Asahi Kasei to establish plastic compounds subsidiary in Mexico

MOSCOW (MRC) -- Asahi Kasei Chemicals has finalized a decision to establish a subsidiary for plastic compounds1 in Mexico, through its US subsidiary Asahi Kasei Plastics North America, Inc., said the producer in its press release.

Having identified an expansion of compounding operations as a critical element in the strategic growth of its engineering plastics business, Asahi Kasei Chemicals has expanded its compounding facilities in both Asia and the US. Continued demand growth for plastic compounds is forecasted in Mexico, where various manufacturing facilities are increasingly located, especially by US, European, and Japanese manufacturers in the automotive industry. The new subsidiary will perform sales and technical support focused on the needs of customers in Mexico, enabling further expansion of business for plastic compounds in the growing Mexican market.

Asahi Kasei Chemicals has operating bases for plastic compounds in Japan, the US, China, Thailand, Singapore, and Belgium. While the new subsidiary will perform sales and technical support in the Mexican market, Asahi Kasei Chemicals will also study the possibility of local manufacturing of plastic compounds in Mexico.

As MRC wrote previously, Asahi Kasei’s (Tokyo, Japan) Fibers division will expand production capacity for polypropylene spunbond nonwovens in Thailand at its subsidiary Asahi Kasei Spunbond (Thailand) Co. AKST will add a new production line of 20,000 metric tons per year capacity which, combined with its existing production line, will double its capacity for spunbond nonwovens to 40,000 m.t/yr. The investment for the capacity expansion is approximately USD5 billion, with a scheduled startup of November 2015.

Asahi Kasei Corporation is a global Japanese chemical company. Its main products are chemicals and materials science.
MRC

Indorama eyes PTA plant purchases in Canada, Spain

MOSCOW (MRC) -- Thai petrochemical company Indorama Ventures is in advanced negotiations to buy an additional polyster materials facility from Cia Espanola de Petroleos SAU to expand in Europe and North America, said Hydrocarbonprocessing.

Indorama is in exclusive talks about the San Roque, Spain-based plant with Abu Dhabi’s International Petroleum Investment Co., the owner of Cepsa, said the people, who asked not to be identified because the information isn’t public.

No final agreement has been reached and the talks about the site with annual sales of about USD500 million could still fall apart, they said.

The Thai company is acquiring purified terephthalic acid (PTA) assets -- the raw material for polyesters and plastics used in bottles and packaging -- to boost its operations in western markets in a challenge to local manufacturers including Eastman Chemical and Dow Chemical.

Indorama shares climbed 2.8% on March 23 after it announced an agreement to acquire a Canadian purified terephthalic acid site from Cepsa. The facility in San Roque has a similar turnover, yet would be a larger investment, said the people. Indorama didn’t disclose financial terms of the Montreal deal.

Richard Jones, head of investor relations at Indorama, declined to comment. Representatives for Cepsa and International Petroleum Investment couldn’t be reached for comment and didn’t return calls and emails seeking comment.

While the Asian market for purified terephthalic acid is fragmented, North America is largely supplied by Cepsa and BP, with Alpek of Mexico and Eastman manufacturing for their own needs.

Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC

Eastman to close Workington acetate tow manufacturing site

MOSCOW (MRC) -- Eastman Chemical Company has announced it has decided to close its Workington, UK, acetate tow manufacturing site, as per the company's press release.

Production at the site will cease in April, and site closure is expected to be completed in the third quarter of 2015. As previously announced, Eastman entered the consultation process with employee and union representatives in response to changes in global market demand for acetate tow.

The Workington site has 24,000 metric tons of acetate tow manufacturing capacity. Projected savings from the closure are annual operating costs of approximately USD20 million and a total of approximately USD20 million of infrastructure capital expenditures planned for the next five years.

"With changes in global market demand and 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. "We have been working with our customers throughout this process and remain committed to reliably supplying them with top quality products."

This action will result in shut down costs and restructuring charges totaling approximately USD100 million primarily in the first half of 2015, approximately USD80 million of which are non-cash.

As MRC reported earlier, in December 2014, Eastman Chemical Company announced the completion of its acquisition of Taminco Corporation, a global specialty chemical company, for a total of USD2.8 billion in cash and assumed debt.

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 2014 revenues of approximately USD9.5 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 15,000 people around the world.
MRC

Arkema launches new maleated PE for HFFR compounds requiring high water ageing performance

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, has developed Orevac 18341, a new maleated polyethylene for the production of halogen-free flame retardant (HFFR) compounds used in cable applications, reported the company on its site.

Orevac 18341 is especially useful in improving water ageing resistance.

HFFR formulations are polyolefin alternatives to PVC compounds used in the jacketing of low voltage cables. They have the advantage of generating low smoke density in a fire situation as well as good fire redardancy. However, they require improved mechanical properties and better water ageing resistance. Water ageing resistance is key to maintain cable properties even in a humid environment.

The new Orevac grade is a polyethylene with a high grafting level of maleic anhydride (MAH). The high content of grafted MAH makes it an excellent coupling agent between polyolefin and mineral fillers such as aluminium trihydrate (ATH), magnesium dihydrate (MDH), brucite, etc. It helps to achieve superior mechanical properties and better water ageing resistance.

Orevac 18341 can be associated with Arkema polyolefin copolymers such as Lotryl ethylene-acrylate copolymers and Evatane ethylene-vinyl acetate copolymers to produce zero-halogen flame retardant compounds with excellent mechanical properties even with a low coupling agent content.

As MRC informed before, in order to guarantee flawless bottles to bottle manufacturers, Arkema has developed major technological innovations in protective coatings, combined with an audit and training service, and a product certification that is unique in the profession.

Arkema with annual revenue of EUR6.1 billion is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. With operations in more than 50 countries, some 14,000 employees and 13 research centers, Arkema generates annual revenue of EUR7.6 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.
MRC

Samsung Total to shut down HDPE plant in South Korea for maintenance

MOSCOW (MRC) -- Samsung Total Petrochemical is likely to take off-stream a high density polyethylene (HDPE) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in South Korea informed that the plant is likely to be shut in April 2015. It is planned to remain off-stream for around one month.

Located in South Korea, the plant has a production capacity of 175,000 mt/year.

As MRC wrote previously, Samsung Total Petrochemical also intends to shut its polypropylene (PP) plant in South Korea for maintenance turnaround in mid-April 2015 for maintenance turnaround. It is likely to remain off-stream for around one month. Located in Daesan, South Korea, the plant comprises of three line with a combined production capacity of 250,000 mt/year.

We also remind that in November 2014, South Korea's Samsung Group said it is selling stakes in four chemical and defence firms for 1.9 trillion won (USD1.72 billion) to Hanwha Group, the latest move in the massive task of restructuring the country's largest conglomerate.

Later, in the first decade of March 2015, South Korea's Fair Trade Commission (KFTC) gave conditional approval to Hanwha's proposed acquisition of Samsung General Chemicals.
MRC