U.S. to look into imports of plastic packaging materials

MOSCOW (MRC) - U.S. trade officials will look into whether imports of clear plastic resin, used in bottles and packaging, from China and other countries are being sold too cheaply in the United States, a move that could lead to import duties, as per Reuters.

The U.S. Department of Commerce said it would investigate a complaint about dumping of polyethylene terephthalate (PET) resin, used to make soft drink bottles and other packaging, from China, India, Oman and Canada. It will also look into government subsidies for products from China, India and Oman.

The complaint was lodged by DAK Americas, a subsidiary of Mexico's Alfa S.A.B. de C.V., M&G Chemicals, and Nan Ya Plastics Corporation, America, a subsidiary of Taiwan's Nan Ya Plastics Corporation.

As MRC informed earlier, the World Trade Organisation (WTO) has set up a panel to take up Pakistan’s complaint against the European Union (EU) for imposing countervailing duties on the export of polyethylene terephthalate (PET) – a synthetic widely used to manufacture polyester fibre. The WTO’s Dispute Settlement Body (DSB) established the panel on March 25 to study the complaint related to the trade-restrictive tax measures imposed by the EU on Pakistan’s exports of PET.
MRC

MOSCOW (MRC) -- Cost estimates at the Comperj refinery project have escalated to USD47.7 bln from USD6.5 bln in 2006, with Brazil's auditing TCU body claiming negligence and lack of transparency on the part of national oil company Petrobras, in breach of federal laws, as per BNAmericas.

No comments are available from the company. The cost overruns were not an isolated case, however. Months after the official unveiling in 2006, the total investment increased to USD8.4 billion as a result of a change in the scope of the project, the report said.

As MRC wrote previously, Petroleo Brasileiro SA is delaying its exit from Argentina’s petrochemical business as it focuses on a graft case in Brazil, two people familiar with the process said in December 2014. Petrobras received a joint offer for its 34% stake in Cia. Mega SA from partners YPF and Dow Chemical, said the people, who asked not to be named because the talks are private.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- Rabigh Refining & Petrochemical Co. (Petro Rabigh) has received ownership of the Rabigh Phase II project from Saudi Aramco and Sumitomo Chemical, major shareholders in Petro Rabigh, and will now integrate the project into Petro Rabigh's existing refining and petrochemical complex in Rabigh, Saudi Arabia, reported GV.

The Rabigh II project, expected to cost about USD 8.1-billion, involves expanding an existing ethane cracker and adding production of ethylene propylene rubber, thermoplastic polyolefins, methyl methacrylate monomer, polymethyl methacrylate, low-density polyethylene/ethylene vinyl acetate, paraxylene/benzene, cumene and phenol/acetone. Production facilities are expected to begin operations "one after another, beginning in the first half of 2016," Sumitomo said.

In addition to the ownership transfer, Petro Rabigh has signed project financing agreements, totaling approximately USD 5.2-billion, with a syndicate of banks to help finance the Rabigh II project.

Petro Rabigh will receive about USD 2-billion in financing from the Japan Bank for International Cooperation and USD 1.3-billion from Saudi Arabia's Public Investment Fund, both of which are governmental financial institutions.

Funding will also come from a group of 19 financial institutions from Japan, Saudi Arabia, Europe and the US.

"The project, which will utilize state-of-the-art technologies from Sumitomo Chemical and other companies, will seek to maximize synergies with the Rabigh Phase I project," Sumitomo noted.

As MRC informed earlier, in 2010, Petro Rabigh signed an agreement with Tasnee and Saudi Advanced Industries (SAIC) for the supply of propylene oxide to the joint venture for the production of polyether polyol. The plant is located in Rabiga, in the west of Saudi Arabia on the Red Sea.

PetroRabigh, a joint venture between Saudi Aramco and Japan's Sumitomo Chemical, has an annual output capacity of 18 million tonnes of refined products and 2.4 million tonnes of petrochemicals. Thus, the complex currently has a cracker to produce 1.3-million t/y of ethylene and 900,000 t/y of propylene, as well as downstream production of polyethylene, polypropylene, propylene oxide, ethylene glycol and butene-1.
MRC

MOSCOW (MRC) -- Specialty chemical company Ashland Inc. plans to invest about USD89 million over the next three years to expand its manufacturing operation in Hopewell, Virginia, the US-based specialty chemicals firm said.

The plant makes a range of cellulosics for food, pharmaceuticals and cosmetics, as well for oilfield and building and construction applications.

The majority of the investment will be aimed at expanding production of two key product lines. Ashland said it would increase production of Natrosol hydroxyethylcellulose, used as a thickener in latex paints, by 4,700 metric tons, or by about 40 percent.

The company also will expand capacity for Klucel hydroxypropylcellulose, a high-value technology used to enable time-release delivery in pharmaceutical tablet binders and coatings and other applications, by about 50 percent.
The plant expansion is expected to begin this summer.

As MRC informed earlier, Ashland Inc. and Lion Copolymer Holdings, LLC, announced they have reached a definitive agreement under which Lion Copolymer will purchase Ashland's elastomers business based in Port Neches, Texas.

Ashland Specialty Ingredients is the leading global producer of cellulose ethers and a global leader in vinyl pyrrolidones. It offers industry-leading products, technologies and resources for solving formulation and product-performance challenges. Using natural, synthetic and semisynthetic polymers derived from plant and seed extract, cellulose ethers and vinyl pyrrolidones, as well as acrylic and polyurethane-based adhesives, Specialty Ingredients offers comprehensive and innovative solutions for today's demanding consumer and industrial applications. Key customers include: pharmaceutical companies; makers of personal care products, food and beverages; manufacturers of paint, coatings and construction materials; packaging and converting; and oilfield service companies.
MRC

MOSCOW (MRC) -- US production of major plastic resins totaled 6.1 billion pounds during February 2015, an increase of 6.8 percent compared to the same month in 2014, said Hydrocarbonprocessing, citing the American Chemistry Council (ACC).

Year-to-date production was 12.4 billion pounds, a 2.5% increase as compared to the same period in 2014.

Sales and captive (internal) use of major plastic resins totaled 6.1 billion pounds during February 2015, an increase of 4.5% from the same month one year earlier.

Year-to-date sales and captive use was 12.3 billion pounds, a 0.7% decrease as compared to the same period in 2014.
MRC