Polymer buyers are facing delivery delays throughout Europe

(ICIS)--Polymer buyers are facing delivery delays throughout Europe as cold weather affects transport systems, market sources said on Monday.

⌠We have had several transport issues but miraculously haven't had a stoppage yet, said a large polyethylene (PE) user. ⌠Our running stock is getting to very low levels though.

⌠Most motorways in Germany are blocked due to snow and traffic jams, said a trader. ⌠In some parts, trucks of more than 7.5 tonnes are banned. We are advising our customers that delays can't be avoided.

Polyolefins converters were running on low stock levels at present, but the upcoming shutdown period was expected to mitigate the effect of the slowdown in deliveries.

⌠It's mainly low density PE [LDPE] that would pose a problem for us, said another converter. ⌠We have enough linear [low density PE] in stock. As long as the weather gets better by January, we should be okay.

The adverse weather was not limited to northern areas, with some Middle Eastern areas also reporting unusually cold weather and even snow. Polymer production was running normally but there was talk of some cracker issues due to the cold weather.

INEOS's 320,000 tonne/year linear low density PE (LLDPE) unit at Grangemouth in the UK was now up and running after experiencing some downtime linked to the cold weather.

MRC

(Plastemart) -- Indorama Ventures Ltd Plc (IVL), leading integrated producer of polyester, has increased its investment budget until 2014 by 90% to around US$3.8 bln. This rise in investment will help in capacity expansion to 10 mln tons to better serve expected rise in polyethylene terephthalate (PET) film demand. Earlier, IVL had decided on an investment budget of US$2 bln for 5 years ending in 2014 with the goal of doubling its global combined capacity of 3.2 mln tons.

MRC

(Plastemart) -- Dow and Mitsui & Co. Ltd. have completed the formation of a previously announced 50:50 manufacturing joint venture to construct, own and operate a new membrane chlor-alkali facility located at Dow's Freeport, Texas, integrated manufacturing complex.

Named Dow-Mitsui Chlor-Alkali LLC, this landmark joint venture combines the strengths of two global companies to build a world-scale chlor-alkali plant on the U.S. Gulf Coast that will drive integration advantage for downstream businesses and customers. Dow will operate and maintain the new facility under contract to the joint venture.

Dow's share of the chlorine produced by Dow-Mitsui Chlor-Alkali LLC will serve the growing feedstock needs of the Company's performance and market-driven businesses with cost-advantaged chlorine supply. Dow will market the caustic soda on behalf of the joint venture. Mitsui's share of the chlorine produced by the joint venture will be converted to ethylene dichloride (EDC) by Dow for Mitsui's use. Mitsui will market the EDC world-wide.

The new chlor-alkali facility is expected to begin operations in mid-2013, and will have a capacity of approximately 800,000 tpa.

MRC

(Plastemart) -- The Environmental Protection Administration (EPA) has said there are no legal grounds to request that Formosa Plastics Group to pay health and welfare surcharges for its naphtha cracker plant in Mailiao Township, Yunlin County. EPA added that the group was still in talks with the county government over how it should -compensate residents for the pollution from the plant.

The EPA in October held a comprehensive review on the impact that the plant has had over the past decade. Representatives from the Yunlin County Government proposed that Formosa appropriate between 0.1-0.3% of its after-tax revenue from the plant to establish the Yunlin Medical Development Fund. The county government representatives suggested that Formosa cover the costs of student lunches at Yunlin's primary and junior high schools, as well as the commuting charges for junior high school students, and offer subsidies to married couples with children.

Formosa should provide schools near the plant with the means to cope with chemical-related hazards, and should also provide internships and jobs to local residents.

MRC

(Styron) -- Styron will expand its SSBR (Solution Styrene Butadiene Rubber) capacity with a new production line at Styron's production facility in Schkopau, Germany. The additional capacity of 50,000 metric tons will allow Styron to help customers around the world meet the increasing demand for high performance tires.

Solution Styrene Butadiene Rubber is a synthetic rubber used in a wide variety of applications, including the production of tires. The major trend in tires is towards low rolling resistance, which significantly contributes to improving fuel efficiency and reducing CO2 emissions.

SSBR in high performance tires allows for an optimum performance balance of improved wet grip, high abrasion resistance, low road noise, light weight and low rolling resistance, resulting in better fuel efficiency and lower CO2 emissions.

The construction of the new production line will start with the groundbreaking in May 2011. The new train will be built alongside existing trains and will focus on SSBR production, with the capability to produce all existing clear and oil extended Styron grades. Production is expected to start in Q4 2012. The new production line will supply customers around the world.

MRC