WR Grace completes acquisition of Albemarle polyolefin catalysts business

MOSCOW (MRC) -- W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation, reported Hydrocarbonprocessing.

The acquired business primarily develops and manufactures proprietary and custom-manufactured single-site catalysts as well as metallocenes and activators used in the production of plastic resins. The transaction also includes a comprehensive series of highly optimized Ziegler-Natta catalysts for polyethylene production.

The acquisition includes production plants in Baton Rouge, LA and Yeosu, South Korea; R&D and pilot plant capabilities; and an extensive portfolio of intellectual property.

Over the last five years, Grace has invested well over USD1 billion to create a leading position in polyolefin catalysts and process technology. The company now has the broadest portfolio of polyolefin catalyst technologies of any catalysts producer.

"This acquisition significantly enhances our position in the fastest growing polyethylene segment and fills out our polyolefin catalysts portfolio," said Grace Chairman and Chief Executive Officer Fred Festa. "With the rising demand for sophisticated resins, Grace is committed to growing this business by investing in single-site catalysts technologies to fully support our global polyethylene manufacturing customers."

"We are very pleased to welcome the approximately 175 employees, including commercial, R&D, and operating professionals, who run this business today," said Al Beninati, President of Grace’s Specialty Catalysts business. "The combination of talent, technology, and manufacturing capabilities strengthens our team and aligns directly with our strategy to provide our customers the most advanced technologies in the market today."

As MRC informed before, Grace addressed the financial impact of the acquisition during an investor call on Dec. 15, 2017, the transcript of which is available on the company’s website under, "Investors."

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.
MRC

CB&I announces DPC Technology award in China

MOSCOW (MRC) -- CB&I has announced it has been awarded a contract by Hainan Huasheng New Material Technology Co. Ltd. for the license and engineering design for a diphenyl carbonate (DPC) petrochemical unit in Hainan Province, China, as per Hydrocarbonprocessing.

The unit will use Versalis' DPC technology licensed by CB&I to produce diphenyl carbonate intermediate, which is used for the production of polycarbonate.

"As CB&I continues to win new technology awards in China, we are enhancing our position as a leading technology provider for China's energy industry," said Daniel M. McCarthy, CB&I's Executive Vice President of Technology. "This momentum underscores the confidence our customers have in CB&I's technology portfolio and the future outlook for our technology solutions in the region."

As MRC informed before, in late 2017, Lotte Versalis Elastomers inaugurated a new integrated industrial complex for the production of elastomers in Yeosu, South Korea. The new plants of Lotte Versalis Elastomers, a 50:50 joint venture between Versalis (Eni) and petrochemical company Lotte Chemical, have been built in a record time of 26 months and in conformity with sustainability principles. According to Eni, this achievement is part of the company's strategy to transform its chemical business also through international development.

Versalis is present in the Asia-Pacific region through its commercial units in Shanghai, Qingdao, Mumbai and Singapore.
MRC

Asia naphtha premiums rise as supplies ebb; maintenance season to ease tightness

MOSCOW (MRC) -- Tighter Asian supplies of naphtha have driven price premiums for the petroleum product to more than 12-week highs as cargoes from the West dry up, offsetting a drop in demand caused by a rise in the use of liquefied petroleum gas (LPG) as an alternative, reported Reuters.

But with many Asia facilities that process naphtha - a feedstock for producing petrochemicals used to make plastics - going into maintenance in the next couple of months, the market tightness may be short-lived.

Naphtha premiums in South Korea, Taiwan and Malaysia have been rising since early March, with levels last week reaching over USD10 a tonne, the highest since December.

Asia's naphtha crack, which describes the profitability of producing the fuel, also trended higher to USD91.20 a tonne at the end of March, the highest since Jan. 19 and 17 percent higher from a year earlier.

Traders said these developments were largely due to fewer eastbound cargoes of naphtha despite strong demand.

