Oxea expands production capabilities for butyric acid, propionic acid

MOSCOW (MRC) -- The global chemical company Oxea has concluded an upgrade of its carboxylic acids production facility in Oberhausen, Germany. As a result, Oxea has enhanced the production output of short-chain fatty acids (SCFAs), such as propionic acid, butyric acid, and isobutyric acid, said the producer on its website.

Oxea manufactures butyric and propionic acid in Animal Feed (AF) quality. These products are used as building blocks for feed materials that are free from antibiotic growth promoters, so called AGP-free feed. SCFAs from the upgraded unit in Oberhausen are handled under GMP+ B2 (Good Manufacturing Practice) and have received HACCP (Hazard Analysis Critical Control Point) certification to address requirements primarily in the animal feed sector.

"The recent investment substantially increases global supply reliability for our customers. It enables additional units to produce our short chain fatty acids, and significantly improves the overall output of acids across our multisite, multi-products acids platform," said Dr. Oliver Borgmeier, Vice President Operations Derivatives Europe & China at Oxea.

"This upgrade at our Oberhausen site is just the first step towards further enhancement of our carboxylic acid capabilities in the short- and mid-term. We will further strengthen Oxea’s comprehensive carboxylic acids portfolio across all products and markets, which also include lubricants and synthetic fluids, ingredients for personal care applications, and paint and coating additives," said Cristobal Ascencio, Executive Vice President Derivatives.

Oxea is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavorings and fragrances, printing inks and plastics.
MRC

Chevron increases organosulfur capacity at Tessenderlo facility

MOSCOW (MRC) -- Chevron Phillips Chemical Company LLC has expanded its Tessenderlo, Belgium plant by debottlenecking its production unit for Ethyl Mercaptan (EM) and Tetrahydrothiophene (THT), as per Hydrocarbonprocessing.

Construction began in November 2016 and the expansion commenced operations in May 2017. This expansion increased production capacity for these products by 65%.

"Demand for EM and THT continues to grow around the world. This debottleneck builds on our already well-established production platform at Tessenderlo, allowing this Chevron Phillips Chemical site to continue to be a premier manufacturing location for organosulfur products, along with our Borger, Texas plant," said Stephen Landry, Chevron Phillips Chemical’s Specialty Chemicals Business Manager.

Chevron Phillips Chemical’s Tessenderlo facility produces sulfur chemical intermediates, including mercaptans, sulfides and polysulfides. Tessenderlo products are used in a wide range of end-use applications such as polymer modifiers, agricultural chemicals, mining and ore processing, gas odorization, water purification, pharmaceuticals, lubricant additives and the reduction of coke formation.

As MRC wrote previously, in July 2016, a USD36.8bn expansion of the Tengiz oilfield in Kazakhstan, the largest investment by private sector oil companies this decade, was given the go-ahead by Chevron of the US, bucking the trend of delays and cancellations resulting from the slump in crude prices since mid-2014.

Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including hydrocarbon exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation.
MRC

China ethanol exports jump as Beijing boosts local output

MOSCOW (MRC) — China's ethanol exports soared in April from the same month the year before and imports slowed to a trickle, the latest sign that Beijing's drive to ramp up local output is upending trade flows in the world's fastest-growing biofuel market, said Reuters.

China has been pushing to erode a domestic glut in corn supply through steps such as using the grain to churn out ethanol or other products like biodegradable plastics.

The country exported 13,540 m3 of ethanol in April, up over 1,000% from a year earlier and 18% higher than the month before, data from the General Administration of Customs showed on Tuesday.

Traders said the reintroduction of an export rebate last year had revived foreign sales.

"This year there's a tax rebate of 13% and processors have subsidies," said a manager familiar with ethanol trade at trading company Zhejiang Materials. He declined to be identified as he was not authorized to speak with media.

In the first four months of the year, ethanol shipments jumped to 42,701 m3, exceeding the total for the whole of 2016.

Saudi Arabia remained the top buyer of the fuel in April, accounting for 66% of cargoes. Meanwhile, China imported just 23 m3 of ethanol last month, as a big hike in taxes at the end of 2016 hit overseas purchases.
MRC

Kem One with Chemplast Sanmar to manufacture chlorinated PVC in India

MOSCOW (MRC) -- Kem One and Chemplast Sanmar have signed an agreement to establish Kem One Chemplast, a 50:50 joint venture to manufacture chlorinated polyvinyl chloride (CPVC) in India, as per Kem One's press release.

The new facility, for which approvals are in the process of being obtained, will come up at a coastal location at Karaikal, Puducherry, India. The project which is being set up at an estimated cost of Rs. 325 crores (about 48 MUSD) will have technology from Kem One and a capacity of 22,000 TPA of CPVC resins. It will also manufacture CPVC compounds.

Kem One is the second largest producer of PVC in Europe. Mainly located in France, it has 1300 employees and an annual turnover of EUR800 million. Its eight industrial sites manufacture a wide range of PVC resins, caustic soda and chlorine derivatives.

