Eastman entering consultation period regarding proposal to close Workington acetate tow manufacturing site

MOSCOW (MRC) -- Eastman Chemical Company has announced it will begin a consultation period regarding a proposal to close its Workington, U.K., acetate tow manufacturing facility, said the producer on its site.

The proposed closure of the site is in response to changes in global market demand for acetate tow.

"With recent and announced global acetate tow manufacturing capacity additions, we need less capacity to supply our customers," said Linda Hensley, vice president and general manager of the Fibers segment.

Eastman also manufactures acetate tow at its facilities in Kingsport, Tenn., and Ulsan, Korea. Eastman’s global acetate tow capacity is 210,000 metric tons including the Workington, UK, site which produces 24,000 metric tons. In addition, Eastman's joint venture with China National Tobacco Company in Heifei, China, has 30,000 metric tons of acetate tow manufacturing capacity.

"Eastman remains committed to reliably supplying all customers with top quality products during and following this consultation process," Hensley said.

Eastman has informed the trade union and will work with union and employee representatives throughout the consultation period.

Eastman manufactures Estron acetate tow, which is a fibrous material downstream customers use to manufacture cigarette filter rods.

As MRC wrote previously, in August 2014, Eastman Chemical Company entered into a definitive agreement to acquire Knowlton Technologies, LLC. The company, which is located in Watertown, NY, is a leader in the design, accelerated prototyping and manufacture of wet-laid nonwovens in filtration, friction and custom designed composite webs.

Eastman 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. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2013 revenues of approximately USD9.4 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,000 people around the world.
MRC

MOSCOW (MRC) -- South Africa’s Sasol Ltd. has let a contract to GE Oil & Gas, Florence, Italy, to provide the main-compression trains required for a low-density polyethylene (LDPE) plant at its proposed integrated ethane cracker and downstream derivatives complex to be located adjacent to the company’s existing operations near Lake Charles in Westlake, La., as per the company's press release.

GE will supply main-compression and power-generation trains consisting of primary-purge and hyper-compression services for a 20-cyclinder, two-stage, LDPE hyper-compressor that will have discharge pressures of 45,000 psi and be situated in the center of the new plant, GE said.

The project equipment, which GE will design and build in Florence, is scheduled for shipment to the Lake Charles site during first-half 2016, according to the service provider. A value of the contract was not disclosed.

In December 2014, Sasol let a contract to Toyo Engineering Korea Ltd. (TEK), a subsidiary of Toyo Engineering Corp., to provide detailed engineering, procurement, module fabrication, and construction support services for the planned 450,000-tonne/year (tpy) linear LDPE plant to be included at Westlake complex.

In addition to the LDPE plant, the USD8.9 billion petrochemical complex will include a grassroots ethane cracker capable of producing 1.5 million tpy of ethylene, as well as several other chemical manufacturing plants.

With site preparation now under way, the new complex currently is on schedule to be commissioned in 2018.
While construction of the planned ethane cracker and derivatives complex remains ongoing, Sasol recently delayed final investment decision on a proposed large-scale, gas-to-liquids plant that would be located adjacent to the Westlake complex as part of a company-wide plan to conserve cash in response to lower international oil prices.

Sasol Limited is an integrated energy and chemical company based in Johannesburg, South Africa. It develops and commercialises technologies, including synthetic fuels technologies, and produces different liquid fuels, chemicals and electricity.
MRC

MOSCOW (MRC) -- Petrochemicals and metals company Industries Qatar (IQ) posted a 4.2% decline in fourth-quarter net profit, just below analysts' forecasts, as the plunge in global oil prices dragged down petrochemical product prices, said Reuters.

The Middle East's second-biggest petrochemicals company by market value, behind Saudi Basic Industries (SABIC), made a net profit of 1.60 billion riyals (USD440 million) for the three months to Dec. 31, compared with 1.67 billion riyals a year earlier, according to Reuters calculations based on an IQ statement in the Qatar Tribune newspaper.

Analysts polled by Reuters had on average expected the company to post a quarterly profit of 1.62 billion riyals.

No reason was given for the drop in fourth-quarter profit but the newspaper said "the group faced challenges from extended shutdowns across all plants during the first half of the year, continued weak urea prices, and heightened operating costs".

Last month, SABIC reported a 29% plunge in fourth-quarter net income because of the oil price tumble.

However, IQ said last month that it was considering whether to expand production to take advantage of excess feedstock left by the cancellation of a project that was to be developed by Qatar Petroleum and Royal Dutch Shell.

The company reported annual net profit of 6.3 billion riyals for 2014, down 21% from 8.01 billion riyals a year earlier. IQ proposed on Jan. 8 a cash dividend of 7 riyals per share for 2014.
MRC

MOSCOW (MRC) -- BASF is going to significantly increase its production capacities of bismuth vanadate pigments in Besigheim near Stuttgart, as per the company's press release.

The additional capacities will be available as of 2017. Bismuth vanadate pigments are yellow pigments with a special greenish color tone, that BASF markets under the Sicopal and Paliotan brand names. Customers use them for the formulation of paints, coatings and plastic coatings.

Bismuth vanadate pigments are a high performance inorganic alternative to pigments containing lead chromate, which, according to the EU chemicals regulation REACH, are classified as CMR substances (carcinogenic, mutagenic or toxic for reproduction).

In the field of bismuth vanadate pigments, BASF is one of the global market leaders and has a comprehensive portfolio that is continually being expanded. In 2013, BASF launched the particularly color-intense yellow Sicopal L1130 pigment, which is well established in the market. The product is used as alternative to zinc-containing formulations and enables highly chromatic yellow shades with high weather fastness. In 2015, BASF is also going to introduce a newly developed alkali-stable bismuth vanadate pigment for the formulation of paints as well as a temperature-stable bismuth vanadate pigment for plastic applications.

As MRC wrote before, BASF launched its first production plant for polymer dispersions in Pasir Gudang, Malaysia.
This production plant is built at the existing BASF production site, located in the Pasir Gudang Industrial Park of the Johor Free Trade Zone. The plant is BASF’s third polymer dispersions plant in ASEAN, complementing the existing dispersions plants in Jakarta and Merak, Indonesia.

The Dispersions & Pigments division of BASF develops, produces and markets a range of high-quality pigments, resins, additives and polymer dispersions worldwide. These raw materials are used in formulations for coatings and paints, printing and packaging products, construction chemicals, adhesives, fiber bondings, plastics, paper as well as for electronic applications such as displays. With its comprehensive product portfolio and its extensive knowledge of the industry, the Dispersions & Pigments division offers its customers innovative and sustainable solutions and helps them advance their formulations.

At BASF, we create chemistry – and have been doing so for 150 years. Our 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) -- Global staples polypropylene (PP) non-woven fabric market is expected to grow at 7.7% to 2020, reported Plastemart with reference to Grand View Research.

Thus, global staples PP Non-woven fabric demand was 1,949.2 kilotons in 2013 and is expected to reach 3,103.9 kilotons by 2020, growing at a CAGR of 6.9% from 2014 to 2020.

Hygiene was the largest application segment and accounted for 37.5% of the total market volume in 2013. Increasing geriatric population base, particularly in the US, Japan, and Western Europe will remain a key driver for this segment. High birth rates in North African countries and Middle East, coupled with increasing baby diaper usage in Southeast Asian countries are also expected to have a positive impact on the segment growth.

Medical is expected to witness the highest growth rate of 7.7% from 2014 to 2020, as per Grand View Research. Presence of sophisticated healthcare system in developed economies like the US and Europe coupled with increasing healthcare expenditure in South American and Asian countries is expected to drive this segment.

Asia Pacific emerged as the largest regional staples PP Non-woven fabric market and accounted for over 40% of the total market volume in 2013. Growing baby diapers demand in India and China coupled with increasing investment from companies such as Kimberly-Clark in these countries is expected to remain a key driving factor for the regional market.

Middle East is expected to witness significant growth in demand for staples PP Non-woven fabrics. The region is expected to grow at an estimated CAGR of 9.4% from 2014 to 2020.

Global staples PP Non-woven fabric market is dominated with top multinational corporations. The market has witnessed frequent M&A activities in the recent past. Major companies adopt this strategy in order to reduce competition and gain market share. Some of the major companies operating in the global market include Fibertex, Kimberly-Clark, First Quality, Toray Industries, Mitsui, Fiberweb and Polymer Group Inc.

As MRC informed previously, in late January 2015, Toray Industries, Inc. announced that it had formulated a plan to expand the polyester staple fiber business at Toray Chemical Korea Inc., the acquisition of which Toray completed in February 2014, to pursuit synergy effects within Toray Group. According to the plan, Toray will boost production capacity of low melt polyester staple fiber (LM polyester staple fiber) at TCK’s Gumi I Plant in Gumi, Gyeongsangbuk-do by about 1.7 times to 170,000 tons. The additional LM polyester staple fiber production facility is expected to start production in July 2016.
MRC