SMC starts maintenance at methanol plant

MOSCOW (MRC) -- Salalah Methanol Co (SMC) has taken off-stream its methanol plant for maintenance, according to Apic-online.

A Polymerupdate source in Oman informed that the company has undertaken a planned shutdown at the plant in early-April 2018. The plant is expected to remain under maintenance for around 6 weeks.

Located in Salalah, Oman, the plant has a production capacity of 1.3 million mt/year.

As MRC informed previously, on 21 February 2017, SMC restarted methanol plant in Salalah following an unplanned outage. The plant was shut on 13 February owing to technical issues.
MRC

LDPE prices increased significantly in Russia in March

MOSCOW (MRC) - After several months of the decrease in the price of low density polyethylene (LDPE) in the Russian market in March, they began to grow again. The price increase continued in the first days of April and amounted to at least Rb1,000/tonne, according to the ICIS-MRC Price Report.

LDPE prices traditionally seasonally rise in Russia in spring. Seasonally stronger demand contributes to the growth of prices, restrictions of truck transportation on regional roads and scheduled maintenance works of the second largest producer - Kazanorgsintez. The current year was no exception, the prices rose by Rb1,500-5,000/tonne in mid-March in comparison with the level at the beginning of the month.

Some producers announced a further price rise of at least Rb1,000/tonne in the first days of April. LDPE prices reached their bottom in the market in late February, and prices of 108 grade polyethylene (PE) were at Rb75,000/tonne, CPT Moscow, including VAT. Bad weather conditions limited the demand for polyethylene in March, but this factor did not stop the price increase.

LDPE prices began to increase from the first days of March, and a serious price rise accounted for the second half of the month. PE for shrinkable films prices increased by Rb5,000/tonne from 19 March. Some suppliers limited sales from mid month.

Since mid-March, restrictions on freight road transportation (restrictions on weight) have been introduced in Republic of Bashkortostan. Local producers began to ship PE no more than by 10 tonnes per truck. Restrictions will be introduced in Tatarstan from 15 April. Kazanorgsintez aims to shut its capacities for a month long turnaround on 13 April.

LDPE supply significantly decreased by the early April, while prices increased. Prices for 108 LDPE in some cases reached Rb83,500/tonne FCA, including VAT. Price offers for 158 PE reached Rb95,000/tonne FCA, including VAT.
MRC

Hungary vinyl film extruder Ongropack grows into new EUR29m plant

MOSCOW (MRC) -- Family-owned Hungarian vinyl sheet and film specialist Ongropack is set to relocate production lines to a newly constructed EUR29m plant in the country’s north eastern region, as per Plasticsnewseurope.

Growing market demand has seen the PVC extruder expand production at its original manufacturing site in Kazincbarcika, close to the Slovakia border. But the firm has now outgrown the premises and so, with government support, built a new factory further south, in the community of Szirmabesenyo close to the regional centre of Miskolc.

At the end of March, in the presence of Hungary’s Prime Minister Viktor Orban, the new operation was officially inaugurated. Orban praised the rapid growth of a Hungarian run company which has doubled annual production and more than doubled its annual revenue since 2009 when it was bought out from chemicals group BorsodChem.

Today, the PVC extruder has an output of 24,000 tpa of film and sheet, chiefly for conversion to packaging for the food and pharmaceutical sectors. Its annual sales have increased to around EUR43m and workforce has risen to 240 in nine years.

The PM pointed out that Ongropack supplies PVC materials mainly to the pharmaceuticals, food and construction industries – sectors that in Hungary are now “performing outstandingly well”.

Overall, the Hungarian economy was expanding rapidly at the end of last year. In the fourth quarter of 2017, the economy grew by almost 5%, significantly exceeding the EU’s average growth of 2.6%, according to Orban.

Ongropack’s present owner, Laszlo Kovacs, speaking at the Szirmabesenyo ceremony, said the company’s sales had grown steadily, due to internal and external factors and focused on improving its product quality. Its revenue had improved by around 9% annually since 2009, he pointed out.

The company now exports more than 90% of its production, mainly to EU countries, said Kovacs, formerly BorsodChem’s chief executive officer.

Ongropack is due to begin the relocation of production lines to new halls at its completed manufacturing site. Production will be continuous during what should be a seamless transition period for its customers, the owner promised.

His firm’s latest investment project attracted government assistance to the tune of EUR3.36m in the form of a non-repayable state grant.

Last year, Ongropack grew its vinyl stretch film manufacturing capacity with the addition of a new line taking its output for this product area to 1,200tpa with a total of six lines at its Kazincbarcika plant. The project, which began in 2016, involved investment of nearly EUR1m.
MRC

Showa Shell sees Q2 crude refining down

MOSCOW (MRC) - Japan's Showa Shell Sekiyu KK said on Monday its group refineries would refine 1 percent less crude for the local market in April-June compared with a year ago, in line with their outlook for domestic demand, as per Reuters.

Showa Shell said its four group refineries would refine 4.73 million kilolitres (327,000 barrels per day) of crude in the second quarter of the year. They have a total capacity of 588 Mbpd.

Refining volumes for export markets were not released.

The four group refineries are: Showa Shell's 255 Mbpd Yokkaichi plant, unit Toa Oil's 70 Mbpd Keihin plant, affiliate Seibu Oil's 120 Mbpd Yamaguchi refinery and a 143 Mbpd Sodegaura refinery operated by Fuji Oil in which Showa Shell has a 6.6 percent stake.

There will be no group refinery maintenance during the three months, a Showa Shell spokeswoman said.

Idemitsu Kosan Co has completed the purchase of just under a third of Showa Shell, but its goals for full integration have been delayed indefinitely after opposition from Idemitsu's founding family.
MRC

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