Kemira to sell its Danish distribution business to Brenntag

MOSCOW (MRC) -- Kemira has signed an agreement to sell its distribution of hydrochloric acid, sulfuric acid and sodium hydroxide (caustic soda) in Denmark to Brenntag Group, said the producer in its press release.

The deal includes the distribution business and certain assets in Copenhagen. The distribution business is currently part of Kemira's Municipal & Industrial segment. Revenue of the divested business in 2012 was approximately EUR 15 million and the transaction is expected to be completed during the first quarter of 2014.

"The divestment of our distribution business in Denmark is well in line with Kemira's sharpened strategy presented earlier this year. The divested business is not a focus area for Municipal & Industrial segment and the transaction will have a positive impact to the segment's EBIT margin. With Brenntag as our partner, Denmark will remain an important market for our water treatment solutions" said Frank Wegener, President of Kemira's Municipal & Industrial segment.

Torsten Walz, Managing Director Brenntag Denmark, says: "Through this acquisition we strengthen and expand our industrial chemicals product portfolio. Our customers will benefit from the extended product portfolio, further investment in our infrastructure and new, long-term strategic supplier relationships."

As MRC wrote before, Kemira said it has completed a two-year, multi-million euro expansion of its North American polymer production facilities, and added that the agreement with Mitsui will strengthen its polymer product line globally. The expansion resulted in a 60% capacity increase.

Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise and chemicals that improve our customers' water, energy and raw material efficiency. Our focus is on pulp & paper, oil & gas, mining and water treatment. In 2012, Kemira had annual revenue of EUR 2.2 billion and around 4,900 employees.
MRC

Sumitomo acquiring all of Nihon Oxirane

MOSCOW (MRC) -- Sumitomo Chemical has reached an agreement to acquire the remaining 40% interest in Japan-based Nihon Oxirane Co. (NOC) from joint venture partner LyondellBasell, giving Sumitomo full ownership, said Apic-online.

Sumitomo also plans to end NOC’s styrene monomer (SM), propylene oxide (PO) and propylene glycol (PG) production at Chiba by the end of May 2015. NOC pro-duces 425,000 t/y of SM, 181,000 t/y of PO and 100,000 t/y of PG. Once production stops, Sumitomo will manufacture and sell PO from its "PO-only" process plant at Chiba.

The closure of the three units coincides with the earlier announced closure of Sumitomo's 415,000-t/y Chiba Works ethylene plant by September 2015.

"Over recent years, Japan's petrochemical industry has constantly been faced with the difficult business environment due mainly to a decline in domestic demand,” Sumitomo explained. “To strengthen and sustain its petrochemical business under the circum-stances, Sumitomo Chemical must further step up its efforts of accelerating business structural improve-ments."

As MRC wrote before, Sumitomo Chemical Co. Ltd. expects to win project finance approval for the USD7 bln expansion of a petrochemical project in Saudi Arabia in H1-2014 despite a series of problems at the existing complex.

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

Global demand for biobased plastics to rise at 19% tpa through 2017

MOSCOW (MRC) -- Global demand for biobased and biodegradable plastics will rise 19% per year to 960,000 metric tons in 2017, reported Packaging World with reference to a new study "World Bioplastics" from The Freedonia Group, Inc.

The study notes that the bioplastics industry, while still in the emerging growth phase, has established itself as a fixture in a number of commercial markets and applications.

According to analyst Kent Furst, "Robust growth in demand is expected in virtually all geographic markets," driven by consumer preferences for sustainable materials, the increased adoption of bioplastics by plastic processors and compounders, and new product developments that expand the range of applications for bioplastics. However, despite the rapid rise in demand, bioplastics are still expected to account for less than 1% of the overall plastic resin market in 2022.

"The success of the bioplastics industry will ultimately depend on price and performance considerations, and large scale conversion to bioplastics will not occur until price parity with conventional plastic resins is achieved," Furst adds.

