Honam Petrochem cancels plans of petrochemicals complex in Qatar

(plastemart) -- Preferring to strengthen production at home, South Korea's Honam Petrochemical has called off plans to build a US$2.6 bln JV petrochemicals complex in Qatar with state-energy company Qatar Petroleum (QP). The project is not likely to be revived in the short term as the company plans to expand its existing facilities. The project was planned to be a 70:30 joint venture with QP and Honam for a petrochemicals complex at Mesaieed to include a 1.3 mln tpa ethylene cracker and 700,000 tpa polypropylene unit.

MRC

Investments into film production grow further

MOSCOW (MRC) - In 2009? Investments into film production fell by 44% (about USD32 mln.) comparing with year 2008 - according to MRC Annual reports.

Last five years in Russia production of various films (multi-layer, shrinkable, stretch and others) was developing actively. Multi-layer film productions is the most attractive sector, more than USD234 mln. Were invested there in 10 years.

Biaksplen is unbeatable leader in this market, investing over USD67 mln. In 2009 Em-Plast, Polymerkamainvest, Danaflex, Polymer (Desnogorsk), Kopeysk Plastic are among 5 leaders in multi-layer film production equipment supply.

Investments of Em-Plast formed almost one-third of all the equipment in 2009. Company continues to expand 5-layer biaxially-oriented srinkable film production (with Techno Coating Engineering equipment).

Today production completely covers domestic market consumption. National companies have to focus on innovative products development for expanding their share in the market. Danaflex surves as an example of this strategy: in 2010 it will launch nanotechnology-based high-barrier polymer film production plant.

MRC

Detailed analysis of events happened in Russian polymer market in 2009 and forecasts for development of this market in 2010 are available in MRC Annual reports.

Turkmenistan to build ┬40m BOPP film plant

(prw) -- The former Soviet state of Turkmenistan is investing ┬40m to construct a biaxially oriented polypropylene (BOPP) film plant at the country's Turkmenbashi oil refinery.

The facility, using French technology supplied by the company DMT, will manufacture a range of products for both the country's growing domestic market and export, reports the national Turkmeninform news service.

The Turkmen BOPP unit will be supplied with polymer from an adjacent 90,000 tpa PP plant established in the 1990s with Japanese technology. Construction work on the film facility began in 2008.

The BOPP plant, with a capacity of 21,000 tpa, is scheduled to turn out a range of 12 different packaging and other film products aimed at sectors including food, agriculture, tobacco, and construction. Some will be used for labels and adhesive tape applications. This unit will be Turkmenistan's first captive downstream outlet for polypropylene.

MRC

Borouge breaks ground for a new Innovation Centre in Abu Dhabi

(Borealis) -- Borealis' joint-venture Borouge, a leading provider of innovative, value creating plastics solutions, was breaking ground for its new Innovation Centre in Abu Dhabi, United Arab Emirates, on April 27, 2010. With a total investment in excess of US$ 70 million in equipment and facilities, Borouge's Innovation Centre in Abu Dhabi will work together with the European innovation centres of Borealis as well as with local and international educational institutions such as the Petroleum Institute of Abu Dhabi, to further develop the competence of polymer science in the United Arab Emirates. It is expected to be completed at the end of 2011.

More than 50 international researchers and engineers will focus on innovations for compounding as well as innovative plastics solutions for the pipe, automotive and advanced packaging industries in close cooperation and partnership with Borouge's customers throughout the value chain, ensuring that specific customer requirements are met.

MRCMRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE - 8.7%);
polypropylene - 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene - 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding.

BASF moves closer to markets to cope with competition in the Middle-East

(plastemart) -- Faced with strong competition from low-cost production in the Middle East, BASF is exploiting all options which extend the value chain. The company plans to cater to 70% of its business in Asia with products made in Asia.

As a result, its cracker in China equally owned by BASF and China's state-owned Sinopec, is broadening its product offering. The BYC cracker complex, under expansion, is BASF's largest in China. BASF and partner Sinopec are investing US$1.4 bln in the expansion, which involves raising the ethylene capacity from 600,000 to 740,000 tpa and building 10 new plants downstream. New products will include 2-propylheptanol, nonionic surfactants, amines and super-absorbent polymers (SAP). BYC will also extend its EO value chain by building a new amines complex for the production of ethanolamines, ethylene amines and dimethylethanolamine, used in the agriculture, pharmaceutical and surfactant sectors. By producing additional derivatives of EO such as nonionic surfactants, it is possible to compete with the Middle Eastern counterparts. BYC will also develop the cracker's C4 chain with the manufacture of butadiene (BD) and isobutene, with derivatives including the plasticizer alcohol 2-propylheptanol and highly reactive polyisobutylene (HR-PIB), which is used in the manufacture of fuels and lubricants.

BASF is counting on Chinese demand developing for these niche products. BYC will implement the Nanjing expansion in phases, as market demand develops. Initial capacity expansions will be completed this year, with the bulk of the project completed by the end of 2011. Most of the Nanjing expansion project is in the engineering phase. Some construction has already commenced, focusing initially on establishing the necessary infrastructure. Work on the cracker expansion is scheduled to begin during a maintenance outage in the second quarter of this year, and the additional ethylene will become available in mid 2011.

The two partners plan to expand BYC by incorporating into the operation a separate BASF/Sinopec JV for the production of styrenics in Nanjing, during the course of this year. Combining the two JVs would improve the synergies between the operations. YBS, which is owned 60:40 by BASF and Sinopec, produces polystyrene (PS) and expandable polystyrene (EPS), as well as the raw material styrene monomer (SM). Along with expanding and restructuring its operations in Nanjing, BASF plans to build a wholly owned integrated methyl di-p-phenylene isocyanate (MDI) complex in Chongqing, southwest China. The project, with an MDI capacity of 400,000 tpa, is scheduled to start up in 2014. BASF expects the Chinese regulators to approve the project this year. The Nanjing and Chongqing investments are central to BASF's plans to double its sales in Asia-Pacific by 2020.

MRCMRC Reference

BASF. The share in the Russian market in 2008:
PS - 9.1% (GPPS - 5.9%, ABS - 11.4%, EPS - 10.6%).

Annual sales growth in Russia over the 5 years:
PS - 15%.

Imports by polymers processing technologies:
foaming;
injection molding.