TPC Group to expand production capacity of polyisobutylene

MOSCOW (MRC) -- TPC Group Inc. (TPC) has commenced engineering to expand production capacity of polyisobutylene (PIB) to meet its customers' needs, according to the company's press release.

TPC uses proprietary technology to produce both highly reactive PIB (HR-PIB) products, which are used in lubricant and fuel additives, and PIB products for conventional applications such as adhesives, caulks, sealants, and coatings.

TPC technology is unique in that it can produce both types of products in a wide range of molecular weights within the same unit, which offers the Company an unrivaled ability to meet the needs of a growing market.

The need for a capacity expansion is driven by the growing demand for HR-PIB due to upcoming changes in the technical standards for lubricating oils that favor use of HR-PIB based dispersants, as well as an increasing demand for the wide variety of other end uses, including automotive sealants and industrial lubricants. TPC has commenced engineering to expand the Company's existing capacity to meet this growing need.

"TPC Group is committed to maintaining its position as the premier supplier of PIB in North America," said President and CEO Michael McDonnell. "As the leading merchant producer of PIB, we are focused on meeting the needs of our customers for high quality products delivered through our extensive logistics network. We back our commitment to our customers with the security of multiple production units and multiple sources of feedstock supply, including our own isobutylene production unit targeted for startup in 2014."

As MRC informed earlier, in January this year, BASF and PETRONAS announced the termination of their preliminary agreement on a joint venture for the production of specialty chemicals as a part of PETRONAS' petrochemical complex (RAPID), which is being build in the state of Johor, Malaysia. As per the preliminary agreement signed in March 2012, a new joint venture (BASF - 60%, PETRONAS - 40%) was aimed to produce izononanol, reactive polyisobutylene, nonionic surfactants, methanesulfonic acid, and a number of intermediate products.

TPC Group Inc. is a leading producer of value-added products derived from niche petrochemical raw materials such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast region. TPC Group sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants.
MRC

MOSCOW (MRC) -- South Korea-based company Lotte Group's plan to build an integrated petrochemical plant is still hampered by land problems. Honam Petrochemical Corp., the core company of Lotte Group's chemical division, is planning to build a polyethylene and polypropylene plant worth USD5 billion in Cilegon, Banten, said Tempointeractive.

The plant's construction requires a land of 100 hectares and is expected to be completed in three to four years.

Panggah Susanto, Director General of the Manufacturing Industry Base at the Ministry of Industry, said that once Lotte's plant operates, petrochemicals' raw material imports--currently reaching USD6 billion could be reduced by 20 percent. Lotte has the potential to be receive a tax holiday because the company meets the criteria for the facility.

Lotte is looking for a local partner to build the plant. "We recommend them, if possible, to invite a local partner such as PT Pertamina (Persero) or another local partner," Panggah said. He said that in addition to meet the domestic demand for plastic raw materials, the plant's production will also be exported "to improve the competitiveness of the national petrochemical industry."

Domestic investment in the petrochemical sector is still considered attractive due to the growing domestic needs of plastic. The increase will be driven by the growth of food and beverage industry as well as the automotive sector; both are a major consumer of industrial plastics. In the export market, South Korea's growth of F&B industry as well as automotive also raised the demand for petrochemical products. Lotte Group's investment in Indonesia is also intended to respond to domestic need of the South Koreans.

As MRC wrote earlier, South Korean conglomerate Lotte Group is considering new petrochemical ventures in southeast Asia, including an investment in Indonesia that may top USD5bn (EUR3.6bn).

The Lotte Group currently has a presence in Indonesia via its subsidiary, Honam Petrochemicals, which acquired Malaysia’s polyolefin major Titan Chemicals in July 2010. Included in the acquisition was Titan’s Indonesian subsidiary - PT Titan Petrokimia Nusantara (TPN), which has a polyethylene (PE) production capacity of 450,000 tonnes/year.

MRC

MOSCOW (MRC) -- In Egypt, Ain Sokhna port workers have been on strike since end January, according to local Egyptian media, said Apic-online.

Around 1,200 workers at Platinum Maritime Services, which is a subcontractor at the port, started their strike demanding permanent contracts with DP World, a private Dubai-based company that manages the port. This situation caused almost all operations to be suspended at the port.

Negotiations with army leaders, who attempted to help resolve the issue, failed as their offers were the same as that of DP World. Currently, the port workers only allow tourist ships and basic foodstuff containers to be unloaded while the rest of the ships are stopped. Ain Sokhna, near the southern end of the Suez Canal, is Cairo's main port for cargoes from the Far East.

A polymer player in Egypt complained about the ongoing strike in the Ain Sokhna port and said, "Apart from the fact that our overall end product demand is poor, we are now facing clearing problems at Ain Sokhna port. Import cargoes are currently waiting in the port and we are not able to withdraw them. Plus, liquidity issues persist in the market."

