Rising government investments, growing demand to propel Saudi Arabian masterbach market

MOSCOW (MRC) -- The masterbatch market in Saudi Arabia is projected to surpass USD167 mln by 2020 as per Plastemart with reference to Research and Markets.

Rising government investments in downstream sector coupled with growing demand from end user industries such as packaging, building & construction and consumer appliances is forecast to propel the country's masterbatch market through 2020.

Presently, the largest end user industry for masterbatch applications in Saudi Arabia is the packaging sector, and the segment is projected to dominate though 2020. Demand for masterbatches from plastic processing industries is predominantly being fueled by huge amount of money invested by the country's government in petrochemical and plastics sector.

Clariant accounts for the largest share in the country's masterbatch market, followed by Astra Polymer, Ingenia Polymers and Cabot. Easy availability of raw material, surging demand from end use industries and growing trend towards green building solutions and plastics is driving demand for masterbatches in Saudi Arabia.

Masterbatches are being used in a wide range of applications in building and construction sector, production of household appliances and automotive sector. Over the last five years, the masterbatch market in Saudi Arabia has been witnessing introduction of high-quality, standardized masterbatches for use in construction, plastic, fiber and agriculture industries.

As MRC wrote before, in 2013, Clariant, a world leader in specialty chemicals, and Tasnee, one of the largest industrial conglomerates in Saudi Arabia, announced the signing of an agreement to establish a masterbatches joint venture in Saudi Arabia. Within the framework of the agreement, through its 100% subsidiary Rowad National Plastic Company Ltd., Tasnee will acquire a 40% stake in Clariant’s masterbatches operations in the country, already operating under the name Clariant Masterbatches (Saudi Arabia) Ltd.
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MOSCOW (MRC) -- China General Plastics Corp (CGPC) has restarted its polyvinyl chloride (PVC) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Taiwan informed that the plant resumed production on July 31, 2015. It was taken off-stream for maintenance turnaround on July 20, 2015.

Located in Kaohsiung, Taiwan, the plant has a production capacity of 170,000 mt/year.

As MRC reported before, in late July 2015, CGPC Polymer Corporation shut its PVC plant in Toufen, Taiwan, for maintenance turnaround. It is expected to remain off-stream for around 10-12 days. The plant has a production capacity of 180,000 mt/year.

We also remind that, in H2 April, 2015, Formosa Plastics shut its PVC plant for maintenance turnaround. It remained off-stream till May 1, 2015. Located at Kaohsiung in Taiwan, the plant has a production capacity of 450,000 mt/year.
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MOSCOW (MRC) -- Grand Pacific Petrochemical Corp (GPPC) is likely to shut a styrene monomer (SM) plant for maintenance turnaround, as per Apic-online.

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

Located in Tashe, Taiwan, the plant has a capacity of 240,000 mt/year.

As MRC wrote before, GPPC is likely to shut its SM plant in Taiwan with a production capacity of 130,000 mt/year for maintenance turnaround in November 2015. It is planned to remain off-stream for around one month.

Earlier, GPPC shut down its SM plant for maintenance on February 15, 2014. It remained off-stream till March 11, 2014. Located at Tashe in Taiwan, the plant has a production capacity of 130,000 mt/year.
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MOSCOW (MRC) -- Teknor Apex Company has sold its Beetle brand, certain manufacturing assets, and related customer lists to UK-based Petlon Polymers Ltd, as per GV.

The deal with Petlon, expected to be finalised by the end of September, involves a small portion of Teknor Apex’s nylon business. The company said that it will continue to supply nylon compounds throughout the world under the Chemlon brand.

The sale follows a fire on 29 April 2015 that devastated a compounding facility of the company at Oldbury, UK, which produced engineering thermoplastics and thermoplastic elastomers. Teknor Apex will continue to produce nylon compounds in the United States and Singapore under the Chemlon brand and supply them worldwide.

"While Teknor Apex is well positioned to supply nylon and TPEs in Europe and throughout the world, we determined that we could not serve some ETP accounts at a level of service that their business required," said William J. Murray, president of Teknor Apex. "The accounts that we are relinquishing represent a small portion of our worldwide nylon business and include some engineering-grade PET business as well as nylon."

As MRC informed previously, in July 2015, Teknor Apex Company introduced a new series of styrenic block copolymer elastomers, which exhibits performance comparable to that of thermoplastic vulcanizates (TPVs) widely used in window gaskets while offering new options for building product manufacturers.

Teknor Apex is one of the world's leading custom compounders headquartered in Pawtucket, Rhode Island, USA. The company produces PA compounds in the UK, the U.S.A., and Singapore. Teknor Apex is one of the world's leaders of specialty PVC compounds which are used in a wide range of applications from wire and cable to automotive, medical, consumer and industrial products. The company also produces thermoplastic elastomers, nylon, bioplastics, chemicals, specialty compounds.
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MOSCOW (MRC) -- The leading private conglomerate Reliance Industries Limited (RIL) has announced that it will be investing USD5 bln for its refining and petrochemicals business by March, 2016, reported Plastemart.

The decision came after the strong refining margins led to higher profits for the company in Q1. The Mukesh Ambani-led company operates the largest refinery complex of the world. The company witnessed a 12% increase in its net profit of April-June 2015 quarter. It recorded profits of Rs. 63.18 bln.

Analysts had predicted the profit to be Rs. 63.08 bln but the company exceeded expectations. Refining margins are the highest in six years. The company is making heavy investments to increase the capacity.

We remind that, as MRC informed earlier, in April 2015, RIL successfully put into operation two plants in Dahej, Gujarat, India. The first was a polyethylene terephthalate (PET) resin plant, which consists of two lines with a combined manufacturing capacity of 650 KTA. The plant has been built with Invista technology for continuous polymerization and Buhler AG technology for solid state polymerization. This is one of the largest bottle-grade PET resin capacity at a single location globally, and consolidates Reliance’s position as a leading PET resin producer with a global capacity of 1.15 MMTPA, the company said. PET resin from the new capacity would find application in packaging for water, carbonated soft drinks, pharmaceuticals and other food and beverages.

The second facility is a new purified terephthalic acid (PTA) plant that provides a capacity of 1,150 KTA. With the commissioning of this plant, also built with Invista technology, Reliance’s total PTA capacity will increase to 3.2 MMTPA, and its global capacity share will rise to 4%.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
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