PP production in Russia grew by 7% in January - April 2016

MOSCOW (MRC) - Production of polypropylene (PP) in Russia increased to 479,600 tonnes in first four months of this year, up 7% year on year, compared to the same period of 2015. The largest increase in PP production occurred for Tobolsk-Polymer and Neftekhimiya (Kapotnya), according to MRC ScanPlast.

April PP production in the country decreased to 118,300 tonnes, compared with 122,200 tonnes in March. All Russian producers decreased production rates, the exception was only Ufaorgsintez and Poliom. Total PP production in Russia reached 479,600 tonnes in the first four months of the year, compared with 449,900 tonnes in the same period of 2015. The growth in output showed all companies except Ufaorgsintez, with the largest increase in production occurred for Tobolsk-Polymer and Neftekhimiya.

Structure of PP production over the reported period looked as follows.

The largest producer of PP in Russia - Tobolsk-Polymer (SIBUR) in April produced about 43,800 tonnes against 44,600 tonnes a month earlier.
Tobolsk-Polymer's PP production reached 173,300 tonnes in the first four months of the year, compared with 150,500 tonnes year on year.

Poliom (Titan Group) produced about 16,000 tonnes of PP in April, compared with 15,700 tonnes in March. Total PP production at the plant over the reported period exceeded 65,700 tonnes, compared with 65,300 tonnes year on year.

Nizhnekamskneftekhim decreased PP production to 17,800 tonnes in April against 18,500 tonnes in March. Total PP output at Nizhnekamskneftekhim was about 72,500 tonnes in January-April 2016, compared to 71,800 tonnes in the same time a year earlier.

Tomskneftekhim in April produced about 9,600 tonnes of polypropylene, while in March PP output slightly exceeded 12,000 tonnes. The producer's PP production over the four months of the year was 45,300 tonnes, down 5% in the same time a year earlier.

Stavrolen (LUKOIL) last month decreased capacity utilisation, total polypropylene production had fallen to 9,600 tonnes against 10,400 tonnes in March. PP production at Stavrolen was 38,800 tonnes in the first four months of the year, compared with 36,700 tonnes in the same time a year earlier.

April PP production at Neftekhimiya (Kapotnya) slightly exceeded 10,400 tonnes compared with 11,100 tonnes in March. The producer's PP output in the first four months of the year exceeded 43,200 tonnes, up 20% year on year.

Ufaorgsintez last month increased its capacity utilisation to 100% and produced about 11,000 tonnes against 9,800 tonnes in March. The producer's PP output decreased to 40,900 tonnes in January-April 2016 compared with 42,000 tonnes year on year.


MRC

MOSCOW (MRC) -- France has started using its strategic oil reserves for the first time since 2010 to counter union blockades of its refineries, the French oil industry federation said, reported Reuters.

Unions protesting against a planned labor reform are picketing refineries around the country. Coupled with some panic buying, the disruption has led to fuel shortages in large parts of France, including Paris, over the past week.

France has strategic oil reserves worth several months of consumption on which it can draw in emergencies. They were last used when unions blocked refineries for several weeks in protest against pension reforms in 2010.

Experts say French strategic oil reserves do not physically rise or fall, but that operators allocate volumes blocked in strike-hit refineries to strategic reserve obligations, freeing up other volumes in accessible locations.

Union Francaise des Industries Petrolieres (UFIP) President Francis Duseux told RMC radio that the industry had been using the strategic reserves for two days. A spokeswoman confirmed that "a small quantity" had been used.

"Every day we use the equivalent of about one day of consumption. At worst, if the situation remains very tense, we can do this for three months," Duseux said.

He added that even if all refineries were stopped, France's pipeline system would still allow the industry to operate.

Industry experts confirmed that the reserves - set up following the 1973-1974 oil crisis and stored in some 85 sites around the country - account on average for about three months of consumption, or longer during the summer months when there is no fuel consumption for heating.

They are composed of 44% of crude oil and 66% of refined products.

As MRC wrote earlier, Naphtachimie declared a force majeure on ethylene production from its plants in Lavera, France owing to an ongoing nationwide strike against proposed labour reforms by the French government. Located at Lavera in France, the cracker has a Ethylene production capacity of 775,000 mt/year.

