Japan's JX to form JV with S.Korea's SK Innovation

(Reuters) -- Japan's JX Nippon Oil & Energy Corp will join forces in petrochemicals and lubricating oils with SK Innovation Co of South Korea, the Nikkei business daily reported.

Faced with flagging demand for gasoline and other petroleum products in their respective home markets, the two giants will invest around 120 billion yen (USD 1.52 billion) in a pair of new production ventures in South Korea, the paper said.

A formal agreement on the business partnership is expected as early as Friday. The new petrochemicals and lubricants factories will be built on the grounds of the South Korean group's refinery complex in the southeastern city of Ulsan. JX Energy will invest more than 50 billion yen in the two ventures, the Nikkei said.

In petrochemicals, the JX Holdings Inc unit will form a 50-50 venture with SK Global Chemical Co, a unit of SK Innovation. Production of paraxylene, an oil-based raw material for synthetic fibers and plastics, is expected to begin around 2014, the business daily said.

At an investment of some 90 billion yen, the new facility will have an annual output capacity of about 1 million tons, making it one of the biggest in the world, the daily reported.

This will bring JX Energy's total paraxylene capacity, now at 2.62 million tons a year, to about 3.1 million tons and raise its share of the Asian market to around 15 percent, cementing its position as the top producer in the region, the paper reported.

MRC

(Plastemart) -- Kaneka Corporation and Kaneka Belgium N.V. have reached an agreement with Evonik Rohm Gmb of the Evonik Industries AG Group regarding the acquisition of Evonik's acrylic modifier and acrylic sol businesses. As per the acquisition agreement concluded on June 23, the acrylic modifier and acrylic sol businesses of Evonik will be acquired by Kaneka. The acquisition encompasses tangible fixed assets associated with the relevant operations of Wesseling site, and other assets, as well as employees of the manufacturing department and separate contracts with third parties. Kaneka Belgium will carry out sales and production of the acquired businesses while setting up a new company Kaneka Modifiers Deutschland GmbH, at the Wesseling site of Evonik to inherit tangible fixed assets and manufacturing department employees from Evonik. The new entity will be a 100% subsidiary of Kaneka Belgium.

This acquisition is subject to the approval by the German Federal Cartel Office in accordance with German competition law i.e. Act Against Restraints of Competition.

MRC

(BASF) -- BASF, the global leader in catalysis, today announced that it is raising prices worldwide for its activated bleaching clays by 9 %, or as contracts allow. The price increase will be effective September 1, 2011. Bleaching clays are used by vegetable oil refiners, among others, to remove impurities and clarify the oil.


BASF's Catalysts division is the world's leading supplier of environmental and process catalysts. The group offers exceptional expertise in the development of technologies that protect the air we breathe, produce the fuels that power our world and ensure efficient production of a wide variety of chemicals, plastics and other products. By leveraging our industry-leading R&D platforms, passion for innovation and deep knowledge of precious and base metals, BASF's Catalysts division develops unique, proprietary catalyst and adsorbent solutions that drive customer success.

MRC

(ICIS) -- The US August butadiene (BD) contract was heading towards a split settlement of 5 cents/lb (USD 110/tonne, EUR 77/tonne) and 11 cents/lb, a buyer said on Wednesday.
Three buyers agreed to an increase of 5 cents/lb, while a fourth buyer agreed to an increase of 11 cents/lb. The August contract increases will push the settlement to 175 cents/lb for three producers, and to 186 cents/lb for a fourth producer.

Two of the producers initially nominated an increase of 10 cents/lb. However, they later followed the lead of a third producer, who nominated a 5-cent/lb increase. The 11 cent/lb increase was initially nominated at 15 cents/lb. Throughout the year, demand for BD has run well ahead of supply, particularly in the downstream styrene butadiene rubber (SBR) sector.

Meanwhile, supplies of BD have been tight because of production problems and a lack of crude C4.

MRC

(ICIS) -- The European acrylic acid and acrylate esters market is in a state of confusion, as uncertainty surrounding feedstock propylene and a wide scattering of prices has led to some nervousness among players, sources said on Thursday.

⌠Some purchasers are very nervous, said one supplier. ⌠There are concerns about security of supply, so we have seen some healthy buying interest despite the usual August slowdown. The sentiment for September is very strong - there is a real sense of this - and buyers are trying to better secure volumes.

Another major European seller agreed, adding that it had already confirmed some contracts for August at a rollover despite the eventual propylene reduction of EUR 15/tonne. ⌠The drop in propylene took everyone by surprise and possibly worried the purchasers a little, said the seller.

There was also some concern surrounding availability in Asia and any potential impact in Europe following a fire at a propylene pipeline in Taiwan over the weekend.

However, no damage was reported at the 100 KTa crude acrylic acid plant located in the same complex, and operating rates were maintained at 100%, said a source from the company.
With prices in the Chinese market continuing to firm on restricted availability in the region, no significant volumes are expected to make their way into Europe in the coming weeks.

MRC