BASF's expanded bioplastics output to go on stream by end of 2010

LONDON (ICIS) -- BASF's 60,000 tonne/year capacity expansion of its biodegradable plastics plant in Ludwigshafen will go on stream at the end of 2010 to meet rising market demand, the German chemical major said on Friday.

The group expected a significant market growth for biodegradable plastics through to 2020, he added.

BASF first announced the expansion of its Ecoflex production line to 60,000 tonnes/year from 14,000 tonnes/year in April 2008. BASF said it wanted to focus on improving the performance of its products Ecoflex and Ecovio as biodegradable and compostable plastics for agricultural use.

As a consequence, its business with the additive Envirocare, which was part of the Ciba range used to manufacture polyethylene mulch films, was terminated effective 1 July 2010, BASF added.

MRC

SINGAPORE (ICIS)--Thailand's PTT Chemical will shut its 400,000 tonne/year linear low density polyethylene (LLDPE) plant at Mab Ta Phut in Rayong province on 9 October for maintenance, a company source said on Friday.

⌠The maintenance will last for about two weeks, he said.

PTT Chemical's plant shutdown was unlikely to have significant impact on local supply as the other two LLDPE plants at Mab Ta Phut, eastern Thailand, with a combined capacity of 420,000 tonnes/year were still running, domestic distributors said.

The other two plants are operated by Thai Polyethylene and Siam Polyethylene.

mrcplast.com

GUANGZHOU (ICIS) -- China's Yangzi Petrochemical has restarted its 400,000 tonne/year No 1 cracker at Nanjing in Jiangsu province early this week after maintenance, a company source said on Friday.

⌠We restarted it on 4 October and the facility is running very smoothly now, the source said.

The cracker was taken off line on 12 August for scheduled turnaround.

The company's 250,000 tonne/year No 2 cracker at the same site was running at full load at present, the source added.

Yangzi Petrochemical is a subsidiary of China's state-owned petrochemical giant Sinopec.

MRC

LONDON (ICIS) -- Borealis Agrolinz Melamine Deutschland has halted production at one of its two 40,000 tonne/year melamine lines at its plant in Piesteritz, Germany, following technical problems, a source at the company said on Thursday.

The line was expected to remain closed until Monday next week.

⌠We're trying to fullfil customer orders so they shouldn't be in danger, however, there will be limited material. We won't be able to compensate for other plant shutdowns or offer spot for the time being, a spokesman for the company said.

Borealis' 30,000 tonne/year high pressure melamine line at Linz, Austria, remained in an unplanned shutdown and was expected to come back on stream on Tuesday 12 October.

The Borealis represenative will take part in the Russian Polymers Summit 2010, 14th October 2010, Moscow, Russia, organized by ICIS and MRC.

MRC

ARTIMINO (ICIS) -- A lack of cotton is driving up the value of purified terephthalic acid (PTA), the feedstock for cotton substitute polyethylene terephthlate (PET), speakers at a PET industry forum said on Thursday.

⌠The polyester industry has to pay more (for PTA). Cotton is too high and I wouldn't be surprised if PET rates were cut for lack of (PET's feedstock,) PTA, commented Global Service International's (GSI) CEO Francesco Zanchi.

The recent flood in Pakistan has destroyed the cotton crop, not only for now but for the foreseeable future, Zanchi added.

Worldwide polyester growth was estimated at 3m tonnes/year. Add to that a further half a million tonnes as substitution for the lack of cotton and that translates to 3m tonnes of PTA and 2m tonnes of paraxylene (PX), the main PTA feedstock, said Sanjay Sinha of Reliance.

Speakers at the meeting warned that higher feedstock costs would lead to more expensive PET.

⌠The price of PET will go up in dollar terms no doubt and in a substantial way...Today is the lowest price for the next six months at least, Zanchi said, urging customers to buy product while they could.

MRC