period of 2009, to SF1.7 billion but they increased 8% year on year in local-currency terms. The company posted a fourth-quarter net profit of SF47 million compared with a SF67-million net loss in the year-ago period, and an Ebit before exceptionals of SF120 million compared with an Ebit of SF107 million one year earlier, translating into an operating margin of 7.1% in the fourth quarter compared with 6.3% one year earlier. “The fourth quarter was characterized by continuing robust demand, a massive appreciation of the Swiss franc, and a focus on tight net working capital,” Kottmann says. Clariant expects full-year 2011 sales growth in local currencies “in the low single-digit range” from SF7.1 billion in 2010, and 2011 Ebitda margins before exceptionals above the 12.7% achieved in 2010, he says. The company anticipates exchange rates to be broadly unchanged this year and it forecasts an unspecified rise in raw material costs.
Lanxess Increases Stake in Biobased Isobutanol Firm
Lanxess says it has increased its minority stake in Gevo (Englewood, CO) to 9.1% after investing $17 million in the biofuel and biochemical firm’s IPO last week. The move reflects “the good progress,” made by both companies in developing isobutene from renewable resources, says Lanxess, the world’s largest buyer of isobutene. Gevo is developing a fermentation process to produce isobutanol from biomass, and Lanxess is developing a dehydration process to convert isobutanol into isobutene. Lanxess says its process can produce a biobased butyl rubber that meets the rigorous specifications of the tire industry, which represents roughly a quarter of Lanxess’sales.
Gevo’s February 9th IPO raised $95.7 million. Lanxess initially acquired an undisclosed stake in Gevo in May of last year with a $10 million investment. Total made an unspecified investment in Gevo in 2009.
Isobutanol can also be used directly as a specialty chemical, as a gasoline blendstock, and as a raw material for the production of plastics, fibers, rubber and other polymers. Gevo is currently retrofitting a 22 million gallons/year ethanol facility in Luverne, MN into a 18 million gallon/year isobutanol plant. Start-up is expected in the first half of 2012. Gevo says it plans to further expand production capacity to 350 million gallons/year by 2015 through acquisitions and joint ventures.
Gevo and Lanxess also signed a ten-year agreement that gives Lanxess certain exclusive rights to purchase biobased isobutanol from Gevo, while Gevo receives an exclusive first right to supply Lanxess with specified quantities of biobased isobutanol over a ten-year period. This arrangement is still subject to the parties’ completion of a definitive off-take agreement.
OPX Bio Reaches Biobased Acrylic Acid Milestone
OPX Biotechnologies (Boulder, CO) says it has, at pilot scale, produced biobased acrylic acid at costs lower than that of traditional petroleum-based acrylic acid. The company says it has produced the chemical from corn sugar and cane sugar at 70 cts/lb and 55 cts/lb, respectively, compared with current acrylic acid prices of 75 cts/lb. The company expects to further reduce these price points to 50 cts/lb for corn and 40 cts/lb for sugar when it begins demonstration-scale production later this year.
“By completing development of the pilot-scale process to make BioAcrylic at lower cost than petroleum-based acrylic, OPXBIO has achieved a key milestone and validated the power of its proprietary EDGE technology,” says Charles Eggert, president and CEO of OPXBIO. “We completed this milestone with high speed and capital efficiency that is unprecedented in the bio-based chemical industry. We are now moving to larger demonstration-scale processing with the plan to begin commercial-scale BioAcrylic production in 2014.”
The company is contracting out the demonstration work instead of building a plant, but contract plans are still being finalized, Mike Rosenberg, v.p./business development tells CW.
The global market for petroleum-based acrylic acid is about 8 billionlbs/year, or roughly $8 billion, and has historically grown at 4%/year, OPX says. Acrylic acid is used in a range of industrial and consumer products, including paints, adhesives, diapers, and detergents. Larger firs, including existing acrylic acid makers, have already been investing in R&D to produce acrylic acid from renewable raw materials. Cargill and Novozymes have been jointly developing a process to produce acrylic acid from glucose or another carbohydrate source since 2008. Novozymes tells CW the project is on track to be ready with a microorganism strain for out-licensing in 2013. The strain will produce 3-hydroxypropionic acid (3HPA), which can subsequently be transformed into acrylic acid. Since this is a new process, Novozymes says it anticipates acrylic acid producers will need to work on their downstream processing before the renewable-based acrylic acid can be produced at large scale.
