Solvay launches an energy efficiency program in France

MOSCOW (MRC) -- Solvay Polyamide & Intermediates is investing in the adipic acid production line at its industrial plant in Chalampe, France, according to the company's press release.

The intended capital investment aims at reinforcing cost leadership by significantly reducing the site’s energy consumption.

The investment will result in a further improvement of the adipic acid manufacturing process contributing to Polyamide & Intermediates’ strategic positioning. It demonstrates the group’s commitment to operational excellence through energy efficiency programs and carbon footprint reduction initiatives.

"This new process will result in an 8MW reduction of energy consumption per year as well as 11,000-ton reduction in CO2 emissions," points out Christophe Bertrand, Industrial Director of Polyamide & Intermediates. The intervention, which will require a complete shutdown of the manufacturing process, will take place in the fourth quarter of 2013 and will last about one month.

This project is part of Solvay Group’s initiative to achieve a EUR100M REBITDA improvement of its polyamide business by 2014. It marks the first major investment in productivity and efficiency, targeting business leadership and profitability as well as Sustainable development in line with the Group Solvay Way target.

We remind that, as MRC informed previously, last year Solvay and Russian petrochemical company Sibur signed an agreement to establish Ruspav, a 50/50 joint venture for the production of surfactants and oilfield process chemicals in Dzerzhinsk, Russia. Ruspav will be located near SIBUR's petrochemicals operations, 400km east of Moscow, and is expected to be operational in 2015.

SOLVAY Polyamide & Intermediates, headquartered in Brussels, is a major global producer of polyamide 6.6 intermediates and polymers focused on being a reliable partner to customers worldwide. P&I develops and provides polyamide 66 intermediates from HMD, adipic acid, nylon salt down to polymers through its 7 industrial plants, 3 research & development centers and 7 sales offices in the world. Thanks to its fully integrated value chain, P&I is a major player on engineering plastics, textile, industrial yarns and performance fibers markets with its long lasting polymer range Stabamid and its new intermediates product offer: Rhodiamine and Rhodiacid. In 2012 the company generated EUR12.4 billion in net sales.
MRC

MOSCOW (MRC) - China's GDP growth is expected to have slowed down in the second quarter as weak overseas demand weighs on output and investment, providing a test for Beijing's resolve to revamp the world's second-biggest economy in the face of deteriorating data, said Reuters.

Second-quarter GDP figures are due to be published on Monday along with other indicators, including industrial output and retail sales for June.

A Reuters poll of forecasts by economists projected China's economy grew 7.5% in the April-June quarter from a year earlier, slowing from 7.7% in January-March.

However, trade figures last week showing an unexpected fall in exports for the first time in 17 months raised market concerns GDP could be weaker than expected.

The government's official growth target for 2013 is 7.5%, impressive by world standards but it would be the slowest pace in 23 years for China.

Last week, customs data showed China's exports fell 3.1% in June against forecasts for a rise of 4% , while imports dipped 0.7% versus an expected 8.0% rise. The customs administration added that the outlook for July to September was grim.

Other figures had shown factory-gate deflation persisted for a 16th straight month, backing the view that the economy, plagued by industrial overcapacity, is losing momentum.

Annual consumer inflation accelerated more than expected in June, but remained subdued at 2.7 percent, below Beijing's annual target of 3.5 percent.

The main worry for China's leaders is if the economic slowdown leads to high unemployment that could spark social unrest. So far government officials say employment is stable.

So for now economists do not see any major stimulus or policy shift and instead expect the government to tough out the slowdown as they pursue a longer-term vision of reforming the economy towards consumer-led, rather than export- and investment-led growth.
MRC

MOSCOW (MRC) - Last week, spot prices of Russian PET were increased by Rb500-1,500/tonne amid an acute shortage of spot volumes and strong demand, according to ICIS-MRC Price Report.

One of the Russian producers said that strong demand was the main driver of increase in spot PET prices to Rb66,000/tonne, FCA, including VAT. The source also said that the current price level is likely to be kept until the end of the summer. Though major buyers have an opportunity to make purchases by lower contract price.

Another Russian producer announced price for the domestic market at Rb65,000-66,000/tonne CPT Moscow, including VAT, although at the moment the plant has no free spot volumes of bottle grade PET.

One of the sources said that a Russian producer is also planning to buy PET granulate in Asia to meet current contracts. However, the representatives of the plant did not confirm this information.

