BASF starts up butadiene extraction plant in Antwerp

MOSCOW (MRC) -- BASF, the world's petrochemical major, has announced the start-up of a new butadiene extraction plant at its Verbund site in Antwerp, Belgium, reported the company on its site.

The plant has an annual production capacity of 155,000 metric tons.

The plant in Antwerp is BASF’s second butadiene extraction plant in Europe. BASF already operates a butadiene extraction plant at its Verbund site in Ludwigshafen, Germany, with an annual production capacity of 105,000 metric tons. With the plant in Antwerp, BASF is more than doubling its production capacity for butadiene in Europe.

"This plant secures our internal supply with butadiene at competitive costs," said Dr. Uwe Kirchgassner, head of BASF’s regional business unit Basic Petrochemicals Europe. "In addition, it enables us to take advantage of opportunities on the external market and strengthens our market position in Europe."

The butadiene will be extracted from crude C4, a product from the steam cracker. "With the new plant we are further developing the integration of the C4 value chain in Antwerp," said Wouter de Geest, CEO of BASF Antwerpen NV. "This important investment strengthens the Verbund at the Antwerp site."

Butadiene is a raw material that can be used to produce synthetic rubber, among other applications. The tire industry is one of the main consumers of butadiene. Other applications for butadiene include plastics production and paper chemicals.

As MRC wrote before, BASF shut down its No 1 naphtha cracker for maintenance turnaround on September 11, 2014. It is planned to remain off-stream for around one month. Located at Ludwigshafen in Germany, the cracker has a capacity of 220,000 mt/year.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Specialty chemicals company Lanxess has developed a new class and range of genuine retanning agents, according to the company's press release.

The Levotan X-Biomer technology effectively utilizes biopolymers for a more sustainable production of high quality leather.

With the new technology based on biodegradable polymers, Lanxess' experts have accomplished an innovative leap forward in retanning chemistry. "Decades ago, the development of synthetic retanning chemistry has changed the leather industry. Now, we think the time has come for a next-generation innovation that once again opens the door to the future", says Dietrich Tegtmeyer, Vice President of Product Development and Application at the Lanxess Leather business unit.

To become increasingly independent from fossil fuel based raw materials, the incremental substitution of petroleum-based chemicals is one of the key challenges for the leather industry in the years ahead. Lanxess is a driving force behind the formulation of advanced leather chemicals derived from renewable resources.

As an alternative to synthetic retanning agents the new patent-pending Levotan X-Biomer range includes a complete portfolio for all key steps of the retanning process. The chemistry behind it however, is completely different. All products are based on biodegradable polymers, which are produced from renewable raw materials and specifically functionalized for retanning applications in a biologically engineered process. Thus, the Levotan X-Biomer technology enables the production of wet blue leather that fulfills the high technical requirements demanded, e.g. for automotive leather or children's footwear. At the same time, tanners benefit from a significantly improved sustainability profile.

The Levotan X-Biomer technology is fully in line with the aims of Lanxess’ initiative "Sustainable Leather Management". This initiative is designed to extend and enhance the company’s product portfolio for sustainable leather production.

As MRC informed previously, in July 2014, Lanxess announced that it had developed a new polyester material grade based on polyethylene terephthalate (PET). The new material grade - Pocan TP 555-001 - is excellently suited to manufacturing housings, sockets and other components for light-emitting diodes (LED).

The Leather business unit is part of Lanxess’ Performance Chemicals segment, which achieved total sales of EUR 2.13 billion in fiscal 2013.

Lanxess is a leading specialty chemicals company with sales of EUR9.1 billion in 2012 and roughly 17,400 employees in 31 countries. The company is currently represented at 50 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

MOSCOW (MRC) - The structure of the Ukrainian market of expandable polystyrene (EPS) will significantly change on adoption of the ban of imports from Russia, according to MRC analysts.

Currently Ukrainian companies prefer Russian EPS, the share of which exceeds 62% from the total imports in the country. The largest supplier of EPS in Ukraine is Russian group SIBUR. Ukraine's imports of Russian EPS were about 10,000 tonnes in January-July 2014.

There is no many variants of other suppliers in Ukraine, and local converters will have to choose between Chinese and European material. European EPS is traditionally more expensive, and the time of Chinese material delivery takes on average 45 days from the date of shipment from China. While Russia has quite short time delivery.

