Borsodchem plans to build new plant for EUR84 mln

MOSCOW (MRC) -- Chinese-owned chemical company BorsodChem is planning to establish a new hydrochloric acid condensation plant in Kazincbarcika, via an EUR84 mln investment, supported with a EUR3.2 mln Hungarian government grant, CEO Chien-sheng Ding and state secretary for foreign affairs and foreign trade Peter Szijjarto announced in Budapest, as per Bbi.

BorsodChem is owned by the Chinese Wanhua group. The investment is expected to create at least 70 jobs, bringing the number of BorsodChem employees over 2,500.

As MRC wrote before, last year the BorsodChem chief executive said the Hungarian firm is no longer seeking a buyer for its loss making PVC production business. In early 2009, BorsodChem put the PVC operation up for sale but did not attract a buyer. Now, Wanhua has taken measures to improve the division’s prospects including re negotiating its long term ethylene supply contract with the Hungarian chemical company TVK. The BorsodChem CEO said though that the overall market situation was still negative in terms of profitability, something being felt not only by the firm but by all its competitors. Wanhua had a longer term commitment to the business and there are cost benefits from being in PVC for its Hungarian offshoot.

Wanhua Industrial Group acquired BorsodChem in February 2011 by exercising a call option on shares held by funds of UK-based private equity group Permira and Austrian private equity investor Vienna Capital Partners (VCP), making Wanhua the third largest isocyanates producer in the world.
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MOSCOW (MRC) -- Ineos Olefins & Polumers UK has today confirmed that it has received notification from Chief Secretary to the Treasury, Rt Hon. Danny Alexander MP that its application for an infrastructure loan guarantee has been successful, reported the company on its site.

This confirmation now allows INEOS to raise the funds necessary to invest in a new terminal import, to store and process ethane from shale gas at its site in Grangemouth, Scotland, as North Sea supplies dwindle. The project protects thousands of jobs in Scotland and across the UK.

"Without doubt, this is one of the most important projects of recent times in Scotland, with implications to be felt right across the UK, not only for employment but also for manufacturing in general", said Jim Ratcliffe, INEOS Chairman. "Our ability to import US shale gas underpins the future of manufacturing at Grangemouth and across many businesses in Scotland. It is a vital step towards preserving the long term future of the Grangemouth site and those businesses that depend upon its continued presence in Scotland."

Ineos AG has invested more than GBP300m at its Grangemouth site as part of a long term survival plan necessary for the site to manufacture petrochemicals beyond 2017. The loan guarantee from the UK Government now enables it to raise financing on GBP230m specifically to cover the import facility and storage tank to be built at the site.

This is major step forward that ensures the long-term future of petrochemical manufacture at Grangemouth. The ethane tank will be the largest in Europe and is central to the site’s plans to import shale gas from the USA. By 2016 Grangemouth will be a shale gas-based facility, essential if it is to compete in world markets beyond 2017.

Ineos O&P UK has also finalised contract agreements with specialist engineering company TGE Gas Engineering GmbH for the construction of what will be the largest ethane storage tank in Europe.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
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MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company and a global leader in VAE emulsions, has announced that it will increase the price of vinyl acetate-based emulsions sold in Asia, as per the company's press release.

PVAc homopolymer and vinyl acetate ethylene (EVA) emulsions will increase by CNY 200/tonne for China and USD30/tonne for the rest of Asia effective July 18, 2014, or as contracts allow.

This price increase affects all applications including, but not limited to, adhesives, paints and coatings, building and construction, glass fiber, carpet and paper.

As MRC reported earlier, in June, Celanese announced that due to market conditions, including the global supply unavailability of vinyl acetate monomer, it increased prices of vinyl acetate-based emulsions sold in the Americas. Thus, PVAc homopolymer, vinyl acetate ethylene (EVA) and vinyl acrylic emulsions increased by up to USD0.04/wet pound (USD90/tonne) effective June 16, 2014, or as contracts allowed. This announcement was in addition to the price increases for the same vinyl-based emulsions which were announced on March 7, 2014 and effective April 1, 2014, and announced on January 10, 2014 and effective on February 1, 2014.