"Demand is still doing well. Asian steam crackers not undergoing turnarounds are running flat out and there is only so much naphtha that can be substituted with LPG before co-product margins react," said Michael Dei-Michei, head of research at consulting firm JBC Energy.

As for east-bound cargoes, about 1 million tonnes were estimated to have arrived in March from Western suppliers, including in Europe and the Mediterranean, with April arrivals expected at 1.3 million tonnes, traders said.

That is down from nearly 2 million tonnes in January and 1.5 million tonnes in February.

But the trend may not last beyond May.

"Constraints on naphtha supply should ease as we move past maintenance season," said Dei-Michei.

As a result, Asia's supply deficit is expected to shrink.

Japan's Keiyo, Mitsubishi Chemical, Mitsui Chemicals and Asia's top naphtha importer, Formosa Petrochemical Corp in Taiwan, are due to start maintenance at their crackers in May or June.

In total, seven crackers in Japan were scheduled to undergo maintenance this year versus three units in 2017 while South Korea has turnarounds planned for four crackers compared to two last year.

"Asia will need about 1.4 million tonnes of naphtha from the West in May but this will drop to 800,000 tonnes in June," said a trader who tracks naphtha and LPG.

"The naphtha market is at its peak now. The second half of this year will be tough," he said.
MRC

Former Dragon Aromatics to restart China petchem plant after 3-yr halt

MOSCOW (MRC) - China's Fuhaichuang, formerly known as Dragon Aromatics, plans to restart its refining-petrochemical complex in eastern Fujian as early as June after halting operations for three years, four sources with knowledge of the matter said, as per Hydrocarbonprocessing.

The re-opening of one of China's biggest petrochemical plants will add to demand for raw materials like condensate, fuel oil and mixed xylenes and will come amid increasing global use of the mainly polyester fibers it will produce.

The complex, an important addition to the synthetic textiles supply chain if started, has been shut since April 2015 after a fire, the second in less than two years, raised safety concerns and the need for fresh funds for repairs.

The cost of the complex was previously tagged at USD3 billion, before the fires. The sources did not have an amount for the cost of repairs.

Before the extended shutdown, the plant in Zhangzhou, on the east coast of China, included a 90 Mbpdcondensate splitter, a 3.2 MMtpy hydrocracker and two 800 Mtpy paraxylene plants.

The company wants to start operations by June or July, the sources said, adding that government approval of the revamp is still required.

Multiple calls to the offices of Fujian Petrochemical Group, the main new shareholder in the project, went unanswered.

Fuhaichuang is now 90 percent owned by Fuhua Gulei Petrochemical Co Ltd, while Dragon Aromatics, owned by Taiwan's Xianglu Group, retained a 10 percent share, one of the sources said.
MRC

Nominate World-class Projects, Technologies and People for a 2018 HP Award

MOSCOW (MRC) -- The Hydrocarbon Processing Awards are back for a second year and accepting nominations. Hydrocarbon Processing gives handsome awards in ten categories: for worthy projects commissioned since 2016, and for innovative technology launched in that same time frame, as per Hydrocarbonprocessing.

"Lifetime Achievement" and "Most Promising" are also awarded to people nominated in the industry. This black-tie event will be held in Houston on Thursday, August 30, 2018.

Nominations close April 12; please only one nomination per company. All of the award submissions will be judged by a panel not affiliated with any of the nominated companies.

Anyone can nominate a project or technology, but a person cannot nominate themselves for a Lifetime or Most Promising award.

Nominations of projects or technology from your own company are welcomed as you know best all the features of the project or technology that made it best in class, in your own words.

We recommend that suppliers or EPC firms if nominating a project, get agreement from their client for such nomination.

Nominations include stating, in under 400 words, why your choice is award-worthy. We recommend getting your client’s alignment on this narrative: the judges use this to decide winners.

If your nominated project or technology does get chosen, consider having the person also attend to accept the award, along with a designee from the nominating firm, if appropriate. Decisions about who should attend can be made once an award is decided: for now, HP just needs a submission contact.
MRC