Starch-based resins and polylactic acid (PLA) will remain the leading bioplastic products through 2017, combining to account for more than 60% of demand. For starch-based resins, advances will be bolstered by increased regulation of conventional plastic products, particularly plastic bags. PLA demand will benefit from the development of resins and compounds with enhanced performance attributes, suitable for more durable applications such as fibers, automotive parts, and electronic components.

The most rapid gains in demand, however, are expected for biobased commodity resins such as polyethylene (PE) and polypropylene (PP), which are just beginning to enter the commercial market.

Western Europe was the largest regional consumer of bioplastics in 2012, accounting for over half of global demand. The region will see strong gains through 2017 as well, bolstered by added regulations and incentives that favor bioplastics over conventional resins.

North America will also register strong advances, with demand in the region expected to more than double, driven by rising consumption of PLA and biobased commodity resins. Advances in the Asia/Pacific region will be fueled by robust growth in China, which has become a major consumer of bioplastic resins used to produce manufactured goods for export.

We remind that, as MRC wrote previously, Arkema, the world leader in specialty polyamides, has recently introduced innovative bio-based polyamide grades for highly demanding markets. Continuing the successful story of Rilsan Clear G830 Rnew, the first bio-based transparent polyamide, Arkema presents new grades - Rilsan Clear G850 Rnew and Rilsan Clear G120 Rnew - for specific customer needs.
MRC

Invista expands its polyester product range

MOSCOW (MRC) -- Invista, one of the world’s largest integrated polymers and fibers producers, has announced the expansion of its "XPURE" portfolio of polyester products made with a next generation catalyst system, as per Plasticker.

Recent additions to this portfolio include the "XPURE" 7001 and 701K polyester copolymers. "XPURE" 7001 polyester is an amorphous resin while "XPURE" 701K polyester is a pre-cristallized resin. Both products offer a melting point of about 224°C which is about 30°C lower than a standard polyethyleneterephthalate (PET). Application examples include packaging films and bicomponent fibers.

ЭInitial customer testing of XPURE 7001 and 701K polyester polymers have been extremely well received", said Achim Heyer, business director Europe, polymers. "Customers reported a wider processing window vs standard polyesters, allowing to manufacture non-standard products such as thick transparent films. We hope that the expanded range will build a business growth platform for our valued customers."

As MRC informed before, early 2013, INVISTA Technologies and Arzeda Corp., an emerging Seattle-based biotechnology company, entered into strategic partneship for the development of new technologies to enable novel bio-derived processes.

Invista is one of the world's largest integrated producers of polymers and fibers, primarily for nylon, spandex and polyester applications. INVISTA's market-leading technologies are available as license packages from INVISTA Performance Technologies.
MRC

Exports of titanium dioxide from Ukraine decreased by 3.4% in the 11 months of this year

MOSCOW (MRC) - Export shipments of Ukrainian titanium dioxide (TiO2) decreased by 3.4% to 121,800 tonnes in the first eleven months of the year, compared with the same period in 2012, according to MRC DataScope report.

Ukraine's export sales of TiO2 in the reported period decreased because of reduced output at the Sumykhimprom, while exports of titanium dioxide by Crimean Titan production rose slightly by 1,000 tonnes to 90,300 tonnes. At the same time, exports of TiO2 by Sumykhimprom production fell by 5,400 tonnes to 30,300 tonnes.

There were some changes in the sales geography. The main importer of Ukrainian titanium oxide was Germany in the first eleven months of the year, in contrast to the traditional Russian market. Export of Ukrainian TiO2 to Germany totalled 24,200 tonnes in the first eleven months of the year, compared to 22,500 tonnes year on year.

As per MRC analysts, production of titanium dioxide by Crimean Titan fell by 1.6% to 89,900 tonnes in the first eleven months of the year compared to the same period in the previous year. Producer's proceeds from the sales of titanium dioxide in the external markets for the reported period reached more than UAH1.329 bln.
MRC