Investments in the production of plastic pipes in Russia grew twofolds in 2013

MOSCOW (MRC) - Russian companies actively invested in the expantion of plastic pipes production in 2013. Their investments grew almost twofold in comparison with the level in 2012, reaching USD69 million against USD33.4 million a year earlier, according to MRC DataScope.

Traditionally, the biggest volume of investments occurred for the equipment for production of polyethylene (PE) pipes. The rapid growth of the plastic pipes market in 2012 made many companies in the last year actively invest in capacity expansion. According to Rosstat, pipe production in Russia in 2012 exceeded 707,000 tonnes, up 39% compared with the indicator in 2011.

Investments in equipment for the production of PE pipes in 2013 increased to USD43.8 million against USD21 million in 2012. The biggest purchase of equipment traditionally occurred for the industry leaders: Polyplastic, Techstroy, Pipelife Rus, Ujzhnuy trubnuy zavod, etc.

Investment in the production of pipes from polyvinyl chloride (PVC) in 2013, by contrast, fell to USD7.8 million. Among the key investors in this sector can be mentioned DKS, Chemkor, Polyplastic, Biplast (Belgorod).

MRC analysts expect investments in the production of plastic pipes to decrease further in 2014. The Russian market of plastic pipes in the past year decreased significantly, with total production dropped to 586,400 tonnes.

As a result, many companies will reduce incestments into capacity expansion. But at the same time, there are exceptions, for example, Polyplastic continues actively investing in the expansion of facilities for PVC pipes production.

MRC

Vietnam Polystyrene expands EPS plant capacity

MOSCOW (MRC) -- Vietnam Polystyrene is likely to expand the production capacity of its expandable polystyrene (EPS) plant, reported Apic-online.

A Polymerupdate source in Vietnam informed that the capacity of the plant is planned to be raised to 50,000 mt/year by end-April 2014.

Located in Vietnam, the plant has a production capacity of 40,000 mt/year.

As MRC wrote previusly, Jiangsu Leasty Chemical restarted its EPS plant on February 20, 2014. It was shut on January 10, 2014 for maintenance turnaround. Located in Jiangsu province, China, the plant has a production capacity of 350,000 mt/year.

We remind that EPS imports into the Russian market fell in 2013 by 16% from 2012 and totalled 71,700 tonnes. Russian companies have been reducing purchasing in foreign markets for the third consecutive year. China is the largest supplier of imported EPS to the Russian market and accounts for more than 45% of the total imports. Chinese EPS imports totalled 32,500 tonnes in 2013 (imports from China fell by 18% last year).
MRC

Eastman introduces opaque polymer for electronic device housings

MOSCOW (MRC) -- Responding to a market need for a suitable material to use in hand-held and other electronic medical device housings that is tough and resistant to aggressive cleansers and disinfectants, Eastman Chemical Company, a global specialty chemical company, is expanding its Eastman Tritan copolyester portfolio for the medical market with the introduction of Tritan copolyester MXF121, as per the company's press release.

In addition to its chemical resistance and toughness benefits, Eastman Tritan copolyester MXF121 meets flame resistance safety ratings established by Underwriters Laboratories (UL). Tritan MXF121 is a bisphenol A (BPA)-free alternative to polycarbonate (PC) and PC/acrylonitrile butadiene styrene (ABS) that can stand up to today’s aggressive disinfectants and withstand the stresses of daily use and handling.

"Eastman Tritan copolyester MXF121 can help enhance product value by providing greater product durability and reduced product failure," said Gopal R. Saraiya, global segment leader, medical devices, Eastman. "Tritan MXF121 offers exceptional chemical resistance for a wide variety of medical electronic device housings that may come into contact with these cleansers and disinfectants."