Nippon Shokubai (Tokyo) announced in 2009 that it is at an advanced stage developing an acrylic acid manufacturing process based on glycerine. The company’s technology uses a high-performance catalyst to manufacture acrolein, an intermediate in the production of acrylic acid, through gas-phase dehydration of glycerine. The acrolein is subsequently oxidized to acrylic acid via gas-phase oxidation technology.
Total May Divest More Specialty Chemical Businesses
Total is considering plans to divest additional specialty chemical businesses and focus the group’s chemical activities on petrochemicals, according to a recent report in French newspaper Les Echos. No decision has been taken, but Total is at “a crossroads” and has to make a “strategic choice,” says one source at Total, quoted by Les Echos. An internal debate is taking place within Total, the report says. Total declined to comment on the report.
Total agreed in December 2010 to sell its coating resins and photocure resins businesses to Arkema for €550 million. Total’s remaining specialty chemical businesses consist mainly of the Bostik adhesives unit, as well as the Atotech electroplating and Hutchinson rubber processing operations.
Total’s specialties business is smaller but more profitable than the company’s petrochemicals business. Specialties generated adjusted net operating income of €475 million in 2010 on sales of €6.8 billion; base chemicals, consisting mainly of the Total Petrochemicals business, achieved adjusted net operating income of €393 million in 2010 on sales of €10.6 billion.
Hunstman to Boost Polyetheramine Capacity in Asia
Hunstman says it will expand polyetheramine capacity by 40,000 m.t./year at Jurong Island, Singapore. The expansion will cost about $70 million and will bring capacity to about 56,000 m.t./year, Hunstman says.
“In the last few years demand has begun to outstrip production capabilities across our three main production sites in Singapore; Conroe, TX; and Llanelli in Wales,” says Stu Monteith president/performance products at Huntsman. “Adding this extra capacity in Asia is in line with our regional growth projections for the next decade and will optimize our global manufacturing footprint for specialty amines, enabling us to flex and respond more quickly to customer requirements.”
The company announced last June that it was exploring options to expand its Jeffamine-brand polyetheramine capacity in Asia, and is forecasting significant mid-term growth in the sector. The company expects demand for its Jeffamine-brand amines to intensify across all regions over the next decade, particularly in Asia-Pacific, where volume is set to grow by at least 10%/year, Hunstman says.
Polyetheramines are typically used in epoxy coatings or in additives that enhance the performance of fuels, concrete and pesticides.
Polypex investing in PET film capacity
BANGKOK (Feb. 16, 1:15 p.m. ET) –Polyplex(Thailand) Public Co. Ltd. said its board has approved a project to set up PET thick film line in Thailand, at an initial cost of US$75 million.
The project would have a 28,800-metric-ton-per-year film line capable of making 5.9-meters-wide, plus a 28,000-metric-ton-per-year polyester batch processing chips manufacturing facility by 2014.
The PET film would be in the range of 23-350 microns thick.
Polyplex said it would take 65 percent to 75 percent long-term loan for the project with the rest coming from internal cash flow.
“In the recent past, there have been several structural changes in the PET film industry. Some of the large PET thin film producers are accelerating exit from the competitive commodity segments in packaging and industrial to [focus on] electrical/electronic segments as a long-term competitive repositioning strategy,” Polyplex said in filing with the Stock Exchange of Thailand.
It also listed out benefits of the new project, saying it would bring about diversification of risk, and offer a relatively higher margin and more stable business.
The project also would enhance Polyplex’s presence in Japan, South Korea and Taiwan, which are large markets for thick films.
The expansion is scheduled to be completed within 18-24 months, Polyplex said.
Meanwhile, Polyplex reported a net profit of Baht1.44 billion (US$46.9 million) for the quarter ended Dec. 31, a hefty 463 percent increase from a year ago.
The polyester film industry has witnessed a significant surge in the demand during the current financial year, Polyplex said.
Sales for the full year increased 76.7 percent, to Bt3.27 billion (US$106.6 million), mainly the result of higher selling prices.
Asia-Pacific drives growth in film and sheet
The worldwide market for plastic film and sheet is expected to reach 50.7 million metric tons by 2015, according to a forecast by Global Industry Analysts Inc.
Asia-Pacific is projected to be the fastest growing regional market with a compound annual growth rate of 4.0 percent in the period to 2015. San Jose-based GIA says this growth will be “driven by enormous potential in China and India,” where there is fast economic growth and low per capita consumption of film and sheet.
While North America, Japan and Western Europe represent mature markets, GIA says there will also be future growth in the market in the Africa/Middle East, Latin America and Eastern European regions. It adds: “Growing sophistication in the Russian market is paving way for uninterrupted growth in demand for plastic films in the region.”
