Petrologistics starts propylene production at Texas plant

(ICIS) -- Petrologistics launched production at its propylene plant in Texas, the company said on Friday, adding that the unit is expected to run at capacity within 30 days.

The 544,000 tonne/year plant in Houston will produce chemical- (CGP) and polymer-grade propylene (PGP) through propane dehydrogenation (PDH), the only facility of its kind in the US.

The unit was originally expected to come on stream at the end of July, but the start-up was postponed several times as a result of commissioning issues, Petrologistics had said.

The delays generated anxiety in the US market, as buyers and sellers tried to calculate how the extra capacity would influence monomer prices in the short term.

Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell, Shell Chemical and Petrologistics are among the major US producers of PGP and CGP.

Dow Chemical, INEOS, Ascend Performance Materials and Total are among the main buyers.

MRC

(Plastemart) -- SK Energy Co Ltd is restarting the smaller of its two naphtha crackers after a two-year shutdown due to poor profits.

The 200,000 tpa unit, shut down in 2008, will be restarted sometime in November. Overall petrochemical margins for contracted supplies have been pegged at around US$350/ton last month, and about US$200-300/ton currently.

SK Energy also operates a 660,000 tpa naphtha cracker, which was closed for routine maintenance around Oct. 4, and is due to resume operations in early November. The long-term shutdown of the smaller cracker was planned in October 2008 after the petrochemical industry was hammered by the global financial crisis and margins sank into the red. The market has recovered, but the refiner continued to keep the unit shut indefinitely due to its small capacity.

MRC

(Plastics News) -- Three acquisitions over the past 12 months have put packaging giant Amcor Ltd. on track to achieve cost synergies of US$97 million to US$117 million by June 30, says Chairman Chris Roberts.

The savings will be generated through integrating the Ball Plastics Packaging acquisition; the former Alcan Packaging assets; and the most recent purchase, B-Pack Due SpA, a cast polypropylene (CPP) film manufacturer based in Campiglia Marittima, Italy.

Roberts said the Ball acquisition is an important opportunity for Amcor's rigid plastics division to expand its position in the diversified products market in North America. The rigid plastics division had seen higher volumes, due to a warm U.S. summer.

The key driver for the Ball purchase is for Amcor to expand its fast-growing, higher value-add diversified products business, which targets the health care, pharmaceutical, personal care and food end markets.

The cost savings will be achieved through reduced overheads and improved purchasing.

Amcor has two divisions ≈ the largest, flexibles, includes tobacco packaging. The other is rigid plastics.

MRC

(Plastics News) -- Distributor Alliance Polymers and Services, Michigan-based firm which distributes thermoplastic elastomers for BASF Corp. and Polymax Elastomer Technology Co. Ltd., hopes to open a sales office and warehouse in Asia during the first half of next year, officials said in a recent interview in Akron.

⌠Our business model has been very successful, and we'd like to see if it can work in Asia or Europe, principal Stephane Morin said. ⌠But we want to remain only in TPE. We want to have inventory and be a great resource.

Alliance can supply thermoplastic polyurethanes from BASF and styrenic block copolymers from Polymax in drums, boxes or 55-pound bags ≈ in most cases, within 24 hours.

The firm has benefited from this year's auto industry rebound, as U.S. car and light-truck builds are expected to increase to 11.5 million ≈ 3 million more than were produced last year.

MRC

(China Plastic & Rubber Journal) -- Songwon, a Korean company for the plastics industry, will be announcing at K2010 an expansion of its antioxidants manufacturing capacity. Today Songwon offers one of the most complete ranges of polymer stabilizers and has introduced 30 products to the marketplace since 2006; the latest addition is a unique UV synergistic blend which was launched in May 2010.

Another Songwon's announcement concerns the establishment of a joint venture with a leading Chinese Thioester manufacturer which will give Songwon access to a wide product range of Thioesters with a total capacity of 6,000 tons fully back-integrated.

MRC