Covestro boosting polyurethane capacities worldwide

MOSCOW (MRC) -- Covestro has made investments in sustainable coating and adhesive raw materials. The capacities in Europe will significantly increase, as the chemicals maker has brought a new production facility on-stream in Germany and announced an expansion in Spain. Furthermore, Covestro will expand capacities in China and in the USA, as per European Coatings.

Covestro has begun operations at a new production facility for aqueous polyurethane dispersions (PUDs) at its site in Dormagen, Germany. Along with a current expansion of production in Barcelona, the company is thus boosting its capacities in Europe significantly. To meet global demand, Covestro is also building a new facility in China, as well as planning to resume production in the United States and at the same time modernizing and expanding facilities there.

The new capacity is primarily needed to satisfy rising demand from the coatings and adhesives industry: manufacturers remain determined to replace solvent-based products with waterborne systems that have equally good properties.

"With these investments, we are preparing for the continued growing demand for polyurethane dispersions as well as expanding our globally leading position," says Michael Friede, global head of the Coatings, Adhesives, Specialties segment at Covestro. "At the same time, thanks to our diversified production, we have the flexibility to meet many different requirements."

This diversity is also the key to the comprehensive line of polyurethane dispersions (PUDs) that Covestro offers. "Our custom-tailored products allow for many applications in very different industries," Michael Friede explains. "In this way, we create opportunities for growth and strengthen our customers’ competitiveness."

The market for polyurethane coatings is estimated to have a size of 3.2 to 3.5 million tonnes. Approximately 60 % of these volumes are consumed in Asia-Pacific. Europe account for some 20 %, followed by North America (15 %). The remaining 5 % are mainly consumed in Central and South America. The volumes are expected to hit nearly 4 million tonnes by 2020.

The largest consumers of polyurethane coatings are the wood and furniture industries with nearly 30 %. The automotive OEM segment accounts for 25 %. The shares for these two end-use industries may vary from region to region around the globe.

As MRC informed before, in July 2016, Covestro was moving forward with a repurposing of its production operations in Brunsbuttel, Germany. The Board of Management officially approved an expansion of production capacity for the foam component MDI (feedstock for polyurethane) at the site. An existing, idled plant for the precursor TDI will be converted for production of MDI. The plans call for roughly doubling production capacity at the site to a total of approximately 400,000 metric tpa of MDI. Commissioning of the new plant complex is scheduled for late 2018.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
MRC

Sabic introduced multiple new materials for advancing additive manufacturing

MOSCOW (MRC) -- Sabic, a global leader in the chemical industry, has launched its new LEXAN EXL AMHI240F filament, a unique product for fused deposition modeling that delivers high impact performance and low-temperature ductility, as per the company's press release.

The company is also introducing to the European market a product family of eight reinforced compounds for large format additive manufacturing. Further illustrating its emphasis on disruptive technologies, Sabic has highlighted several other distinctive solutions for additive manufacturing.

"Expansion of additive manufacturing depends on the availability of high-performance materials that can help optimize processing and promote application innovation," said Stephanie Gathman, director, Emerging Applications, SABIC. "Sabic is creating a range of new materials for different additive manufacturing processes, and supporting customers with our extensive expertise and resources for testing, design and application development. The breadth of technologies we are highlighting here at Formnext attest to our strategic efforts to help the industry take full advantage of additive manufacturing’s great potential."

Sabic’s LEXAN EXL AMHI240F filament is based on LEXAN EXL polycarbonate (PC) copolymer and delivers high toughness and high strength for potential use in demanding applications in the aerospace, consumer electronics and automotive industries. Available for use in Stratasys Fortus Classic printers, the material processes at standard Stratasys print settings for PC. It may also be appropriate for other printers with sufficient temperature capability and an open-format architecture.

The company also is making available to European customers a portfolio of six filaments for fused deposition modeling. They are based on Sabic’s industry-leading ULTEM polyetherimide (PEI) resin, CYCOLAC acrylonitrile-butadiene-styrene (ABS) resin and LEXAN PC resin, and offer the same composition as the company’s injection molding grades. Available for use in Stratasys Fortus Classic printers, these products target a broad range of customer requirements, and offer greater choice to the industrial filament market.

Sabic’s family of eight high-performance THERMOCOMP AM compounds, also new to the European market, addresses the unique requirements of large format additive manufacturing. Reinforced with carbon or glass fibers for added strength, the new compounds are based on four amorphous resins: ABS, polyphenylene ether (PPE), PC and PEI. They exhibit good creep behavior, reduced deformation under constant pressure and lower shrinkage compared to crystalline resins. They are excellent candidate materials for applications in the tooling, aerospace, automotive and defense industries.

Besides, Sabic is working on innovations beyond its current portfolio of fused deposition modeling filaments and reinforced compounds for large format additive manufacturing. The company has developed several disruptive material solutions that offer improved performance versus currently available products:

- Polycarbonate materials for selective laser sintering (SLS): SABIC is developing a technology to enable laser sintering of PC materials with good mechanical properties and part densities above 96 percent. These powders may provide an alternative to polyamide 12 (PA 12) and can be processed using commercially available printers.
- Polycarbonate and ULTEM PEI filaments: Made with SABIC’s healthcare-grade resins, these filaments enable printed parts with excellent mechanical performance, sterilization compatibility and biocompatibility.
- EXTEM thermoplastic polyimide (TPI) filaments for fused deposition modeling: These filaments represent Sabic’s ongoing focus on developing differentiated, high-temperature solutions for additive manufacturing. The materials are a great alternative consideration for applications requiring higher temperature performance than ULTEM polyetherimide (PEI) filaments.