Also, unlike other countries, Ukraine does not have 6.5% PVC imports duties from the CIS countries. These benefits let SIBUR to take such a strong position in the Ukrainian market.

In the case of the adoption of the ban of Russian EPS imports Ukrainian companies will have to switch to Chinese material. After the adoption of the ban there can be a shortage of EPS appear in the local market.

However, SIBUR has the opportunity to direct all EPS volumes in the domestic market in the future. In the short term, this may lead to overstocked warehouses, but in the future the potential import substitution is possible because of the more attractive domestic prices of Russian plants.

Ukrainian companies significantly increased purchases of Chinese EPS in July. For the first time imports of Chinese EPS exceeded supplies from Russia and reached 2,500 tonnes, compared with 1,600 tonnes of EPS from Russia.

According to the MRC, imports of Russian EPS in Ukraine in 2013 were 21.500 tonnes, which occurred for 89% from the total EPS imports in the country.
MRC

MOSCOW (MRC) - Russia's imports of polypropylene (PP) decreased by 18% in the first eight months of this year on increased domestic production and rouble devaluation, which led to a significant growth of imports prices, according to MRC DataScope report.

PP imports in Russia were about 15,000 tonnes in August, remaining almost at the July level. Total PP imports in the country decreased to 117,600 tonnes in January - August 2014, compared with 142,800 tonnes year on year. Significant increase in the domestic production (over 20%) and the devaluation of the Russian rouble were the main reasons for the fall in imports. PP imports volumes declined for all grades of the polymer, but the largest drop occurred for homopolymer PP.

In general, PP imports over the reported period looked as follows. August imports of homopolymer PP increased to 6,600 tonnes, compared to 3,200 tonnes in July on the growing raffia supply from Turkmenistan. Total imports of homopolymer PP in Russia were 39,700 tonnes in the first eight months of this year, down 31% year on year.

August imports of PP block copolymers decreased twofold to 2,800 tonnes, compared with 4,600 tonnes in July, because of the delivery of injection moulding and extrusion grades of copolymers. Total imports of PP block copolymers decreased to 30,800 tonnes in the first eight months of 2014, compared with 38,000 tonnes year on year, with the largest reduction in demand occurred from the producers of injection moulding goods (about 28%).

August imports of PP random copolymers in Russia were 2,600 tonnes, compared with 3,600 tonnes in July because of weaker delivery of pipe copolymers grades. Total imports of PP random copolymers in Russia decreased to 21,700 tonnes in January - August, compared with 25,300 tonnes year on year. The main drop in demand occurred for injection moulding (about 32%) and extrusion grades (about 34%), while the demand for the copolymers from the producers of BOPP films increased by 11%.

Imports of other polymers of propylene over the period increased to 25,300 tonnes against 21,800 tonnes a year earlier.


MRC

MOSCOW (MRC) - Production of high density polyethylene (HDPE) in Russia decreased by 18% in the first eight months of this year.
Emergency shutdown of the second-largest HDPE producer in Russia - Stavrolen was the main reason of the reduction in production volumes, according to MRC ScanPlast.

August HDPE production in Russia practically remained at the level of July at the level of 68,800 tonnes. Total HDPE production in Russia decreased to 579,100 tonnes in January - August of this year, compared to 697,600 tonnes year on year. The increase in HDPE production at the facilities of Kazanorgsintez and Gazprom neftekhim Salavat could not offset the shutdown of Stavrolen.

Structure of HDPE production by plants during the period was as follows.

The leader in the production remained Gazprom neftekhim Salavat (Gazprom), with HDPE production in August reached 4,700 tonnes; in July - August producer's capacities were shut for scheduled maintenance. Total HDPE production at Gazprom neftekhim Salavat grew to 59,700 tonnes in the first eight months of this year, up 38% year on year.

Kazanorgsintez (Taif) also kept a high level of capacity utilisation for the past few months, the August production of HDPE were 45,200 tonnes. Total HDPE production by the producer increased to 353,800 tonnes in the first eight months of 20014, up 8% year on year.

The third largest producer of HDPE in Russia, Nizhnekamskneftekhim (Taif) produced 117,700 tonnes in January - August of this year, compared with 121,000 tonnes year on year. The reduction in production resulted from the switching to the production of linear low density polyethylene (LLDPE) in March - April 20014.

As we previously wrote, Stavrolen (LUKOIL) in late February of this year, had to shut HDPE production because of an accident. According to unofficial information, the producer resumes HDPE production in January - February 2015.


MRC