Sumitomo Chemical and Sekisui combine polyolefin films business

MOSCOW (MRC) -- Sumitomo Chemical and Sekisui Chemical (Tokyo) said that they are combining their respective polyolefin films business under a new joint venture, which is due to start operations in July this year, said Chemweek.

The new joint venture, Sumika Sekisui Holdings, will be owned 35% each by Sumitomo and Sekisui and 30% by the private-public partnership Innovation Network Corporation of Japan (INCJ; Tokyo). Sumitomo is contributing its Thermo subsidiary and Sekisui its Sekisui Film unit, which reported 2015 sales of Yen8.44 billion (USD74.4 million) .

Sumitomo Chemical reports a 79% increase in net profits for its fiscal first nine months ended 31 December 2015 compared with the year-ago period, to ?84.56 billion (USD705 million).

As MRC reported earlier, in May 2015, Sumitomo Chemical Co. announced its plans to mothball the ageing 415,000 tpa naphtha cracker at its Chiba plant from May 11. Though Sumitomo Chemical's cracker is shut for good, the company resumed operations of downstream petrochemical units at the Chiba plant from the beginning of July, using petrochemical feedstock from Keiyo Ethylene's 768,000 tpy cracker located nearby.

Sumitomo Chemical is a Japanese based manufacturer of a diverse range of products, including basic chemicals, petrochemicals and plastics, fine chemicals, agricultural chemicals, IT-related chemicals and pharmaceuticals.
MRC

Sadara Chemical attract USD1.5 bln in investments

MOSCOW (MRC) -- Sadara Chemical Co.’s (Sadara) manufacturing units have attracted nearly USD1.5 billion during the current finanical period, London-based Asharq Al-Awsat newspaper reported, citing Mohammad Al-Azzaz, the company's director of value parks, said Argaam.

Sadara is also establishing a new zone to attract tech firms and other companies that provide specialty products, Al-Azzaz said, adding that projects signed so far have created 1,500 job opportunities.

The chemical company is 65 percent owned by Saudi Aramco and 35 percent-owned by the US-based Dow Chemical Co., according to the data available on Argaam.

Sadara's complex is the world’s largest chemical facility, with 26 integrated world-scale manufacturing plants. The complex is expected to become fully operational by the end of this year.

As MRC informed earlier, the USD20 bln petrochemical joint venture between Saudi Aramco and Dow Chemical- Sadara Chemical, plans to start up its mixed-feed cracker in March.

Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City 2, Kingdom of Saudi Arabia. The complex will be comprised of 26 manufacturing units, will possess flexible cracking capabilities and is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016.
MRC

HDPE imports to Russia decreased by 41% in January - February 2016

MOSCOW (MRC) - Total imports of high density polyethylene (HDPE) into Russia decreased to about 16,700 tonnes in the first two months of 2016, down 41% compared to the same period of 2015. The largest decrease occurred for the sector of extrusion coating of large-diameter pipes, as per MRC DataScope.

February imports of HDPE into Russia decreased to 8,000 tonnes, compared with 8,700 tonnes in January. HDPE imports into the Russian Federation totalled about 16,700 tonnes over the first two months of 2016, whereas the last year's figure was 28,500 tonnes. The volumes of HDPE imports were affected by low demand for finished products as well as a weak rouble, which makes external purchases unprofitable.

Imports fell in all sectors of consumption, with the largest drop occurred in the sector of polyethylene for extrusion coating of steel pipes of large diameter. Structure of PE production over the reported period looked as follows.

February imports of injection moulding HDPE into the country grew to 3,500 tonnes, compared with 2,600 tonnes in January. The main increase in February HDPE imports into the country occurred for PE from Uzbekistan. Total imports of injection moulding HDPE into Russia decreased to 6,100 tonnes in Jan-Feb 2016, down 10% year on year.

February imports of HDPE for extrusion coating of large-diameter pipes decreased to 1,200 tonnes compared with 1,900 tonnes in January.
During the reporting period, the import of this type of polyethylene was about 3,100 tonnes, while a year earlier this figure exceeded 9,700 tonnes. The growth of domestic production was the main reason for the decline in import volumes.

