Reliance plans to resume Jamnagar PP unit

MOSCOW (MRC) -- Reliance Industries Ltd (RIL) is likely to restart a polypropylene (PP) unit following an unplanned shutdown, according to Apic-online.

A Polymerupdate source in India informed that the company has planned to resume operations at the unit on December 20, 2017. The plant was shut owing to technical issues in end-November 2017.

Located in Jamnagar in the Western Indian state of Gujarat, the unit has a production capacity of around 480,000 mt/year.

As MRC reported earlier, RIL shut its cracker, polyethylene (PE) and PP plants located at Hazira on March 23, 2017 for a maintenance turnaround. Both the plants remained off-stream for around 25 days. Located at Hazira near Surat in Gujarat, the cracker has a production capacity of 1.1 mmt/year and the downstream PP plant has a production capacity of 600,000 mt/year. The PE plant has a capacity of 450,000 mt/year.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
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MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, will increase January list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Asia, Europe, the Middle East and Africa, said the producer in its press release.

The price increases below will be effective January 1, 2018, or as contracts otherwise allow, and are incremental to any previously announced increases:

- for Asia outside China - by USD100 per tonne;
- for China - by CNY300 per tonne;
- for Europe - by EUR100 per tonne;
- for Middle East and Africa - by USD100/tonne.

As MRC wrote before, Celanese Corporation increased list and off-list selling VAM prices in Asia. The price increases below was effective as of 13 September, or as contracts otherwise allow, and were incremental to any previously announced increases: CNY500/mt for China and USD100/mt for Asia (outside of China). Earlier, on 6 September, 2017, the same price increase was already implemented by Celanese for the same products and regions.

But, the price increase of CNY300/mt, effective as of 1 October 2017, was also implemented in China.

Besides, Celanese Corporation raised October list and off-list selling prices for VAM and Vinyl Acetate Ethylene (EVA) emulsions sold in Europe. The price increases was effective October 1, 2017, or as contracts otherwise allowed, and were incremental to previously announced increases. The following price rise applied:

- VAM - by EUR200/mt;
- EVA - by EUR90/mt;
- VAM Homopolymers (PVAC) - by EUR90/mt;
- VAM Copolymers - by EUR90/tonne;
- Pure Acrylics - by 120 EUR120/tonne;
- Styrene Acrylics - by EUR90/tonne.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,300 employees worldwide and had 2016 net sales of USD5.4 billion.
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MOSCOW (MRC) -- W.R. Grace (GRA) has signed an agreement to acquire the Polyolefin Catalysts business of Albemarle Corporation (ALB) for USD416 million, according to the company's press release.

The transaction is expected to close in the first quarter of 2018, subject to regulatory approvals and other customary closing conditions.

The Polyolefin Catalysts business is a global leader in proprietary and custom-manufactured single-site catalysts as well as metallocenes and activators. The acquisition also includes a comprehensive series of highly optimized Ziegler-Natta catalysts for polyethylene production.

The acquisition significantly strengthens Grace’s catalysts technology portfolio, commercial relationships, and manufacturing network. Approximately 175 employees will join Grace’s global team. The two manufacturing operations in Baton Rouge, Louisiana and Yeosu, South Korea add important flexibility to the company’s global catalysts manufacturing network, enhancing Grace’s ability to meet customer needs across multiple regions.

"This transaction aligns perfectly with our strategy to expand our leadership position in polyolefin catalysts," said Grace Chairman and Chief Executive Officer Fred Festa. "I am excited about the opportunities created by adding the talent, advanced technology, and manufacturing capabilities of the business. Both the catalysts and activators product lines are tied to high-growth applications and the manufacturing assets bring important scale and capital synergies."

Grace expects to finance the transaction with a combination of debt and cash.

As MRC informed previously, in July 2016, BASF closed the previously announced transaction to divest its global Polyolefin Catalysts business to W. R. Grace & Co.

A leader in polyolefin catalysts and licensing, Grace has the world’s broadest portfolio of polypropylene and polyethylene catalyst technologies used to produce thermoplastic resins for a variety of applications. A leading innovator and strategic partner to its customers, Grace supplies catalyst solutions for all polyolefin processes, as well as polypropylene process technology and process controls. Grace employs approximately 3,700 people in over 30 countries.
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MOSCOW (MRC) -- Petrobras and ExxonMobil has signed a memorandum of understanding (MOU) regarding a strategic alliance to jointly identify and evaluate potential business opportunities, as per BusinessWire.