In terms of polymer type, the group says polyethylene film represents the largest segment of global demand. But this is losing market share due to increasing penetration of polypropylene into existing PP applications.
Within the polyethylene family of materials, LDPE is losing share to linear low density PE. The market for high density PE film is also expanding at a consistent rate, though not as dynamically as LLDPE.
Biaxially oriented polypropylene film represents the fastest growing segment in volume terms. From a downturn in 2008, the BOPP market bounced back quickly with a 3-4 percent growth rate in 2009.
GIA says that during 2010-2013, worldwide BOPP production capacity is estimated to expand by 2.2 million to 2.4 million metric tons, with the Middle East accounting for the bulk of the capacity expansion.
India’s Uflex to open Polish film plant
Leading flexible packaging manufacturer Uflex Ltd. plans to invest almost 60 million euros to construct a packaging films plant in the Polish city of Wrzesnia.
The big Indian conglomerate, the globe’s fifth-ranked producer of packaging products including biaxially oriented polypropylene, biaxially-oriented PET and coextruded multilayer blown film, aims to supply growing demand in Europe and Russia.
“Land acquisition is almost complete and the new plant will have a capacity of 30,000 metric tons per year,” the company’s president of finance and accounts, R K Jain, told The Economic Times of India.
The Polish plant, one of several current expansion projects by Uflex around the world, is scheduled to go into operation in June 2012. Uflex’s growth program will see a capacity increase of around 100,000 metric tons per year with the addition of new manufacturing lines for new products.
The Noida-based company recently announced it is commissioning a new films plant in Egypt equipped with an 8.7 meters wide, 500 meters per minute coextruded BOPP film line –one of the world’s biggest.
Uflex’s Polish facility will be its fifth films plant. Its other production units are in Mexico, Egypt, Dubai and India. Its overall capacity, with the Polish facility, will reach 383,000 metric tons per year, Jain said, according to The Economic Times report.
Reliance plans to invest US$30 bln over next five years
Reliance Industries plans to invest US$30 bln over next five years in its various businesses, mainly targeted at petrochemicals, exploration and production and telecom businesses of the corporate conglomerate. The company expects its five main business in the next 5-10 years to be petrochemicals, refining, E&P, retail and telecom.
As per the proposed capex (capital expenditure) investment plan, RIL would invest US$10-12 bln in petrochemicals, while spending another US$10 bln on exploration and development of (oil and gas) discoveries already made in shale gas in India and US.
Sibur Holding subsidiary successfully launches Russia’s first EPS plant
Sibur-Khimprom, a subsidiary of Russian petrochemicals group Sibur Holding, has successfully launched the country’s first plant to make expandable polystyrene (EPS) to international standards, as reported by PRW. The 50,000 tpa EPS unit, located at Perm in Russia’s Ural mountain region, represents the initial stage of a project which will eventually have a 100,000 tpa capacity. To be built with an investment outlay of €44.5 mln, the plant is to use technology developed by the Norwegian company Sunpor Technology, part of the Sunde group.
Output from the plant will be used to meet domestic demand and reduce Russian imports of the material from Europe and Asia.
Tetra Pak to invest US$132 mln in new packaging material plant in India
Tetra Pak, the world’s leading processing and packaging company, provider for liquid food manufacturing, today announced it will be setting up a new world-class packaging material factory in India at Chakan, near Pune in western Maharashtra, India. The total investment in the new factory is expected to be around Rs 600 crores (US$132bln). It will be located 40 km from Pune city and is expected to start its commercial supplies from Q4 2012.
The plant will be set up in a total land area of 45 acres and will employ world class manufacturing processes with among the most advanced technologies and equipment in the world. The total capacity of the new plant will be 8.5 billion packages per year, with the potential of scaling up to 16 billion packages across such popular carton packaging materials as the Tetra Brik® Aseptic (TBA),Tetra Fino® Aseptic (TFA) and Tetra Classic® Aseptic, making it amongst the top 5 packaging material plants for Tetra Pak worldwide. Besides supporting the expected strong growth in the Indian market, the plant will also support the company’s growth in other key geographies such as South East Asia and the Middle East.
