Total plans to sell specialty chemicals unit Atotech

MOSCOW (MRC) -- French oil and gas producer Total plans to sell its specialty chemicals and equipment division Atotech, its CEO told the Le Figaro newspaper after the company announced on Monday it would buy battery-maker Saft, reported Hydrocarbonprocessing.

"Atotech no longer falls within Total's strategic vision," the paper quoted Patrick Pouyanne as saying. A Total spokeswoman confirmed the comments to Reuters.

Total said in February it was planning assets sale of about USD4 billion this year, mostly non-core assets.

Pouyanne did not give details about the planned sale of Atotech or if it was talking to potential buyers, but said Total was looking for a buyer that was committed to sustaining Atotech's current strategy.

Berlin-based Atotech, which generates annual sales of about USD1 billion, manufactures specialty chemicals and equipment for printed circuit boards and semiconductors.

It is Total's sole remaining specialty chemicals unit after the sale of Bostik in 2014.

Pouyanne also told Le Figaro that Total was not selling Atotech to pay for its 950 million euro (USD1.1 billion) purchase of France-based lithium battery maker Saft Groupe, which Total announced earlier on Monday.

He told the newspaper that Total would remain disciplined in its spending due to the prolonged oil price fall that has hit profits, but the company was still on the lookout for opportunities in the medium term.

"We have the means to move forward, carefully controlling our financial trajectory while making the necessary investments to ensure the effectiveness of the group's future structure," Pouyanne told Le Figaro.

As MRC informed previously, in September 2015, French oil major Total said it agreed to sell a majority stake of 50% plus 1% share in Geosel Manosque to a 50-50 consortium of EDF Invest and Ardian as part of its USD10 billon disposal plan. The transaction values Total's interest at 265 million euros (USD297 million), excluding inventory.

Besides, we remind that in late 2014, Total permanently shut its high density polyethylene (HDPE) line. The plant was shut permanently owing to weak margins which had arisen on account of cheap imports in the region. Located at Antwerp in Belgium, the line has a production capacity of 70,000 mt/year.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- Shin-Etsu is in plans to shut its polyvinyl chloride (PVC) plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Japan informed that the plant is scheduled to be taken off-stream mid-May 2016. It is likely to remain off-stream for around four weeks.

Located in Kashima, Japan, the plant has a production capacity of 550,000 mt/year.

We remind that, as MRC wrote before, in 2015, Shintech Inc. added almost 700 million pounds of PVC capacity as part of a USD500 million expansion of its plants in Louisiana. Shintech's parent firm - Shin-Etsu Chemical Co. Ltd. of Tokyo - said in a June 19 news release that the firm will addd 660 million pounds of PVC capacity in Louisiana by 2015. Houston-based Shintech makes PVC in Plaquemine and Addis, La. The project also includes 660 million pounds of new capacity for PVC feedstock vinyl chloride monomer (VCM) and 440 million pounds of new capacity for caustic soda.

Shin-Etsu is the world and US' largest PVC producer.
MRC

MOSCOW (MRC) -- The global demand for polycarbonate (PC) was valued at USD13.50 bln in 2014, and is expected to reach USD18.50 bln in 2020, growing at a CAGR of 5.8% between 2015 and 2020, as per FLH with reference to Zion Research.

The PC market is primarily driven by growing demand from automotive industry across the globe. Increasing demand from food and beverage packaging and the medical packaging application is expected to boost the growth of the polycarbonate market during the years to come. However, environmental issue related with this polymer is major challenges that may hinder the growth of the market.

The PC market has been segmented based on application into automotive, electronics, construction, optical media, packaging industry and others. In 2014, the electronics was the dominant application segment in terms of total revenue generated and it accounted around 25% shares of the market. Heavy consumption of polycarbonate in the automotive industry is expected to be a major factor driving the market growth worldwide. Polycarbonate helps to reduce the weight of vehicle which increases the fuel efficiency and reduces impact on environment.

Asia-Pacific was the largest regional market for polycarbonate and accounted for over 65% share of the total demand in 2014. Growth in use of polycarbonate in various applications is also expected to boost demand for polycarbonate in the years to come. Europe was the second largest market for PC in 2014. This was majorly due to high demand for light weight and high strength material for the automotive and electronics application.

Some of the key player in the polycarbonate market includes Bayer Material Science AG, Mitsubishi Engineering-Plastics Corporation, Trinseo (Styron), and Teijin Limited, SABIC Innovative Plastics, Chi Mei Corporation, Centroplast Engineering Plastics GmbH, Royal DSM, Aashi Kasei Chemical Corporation, Idemistu Kosan Co., Ltd and amongst others.

However, environmental issue related with this polymer is major challenges that may hinder the growth of the market.

We remind that, as MRC informed earlier, in October 2015, Idemitsu Kosan Co. Ltd. announced that it would consolidate the production of polycarbonate resin, TARFLON, into Formosa Chemicals & Fibre Corporation (FCFC), a core firm of Taiwan's Formosa Group to which the company has granted a license to use the relevant technology. The company decided to cease operation of PC production facility at its Chiba Plant (Ichihara City, Chiba) in December 2015 and consolidate the production carried out by the plant into FCFC. Granted a license by the company, FCFC has been engaged in production of polycarbonates since 2002.
MRC

MOSCOW (MRC) -- US-based PPG Industries has opened a new liquid coatings application development centre at its plant in Oak Creek, Wisconsin, said Chemicals-technology.

The new USD3m centre includes advanced equipment that helps simulate industrial coatings customers' manufacturing environments to ensure PPG coatings will be properly and consistently applied during their production processes. It houses several curing ovens, robotic paint applicators and spray booths with temperature and humidity controls to mimic a wide range of liquid coatings application conditions.

According to the company, these capabilities will further improve the product launch process and application validation capabilities of its industrial coatings business. PPG industrial coatings liquid application manager Steve Wirtz said: "It's important to our customers to have liquid coatings products that work well in specific climates and environments. "We can simulate those conditions in our climate-controlled coating rooms to ensure that PPG products will perform as desired."

"If they're applying liquid coatings in the searing heat of summer with high humidity, or in cold-weather environments, we can simulate those conditions in our climate-controlled coating rooms to ensure that PPG products will perform as desired.

"The abilities to mimic actual production conditions and to test coatings applications on large and complex shapes and parts will enable our technical experts to work more closely with customers during development, offering new opportunities for identifying and addressing potential problems and for coatings application training."

PPG is focused on providing a comprehensive array of powder, electrocoat, pretreatment and liquid products for metal finishing to manufacturers in several industries.

PPG industrial coatings Americas vice president Kevin Braun said: "At PPG, we understand the challenges and demands our customers face every day, and we collaborate to help solve them.

"Investing in this new facility shows PPG's commitment to developing innovative coatings along with our customers and enhances our ability to work with them on next-generation liquid coatings formulations."

As MRC informed earlier, PPG Industries agreed to acquire US-based IVC Industrial Coatings for an undisclosed amount. Established in 1870 as Indianapolis Varnish, IVC Industrial produces specialty powder and liquid coatings for various products, including metal office furniture, material handling and storage products, automotive parts, motorcycles, industrial containers and small appliances. The company operates five manufacturing facilitates in the US, one plant in Guangdong, China, and a small development lab in Manchester, England. It has a workforce of over 300.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world.

MRC

MOSCOW (MRC) -- Economic recovery in the US and Europe has increased the demand for automotive products. The recovery has also increased employment, increased per capita income, and accessible credit facilities, increasing the buying power of consumers, as per Plastemart.

This demand will compel automotive manufacturers to increase their production levels by either installing new capacities or expanding the existing ones. The global automobiles market is expected to grow at a CAGR of 5%-6% during the forecast period. Bio-based propylene glycol is used for different applications in the automobile industry such as sheet molding compounds and antifreeze agent.

APAC is the strongest growing market for bio-based propylene glycol. The rapid increase in industrialization and developments in infrastructure in China, India, and South Korea are the primary drivers for bio-based propylene glycol in this region. The construction market in China is expected to rise to USD 2.49 trillion by 2019, growing at a CAGR of 12.14% during 2016-2020. Unsaturated polyester resins made from propylene glycol are widely used for construction. Therefore, the growth in construction market will translate into the demand for bio-based propylene glycol over the forecast period.

Propylene glycol is produced from propylene oxide and is widely used in the manufacture of plastics, food products, electronics, and pharmaceuticals. However, growing environmental concerns such as the use of perishable resources (petroleum) and hazardous petrochemical process pollutants released during the production and use of propylene glycol have compelled vendors to develop advanced bio-based processing technologies.

Although propylene glycol is recognized safe, the acceptable intake is only 25 mg per kg of body weight (according to WHO). Bio-based propylene glycol is eco-friendly and complies with stringent government regulations regarding emission. ADM, a US-based company, has been manufacturing bio-based propylene glycol in its Illinois, US plant since 2011. It has a plant capacity of 100 kilotons per year. The company also manufactures industrial-grade bio-based propylene glycol using refined glycerin as feedstock. In addition, the company has developed an innovative technology for the production of bio-based propylene glycol using sorbitol. Realizing the potential of this market, many new entrants are anticipated to flock to this market in the next four years.

We remind that, as MRC wrote before, Growing demand from automotive and electronics is expected to boost growth in the global plastics market, as per Transparency Market Research.
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