As MRC reported before, in October 2016, Sabic announced that it had developed next generation low density polyethylene (LDPE) foram grades. The first product of a new generation of LDPE foam grades from SABIC was designed to increase production efficiency at the foam manufacturer.

Saudi Basic Industries Corporation (Sabic) ranks among the worldпїЅs top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

Clariant will increase prices for PV 23 and Diarylide based Pigments

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has announced global price increases for selected pigments, as per the company's press release.

The price increases, which come into effect for delivery as of January 15th, 2018 or as soon as contracts allow, will affect dioxazine violet and diarylide pigments:

- Prices for PV 23 (dioxazine violet) and PO 34 will be increased by 15%;
- Prices for PY 83 will increase by 14%, prices for PY 12, PY 13, PY 14, PY 174 and PY 176 will increase by 5%.

The price increases are driven by higher raw material prices (e.g. Carbazole, Hydroquinone, DCB and certain coupling agents) triggered by higher environmental, health and safety costs and lack of availability, e.g. due to the stronger enforcement of environmental and safety regulations in China.

As MRC informed before, in June 2016, Clariant inaugurated its new production plant for water-based pigment preparations in Mexico. The new plant located in Santa Clara doubles Clariant’s Mexico annual production capacity for water-based pigment preparations and enhances its ability to serve customers across North and Latin America.

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. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC

US tax overhaul likely to spur spending by refiners, pipeline cos

MOSCOW (MRC) — US refiners and pipeline companies are likely to embark on a capital spending spree in the next year, fueled by a provision in the recently-passed US tax bill that rewards investment in new projects, said energy industry lobbyists and analysts, said Hydracarbonprocessing.

On Wednesday, Congress gave final approval to the biggest overhaul of the US tax code in 30 years, the first major legislative victory for President Donald Trump since he took office.

The bill contains a bonus depreciation provision that allows all companies to immediately write off the full costs of capital improvements, instead of depreciating the new asset over time. The immediate expensing of capital costs will make less financially-attractive projects more viable and free up capital for stock buybacks and increased dividends. The benefit begins to phase out in 2023, which means companies could look to advance projects to take advantage.

"Every major refining company has a list of projects they want to get approved that are ranked by profitability and risk," said Charles Kemp, vice president of Houston-based energy consultancy Baker & O'Brien Inc. The bill, he said, will motivate companies to look further down those lists, "and noticeably increase capital budgets."

The US energy industry has emerged as one of the winners of the historic tax package passed this week. The S&P Oil and Gas Refining Marketing Index is up 27% this year, and hit a record this week on optimism over the bill's passage. In addition to lower corporate rates, the net effect of the immediate write-off provision will boost the present value of capital investments by roughly 4% to 10%, Kemp said. That essentially makes projects more profitable, more quickly.

Moving up projects could be advantageous for refiners and pipeline operators such as Valero and Energy Transfer Partners, as they spend billions yearly to expand plants and build pipelines to move increasing volumes of petroleum.
All refining and pipeline companies contacted by Reuters declined to comment on the implications of the tax package, though some expressed support for the reform in general.

Refiners have already started evaluating capital projects to determine whether marginal ones have become profitable and whether any can be advanced into the 5-yr window, said two refining lobbyists based in Washington D.C., who asked not to be named because they were not authorized to speak for their respective companies.

"The US energy industry has spent billions in the past few years, but there's still a lot of room for growth," said one lobbyist. "We have a lot of north and south pipelines, but not a lot east and west. And there's a lot of demand for exports, so we will see a real uptick in capital investment to meet that demand."

US exports of crude oil and refined products have increased by 15% so far in 2017 when compared with 2016, and companies are looking to add to terminals on the Gulf Coast as US crude oil production nears an all-time record of 10 MMbpd. Numerous large investments in export of liquefied natural gas are also in the works, and cheap natural gas prices have spurred USD85 B in US petrochemical investments since 2010, according to multiple studies.

ExxonMobil Corp, the world's largest publicly traded oil company, had already planned to invest USD20 B through 2022 to expand its chemical and oil refining plants on the Gulf Coast.
MRC

Idemitsu and Showa Shell see around USD70 MM in cost savings by March

MOSCOW (MRC) -- Japanese refiners Idemitsu Kosan and Showa Shell Sekiyu said on Friday they expect to cost cuts by USD71 MM in the first year of their business alliance that started last April, reported Reuters.

That comes after Japan’s second- and fourth-biggest refiners said on Wednesday they would form an office next spring with a staff of about 300 to manage crude oil purchases, refining and sales, seeking to cut costs by USD266 MM over 3 yr.

Their integration has been bitterly opposed by Idemitsu’s founding family.

As MRC wrote before, in May 2017, Japanese oil refiners Idemitsu Kosan Co Ltd and Showa Shell Sekiyu KK signed a deal to form a business alliance ahead of Idemitsu's stalled merger with Showa Shell. Under the deal, the companies will cooperate more closely on crude purchases and transportation as well as production plans. Idemitsu Kosan completed the purchase of just under a third of Showa Shell last December, but the goal of a full merger of the two companies has been delayed due to opposition from Idemitsu's founding family.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.
MRC