Natpet, Schulman launch polypropylene JV

(tradearabia) -- Jeddah-based National Petrochemical Industrial Company (Natpet), a subsidiary of Alujain Corporation, has entered into a joint venture agreement with A Schulman of the US to produce polypropylene compounds.

The 50-50 joint venture, expected to be named Natpet-Schulman Engineering Plastic Compounds, is planning to build a polypropylene compounding plant in Yanbu, where it expects to begin production by the end of calendar-year 2014.

A Schulman's initial equity investment in the relationship is approximately EUR11 million, or approximately $14 million.

Initial project costs, including construction of the facility, infrastructure needs as well as working capital requirements are approximately EUR55 million, or approximately $70 million based on current exchange rates.

Beyond the initial equity investment by the partners, the joint venture intends to take advantage of various low-interest loan options provided by the Saudi Industrial Development Fund and other lending institutions.

The joint venture will manufacture a line of customer-preferred engineered plastic compounds based on A. Schulman's highly regarded technology. Natpet, a well-established petrochemical producer in the region, will provide the joint venture with its regional infrastructure as well as its high-quality polypropylene resin.

MRC

Basf to use lightweighting plastic compound in trucks

(basf) -- A plastic compound from BASF has, for the first time, found use in the charge-air section of a commercial vehicle. The charge-air duct on the DD13/DD15 truck engines is one of the first large production applications for the new polyamide (PA) grade Ultramid A3W2G6.

The component, which is produced by ElringKlinger from the very heat aging-resistant PA, offers high mechanical and thermal capabilities. The multifunctional oil intake module is also manufactured from a BASF polyamide. The designation DD13/DD15 covers a range of high-performance truck diesel engines with a displacement of about 13 and 15 liters, respectively, that Detroit Diesel Corporation, truck engine and component manufacturer and Daimler subsidiary, builds in the USA.

The lightweighting trend has, in the meantime, also taken hold in the truck sector. As in the automobile sector, the objective on the DD13/DD15, is to replace heavy metal parts with lightweight plastic components that provide equivalent performance. Compared to its aluminum predecessor, the lightweight charge-air duct made from the BASF polyamide is 1.8 kg, or 50 %, lighter.

The high heat-aging resistance of the polyamide 66 specialty Ultramid A3W2G6 is confirmed by its performance in pulsating pressure tests of the component at 140°C. The charge-air duct must survive 3,000 hours of pressure fluctuations between 0.4 and 3.5 bar. These are special requirements in the commercial vehicle sector. They arise from the mixing of turbocharged fresh air with the hot (up to 230°C) recirculated exhaust gas (EGR: exhaust gas recirculation). At the point where the exhaust gas is reintroduced and under high loads, as when climbing steep grades to mountain passes, peak temperatures of up to 200°C can occur.

MRC

Mitsubishi Chemical says to close ethylene plant

(Reuters) - Mitsubishi Chemical Holdings Corp said on Monday it plans to close one of two ethylene plants in its Kashima complex in eastern Japan, as part of a push to cut 4 billion yen (USD50.2 million) in annual fixed costs.

The company is closing the plant's No.1 ethylene unit, which has a capacity of 390,000 tonnes per year, in 2014. But it will boost the capacity of the plant's No.2 unit by 50,000 tonnes per year, raising it to 540,000 tonnes per year, in 2013.

Mitsubishi Chemical, seeking to cope with a stronger yen, said it will also halt its No.1 benzene plant at the Kashima complex in 2014. (USD1 = 79.6150 Japanese yen)

MRC

Unipetrol to shut urea unit to improve EBIT

(euroinvestor) -- Czech petrochemical holding Unipetrol AS (BAAUNIPE.PR) Friday said it has decided to shut down its urea production unit in the Czech city of Litvinov as of January 2013, as the plant was a loss maker.

"Its impact on the profitability of the whole Unipetrol group has been negative in the last couple of years. No reverse of this trend is expected according to internal evaluation, and the evaluation of an independent external advisor," the company said in a statement.

Unipetrol also said the closure comes as future operations of the urea unit would require significant investments upwards of several hundred million koruna (CZK100 million = USD4.9 million).

The plant closure will have a positive impact on Unipetrol's pre-tax earnings as of 2013, with a further positive impact in following years, the company said.

Unipetrol, majority-owned by Poland's PKN Orlen SA (PKN.WA) said it will cut approximately 50 full time jobs as a result of the closure.
MRC

SIBUR and Sinopec sign cooperation agreement

(sibur) -- Dmitry Konov, CEO of Russian petrochemical company SIBUR, and Wang Tianpu, President of China Petroleum and Chemical Corporation (Sinopec Corp.), have signed a Cooperation Agreement during the state visit of Russian President Vladimir Putin to China.

The agreement sets the framework for two cooperation projects to establish a joint venture, manufacturing nitrile rubber (NBR) and isoprene rubber (IR) in the Shanghai area of China. The Joint venture will use the patents and technologies of SIBUR. The NBR and IR plants are expected to have an annual capacity of 50,000 mt each, subject to finalisation based on the feasibility study. The cooperation will be a two-stage process, with the NBR launch followed by the IR plant.

The feasibility study for the NBR project has been successfully completed and will shortly be filed with local regulators. For the IR project, feasibility study is about to begin.

On 28 April 2012, the parties have signed a Cooperation Agreement allowing them to form a joint venture manufacturing nitrile rubber (NBR) in Krasnoyarsk, Russia. The new JV will boost the existing NBR capacity of the Krasnoyarsk rubber plant from 41,000 to 56,000 tonnes per year.
MRC