PE imports to Belarus dropped by 4% n January-October 2013

MOSCOW (MRC) -- Imports of polyethylene (PE) into Belarus decreased by 4% over the first ten months of 2013. Reduced imports were registered in the low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) markets, according to MRC DataScope.

According to the National Statistical Committee of Belarus, PE imports to Belarus decreased to 90,000 tonnes in January-October 2013 from 94,000 tonnes over the same period a year earlier. Demand for high density polyethylene (HDPE) increased, whereas demand for LDPE and LLDPE fell by almost a quarter.

The structure of PE imports looks the following way.

October HDPE imports to Belarus totalled about 4,700 tonnes, while this figure was 5,500 tonnes in September. HDPE imports into the country rose to 52,400 tonnes over the ten months of the year, up by 18.3% year on year.

The main HDPE suppliers are still Russian producers with the supply volumes of about 27,900 tonnes over the said period. The second and third places occupy PE producers from Saudi Arabia (Sabic) and Hungary (TVK) with supply volumes of 9,500 tonnes and 3,600 tonnes, respectively.

October LDPE and LLDPE imports grew to 4,300 tonnes from 3,900 tonnes in September. Imports of these PE grades fell from January to October of 2013 by 24.2% year on year and totalled 37,600 tonnes. The key suppliers of LDPE and LLDPE to Belarus are producers from Saudi Arabia and Russia with import volumes of 20,500 tonnes and 5,800 tonnes, respectively, over the stated period.
MRC

Braskem and Genomatica sign an agreement for the development of green butadiene

MOSCOW (MRC) -- Braskem, the largest petrochemical producer in the Americas and the world's leading biopolymer producer, and Genomatica, a US biotechnology company, have signed an agreement for the joint development of a new technology for the production of butadiene from renewable feedstocks, according to Braskem's statement.

Through this partnership, Braskem reaffirms its commitment to invest in the research of producing chemicals from renewable feedstocks, effectively strengthening its leadership role in this segment.

Braskem's objective with green butadiene is to primarily serve the synthetic rubber market, whose demand is currently met by naphtha-based butadiene, of which the company is already the world's third-largest producer. With the expectation of a recovery in global economic growth over the coming years, the company's forecast calls for growing demand for butadiene based elastomers by tire manufacturers, who are the largest consumers of butadiene.

Under the agreement, provided the results are successful, Braskem and Genomatica will build pilot and demonstration plants. The agreement gives Braskem certain exclusivity rights to the technology's use in the Americas.

"Braskem has a clear strategy for investing in the research and development of renewable based chemical technologies as alternatives to complement our current product portfolio based on petrochemicals. In 2010, we became the world leader in Biopolymers when we announced the production of plastic made from sugarcane, and we are now further reinforcing this vision," said Alexandre Elias, director of Renewable Chemicals at Braskem.

In addition to serving as a raw material for the tire industry, butadiene based materials are also used in home appliances, footwear, plastics, asphalt modifiers, oil lubricant additives, tubing, construction components and latex.

Butadiene produced by traditional technological routes has suffered a structural shortage in the Americas due to the growth of shale gas, which, unlike naphtha, generates almost no co-products.

As MRC wrote earlier, since September 2010, Braskem has produced polyethylene resin made from sugarcane ethanol on an industrial scale, which is a 100% renewable material. It invested RD500 million in the construction of a plant located in the Triunfo Petrochemical Complex in the South of Brazil with a capacity to produce 200,000 tonnes of green plastic annually.

Braskem's green plastic is a milestone in global innovation, making Brazil the leading producer of biopolymers in the world. Identified by the "I'm greenTM" seal, the green polyethylene developed in Brazil is used to make a wide range of food packaging and consumer goods.
MRC

US chemical sector poised for dynamic expansion as investment climbs

MOSCOW (MRC) -- Favorable oil-to-gas price ratios driven by the production of natural gas from shale continue to drive a renewed US competitiveness that is boosting exports and driving greater domestic investment, economic growth and job creation within the business of chemistry, as per Hydrocarbonprocessing with reference to the Year End 2013 Chemical Industry Situation and Outlook, published recently by the American Chemistry Council (ACC) trade group.