Over the last few years, Tetra Pak has seen a rapid growth in the Indian economy and specifically in the dairy and beverage industry. In addition, India is an important export hub, supplying packaging material to many overseas markets. Mr. Alejandro Anavi, Executive Vice President, Supply Chain Operations, Tetra Pak said, “We are committed to supporting our customers to meet growing consumer demand in these regions and all over the world.” He noted that “ In addition to the convenience of packed dairy beverages and fruit-based drinks, more people are becoming aware of the nutritional benefits of aseptically processed and packaged milk.”
Tetra Pak has invested approximately INR 150 crores in India which includes establishing the existing packaging material factory in India, also near Pune. The existing facility, which has now been in operation for nearly 14 years, is reaching its full capacity. According to Mr. Kandarp Singh, Managing Director for South Asia Markets, “With strong economic growth, a dynamic consumer base and modernization of distribution and retailing there is high demand across all categories. With a capacity of 8.5 billion in the new factory, we are gearing up to reach the growing demands of the consumers.”
Amongst various other facilities, the new packaging material plant will also have a machine rebuilding centre, which will be the third such centre in Tetra Pak to provide technical services such as start-up support and machine renovation to our customers. We will also have a Product Development and Innovation Center (PDIC), which will have a laboratory,a pilot processing plant and a pilot packaging plant to meet the product formulations and development needs of our customers.
Said Mr. Singh, “We will continue to focus on providing our customers with the latest packaging solutions.“ Together with the capacity of the present location, this will make the Indian operations Tetra Pak’s biggest manufacturing facility in the South and South East Asia region.
The new plant will have some of the environmentally efficient features such as the use of renewable and non-conventional energy and materials, heat recovery to generate air conditioning and rain water harvesting.
Indorama plans joint venture to construct a 400,000 tpa polyethylene plant
Indorama plans to invest over €437 mln in a joint venture project to construct a 400,000 tpa polyethylene plant in Uzbekistan with national gas company Uzbekneftegaz. The €874 mln scheme is part of a plan by the Uzbekistan government to upgrade it’s Mubarek gas processing complex by 2015. Uzbekneftegaz will contribute €110 mln, while the Fund for Reconstruction and Development will loan the remainder of the cost. Originally commissioned in 1971, the Mubarek gas complex can currently process up to 30 bln cubic metres of gas. The PE and other complex products are due to be sold, not only in Uzbekistan but also abroad. The polyethylene scheme is one part of a major Uzbek government programme designed to enhance and develop polymers production in the country. Last year the government signed a bilateral agreement with South Korea resulting in a joint project to construct a petrochemicals and polyolefins complex there.
Celanese Corp to expand capacity at Edmonton manufacturing facility
Global technology and specialty materials company and a North American leader in Ethylene Vinyl Acetate (EVA) polymers-Celanese Corporation, has announced that due to strong growth in strategic, high-value segments, the company will expand capacity at its Edmonton manufacturing facility. The company is expected to increase capacity by up to 15% for higher vinyl acetate content EVA grades at the Edmonton facility in H2-2011. Global EVA production increases are fueled by growth in the photovoltaic cell industry in China and strong demand for EVA in other parts of Asia. Furthermore, Celanese’s EVA business continues to create demand for EVA in innovative applications like controlled-release excipients and medical packaging. With Celanese’s unique technology advantage, which allows it to produce a wide range of high value added EVA products, the company is positioned to satisfy the needs of new high-growth applications.
“This capacity expansion supports our strategy of geographic growth and delivering specialty products and solutions to our customers and enhances our ability to support customer growth globally,” said Mark Murray, General Manager, Celanese EVA Performance Polymers. “As global EVA demand in multiple end-use applications increases, Celanese is making strategic investments to continue supporting the needs of industrial and consumer manufacturers worldwide.”
Dow Chemical opens new office in Kuwait
Dow Chemical has opened a new office in Kuwait, emphasizing the critical significance of its investments and partnerships in the country. Dow’s office in Kuwait will drive the company’s business partnerships across the country, while working to enhance the existing partnerships, and nourish the company’s investments in the petrochemical sector which led to establishing six leading joint ventures.
Dow Chemical has been in Kuwait for 15 years through EQUATE Petrochemical Company, a successful joint venture with Petrochemical Industries Company (PIC) of Kuwait. Dow and PIC are now partners in six mutually beneficial joint ventures in Kuwait among which are EQUATE, MEGlobal, and The Kuwait Olefins Company. As the largest foreign investor, and the largest private employer of Kuwaiti nationals through its joint ventures in the petrochemicals industry in Kuwait, Dow has consistently promoted economic development and prosperity. Historically, Dow’s strong existing asset base, technology position and market presence bring several advantages to its partnerships and joint ventures.
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