Lanxess inaugurates EUR200m rubber plant in Singapore

MOSCOW (MRC) -- Specialty chemicals company Lanxess has inaugurated its new EUR200m neodymium butadiene rubber (Nd-BR) plant in Singapore, said Chemicals-technology.

The new facility is located adjacent to the company's existing butyl rubber plant on Jurong Island, and has a production capacity of 140,000t a year. Set to produce Nd-BR for global markets, the plant will join the nine additional production facilities operated by the company's Tire & Specialty Rubber (TSR) business unit in North and South America and Europe, and will primarily focus on the growing Asian markets.

Lanxess board of management chairman Matthias Zachert said: "Together with our adjacent butyl rubber plant, the opening of this new butadiene rubber plant reinforces the strategic role of Singapore as our hub for synthetic rubber production for the Asian markets."
Singapore Economic Development Board Energy and Chemicals executive director Damian Chan said: "The synthetic rubber project is part of Singapore's strategy to grow chemical chains from the higher olefins produced by our petrochemical crackers.

"This will enhance the value and resilience of our chemicals industry."

The Singapore plant will also produce other varieties of butadiene rubber, including solution styrene-butadiene rubber (S-SBR) and several types of butyl rubber. Serving as a vital function in tire walls and treads, Nd-BR is said to reduce tire abrasion and also plays a part in improving the performance of golf balls, running shoes and conveyor belts.

As MRC reported earlier, in July 2013, German specialty chemicals company Lanxess opened its first production facility in Russia. In the new plant at the Lipetsk site, LANXESS subsidiary Rhein Chemie manufactures polymer-bound rubber additives for the markets in Russia and the Commonwealth of Independent States (CIS), primarily for the automotive and tire industries. A production facility for the bladders used in tire production is to be added in 2016. The overall investment volume in euros amounts to a seven-digit figure and 40 new jobs were created at the new plant.

Lanxess is a leading specialty chemicals company with sales of EUR 8.0 billion in 2014 and about 16,300 employees in 29 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

MRC

MOSCOW (MRC) - Imports of polypropylene (PP) in Kazakhstan increased to about 9,600 tonnes in first seven months of this year, up 2% compared to the same period of 2014. PP exports from the country increased to 16,300 tonnes over the reported period, up 16% year on year, as per MRC DataScope.

According to the Customs Control Committee of the Ministry of Finance, July PP imports were about 1,800 tonnes, which was practically the same as in June. Total PP imports in Kazakhstan reached 9,600 tonnes in January - July 2015, compared to 9,400 tonnes in the same time a year earlier.

The main suppliers of polypropylene in Kazakhstan were Russian producers, with about 65% from the total imports in the country. The second largest supply of polymer to the local market of the country was South Korea, with major shipments occurred for propylene copolymers.

July PP exports from Kazakhstan fell to 2,200 tonnes (including exports to Russia, PP exports into Russia in the first seven months of the year were 8,200 tonnes) against 2,900 tonnes a month earlier.

In general, local producer of polypropylene - Neftekhim Ltd exported more than 16,300 tonnes in the first seven months of this year, compared with 14,100 tonnes in the same time a year earlier.
MRC

MOSCOW (MRC) - Suppliers of Middle Eastern polypropylene (PP) have announced further price reductions for the CIS markets. Price offers for September PP shipment were reduced by USD60-80/tonne compared to the level of August, according to ICIS-MRC Price Report.

Negotiations for September delivery of Middle Eastern PP have begun this week. Because of a serious reduction in price of oil and the fall in PP prices in Asia, suppliers of Middle Eastern PP announced a significant decline in prices for the markets of the CIS countries.

At the same time, companies were in no hurry to confirm the deals, waiting for the price settlement in Europe.
Deals for September deliveries of homopolymer PP were discussed in the range of USD1,140-1,200/tonne CFR (Odessa, Novorossiysk), on average down by USD60-80/tonne from the August level.