Likewise, supported by activity within the domestic chemicals sector, the ACC says the US economy is likely to see continued, though moderated growth in 2014, according to ACC's monthly Chemical Activity Barometer (CAB).

"American chemistry is back in the game," said Dr. Kevin Swift, ACC's chief economist. "After a decade of lost competitiveness, American chemistry is reemerging as a growth industry. We're seeing growing end-use markets; strengthening employment; surging exports; and an influx of tremendous capital investment. Put simply, the US is now the most attractive place in the world to invest in chemical manufacturing."

Over the next five years, US production is expected to grow by almost 25%, pushing industry shipments to USD1 trillion by 2018. Over the next five years we are likely to see more than USD60 billion in domestic investment.

As MRC wrote previously, the ongoing shale revolution will guide the US ethylene industry surge in the near future, growing by more than a third by 2017. The estimated increased investments in the industry will see US ethylene capacity jump to 35.048 million tpy by 2017 - an increase of just under 35% (from 2000).
MRC

Axiall provides update on fire at Lake Charles, Louisiana, chemicals facility

MOSCOW (MRC) -- Axiall Corporation announced today that the cause of a Dec. 20 fire that occurred in the vinyl chloride manufacturing area of the company's Lake Charles chemicals complex in Louisiana remains under investigation, said Benzinga.

The company also is working with outside engineering firms to assess the damage to the structure and the impact on production. The remainder of the Lake Charles facility was unaffected by the fire, and production continues as normal in those areas.

The company praised the rapid response of Axiall emergency responders, Phillips 66, the Calcasieu Parish Sheriff's office, local hospitals, Louisiana State Police, Louisiana Department of Environmental Quality, and other local, state and federal agencies -- as well as local residents who heeded a shelter-in-place-order issued by authorities.

"We owe our sincerest thanks to everyone who responded to this fire," said Jon Manns, plant manager at the Lake Charles complex. “This was a serious and unfortunate event, and we are thankful that none of our workers or contractors on site were seriously injured. We regret that this event has occurred."

"We are in the process of conducting a full investigation into the cause of the fire," Manns said. "We will continue to work with all appropriate governmental agencies as we continue our investigation."

As MRC wrote before, Axiall Corp. is considering building a USD3 billion ethane cracker and chemical plant somewhere in Louisiana. The Atlanta-based chemical manufacturer says it could make a decision sometime early next year. Axiall would invest USD1 billion of its own money, while an unnamed partner would put in USD2 billion.

Axiall Corporation is a leading integrated chemicals and building products company. It is an international manufacturer of chlor-alkali and derivatives, chlorovinyls and aromatics products including chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents, calcium hypochlorite, ethylene dichloride, muriatic acid, phosgene derivatives, polyvinyl chloride, vinyl compounds, acetone, cumene and phenol. It also manufactures vinyl-based building and home improvement products, including window and door profiles, mouldings, siding, pipe and pipe fittings, and decking. Axiall, headquartered in Atlanta, Georgia, has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers.
MRC

Taminco to buy Kemira formic acid business for USD191 mln

MOSCOW (MRC) - U.S. chemicals group Taminco Corp said on Monday it would broaden its offering by acquiring the formic acid business of Finland's Kemira for 140 million euros (USD191 million), said Reuters.

The business, which includes a plant in Oulu, Finland, had sales last year of around 140 million euros and earnings before interest, taxes, depreciation and amortization of 23 million.

Taminco, which makes ingredients for crop protection products and animal feeds, said the deal helped it add new product lines. Formic acid's uses include the preservation of animal feed and de-icing airport runways.

Kemira had been expected to shed the business as part of a shift to focus on its water treatment business. However, analyst Antti Saari from Pohjola Markets said the deal price was lower than expected.

"The valuation looks low. There had been speculation of a price closer to 200 million euros," he said. Shares in Kemira were flat on the Helsinki bourse in thin trading. Kemira said it expected to report a capital gain from the deal in the first quarter of next year.

As MRC wrote before, Kemira signed an agreement to sell its distribution of hydrochloric acid, sulfuric acid and sodium hydroxide (caustic soda) in Denmark to Brenntag Group. The deal includes the distribution business and certain assets in Copenhagen. 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.

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