It builds on its knowledge of chlorochemicals and vinyl products inherited from a century-old history. By starting CPVC resins and compounds production in the 70’s in Europe Kem One has a strong expertise in CPVC industrial process. With this partnership with Chemplast Sanmar, Kem One is expanding its footprint in the fast growing Indian market.

Chemplast Sanmar, which will celebrate its Golden Jubilee in May 2017, is the flagship company of The Sanmar Group. It is a major manufacturer of PVC (polyvinylchloride) resins, caustic soda, chloromethanes, refrigerant gas and industrial salt. The addition of CPVC (a special type of PVC with added chlorine) would add to its already strong position in the Indian chemicals industry.

The Sanmar Group, of which Chemplast Sanmar is a constituent, has had a record number of joint-ventures in India. Its track record in joint-venture management has been among the best in the country. Some of these partnerships, which were established over 40 years ago, are still running successfully. The long lasting success of these joint-ventures reflects Sanmar’s avowed commitment to protecting its partners' interests in all aspects. Kem One Chemplast will be another addition to this list of successful joint-ventures.

CPVC is mainly used as a raw material to produce pipes and fittings for supplying water which requires heat resistance, pressure resistance and high tolerance for water treatment.

In recent years, there is a switch from metal to CPVC in pipes used in buildings in India, and in parallel, overall construction demand has also been witnessed. CPVC can also be used for industrial applications which require a high level of chemical resistance and for sprinklers. The demand for CPVC is expanding significantly and will continue to grow rapidly in India. The manufacturing joint venture company will thus provide the domestic answer to the Indian customers’ needs that is currently being met through imports.

The establishment of the manufacturing joint venture company mentioned above as Kem One Chemplast will be subject to approval from the competent authorities.

As MRC reported before, in late July 2015, The European Commission approved the acquisition of PVC compounds and profiles producer Kem One Innovative Vinyls, based in France, by OpenGate Capital Group Europe, the Luxembourg-based offshoot of US private equity group OpenGate Capital.

In 2013, previous owner Klesch Group placed Kem One’s upstream business, Kem One SAS, which includes PVC polymer plants in France and Spain, into receivership. This business was acquired by OpenGate in early 2014 in partnership with Alain de Krassny, president of Vienna-based Donau Chemie, who became president of Kem One. OpenGate and Krassny also had the option to acquire the downstream business, which was given clearance by the European Commission in an announcement on 7 July.

Kem One, a fully integrated vinyl production company, was established mid-2012 following the acquisition of Arkema's vinyl products division by the Klesch Group. The company employs 2,600 people at 22 manufacturing sites, primarily in Europe but also in Asia and North America. Europe’s third-largest producer of PVC, Kem One continues to grow and build on its numerous strengths with a view to becoming market leader for integrated vinyl solutions.
MRC

LDPE production in Russia increased by 9% in January-April 2017

MOSCOW (MRC) - Production of low density polyethylene (LDPE) in Russia increased to about 221,800 tonne in the first four months of 2017, up 9% year on year. Gazprom neftekhim Salavat and Nizhnekamskneftekhim showed a decrease in production, according to MRC ScanPlast report.

April LDPE production in Russia was 45,100 tonnes, while in March it was about 59,600 tonnes. The reduction in output was a result of the long-term shutdown of Kazanorgsintez for scheduled maintenance in April-May. Overall LDPE output reached 221,800 tonnes in the first four months of 2017, compared to 203,300 tonnes a year earlier but not all producers had demonstrated a positive output dynamics.

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

Tomskneftekhim produced about 23,200 tonnes of LDPE in April, while in March it was produced about 24,700 tonnes. The plant's LDPE output reached 88,400 tonnes in the first four months of 2017, up by 3% year on year.

April LDPE production at Kazanorgsintez decreased to 6,600 tonnes from 19,200 tonnes a month earlier on the back of scheduled shutdown.
The producer's total LDPE production was 66,400 tonnes in the first four months of the year, up 4% year on year.

Ufaorgsintez increased LDPE production to 8,300 tonnes in April, compared with 7,900 tonnes in March. Producer's production of LDPE totalled 32,900 tonnes in January - April of this year, down 2% year on year.

April LDPE production at Angar ZP decreased to 3,600 tonnes from 4,500 tonnes a month earlier. Angar ZP's LDPE production reached 20,700 tonnes in the first four months of the year, compared with 6,400 tonnes year on year. The low level the production in 2016 was a result of the long forced shutdown of capacities in February-July due to a breakdown in the ethylene production.

Gazprom neftekhim Salavat last month increased capacity utilisation, total LDPE reached 3,500 tonnes against 3,500 tonnes in March. Overall LDPE production at Gazprom neftekhim Salavat exceeded 13,400 tonnes over the stated period, down by 3% year on year.


MRC