BASF and SINOPEC consider further expansion of Nanjing joint venture

MOSCOW (MRC) -- BASF and SINOPEC (China Petroleum & Chemical Corp) are considering the extension of their Nanjing joint venture BASF-YPC Company with the expansion of existing ethylene oxide (EO) production, and a new plant for neopentylglycol (NPG), reported the company on its site.

BASF-YPC will further expand its acrylic acid value chain with additional acrylic acid and butyl acrylate plants. Production is expected to commence in 2014.

Together with the superabsorbent polymer (SAP) plant, now under construction and also expected to begin production in 2014, BASF-YPC Company will enhance its support to the home care and hygiene industries as well as the coatings, textiles, and construction industries.

The partners are considering an expansion of the site’s ethylene oxide unit, which has an existing capacity of 330,000 metric tonnes per year. EO is a basic chemical mainly used for the production of ethylene glycol, and also for the production of surfactants for washing and cleaning agents, and as a raw material for the production of ethanolamines, glycol ethers and polyurethanes.

Additionally under consideration is a new neopentylglycol unit. NPG is a unique polyalcohol offering superior performance advantages in many end-use applications, due to its high chemical and thermal stability. It is mainly used as a building block in polyester resins for coatings, unsaturated polyesters, lubricants and plasticizers. As the global market leader for NPG, BASF is the only company in the world that has production facilities in Europe, North America, and Asia. As its production benefits from backward integration, BASF offers its customers high delivery reliability.

BASF-YPC broke ground on its superabsorbent polymers plant in May 2012. The facility will have a capacity of 60,000 metric tonnes per year. Superabsorbent polymers are materials with the capability to absorb and hold up to 500 times of their own weight in liquid - even under pressure. The product is used in form of a white grainy powder, mainly to manufacture baby diapers and adult incontinence and feminine hygiene products.

Acrylic acid is an important precursor for the production of superabsorbent polymers. Butyl acrylate, one of the esters of acrylic acid , is used to produce adhesive and surface coating raw materials.

As MRC reported, in early 2013, BASF and SINOPEC completed a joint feasibility study and taken the next steps in the establishment of a world-scale isononanol (INA) plant in China. In summer 2012 the companies signed a Memorandum of Understanding (MoU) to further strengthen their cooperation by jointly exploring the possibility of building a world-scale isononanol (INA) plant in Maoming Hi-tech Industrial Development Zone, Maoming, China. Thus, the final scope of the investment is to be determined in the near future. The partners will also form a new 50-50 joint venture, named BASF MPCC Co. Ltd, and plan to start production at the new plant around the middle of 2015.

BASF-YPC Company Limited is a 50-50 joint venture formed in 2000 between BASF and SINOPEC.

China Petroleum & Chemical Corporation (SINOPEC) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. SINOPEC is China's largest manufacturer and supplier of major petrochemical products.

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

World could face shortage of biaxially oriented PET film

MOSCOW (MRC) -- Researchers have questioned whether increases in film extrusion capacity will be enough to guarantee supplies of biaxially oriented PET (BOPET) thin films to Western markets, said Plasticsnews.

A new report by PCI Films Consulting found that after shortages of BOPET thin films in 2010 the industry had worked hard to ensure that supplies did not dry up.

However the report questioned the success of such a strategy, arguing that "significant" increases in capacity in recent years – allowing for production of around 2 million metric tons in the next three years – would not do the job.
Over the next five years the global market is expected to use another 900,000 metric tons of thin film and suppliers are gearing up for this with investments in an additional 1.3 million tonnes of new capacity, PCI acknowledged.

But PCI's Simon King, who wrote the report, believes such headline numbers are misleading for two reasons. "First, nameplate capacities are never realized and a more realistic level of production from this new capacity could be as low as 75% of nameplate.

"Secondly, most of this new capacity is being installed in China and Chinese film producers don't seem to be able to connect with European and North American customer needs. Many do not see them as realistic alternatives at present".

Westernized regions, such as Europe and North America, continue to be major importers of BOPET thin films since their local industries were not large enough or competitive enough to meet local demand and regional producers appear to be doing little about it, PCI said.

It reports the running up of new capacity in Turkey and Poland and two new plants in the US, "but these will do little to absorb the current volume of imports into these regions, let alone meet future demand.

"While the current investment climate is weak, buyers are encouraged to gain a broader understanding of potential suppliers and their capabilities in commodity BOPET thin films outside of traditional supplier networks to ensure continuity of supplies in the coming years."

As MRC wrote earlier, Atlas has commissioned an 8.7m wide Atlas CW984AP primary film slitter at Surat Metallics Ltd., in Surat (Gujarat State, India), which is located approx. 250 km north of Mumbai.

