Henan Jiyuan to restart its PVC plant in China

MOSCOW (MRC) -- Henan Jiyuan Fangsheng Chemical is in plans to restart a polyvinyl chloride (PVC) plant following maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant is planned to be restarted in early August 2014. It was shut on July 8, 2014 for maintenance turnaround.

Located in Henan province, China, the plant has a production capacity of 100,000 mt/year.

As MRC informed earlier, Xinxiang Shenma Zhenghua Chemical shut its PVC plant for a one-month maintenance turnaround on April 16, 2014. Located in Henan province, China, the plant has a production capacity of 50,000 mt/year.

Besides, Erdos Chlor-Alkali Chemical took off-stream its PVC plant for a one-month maintenance turnaround on April 1, 2014. Located in Inner Mongolia, the plant has a production capacity of 300,000 mt/year.
MRC

MOSCOW (MRC) -- The US shale-gas boom is placing 30 million jobs at risk in Europe as companies with greater reliance on energy contend with higher fuel prices than their American counterparts, said Hydrocarbonprocessing, citing the International Energy Agency.

Manufacturers of petrochemicals, aluminum, fertilizers and plastics are leaving Europe to take advantage of booming US production of natural gas from shale rock formations, Fatih Birol, chief economist for the International Energy Agency, a Paris-based adviser to 29 nations, said at a conference in London.

“Many petrochemicals companies in central Europe are moving out,” Birol said. “Thirty million jobs are in danger.”

The US has become the world’s largest producer of oil and gas as hydraulic fracturing and horizontal drilling help producers extract resources from shale rock. The country’s refineries processed a record volume of crude last week as plants took advantage of cheaper domestic crudes.

Chemical makers from Germany’s BASF to Brazil’s Braskem plan to invest as much as USD72 billion in US plants to take advantage of low-cost natural gas feedstock.

US refineries are competing for market share and benefiting from margins that exceed those of European competitors by as much as USD10/bbl because of cheaper crude, Hermes Commodities said in a report.
MRC

MOSCOW (MRC) -- The global packaging film consumption is expected to grow at a CAGR of 4.5% from 2013 to 2018, reported Plastemart with reference to RnR Market Research.

In terms of value, the market is expected to grow at a CAGR of 5.8% from 2013 to 2018. China and India are expected to drive the packaging films market in the future. Increasing demand for packaged food and improving healthcare infrastructure is the major reason for growth in China and India.

In terms of raw materials, polyethylene (PE) leads the market, representing 64% of the total raw materials used in 2012. However, However, polyethylene films demand is growing at a faster rate than polyethylene films. BOPP is the mostly used raw material for flexible packaging film. In matured geographies such as North America and Europe, specialty films are gaining the demand.

Packaging films are essential for quality and shelf-life of food, pharmaceutical, and other personal care products. Food packaging industry is the major consumer for packaging film followed by the pharmaceutical and medical packaging. These films are formed by extrusion-blown, extrusion-cast, and extrusion-coating process. Selection of the raw material is primarily based on the end-usage of the films. The key raw materials used in packaging film include LDPE, LLDPE, HDPE, BOPP, CPP, BOPET, PVC, EVOH, PLA, PVDC, PVOH, and others.

As per RnR Market Research, Asia Pcific is the major market for packaging film with around 35% of the market share in 2012. North America and Europe held market shares of 25.3% and 24.1% respectively.

As MRC informed before, flexible packaging market (by material - polypropylene, BOPP, CPP, polyethylene, EVOH, PA, BOPET, PVC, aluminum, paper, cellulosic) is estimated to grow from USD73,825.3 million in 2012 to USD99,621.9 million by 2018 with a CAGR of 5.1% from 2013 to 2018, according to a new market research report "Global Trends & Forecast to 2018" by MarketsandMarkets.
MRC

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.
MRC

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.
MRC