Georgia Gulf and Galata Chemicals develop flexible bio-based PVC compounds

(Bioplastic Innovation) -- Georgia Gulf Corporation and Galata Chemicals today announced a collaborative effort to develop a line of flexible biobased PVC compounds containing Drapex Alpha, a primary plasticizer produced from renewable feedstocks by Galata Chemicals.

Drapex Alpha is a highly efficient, bio-based primary plasticizer. It is suitable for a multitude of general purpose and specialty applications. PVC compounds containing the new plasticizer exhibit improved extraction resistance, substantially reduced amounts of volatile organic compounds, and enhanced processability.

"Georgia Gulf is one of the leading technology companies in the vinyl industry, and we have used our decades of experience producing engineered vinyls to develop a line of bio-based compounds that are free of phthalates and heavy metals," said William H. Doherty, vice president-PVC Compounds.

The bio-based vinyl compounds are ideal for wire and cable, medical uses and a range of general-purpose customer needs in the area of environmental-oriented applications.

The Georgia Gulf Corporation has historically been a major manufacturer and marketer of chlorovinyls (caustic soda, chlorine, VCM, EDC, PVC resins, PVC rigid and flexible compounds) and aromatics (acetone, cumene, phenol).

Galata Chemicals is one of the world's leading producers and marketers of additives for the Polyvinyl Chloride (PVC) and associated industries.
MRC

BASF and Oleon collaborate in production of bio propylene glycol

(Bioplastic innovation) -- The oleochemical company Oleon has started up a new manufacturing plant for producing bio propylene glycol (PG) from glycerin in Ertvelde, Belgium. PG is a versatile alcohol contained in pharmaceutical and cosmetic products, as well as solvents and plasticizers.

The plant is the first of its type worldwide, leveraging a highly sustainable production process developed and licensed by BASF and jointly realized with Oleon.

Historically, PG has been produced by means of hydrolysis from propylene oxide, which is obtained from crude oil. The starting material employed at the Ertvelde site is glycerin, primarily obtained from fats and oils generated as by-products of oleochemical production.

BASF not only researched the glycerin-based production technology it realized with Oleon, but also supplies the chemical catalysts that are key enablers for the advanced bio PG production process.

"We’re proud to have worked with Oleon to bring this innovative production technology to market," said Michael Baier, Vice President, Process Catalysts & Technologies with BASF’s Catalysts division. “Moving forward, using glycerin as a starting substance, bio PG production is possible in a far more sustainable way. This is a perfect example of how BASF creates chemistry for a sustainable future.”

BASF SE is the largest diversified chemical company in the world. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
BASF was a pioneer in manufacturing and developing biodegradable plastic, namely, Ecoflex. Ecovio, consists of Ecoflex and a high content of polylactic acid.
MRC

Toray and Gevo to carry out world's first pilot-scale production of bioPET

(Bioplastic Innovation) --Toray Industries in partnership with Gevo Inc. signed an offtake agreement for renewable bio-paraxylene (bioPX) produced at Gevo’s planned pilot plant. The agreement will enable Toray to carry out pilot-scale production of fully renewable, bio-based polyethylene terephthalate (fully bioPET), of its fibers and films for the first time in the world. Toray also plans to offer samples to its business partners, who are the end-users, in 2013 for market evaluation.

With the signing of the offtake agreement between Gevo and Toray, the companies are able to integrate the supply chain to convert bioPX into bioPET for end users.

Using terephthalic acid synthesized from Gevo’s bioPX and commercially available renewable mono ethylene glycol (MEG), Toray succeeded in lab-level PET polymerization to produce fibers and films samples in 2011.

Gevo is a leading company in renewable chemicals and advanced biofuels. Gevo, the first company in the world to begin commercial production of bio-based isobutanol. Gevo has also succeeded in the synthesis of bioPX at the laboratory level utilizing conventional chemical processes.

