Air Liquide signs new long-term contract with LyondellBasell

MOSCOW (MRC) -- Air Liquide has recently signed a new long-term agreement with LyondellBasell, one of the world’s largest plastics, chemicals and refining companies, to supply oxygen to LyondellBasell’s new large-scale petrochemical plant which will be constructed in Channelview, Texas, according to BusinessWire.

LyondellBasell’s new propylene oxide/tertiary butyl alcohol plant (PO/TBA), is expected to be the largest of its kind plant in the world when completed.

The oxygen provided by Air Liquide will be sourced from its Gulf Coast Pipeline System, part of the largest industrial gas pipeline system in the world, which spans more than 2,000 miles along the coasts of southeast Texas and Louisiana.

LyondellBasell’s USD2.4 billion PO/TBA project is part of its announced organic growth program. The PO/TBA portion of this investment is designed to meet rising global demand for both urethanes and cleaner-burning oxyfuels. The construction of LyondellBasell’s new PO/TBA plant is expected to begin in the second half of 2018 and be completed in 2021.

Susan Ellerbusch, CEO of Air Liquide USA LLC, which is comprised of the company’s U.S. Large Industries and Electronics businesses, said: "We appreciate the confidence LyondellBasell has placed in Air Liquide as the oxygen supplier of choice for their largest ever PO plant. This long-term agreement further recognizes the unmatched reliability and flexibility of Air Liquide’s Gulf Coast oxygen pipeline system and our ability to help LyondellBasell realize the fullest potential of their new world scale investment."

As MRC informed previously, in February 2018, LyondellBasell and A. Schulman, Inc. a leading global supplier of high-performance plastic compounds, composites and powders, announced that they had entered into a definitive agreement under which LyondellBasell would acquire A. Schulman for a total consideration of USD2.25 billion.

LyondellBasell is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 55 sites in 17 countries. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

Mexican Pemex processing up 9% crude oil domestically

MOSCOW (MRC) -- Mexican national oil company Pemex is currently processing about 9 percent more crude oil at its domestic refineries than it did in 2017, as per Hydrocarbonprocessing with reference to Chief Executive Officer Carlos Trevino.

Trevino told reporters that current processing levels stand at about 834 Mbpd, which compares to crude processing of about 767 Mbpd last year, according to Pemex.

The executive, who took the reins of the state-run company in November, said he expects processing levels to reach about 900 Mbpd once maintenance plans at two facilities are completed.

Trevino said almost all plants at Pemex’s Ciudad Madero refinery have completed scheduled maintenance, while maintenance at its Minatitlan refinery has experienced some delays.

As MRC informed earlier, in November 2015, Fluor Corp. announced that ICA Fluor, its industrial engineering and construction joint venture with Empresas ICA, had signed a contract with Pemex to supply detail engineering, procurement and construction (EPC) services for the utilities and offsites that are part of the Tula refinery upgrade at Hidalgo, Mexico. The total contract value is USD1.1 billion.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC

SABIC, Mitsubishi Chemical Corporation joint venture, SAMAC, begins production of high-value products at Jubail plants

MOSCOW (MRC) -- SABIC announced the successful completion of the pilot operation of the Methyl Methacrylate Monomer (MMA) and Poly Methyl Methacrylate (PMMA) plants and the commencement of commercial operations, as per Hydrocarbonprocessing.

Abdulrahman Al-Fageeh, SABIC Executive Vice President, Petrochemicals commented, "Our strategic joint venture with MCC broadens our specialty portfolio by drawing on the technological expertise of MCC, owner of the world-class Alpha technology. We are committed to serving the global and local markets, and supporting the development of downstream growth in Saudi Arabia in line with Saudi Vision 2030."

The MMA plant has a 250 Mtpy capacity, while the PMMA plant has an annual capacity of 40,000 metric tons. These new high-value products will diversify materials used in industrial clusters, thus allowing expansion and further diversification in Saudi Arabia’s industrial sector, besides creating new global opportunities in the downstream industries such as construction, automotive, electronics, medical technologies and appliances.
MRC

Transcontinental to buy plastics packager Coveris for USD1.7 billion

MOSCOW (MRC) -- In a bid to expand its plastics packaging business, Montreal-based printing and packaging supplier Transcontinental Inc. is buying plastics packager Coveris Americas for USD1.7 billion, as per Canplastics.

Headquartered in Chicago, Coveris Americas makes rollstock, bags, pouches, coextruded films, shrink films, coated substrates, labels and related flexible packaging. The company operates 21 production facilities in the Americas, the U.K., and Australasia.

As part of the deal, Transcontinental will take control of the 21 production facilities that make rollstock, bags and pouches, shrink films and labels, among others. "This transaction crystallizes our strategic shift toward flexible packaging and solidifies our commitment to profitable growth," Transcontinental Chairwoman Isabelle Marcoux said in a news release.

The deal is expected to close in the third quarter of 2018. The Coveris acquisition is the latest in an extremely busy few years for Transcontinental. Less than three weeks ago, Transcontinental bought Multifilm Packaging Corp. of Elgin, Ill. Earlier in 2017, it bought Quebec-based flexible packaging supplier Les Industries Flexipak Inc.; and in October 2016 Transcontinental bought Flexstar Packaging Inc., a flexible packager based in the Vancouver suburb of Richmond, B.C. In total, Transcontinental has made seven flexible packaging acquisitions since it entered the field in 2014.

MRC

DowDuPont to invest USD100M to expand manufacturing capacity at Sabine River Works

MOSCOW (MRC) -- DowDuPont announced a plan to make a series of investments totaling approximately USD100 million over the next two years to expand manufacturing capacity and to modernize facilities at the Sabine River Works (SRW) plant in Orange County, Texas, as per Hydrocarbonprocessing.

The investments will incrementally expand production capacity to support global growth of specialty materials manufactured at the site, specifically the Surlyn, Nucrel, Fusabond and Vamac product lines. Additionally, the company is evaluating longer-term plans to invest in a new facility to further support market growth.

The joint investment will support customer growth of both the Packaging & Specialty Plastics (P&SP) business of DowDuPont's Materials Science Division (to be named Dow), as well as the Transportation & Advanced Polymers (T&AP) business of its Specialty Products Division (to be named DuPont).

"This is another great example of the power of our historic merger and our ability to quickly respond to customers' growing needs," said Diego Donoso, business president for Dow Packaging & Specialty Plastics. "We see tremendous potential to deliver more supply of these iconic specialty products to our customers in the food packaging and consumer goods markets."

The added capacity is expected to come online in several phases starting in 2020 and will enable both divisions to meet growing demand for Surlyn, Nucrel, Fusabond (P&SP) and Vamac (T&AP) specialty materials used for applications in food packaging, transportation and consumer goods.

"With this increased capacity, we will be able to support growth in the automotive space at a time when customer demand for our advanced polymers is very strong," said Randy Stone, business president for DuPont Transportation & Advanced Polymers. "This investment will enable us to continue to deliver innovative solutions that serve high-growth end markets and reinforces our commitment to enhancing our leadership position in these key market segments."
MRC