The memorandum of understanding was signed in Rio de Janeiro today by Pedro Parente, president of Petrobras, Brad Corson, president of ExxonMobil Upstream Ventures, and Stephen Greenlee, president of ExxonMobil Exploration Company.

Petrobras and ExxonMobil will evaluate areas of mutual interest that can bring together their world-class experience across all sectors of the oil and gas production value chain, including opportunities for cooperation in exploration, production, gas and chemicals both inside and outside Brazil.

For Petrobras, the formation of alliances is an important strategy in the Business and Management Plan 2017-2021, bringing significant potential benefits, such as risk sharing, augmented investment capacity in the oil and gas chain, technology sharing and strengthening of corporate governance.

This agreement both exemplifies and reinforces ExxonMobil’s strategic relationship with Petrobras and continuing emphasis on growing this relationship and its business in Brazil, building on its more than 100 years in the country.

In September, Petrobras and ExxonMobil jointly acquired six offshore blocks in the Campos Basin in the Brazil National Agency of Petroleum’s 14th tender round.

As MRC wrote before, in late October 2017, ExxonMobil Chemical Company announced that it had commenced production on the first of two new 650,000 tons-per-year high-performance polyethylene (PE) lines at its plastics plant in Mont Belvieu, Texas. The full project, part of the company’s multi-billion dollar expansion project in the Baytown area and ExxonMobil’s broader Growing the Gulf expansion initiative, will increase the plant’s PE capacity by approximately 1.3 million tons per year.

Petrobras is an integrated energy company with focus in oil and gas, recognized as a leader in deep and ultra-deep water exploration and production, operating mainly in Brazil. Currently, Petrobras produces close to 2.8 million barrels of oil equivalent a day. The company’s core values are respect for life, people and the environment; ethics and transparency; market orientation; excellence and trust; and results.

ExxonMobil, the largest publicly traded international energy company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry leading inventory of resources, is one of the largest refiners and marketers of petroleum products and its chemical company is one of the largest in the world.
MRC

MOSCOW (MRC) -- BASF’s Coatings division today inaugurated a new automotive coatings plant at its Bangpoo manufacturing site, Samutprakarn province, Thailand, said the producer on its site.

The new plant is the first BASF automotive coatings manufacturing facility in ASEAN, and will produce solventborne and waterborne automotive coatings to meet growing market demand in the region.

"BASF is a trusted partner of all major automotive manufacturers around the world, with a broad competence in all coating layers," said Dirk Bremm, President of BASF’s Coatings division. "The inauguration of the new plant demonstrates our commitment to meeting customer expectations for advanced coating technologies and products in ASEAN, for ASEAN."

According to the LMC Automotive Report from November 2017, this year’s total car production in ASEAN is anticipated to reach around 3.9 million. Thailand will account for more than 50% of this market, representing the largest coatings market within ASEAN, followed by Indonesia and Malaysia. With an increasing number of automotive OEMs (Original Equipment Manufacturers) engaging in production and technology development activities in ASEAN, there is also a growing need for local innovation in coatings solutions and products, as well as a high degree of technical service. "With our robust capabilities in Thailand, we meet the increasing demand for sustainable and eco-efficient solutions,” said Peter Fischer, Senior Vice President, Coatings Solutions Asia Pacific, BASF. “Working closely with our automotive customers globally and regionally, we are committed to be the partner of choice and drive for growth and success in the highly competitive ASEAN market."

The new production plant in Bangpoo complements the facilities at the Coatings Technical Competence Center ASEAN, which was opened in September 2015 at the same location. The technical center includes a laboratory for product development, high performance application facilities, color design, as well as a small batch production unit. The co-location of production and technical facilities enables operational efficiency and speed to market. The new plant’s design not only allows BASF to offer customized service, it also has the potential for future expansion and the flexibility to adapt to new production requirements and changing industry trends.

"BASF has been active in ASEAN for over 50 years, with a strong footprint in Thailand," added Andrea Frenzel, President South & East Asia, ASEAN & ANZ, BASF. "With our new automotive coatings plant, we aim to help Thailand strengthen its role as a key market and production hub for the automotive industry in ASEAN, and to support the economic development of the neighboring countries."

As MRC informed before, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of about EUR58 billion in 2016.
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