The slitter rewinder was installed in conjunction with a new BOPET (bi-oriented polyester) film production line which is the first film production line to have been installed by Surat Metallics. The film line commenced production in February 2012 and has the capacity to produce up to 32,000 tonnes of BOPET film per annum.

MRC

SM plant to be shut by Nihon Oxirane

MOSCOW (MRC) -- Nihon Oxirane Co. is likely to take off-stream its styrene monomer (SM) plant for a maintenance turnaround, said Apic-online.

A source in Japan informed that the plant is planned to be taken off-stream in September 2013. It is expected to remain shut for around one month.

Nihon Oxirane is a joint venture between Sumitomo Chemical and LyondellBasell.

The company operates a plant at Sodegaura in Japan’s Chiba prefecture that can produce 180,000 tonnes/year of propylene oxide (PO) and 425,000 tonnes/year of SM.

Other Japanese producers included Idemitsu Kosan Co, Asahi Kasei Co and Denki Kagaku.

As MRC wrote earlier, Formosa Chemicals and Fibre Corp (FCFC) is slated to take its No.2 styrene monomer (SM) plant for a maintenance turnaround. Located in Mailiao, Taiwan, the plant has a production capacity of 350,000 mt/year. The plant will be shut in August 2013. It is likely to remain off-stream for around one month.
MRC

Linde to build large ammonia plant in Russia

MOSCOW (MRC) – The technology company Linde Group has formed a joint venture with chemical company JSC KuibyshevAzot to build and operate a large ammonia plant at the Togliatti site in Russia's Samara region, said Linde.

Both partners signed an agreement to this effect on 27 May 2013. The deal will involve a total investment volume of around EUR 275 million. Both companies have an equal stake in the newly formed venture, Linde Nitrogen Togliatti.

"We are proud to team up with our partner to support further expansion of the Togliatti industrial hub," said Professor Dr Aldo Belloni, Member of the Executive Board of Linde AG. "This project not only strengthens our presence in Samara, but also our position as the leading gases and engineering company in the fast-growing Russian market."

The Engineering Division of The Linde Group will construct the new, state-of-the-art on-site plant, designed to deliver exceptional levels of energy efficiency. The plant will have a production capacity of 1,340 tonnes of ammonia per day (tpd). Construction work is scheduled for completion in 2016.

JSC KuibyshevAzot, one of the biggest chemical companies in Russia, plans to expand Togliatti production capacity for caprolactam – a precursor of polyamide plastics – and nitrogen fertilizers. It will need a rising stream of ammonia to support these growth plans.

Linde Group received an engineering contract for the licensing and front end engineering design (FEED) of one of the world's largest ethylene plants in Tobolsk, Western Siberia. The contract was awarded by Russia's largest petrochemical company, Sibur LLC. The FEED services provided by Linde are the first step in the project to realise the new plant. The Group's work will provide a foundation for the detailed engineering and construction phase. Linde"s services also include a cost estimate, which will be used by Sibur to inform the final investment decision.

The Linde Group is a world-leading gases and engineering company with around 62,000 employees in more than 100 countries worldwide. In the 2012 financial year, Linde generated revenue of EUR 15.280 bn. The strategy of the Group is geared towards long-term profitable growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development.
MRC

Global market for engineering resins and polymer alloys and blends to increase to 28 bln in 2018

MOSCOW (MRC) -- The global market in volume for engineering resins and polymer alloys and blends was estimated at more than 22 billion lbs in 2012 and is projected to increase to 28 billion lbs by 2018 after increasing at a five-year compound annual growth rate (CAGR) of 4.4%, according to Plastemart.

Asia comprises the largest segment with nearly 55% of the total market, followed by Europe and the Americas. Over the next five years, the Asian segment will increase, but at a slower rate than the previous decade due to significant penetration over the last decade.

The global market value was estimated at nearly USD43 billion in 2012 and is expected to increase to more than USD55 billion by 2018. The polycarbonates and polyamides are clearly the most prominent segments, accounting for slightly more than 60% of total volume, and that scenario is expected to remain intact over the next five years. The main driving force for developing alloys/blends is the reduced time and cost in commercializing new effective products, and ability to tailor properties with two known entities.

Demand for medical plastics will outpace packaging applications, especially in the area of prosthetic devices and minimally-invasive surgical instruments. Plastics in the packaging sector are largely driven by cost. Most consider that the use of engineering resins will increase faster than commodity resins because of increased physical demands being placed on resins used for medical devices.

We remind that, as MRC reported earlier, in March 2013, Toyo Engineering Corporation was awarded a contract to construct a synthetic resin (ethylene-vinyl alcohol copolymer, EVOH) production plant with a capacity of 15,000 tonnes per year in La Porte, Houston, Texas, USA, planned by the Nippon Synthetic Chemical Industry. Construction of the new plant is scheduled to begin in the summer of 2013 and to be completed at the end of 2014.
MRC