February imports of HDPE for extrusion blowmoulding into Russia decreased to 1,200 tonnes, compared with 1,400 tonnes in January. Russia's imports of HDPE for extrusion blowmoulding decreased to 2,600 tonnes in Jan-Feb 2016, compared with 5,200 tonnes year on year.

February's volume of imports of pipe HDPE dropped below the level of 1,000 tonnes compared with 1,400 tonnes in January. Total imports of pipe HDPE into the country were about 2,400 tonnes in the first two months of the year, compared with 3,900 tonnes year on year. Weak demand for pipe products was the main reason for the reduction of imports of pipe PE.

During the period under review the purchase of other types of HDPE were about 2,600 tonnes against 2,900 tonnes year on year.

In the coming months, the purchases of HDPE in foreign markets will remain at a low level. This situation resulted from a serious decline in demand for finished products, as well as problems with customs clearance of polyethylene. On 16 February, Federal Customs Service (FCS) strengthened its control over the declaration of the imported products. Indicative price for HDPE (value for tax calculation) ranged from USD1,350 to USD1,700/tonne, significantly higher than the current actual price.

MRC

Petro Rabigh completes expansion, sees SAR 750 mln revenue growth

MOSCOW (MRC) -- Rabigh Refining and Petrochemical Co. (Petro Rabigh) has completed the expansion of its ethane cracker, increasing its processing capacity by 30 million standard cubic feet per day (MMSCFD) to 125 MMSCFD, said Argaam, citing the company's announcement in a bourse statement.

Rabigh added that it expects sales revenue to grow by SAR 750 million this year from this expansion.

The unit production capacity will reach 1.6 million metric tons annum (mtpa), compared to current 1.3 mtpa.

The ethane cracker is part of the Rabigh II project, whose ownership was transferred to the company by founders Saudi Aramco and Japanese producer Sumitomo Chemical.

As MRC informed previously, in April 2015, Rabigh Refining & Petrochemical Co. (Petro Rabigh) 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.

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.

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

Asahi Kasei and Mitsubishi Chemical receive regulatory approval for JV at Mizushima

MOSCOW (MRC) -- Asahi Kasei and Mitsubishi Chemical on Wednesday announced that they have received all necessary regulatory approvals to establish the previously announced 50-50 joint venture company Asahi Kasei Mitsubishi Chemical Ethylene (Tokyo), which will combine the companies' naphtha cracking operations at Mizushima, Japan, said Chemweek.

The new jv will become operational on 1 April. Asahi Kasei and Mitsubishi Chemical have also announced that Makoto Sakamoto has been appointed president and Hiroaki Numata v.p. of Asahi Kasei Mitsubishi Chemical Ethylene, effective 1 April. Sakamoto is currently general manager of the basic chemicals division of Asahi Kasei, and Numata is the assistant to the COO at Mitsubishi Chemical's basic petrochemicals division.

Mitsubishi Chemical and Asahi Kasei previously operated separate crackers at separate Mizushima sites each with capacity for 500,000 m.t./year of ethylene. The two plants will be consolidated at the Mitsubishi Chemical cracker, and that plant will expand its ethylene capacity to 570,000 m.t./year. Asahi Kasei and Mitsubishi Chemical have decided to consolidate their cracker operations at Mizushima because the operating climate for petrochemical businesses in Japan has become challenging.

The companies announced the plans in 2010, and a feasibility study for the project was completed in 2014. The Mizushima naphtha crackers of the two companies are currently operated by a jv called Nishi Nippon Ethylene, which was established in 2011. After Asahi Kasei Mitsubishi Chemical Ethylene starts up, Nishi Nippon Ethylene will be involved in removing and disposing of equipment as required after naphtha production is consolidated. Sakamoto and Numata will be concurrently appointed as representatives of Nishi Nippon Ethylene on 1 April, the companies say.

As MRC informed earlier, Asahi Kasei in February 2016 shut a styrene monomer (SM) plant permanently. Located in Mizushima, Japan, the plant had a production capacity of 320,000 mt/year.

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

Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.
MRC