In addition to the port issue, Egyptian players continue to lament the high dollar parity and the difficulty in obtaining US dollars in the country. A converter complained, "Our end product demand remains stagnant while ongoing liquidity issues coupled with the increasing dollar parity hampers the import trade. This situation caused local availability not to be that comfortable. We, therefore, reduced our operating rates down to 40% capacity."

Electricity problems inside the country also cause problems for converters. A buyer commented, “We struggle with our own worker’s strike and on top of that we are facing electricity cuts, which hinders our manufacturing. Although these electricity cuts are not as bad as back in 2012, we still get hurt since we need to restart our machinery every time the power goes off.” Therefore, the buyer runs their plant at a lower capacity of 80%.

As MRC wrote earlier, yet in December 2012, Egyptian players moan about limited local supply levels for the locally held PVC and PE markets. Polyethylene (PE) and polypropylene (PP) demand in Egypt is weakening in the uncertain political climate ahead of a referendum on Saturday on a controversial draft constitution.

Egypt's local PE production is limited to Sidi Kerir Petrochemicals Co (SIDPEC), while PP production is limited to Oriental Petrochemicals Co (OPC) and Egyptian Propylene and Polypropylene Co (EPPC).

MRC

MOSCOW (MRC) -- Tokyo- Sumitomo Chemical has announced a new corporate business plan for the period from 2013 to 2015, the year of the company's hundredth anniversary, which aims to achieve sustained growth for the next hundred years, said Apic-online.

Under the plan's slogan of "Change and Innovation – for the next hundredth anniversary," Sumitomo will commit to strengthening the foundation of its business during the three year period. This will include promoting change and innovation in areas of business structure, business development and corporate culture.

Sumitomo said its corporate vision is to create new value based on technologies accumulated over the years; to use the power of chemistry to help solve global challenges, and to develop a corporate culture "full of can-do spirit and always be a company that society can trust."

It also involves five priority management issues – enhancing its financial strength, restructuring its busi-nesses, developing next generation businesses, promoting globally integrated management and ensuring full and strict compliance, while maintaining safe and stable operations.

"The company will strive to develop a high-performance business structure by speedy and effective implementation of its new corporate business plan," said Sumitomo, adding it "will progress with confidence to achieve sustainable growth together with society as a diversified global chemical company."

As MRC wrote earlier, Sumitomo plans to cease operations at its C2 cracker in Chiba during the next scheduled maintenance turnaround.

Sumitomo Chemical is a Japanese based manufacturer of a diverse range of products, including basic chemicals, petrochemicals and plastics, fine chemicals, agricultural chemicals, IT-related chemicals and pharmaceuticals.

MRC

MOSCOW (MRC) -- SIBUR International GmbH trading company has registered subsidiaries in Turkey and Ukraine, reported SIBUR on its site.

SIBUR International Trading Istanbul and SIBUR International Trading Kiev, with offices in the respective capitals, will trade in basic polymers - polyethylene (PE) and polypropylene (PP).

Turkey is one of the global leaders for PP consumption. As planned, SIBUR International Trading Istanbul will sell the polypropylene produced by the new Tobolsk-Polymer Complex upon its commissioning.

Ukraine is one of the largest markets of PE and PP in the CIS. SIBUR International Trading Kiev will sell the polypropylene produced by Tomskneftekhim and Tobolsk-Polymer.

The new trading arms will enhance SIBUR’s flexibility in adjusting to clients’ needs, give the company extra competitive edge in strategic markets, and increase sales through access to end consumers.

The major polypropylene consumers in Turkey and Ukraine are polypropylene big bag and woven bag, rug, BOPP film, non-woven fabric and compound manufacturers.

In the second half of 2010, SIBUR opened a Chinese trading company Citco (Shanghai) Trading. The Chinese office was established to distribute the company"s petrochemical products in China and to strengthen its position in the Chinese strategic market.

As MRC reported ealier, SIBUR Petrochemical India, a subsidiary of SIBUR, started operations in Mumbai in summer, 2012. SIBUR Petrochemical India extends SIBUR's geographic reach into India and South Asia. The subsidiary company will initially conduct detailed research of the petrochemical products market and support business development in a number of ways, including government relations.

And this month SIBUR launched a sales office in Ekaterinburg to facilitate distribution of its basic polymers across the Urals Federal District.

The founder of SIBUR International Trading Istanbul and SIBUR International Trading Kiev is SIBUR International GmbH, a provider of trading and logistic services to SIBUR and other companies of the industry, specialising in export and distribution of Russian petrochemicals in Europe and Asia. SIBUR International GmbH manages warehouse facilities in ports of the Black and Baltic Seas, which accept, store, and ship freights.
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