This price increase affects all applications including, but not limited to, adhesives, paints and coatings, building and construction, nonwovens, glass fiber, carpet, paper and textiles.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
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MOSCOW (MRC) -- Evonik has closed on an equity investment in Biosynthetic Technologies, LLC (BT), a specialist in biobased lubricants headquartered in Irvine (California, USA), said the company in its press release.

BT has developed and manufactures a new class of bio-based synthetic oils called estolides that are used primarily in the passenger car motor oil and industrial lubricant sectors. Field trials have shown that the technical characteristics of the biobased synthetic oils made by BT are exceptionally good, and include the ability to combat soot buildup in engines, which helps keep fuel consumption low. In addition to Evonik, BP Ventures also participated as a second strategic investor in this current funding round that focuses on growth. BP Ventures as well as Monsanto Company have already invested in previous financing rounds.

Evonik is a leader in the development of technologies for the production of lubricant additives. Its high-performance additives increase both productivity and fuel efficiency. Regional technology centers, modern global manufacturing centers, and a secure and reliable supply chain worldwide enable Evonik’s continuous development of customized solutions for customers anywhere in the world.

Biosynthetic Technologies’ new class of bio-based synthetic oils are made from organic fatty acids found in plant oils and have numerous uses in the lubricant, chemical, and cosmetics industries. They are biodegradable, nontoxic and they do not bio-accumulate in marine life. BT holds a broad patent portfolio to protect these novel biosynthetic oils that are marketed under the trade name LubriGreen Biosynthetic Oils.

BT’s lubricants are now being tested and certified by many of the world’s largest lubricant manufacturers who want to use these as components in their existing or new motor oil and industrial lubricant product lines.

As MRC reported before, Evonik Industries is making an investment in the double-digit-million euro range in a new research center at the Rheinfelden site. Starting at the beginning of 2016, research into silanes will be carried out in modern laboratories in the four-story building. Silanes are used in the electronics industry, in the tire industry, for the production of adhesives and sealants as well as plastics, and in the construction industry.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.7 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.

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MOSCOW (MRC) -- Shanghai 3F New Materials Co. Ltd. and Solvay SA have formed a joint venture new fluoromonomer TFE and PTFE polymers production plant in Changshu, China, said Plasticsnews.

The partners officially signed the agreement on July 10 for the new entity, 3F Solvay (Changshu) High Performance Polymers. Shanghai 3F will hold 90% of the share and operate the site, while Solvay will hold 10% of the share.

The JV will draw a total investment of 600 million yuan (USD96.7 million), with 345 million yuan (USD55.6 million) in registered capital, 3F said in a July 12 filing with the Shanghai Stock Exchange. Negotiation started on Nov. 13, 2013, when the companies signed a memorandum of understanding of the JV, 3F said.

Construction of the facility has already completed, according to a release by Solvay. Production is scheduled to begin in the third quarter of this year. The companies said the new facility will produce high performance polymers for both partners, enabling them to serve the fast growing markets in the region.

Shanghai 3F’s Changshu plant will supply Solvay Specialty Polymers’ new adjacent production unit with the strategic raw materials R142b and HFP.

Augusto Di Donfrancesco, president of Solvay Specialty Polymers, noted Shanghai 3F is the leading fluoromaterial manufacturer in China. "The alliance with Shanghai 3F will help us to better support our customers in this very fast growing region, as well as to stabilize our raw material supply."

Jian Jin, general manager of Shanghai 3F, added, "The joint venture will further upgrade product quality of our fluorinated polymers to better serve the growing domestic and international mid- and high-end market for fluorinated plastics."

As MRC wrote before, Solvay SA and Ineos Group AG have given a name to their chlorovinyls joint venture, Inovyn, as the two firms prepare the launch the company by the end of 2014. The new company will officially open following divestments by both companies required by the European Commission. Until completion, Solvay and Ineos will continue to run their businesses separately.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers – fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
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