Besides, Total SA said that it had shut down its Gonfreville and Feyzin refineries on 18 May and was in the process of halting operations at two others and was reducing output at a fifth refinery.
MRC

MOSCOW (MRC) -- Kuraray Co. (Tokyo, Japan) plans to increase the production capacity of ethylene vinyl alcohol copolymer, EVAL within its subsidiary, Kuraray America, Inc. (Houston), said Chemical Engineering.

The Kuraray EVAL plant located in Pasadena, Texas will increase their capacity by 11,000 ton/yr with planned operations to commence in the summer of 2018.

Currently, Kuraray’s EVAL product line provides the world’s widest range of EVOH resins and films. With global demand forecasted to increase at an annual rate of six to seven percent, this boost in capacity at the Pasadena EVAL plant will further solidify Kuraray as a leader in the production of EVOH resin and barrier materials.

"In addition to expanding EVAL production within the U.S., this announcement also represents a USD75-million investment towards the Bayport community," says Robert Armstrong, plant manager at Kuraray America, Inc. “With the recent opening of the Kuraray Poval plant and the consideration of enhancing current VAM production, Kuraray continues to further their commitment to southeast Texas."

Due to its superior gas barrier properties, EVAL applications include food packaging as well as agricultural and industrial applications, says the company. Kuraray is currently developing new applications of EVAL including industrial applications such as soil pollution prevention liners and agricultural applications including impermeable fumigation films.

As mRC informed earlier,in 2015, Kuraray acquired Australia's Plantic Technologies. With this, Kuraray expands into bio-based barrier materials, which meet the increasing global demand of bio-based food packaging materials.

Kuraray produces specialty chemicals, fibres and other materials, including functional resins and films, synthetic isoprene chemical products, synthetic leather, vinylon fibre and polyester fibre.
MRC

MOSCOW (MRC) -- Technip (Paris, France) was awarded a contract by CTCI Corp. (Taiwan) to provide basic engineering and proprietary equipment for a grassroots ethylene cracking furnace at the Saudi Kayan Petrochemical Co.’s petrochemical complex in Jubail, Saudi Arabia, said Chemengonline.

The furnace design will be based on Technip’s proprietary USC furnace technology. Technip was awarded this project for its best proposal and because of its high-capacity, high availability, gas-cracking applications, says the company.

Technip’s operating center in Milton Keynes, U.K., will execute the project, which is scheduled for completion in 2017.

As MRC informed earlier, Technip announced an all-stock merger with U.S. rival FMC Technologies to create an oil services group with combined revenue of USD20 billion.

Technip has a market value of about USD6.2 billion, compared with USD6.5 billion for FMC Technologies. Technip has annual revenue of USD13.5 billion, more than double that of FMC Technologies.

MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, and its Healthcare Packaging unit, is introducing a new and improved family of Aroma-Can canisters to enhance nutritional products by adding a pleasant scent to product packaging, said the producer on its site.

Modeled after Clariant’s desiccant canisters for pharmaceutical and nutraceutical packaging, Aroma-Can canisters employ aroma technology that can give consumers a positive sensory experience when they open product packaging. The technology embeds food-grade flavors, such as vanilla, orange and lemon, directly into a plastic canister, which can be inserted easily into a container.

"Smell can enhance or detract from the experience of using a product or the decision to make a repeat purchase," explains Robert Crossno, Head of Sales - Americas, Clariant Healthcare Packaging. "Products such as fish oil tablets and herbal supplements often emit odors that are unpleasant or unappealing to end users. A favorable scent within the product packaging can mask unpleasant odors or help enhance odorless products, such as vitamins."

Although the new Aroma-Can bears the same overall dimensions of standard desiccant canisters, its new and innovative one-piece design reduces further process and assembly and contains more surface area, which improve the canister’s aroma profile. Because of their dimensional uniformity with desiccant canisters, Aroma-Can canisters can be automatically inserted into packaging at rates up to 300/minute using standard desiccant canister insertion equipment.

As MRC wrote previously, in 2014, CB&I and Clariant announced that their new Ziegler-Natta (ZN) polypropylene catalyst plant in Louisville, Kentucky, was on schedule to begin production in 2015. The plant is part of a long-term strategic partnership between Clariant’s catalysts business and CB&I’s Lummus Novolen Technology business. Based at Clariant’s largest US production hub, the new facility will combine innovative catalysts jointly developed by both companies with high-capacity output.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC