Formosa to shut temporarily its HDPE plant in late August on ethylene shortage

MOSCOW (MRC) -- Taiwan's Formosa Petrochemical Corp.'s 320,000 mt/year high density polyethylene (HDPE) unit will shut for a few days at the end of August due to ethylene shortage while its No. 2 steam cracker goes through maintenance from July 29 to September 22, a company source said Wednesday, reported Apic-online.

Other polyethylene units, including a 235,000 mt/year low density polyethylene (LDPE)/ethylene vinyl acetate (EVA) swing plant and a 260,000 mt/year linear low density polyethylene (LLDPE) plant, will not be affected and running, the source said.

Formosa has three naphtha-fed steam crackers and each goes through maintenance once every three years.

The No. 1 cracker was shut in 2015, and the No. 3 cracker will shut in 2017.

The No. 1 cracker is able to produce 700,000 mt/year of ethylene, 350,000 mt/year of propylene and 109,000 mt/year of butadiene.

The No. 2 unit is able to produce 1.03 million mt/year of ethylene, 515,000 mt/year of propylene and 162,000 mt/year of butadiene.

The No. 3 steam cracker has the capacity to produce 1.2 million mt/year of ethylene, 600,000 mt/year of propylene and 180,000 mt/year of butadiene.

Formosa's vinyls complex has also been shut due to the steam cracker maintenance.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- Demand in the US for high performance composites (polymer materials reinforced with advanced fibers) is forecast to rise 5.3% pa to USD10 bln in 2020, as per Plastemart with reference to Freedonia.

This will represent a deceleration from the rapid advances achieved during the 2010-2015 period, when composite demand experienced tremendous growth as Boeing's 787 DREAMLINER, comprised of over 50% composites, began deliveries. Going forward, high performance composite demand from aerospace applications will rise at a more moderate pace, but the industry will experience tailwinds from markets such as wind energy and pressure vessels, which are smaller but faster growing. High costs and labor-intensive production methods will continue to prevent these materials from expanding into higher volume and price-sensitive markets.

Aerospace will remain the leading market for high performance composites in 2020. Pressure vessels will show the fastest growth of all outlets, as high performance composites continue to gain market share in these storage containers for compressed gases. While the automotive market will see strong gains, wider application is still years off, as carbon fiber composites still prove to be too expensive and too slow in processing to gain widespread use in consumer-class vehicles.

The wind energy segment is expected to advance at a rapid clip; a recent tax credit extension will stabilize the historically turbulent market, and carbon fiber will find increased usage for reducing weight as manufacturers produce longer turbine blades. The defense and safety outlet, however, will trail average advances, as federal defense spending is slated to advance at a slower rate than GDP through the forecast period. The sporting goods market will also see only marginal gains as it faces maturity.

Carbon fiber composites will continue to account for the largest slice of demand, commanding 85% of the market in 2020, and benefitting from their declining costs and versatility across a range of applications. Aramid composites will show the next best gains, finding increased usage in industrial applications. Low cost S-glass composites will advance at a below average rate, besting only other fiber-based composites that are seeing restrained growth due to weak demand outside of military aircraft.

We remind that, as MRC wrote before, due to increasing global demand for high-performance polymers Evonik’s Resource Efficiency Segment is significantly expanding its production capacity for polyetheretherketone (PEEK) at the Changchun (China) site. In addition, the innovation pipeline is being continually expanded with new products. Business in Evonik’s VESTAKEEP brand of PEEK polymers has experienced consistent and strong growth over the last five years across all relevant industry segments for example, oil and gas, aviation and automotive. Thanks to their high thermal and chemical resistance, VESTAKEEP specialty polymers can replace metal components enabling demanding lightweight structural applications.
MRC

MOSCOW (MRC) -- Air Products and Chemicals Inc. APD has opened a new advanced non-electronics specialty gas and helium transfill center in Ochang, North Chungcheong, South Korea, said Nasdaq.

The company has built the facility to cater to the growing demand of numerous industries including automotive, analytical, petrochemical and bio-healthcare, among others. The industrial complex of Ochang houses fine chemical, pharmaceutical and electronic materials producers. The location will enable Air Products to transfer high purity gases more efficiently and consistently to the industries situated in the area. The new plant will be producing high purity specialty gases (99.995% and higher) including rare gases and mixtures along with packaged helium.

Air Products aims to strengthen its supply abilities locally and cater to the growing markets. The new facility in South Korea will thus help the company serve this important specialty gas and helium region better.

Specialty gases help industries improve returns, reduce costs and work efficiently. Air Products' Ochang facility will supply the gases in 10 liter 150 bar cylinders, 47 liter 150 bar cylinders and cylinder packs, as well as 50 liter 180 bar cylinders. These cylinders will be supplied in 50 liter 200 bar high-pressure and large-volume cylinders. The company has a number of other helium manufacturing plants.

With its focus on Asia, last month Air Products announced its decision to expand in east China. The company has decided to build a new plant and the infrastructure associated with it, in the Pukou Economic Development Zone ("PKEDZ"), Nanjing. The plant will provide customers in the park with ultra-high purity gases. Recently the company was also awarded a long-term supply contract in South Korea. It will supply oxygen to KCC Corporation's new glass wool production line in Gimcheon which is expected to come online in Jan 2017.

As MRC informed earlier, Air Products is in advanced talks to sell its performance materials operations to Evonik Industries. The business, which makes chemicals used in sun lotion and paint, could be valued at more than USD3.5 billion. Air Products had previously announced plans to spin off both its performance materials and electronic materials units into a new company called Versum Materials in order to focus on industrial gases.
MRC

MOSCOW (MRC) -- Mitsubishi Gas Chemical (MGC), announced that it plans to reactivate a meta-xylene (m-xylene) plant at Karashiki, Japan by March 2017, said Chemweek.

The unit, designed to produce 70,000 metric tons per year of m-xylene, was mothballed in November 2013. It will add to MGC’s 150,000-metric tons per year line, which is running at the same site. MGC is Japan's only producer of m-xylene.

MGC says it decided to reactivate the facility on tightening m-xylene markets following the closure of units by competitors. The market for purified isophthalic acid (PIA), a major consumer of m-xylene, has been growing at 4-5% per year. MGC says it sees good prospects for growth in demand for the raw material. The mothballed line will commence operations on completion of a turnaround of the facility, which is currently in operation. By March 2017, MGC’s total m-xylene capacity will rise to 220,000 metric tons per year. The company says it sells m-xylene in many countries in Asia, North America, and Europe.

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

MOSCOW (MRC) -- Indian oil Corp Ltd (IOCL) has restarted its high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant in Panipat, as per Apic-online.

A Polymerupdate source in India informed that the company has brought on-stream its swing plant last weekend. The plant was shut on July 24 for a planned maintenance until end-July. However, the period of the shutdown was extended owing to a fire occurred at the plant on July 25.

Located at Panipat in the northern Indian state of Haryana, the HDPE/LLDPE swing plant has a production capacity of 350,000 mt/year.

As MRC wrote previously, IOCL took off-stream its HDPE unit at Panipat refinery in northern India on April 22, 2016. It remained shut for a brief maintenance turnaround until April 26, 2016. Located at Panipat in the northern Indian state of Haryana, the HDPE unit has a production capacity of 300,000 mt/year.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC