Socar sells its stake in Petkim

MOSCOW (MRC) -- Azerbaijan’s state-owned energy company Socar sold 2.75 percent of its stake in Turkey's petrochemical giant Petkim to a foreign investment fund, reported GV with reference to Socar's announcement.

"It’s an ordinary business deal of selling stake acquired few years ago at a lower price," Socar reported. Each stake will be sold approximately at a price exceeding its original cost by 2.5 times. "We gained significant profit from this deal. Revenues received from the sale of stakes will be reinvested in Socar’s other projects in Turkey," the company said.

Turkey’s Public Disclosure Platform (KAP) reports that this stake was sold for 147 million liras (USD51 million).

Socar's shares in Petkim are held through its subsidiary, Socar Turkey Enerji. Socar also said that the current deal won’t affect the overall controlling block of shares volume in Petkim and Socar will continue to effectively manage this enterprise.

Purchase of the Petkim’s stake by a foreign investment fund at a high price demonstrates economic attractiveness of the mentioned stake. After selling 2.75 percent of its shares, Socar was left with a 56.32 percent equity stake in this petrochemical holding in Turkey.

Petkim is a sole manufacturer of plastic packages, fabrics, detergents, and other petrochemical products in Turkey.

By the end of 2015 Petkim’s assets increased by 44 percent as compared to 2014. Its net profit stood at 639.2 million liras in 2015.

As MRC wrote previously, in October 2015, SOCAR's subsidiary Azerikimya Production Union (PU) entered two units into operation at its ethylene and polyethylene (PE) plant in Sumgait, north of Baku. The company commissioned a 87,600-tonne/year (tpy) unit for the desulfurization of liquefied gas and a 120,000-tpy installation for the hydrogenation of butylene-butadiene fractions.

SOCAR Polymer is a subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR). The entity was formed at the end of 2013 to run investments at the Sumgait Chemical Industrial Park, a production park which intends to become a chemical hub in central Asia.
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Shin-Etsu to shut PVC plant in Japan for maintenance

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

Global PC market to reach USD18.50 bln by 2020 at CAGR of 5.8%

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

PPG opens new coatings centre at Oak Creek plant in US

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

The global automobile industry is expected to grow rapidly

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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