Startup of new EVA facility postponed in Ningbo (China)

(chemmonitor) -- Initially projected in June 2013, the launch of the first phase of the 72,000 metric tons per annum ethylene vinyl acetate (EVA) plant by Taipei-based (Taiwan) Formosa Plastics Group, one of Asia's major EVA producers, is moved to the last quarter of the same year in light of existing problems with equipment provision.


The surging demand from the downstream sector - photovoltaics - gave rise to EVA production ramp-ups from pole to pole, which, in its turn, provoked stiff competition for costly high-pressure equipment. The foundation and construction of the facility, located in Ningbo, northeastern Zhejiang province, China, started as early as last year's July.

MRC

(chemonitor) -- The Chinese company based in Maoming shut its polypropylene (PP) unit at Maoming site (Guangdong province) last week on Thursday for maintenance, which is expected to last till late February of 2012. The annual output of the plant is 170,000 tonnes.

This maintenance resulted from the shutdown of the company's naphtha cracker for two weeks.

The PP plant's shutdown is predicted to reduce the supply of the product in the China market.

It may be difficult to inspire buying in the PP market if China kept to its tight monetary policy, capping any possible price gains for the polymer, they said.

PP prices are currently being supported by high values of feedstock propylene, market sources said.

MRC

(ivl) -- Indorama Ventures (IVL), the world's leading integrated polyester-chain manufacturer, expects its recent acquisition of PT SK Keris and PT KS Fibre will double the Indonesian contribution to its revenue to 10 per cent.


IVL's revenue this year is projected to reach USD8 billion (Bt246.88 billion). "Indonesia is the next China and India. Besides Thailand, our focus in Southeast Asia is Indonesia, and we expect to invest more in the country," group chief executive officer Aloke Lohia said recently.

He said IVL expects to generate revenue of USD8 billion this year, of which 10 per cent will be contributed from Indonesia, up from 5 per cent last year. The doubled contribution is attributed to last year's acquisition of PT SK Keris and PT KS Fibre, which manufacture yarn, polyester and polyethylene terephthalate (PET).

IVL acquired both companies from SK Syntec, a subsidiary of South Korea-based SK Chemicals. PT SK Keris has been renamed PT Indorama Ventures Indonesia, while SK Syntec has become PT Indorama Polyester Industries. The former has production capacity of PET, polyester and yarn of 160,000 tonnes per annum, and the latter has fibre and polyester capacity of 36,000 tonnes per year.

Lohia said PT Indorama Ventures Indonesia is increasing its capacity to produce polyester by 300,000 tonnes per annum at an investment cost of USD200 million.
Indonesia is one of the biggest markets for textiles. In 2012, the country expects to export textiles worth USD13 billion. The Indonesia Textile Association forecasts that demand in the domestic market will grow rapidly to account for 50 per cent of output this year from 40 per cent in 2011.


MRC

(regainpolymers) -- REGAIN Polymers, one of the UK's leading plastics recycling companies based in Castleford West Yorkshire, recently announced ambitious growth plans backed by a GBR1mln investment in additional capacity and the acquisition of a competitor.

The additional capacity involves the purchase of a state-of-the-art twin screw extruder, to be installed at the Castleford plant in March 2012. The new line will increase extrusion capacity by 40% to over 45,000 tonnes per annum.

To further support its growth and future plans, the business has also acquired Express Recycling & Plastics Ltd of Rainham, Essex, a recycler specialising in the separation and reprocessing of rigid end of life plastics. The increased geographic market spread this acquisition brings to REGAIN will greatly improve its ability to attract raw materials for both recycling plants. Express Recycling & Plastics Ltd has been renamed Regain Recycling & Plastics Ltd.

Speaking of the new acquisition, Ian Porter Managing Director of Regain Polymers said: "We are actively seeking opportunities to expand our business and this new venture will increase both our capabilities and capacity to supply the market."

Mark Roberts, Technical Sales Director stated: "We believe this combination of investments to be one of the most significant developments in the UK recycling market for many years. Our strategy is one of growth, and these investments will give us both the technology and capacity needed to ensure that we are well placed to achieve this in 2012".

MRC

MOSCOW (MRC) -- After record figures seen last December, the imports of linear polyethylene to the Russian market in January fell to 8,000 tonnes. However, this year customs clearance for linear polyethylene became complicated, according to MRC Datascope.

December traditionally showed the record figures in imports of linear polyethylene. In December 2011, total import of LLDPE to Russia made about 17,700 tonnes. Last month, imports of linear polyethylene to the Russian market expectedly decreased to 8,000 tonnes.
However, from the beginning of this year the customs clearance of imported linear polyethylene became more complicated.
Before that custom clearance of imported linear polyethylene was made selectively, but this year all imports of linear polyethylene must be checked in the laboratory.

Under the Customs Tariff, if the content of comonomer chains in the polymer exceeds 5%, then this polyethylene is classified as a copolymer of ethylene and it is subject to import duty of 10%. In December 2011, the share of linear polyethylene classified as copolymers of ethylene, in total imports rose to 13%.

As per importing companies, the laboratory analysis has an effect on the cost of the material. One of the producers of stretch film said, that under such circumstances it was more profitable to deliver the finished product from South-East Asia rather than to produce it in Russia.

After Russia enters the WTO this summer, import duty of linear polyethylene will be raised from the current 0% to 5%.


MRC