As MRC informed previuosly, Eastman Chemical Company has recently enhanced its medical packaging portfolio with Eastalite copolyester, the company’s first opaque offering, which is styrene-free and can be a sustainable alternative to high-impact polystyrene (HIPS). The material complements the company’s other medical packaging copolyester offerings: Eastman Eastar 6763 and Tritan MP100.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC

UOP to provide process technology for new China propylene complex

MOSCOW (MRC) -- The Ningbo Fortune Petrochemical Co. Ltd., a Chinese petrochemical producer, has selected UOP’s C3 Oleflex process technology to convert propane to propylene, a high-value monomer used in plastics production, said Hydrocarbonprocessing.

This is the 18th license for UOP’s Oleflex technology worldwide since the beginning of 2011 as petrochemical producers move to meet the growing, global demand for light olefins. This is a repeat technology selection and strong endorsement for UOP’s propylene technology by Ningbo Fortune’s parent company Oriental Energy Co., Ltd. Oriental Energy is the primary investor in Zhangjiagang Yangzi River Petrochemical Co., Ltd., which announced in 2012 that it will license C3 Oleflex technology for a separate project at Zhangjiagang City, Jiangsu Province, China.

"Demand for propylene is expected to continue to be strong globally, especially in China," said Pete Piotrowski, senior vice president and general manager of UOP’s Process Technology and Equipment business unit. "UOP is helping (to) meet high demand with this proven technology and has licensed Oleflex to 12 Chinese propylene producers."

Ningbo Fortune will build the process unit at its facility in Ningbo City, China. The new propylene unit is forecast to startup in 2016 and will have a production of 600,000 metric tons per year. In addition to technology, UOP will provide training, technological services, catalysts, adsorbents and equipment for the project.

Ningbo Fortune selected Oleflex for its stable catalytic performance and high-product yields. The technology has a very small environmental footprint, low operating cost and can offer a high return on investment.

Ningbo Fortune Petrochemical Co., Ltd., located in Ningbo Daxie Development Park, is a wholly-owned subsidiary of Oriental Energy Co., Ltd.

As MRC informed before, Honeywell's UOP granted the third technology license for its breakthrough methanol-to-olefins (MTO) technology to China's Shandong Yangmei Hengtong Chemicals. The Chinese company will use Honeywell UOP's advanced MTO process to convert methanol from gasified coal into ethylene and propylene.

MRC

Cereplast files for Bankruptcy

MOSCOW (MRC) -- Bioplastics producer Cereplast has filed for Chapter 11 bankruptcy protection as the US company takes steps to align its cost structure with the realities of market demand, said Plasticsonline.

The company said that the voluntary petition was designed to strengthen its balance sheet, clean up its capitalisation structure and gain financial flexibility as it continues to realign its operations. Cereplast expects to redirect its operations in two directions: toward traditional compounded products and recycling polyolefin and bioplastics made of diversified feedstock including algae and polylactic acid.

"We intend to use the reorganisation process to help implement our plan to lower costs, stabilise our businesses, grow revenue and diversify our product lines," said Frederic Scheer, chief executive. "We have taken a number of steps to improve our operations over the past few months and we were making great progress; however, the lack of traction of bioplastics demand in the US, the repetitive delays in implementation of the bioplastic regulation in Europe and especially in Italy combined with the legal problems created by several of our lenders made clear to our Board that reorganisation was the proper path forward. We believe that this reorganisation will enable us to reduce our debt and implement operational changes, while maintaining our commitment to the environment."

In conjunction with its reorganisation, Cereplast is negotiating a debtor-in-possession (DIP) financing from several interested parties. On Court approval, the new financing and cash generated from the company's ongoing operations will be used to support the business during the reorganisation process.

As MRC wrote earlier, recently Cereplast introduced Biopropylene (R) 109D and reported the commercialization of Cereplast Algae Bioplastics. Biopropylene 109D is an injection molding grade manufactured with 20% post-industrial algae biomatter.

Cereplast Inc. is a bioplastics designer and manufacturer. Cereplast uses corn, tapioca, potatoes and algae, including polylactic acid polymer (PLA), to produce compostable plastic resins designed to serve as an alternative to petroleum-based plastics. Cereplast"s expandable resin ranges are used worldwide in the food packaging, food service, automotive, consumer electronics, cosmetics and consumer packaging industries.
MRC