Some market participants have reported that there were offers for the re-importation of the Middle Eastern PP from China at USD1,120/tonne CFR. Many companies, despite such a serious decline in prices were not in a hurry to confirm the deals for September shipment of Middle Eastern PP. This is partly because of the steady downward trend in major markets (Europe and Asia) and the desire to get even lower prices.

Some companies have reported that they intend to wait for prices from European producers. September price of propylene in Europe was agreed down EUR110/tonne from the level of August, which suggests at least a proportional reduction in the price of polypropylene. Deals for European homopolymer PP in August were done in the range of EUR1,150-1,240/tonne FCA.

MRC

MOSCOW (MRC) -- BP and Oman International Petrochemical Industries Co. (OMPET) have entered into a licensing agreement for BP’s latest generation purified terephthalic acid (PTA) technology, said the company's officials.

Using BP's technology, OMPET intends to build a 1.1-million tpy unit at Sohar, Oman, to produce PTA, the primary feedstock for polyesters used in the textile and packaging industry.

"This is the first licence for BP’s PTA technology in the Middle East which is an important and strategic region for BP," said Rita Griffin, chief operating officer for BP Petrochemicals. "This is a testimony to the advantages of BP’s technology and to BP’s extensive experience as a PTA producer."

“BP will provide a wide range of technical and knowledge transfer services as well as a commitment to assist Omani staff within the OMPET joint venture," added Daniel Leonardi, vice president of technology and licensing at BP Petrochemicals. "The front-end engineering design (FEED) package for the licence has been completed and delivered to OMPET on schedule."

OMPET is a joint venture between Oman Oil Co. (50%), LG International Corp. (30%) and Takamul Investment Co (20%). Takamul is 93.7% owned by the Oman Oil Co.

“Our PTA technology has significantly lower capital and operating costs when compared with conventional PTA plants and the technology is more energy efficient, uses less water, and produces less solid waste," said Leonardi.

"We continue to invest heavily in our proprietary technology and this will maintain BP’s PTA technology as the global leader, and as the technology of choice for the future. Innovations in the technology will continue to be developed and implemented and these will be available to our licensees, including OMPET."

As MRC informed earlier, last year BP planned to invest over USD200 million to upgrade its purified terephthalic acid (PTA) plants at Cooper River, South Carolina and Geel, Belgium. The investments will position these assets amongst the most efficient PTA manufacturing facilities in the world.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

MOSCOW (MRC) -- Specialty chemicals firm Evonik Industries has commenced operations of new production plants for C4-based products in the Marl Chemical Park, Germany, said Chemicals-technology.

The project is part of the company's three-digit million euro expansion plan throughout Europe for C4-based products.

The new facilities feature a 90m column, which uses special material streams from refineries for production of various C4 chemicals. The BP refinery in Gelsenkirchen supplies the material streams to the facilities.

"With the expansion of our C4 capacities we're sustainably strengthening our market position."
Evonik executive board chairman Klaus Engel said: "With the expansion of our C4 capacities we're sustainably strengthening our market position.

"What's more, the new technology for raw-material supply for the Marl plant and our excellent collaboration with BP demonstrate yet again the innovative strength of companies in the Ruhr district and their readiness to collaborate."
The facilities will strengthen the company's plasticiser alcohol isononanol and fuel additive MTBE production capabilities in Marl.

The company has recently commenced operations at its C4 plants in Antwerp, Belgium, which increased butadiene and MTBE capacities.

Evonik Performance Materials chairman Johann-Caspar Gammelin said: "Our investments are supporting the growth plans of our customers in Europe and worldwide. "Market analyses show that global demand for these products is growing by up to 5% annually."

As MRC informed earlier, Evonik Industries in June completed the acquisition of Monarch Catalyst (Dombivli, India). All of Evonik’s future catalyst activities in India will be operated through the newly acquired company. Financial details of the transaction have not been disclosed.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.

MRC