Third Russian producer announced PET prices at Rb65,000/tonne, CPT Moscow, including VAT. The rising demand in the domestic market results in declining exports.


Russia's PET exports in June totalled 1,400 tonnes. In January-June 2013 Russia's exports of PET totalled 13,500 tonnes, down by 62% year on year.


MRC

MOSCOW (MRC) -- The output of unblended PVC in Russia totalled about 328,000 tonnes in the first half of the year, up 2% year on year, according to MRC ScanPlast.

Only SayansKkhimPlast and Kaustik (Volgograd) managed to increase production in the first six months of the year, whereas other Russian producers showed a negative result.

SayansKkhimPlast produced more than 27,000 tonnes of suspension PVC (PVC-S) in June. The total output of the resin by the plant in January-June totalled 154,200 tonnes, up 6% year on year.

Bashkir JSC "Soda" (formerly Sterlitamak Kaustik) reduced its capacity utilization in June by 7% from May, its June PVC-S production made about 16,800 tonnes. JSC "Sods" produced about 107,300 tonnes of resin in the first half of 2013, down 1% year on year.

The third-largest Russian PVC producer Kaustik (Volgograd) reduced its capacity utilization in June by 2% from May, the total output of suspension made 7,700 tonnes. The Volgograd plant managed to produce about 47,200 tonnes of PVC in the first six months of 2013, up 18% year on year, because of the transfer of a scheduled maintenance at the Volgograd plant for the autumn.

SIBUR-Neftekhim completely shut down its chlorine production in early April as part of the project RusVinyl. The plant managed to produce less than 700 tonnes of PVC-S over a few working days in April.

Thus, the total PVC-S output in Russia amounted to 319,000 tonnes in the first half of 2013, up 3% year on year. SayanskKhimPlast ensured the main increase in the output.

Russia's only producer of emulsion PVC Khimprom (Volgograd) has increased gradually its capacity utilization since May. The plant produced 1,600 tonnes of PVC in June. In January-June, 2013, Khimprom (Volgograd) produced slightly more than 9,000 of emulsion PVC, down 10% year on year.

MRC

MOSCOW (MRC) -- Bechtel announced today that the company was selected in April by the Qatar Petroleum – Qatar Petrochemical Company partnership (QP-QAPCO) to provide project management services for construction of the Al Sejeel mega-petrochemical complex inc, said Yourpetrochemicalnews.

Bechtel will provide project management services over the course of the project starting with the front-end engineering design phase to ensure the quality, safe, and timely construction of the project.

"Bechtel’s contribution to the mega-petrochemical complex will be strategic, as Bechtel benefits from extensive experience and is a leader in the construction of petrochemical plants all around the world," said Dr. Mohammed Yousef Al-Mulla, vice chairman and CEO of QAPCO.

"For more than 70 years we have partnered with customers, contractors, and suppliers in the region to safely deliver quality industrial and infrastructure facilities. This award allows us to continue that legacy and deliver a world-class facility for QP-QAPCO," said Jack Futcher, president of Bechtel’s Oil, Gas and Chemicals business unit. "We are looking forward to working with QP-QAPCO to achieve the vision of making the Al Sejeel Petrochemical Complex a major contributor to the Qatari economy."

The Al Sejeel Petrochemical Complex in Ras Laffan will include an ethylene cracker with the feedstock coming from natural gas projects located in the north of Qatar. It will substantially add to the economic growth of the country and will produce ethylene, high-density polyethylene, linear low-density polyethylene, polypropylene, and butadiene. The complex will be operational in 2018. Bechtel is a leader in the execution of petrochemical projects using traditional feedstock processes as well as nontraditional processes for chemical production from natural gas and coal. Bechtel has built or managed signature petrochemical projects for Borouge in the United Arab Emirates and for CNOOC and Shell in China.

Bechtel is among the most respected engineering, project management, and construction companies in the world. We stand apart for our ability to get the job done right—no matter how big, how complex, or how remote. Bechtel operates through five global business units that specialize in civil infrastructure; power generation, communications, and transmission; mining and metals; oil, gas, and chemicals; and government services.

Since its founding in 1898, Bechtel has worked on more than 22,000 projects in 140 countries on all seven continents. Today, our 53,000 employees team with customers, partners, and suppliers on diverse projects in nearly 50 countries.

As MRC wrote before, by virtue of a decree issued at the end of last year, the Qatari government established the Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat), which now holds the exclusive rights to purchase, market, distribute and sell the emirate’s chemical and petrochemical output on the global market.
MRC