Toray Industries is a multinational corporation headquartered in Japan that specializes in industrial products centered around technologies in organic synthetic chemistry, polymer chemistry, and biochemistry. Its founding business areas were fibers and textiles, as well as plastics and chemicals.
MRC

BASF posts an increase in sales by 6% in Q2

(BASF) -- BASF’s business performed solidly in the second quarter. The company improved sales by 6% to EUR19.5 billion and income from operations (EBIT) before special items increased by EUR253 million to EUR2.5 billion. While sales volumes declined in the chemicals business, which comprises the Chemicals, Plastics, Performance Products and Functional Solutions segments, the main contribution came from the strong performance of the Agricultural Solutions and Oil & Gas segments. In the first half of 2012, sales were EUR40.1 billion, 6% more than in the same period of the previous year. At over EUR5 billion, EBIT before special items matched the level of the first half of 2011.

A look at the economic developments in the past months and at the order books have led BASF to become more cautious about its expectations for the global economy in 2012 than originally expected at the beginning of the year (previous forecast in parenthesis):

Growth of gross domestic product: 2.3% (2.7%)
Growth in industrial production: 3.4% (4.1%)
Growth in chemical production: 3.5% (4.1%).

In the Chemicals segment in Q2, sales were slightly below the level of the previous second quarter, primarily due to lower sales volumes. Along with weaker demand, the optimization of the supply chain for steam cracker products, carried out in the third quarter of 2011, contributed to this decline in volumes. Sales to Styrolution Group companies had a positive impact on sales development for the segment. Earnings decreased significantly as a result of falling margins and the scheduled maintenance shutdown of several plants.

In Q2 sales in the Plastics segment surpassed the level of the second quarter of 2011. While sales volumes were weaker, positive currency effects in particular boosted sales growth. Lower margins for some basic products led to a significant decline in earnings.

BASF is the world’s leading chemical company, which portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.
MRC

RusVinyl to get additional tax benefits

MOSCOW (MRC) – Committee of Economy and Industry of Legislative Assembly of Nizhegorodsky region has recommended the Regional Parliament to adopt in two readings the law on the new parameters of the investment agreement between the region and RusVinyl. The document stipulates an increase of tax benefits up to 5,3bln roubles, report MRC analysts.

Members of the Legislative Assembly of Nizhegorodsky region approved the draft law on the new parameters of the investment agreement between the region and RusViny (a Joint-Venture of Sibur and a Belgium company, Solvin). According to the Vice-minister of Investment Policy, Andrey Gneushev, the changes are based on financial and economic indices of the draft law in line with the business-plan dated 13 December, 2011.

According to the new parameters of the draft law, a launch of the complex is postponed till 2013, the level of investments will grow from 22,3bln. to 55,3bln. roubles. The schedule of investments also undergoes changes. The dates of the state support in the form of tax benefits are set from January 1, 2014 till December 31, 2018. The tax benefits increase from 2,2bln. to 5,3bln. roubles and a payback period increases from 148 to 173 months. By 2018 suspension PVC output will have to reach 312 thousand tonnes and emulsion PVC production – 32 thousand tonnes, caustic soda production – 222 thousand tonnes. Supplementary Agreement No.1 stipulates a state support in the form of partial compensation of interest rates on loans in the amount of 271 400 roubles (the dates of the partial compensation of interest rates should be from January 1, 2014 to December 31, 2016).

These changes will be submitted for approval in two readings at the meeting of the Legislative Assembly of Nizhegorodsky region on July 26, 2012.

It should be recalled that pre-project documentation for the construction of PVC and caustic soda complex was prepared in 2007. The complex capacity will allow to produce 300 thousand tonnes of suspension PVC, 30 thousand tonnes of emulsion PVC and 235 thousand tonnes of caustic soda. In June, 2008, Investment Committee of the Governor of Nizhegorodsky region decided to grant tax benefits to RusVinyl. In July, 2010, “the first stone” was laid on the building site of the company opening a construction phase of the plant.

As part of the construction project of the plant in Kstovo, Sibur began a gradual shutdown of its chlorine and caustic soda production capacities at Kaprolaktam plant in Dzerzhinsk. The gradual shutdown of chlorine production will last till spring of 2013.
MRC