DowDuPont plans USD100 million expansion at Texas facility

MOSCOW (MRC) -- Chemical maker DowDuPont Inc. is planning to spend approximately USD100 million over the next two years to expand production of specialty plastic materials at its site in Orange, Texas, as per Canplastics.

According to a DowDuPont statement, 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, DowDuPont 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 and specialty plastics business of DowDuPont’s materials science division, as well as the transportation and advanced polymers business of its specialty products division.

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 and Vamac 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 and 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."

DowDuPont was formed in 2016 from the merger of plastics and chemicals companies Dow Chemical Co. and DuPont Co.

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MOSCOW (MRC) -- WorleyParsons announced the completion of the strategic acquisition of the Ludwigshafen and Schwarzheide offices of the M+W Group in Germany, as per Hydrocarbonprocessing.

The business acquired provides engineering services supporting the world scale facilities of the chemical companies in the Ludwigshafen and Schwarzheide areas. These services include feasibility studies and concept development, engineering, project and construction management.

WorleyParsons’ current operations in Ludwigshafen and the newly acquired offices will be combined into a single business. Approximately 50 staff are employed in the acquired offices. The acquisition will be funded using existing funds.

"The acquisition of the chemicals business represents another step in WorleyParsons’ strategic growth objective of establishing a strong presence in the European chemicals sector" said Andrew Wood, Chief Executive Officer of WorleyParsons.

As MRC informed before, in late May 2017, WorleyParsons announced that it had been awarded a 5-yr Framework Agreement by Shell Global Solutions International, B.V., for the provision of engineering, procurement and construction management (EPCM) services for Shell downstream projects worldwide.
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MOSCOW (MRC) -- Istanbul-based Elif Packaging is making a "significant investment" into expanding its production of pre-made bag and pouch lines, as per Plasticsnewseurope.

The flexible packaging supplier said the expansion would increase production by 50% and will enable it to provide advanced products and new features for customers.

The company did not comment on the size of the investment and current production capacity.

The project will add capacity for the manufacture of stand-up pouches, quad seal bags, and the flat bottom bag products. A new stand-up pouch machine line will also be installed.

As part of its sustainability campaign, Elif also said that it had successfully completed the tests of its recyclable PE pre-made bag solution, on which it has been conducting research since 2016.
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MOSCOW (MRC) -- During the official visit to Paris by Crown Prince of Saudi Arabia, HRH Mohammed bin Salman, Saudi Aramco and Total signed a memorandum of understanding to build a giant petrochemical complex in Jubail, Saudi Arabia, as per the company's press release.

The complex will be integrated downstream of the SATORP refinery, a joint venture between Saudi Aramco (62,5%) and Total (37,5%) in Jubail, in a move designed to fully exploit operational synergies. This world-class refinery, whose capacity increased from 400,000-barrel-per-day at its start-up in 2014 to 440,000-barrel-per-day today, is recognized as being one of the most efficient in the world.

Located next to the SATORP refinery in the same industrial area, the complex will comprise a world-size mixed-feed steam cracker (50% ethane and refinery off-gas) with a capacity of 1.5 million tons per year of ethylene and related high-added-value petrochemical units. The two partners are planning to start the front-end engineering and design (FEED) in the third quarter of 2018.

The cracker will feed other petrochemical and specialty chemical plants representing an overall amount of USD4 billion investment by third party investors.

In total, USD9 billion will be invested, creating 8,000 local direct and indirect jobs. The project will produce more than 2.7 million metric tons of high value chemicals.

"The agreement deepens the exemplary relationship enjoyed by our two companies over many decades. It is one that has evolved from a standard buyer-seller arrangement to one imbued with common interests to further develop and diversify our businesses,“ commented Amin H. Nasser, President and Chief Executive Officer of Saudi Aramco. “Our joint venture SATORP is a remarkably successful model of industry partnership and we are keen to build on this success to further underpin Saudi Aramco’s strategy to expand its capacity in the chemicals sector by 2030."

"This project illustrates our strategy of maximizing the integration of our large refining and petrochemical platforms and of expanding our petrochemical operations from low-cost feedstock, to take advantage of the fast growing Asian polymer market," commented Patrick Pouyanne, Chairman and CEO of Total. “Furthermore, this project will enable us to strengthen our ties with Saudi Aramco, with whom we successfully operate our biggest and most efficient refinery in the world. Finally, it will contribute to the Vision 2030 of the Kingdom by creating 8,000 jobs and bringing in new high-added-value technologies."
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MOSCOW (MRC) -- Bayer shares jumped nearly 5 percent on Tuesday following a media report that the US Justice Department will allow the German drugs and pesticides group to acquire Monsanto in a USD62.5 billion deal, reported Reuters.

The Justice Department reached an agreement in principle with Bayer and Monsanto in recent days after the companies agreed to sell more assets, the Wall Street Journal said late on Monday, citing people familiar with the matter.

Under the deal, Bayer agreed to sell additional seed and treatment assets to BASF and agreed to make concessions related to digital agriculture, it said.

Bayer shares rose 4.7 percent by 0800 GMT to reach a one-month high.

Baader Helvea analyst Markus Mayer said he expects the concessions granted to the Justice Department probably did not go far beyond asset sales already agreed with the European Commission.

"The selling of these assets and the rights issue ... should start therefore soon and should be positive triggers for the stock," Mayer said, adding the rights issue should be smaller than initially expected.

The takeover, one of a trio of major deals in the agribusiness sector in recent years, would create a company with a share of more than a quarter of the world’s seed and pesticides market. A souring global farm economy has spurred consolidation among the major players, triggering protests from environmental and farming groups worried about their market power.

The deal reduces competition for sales of seeds and chemicals to farmers struggling with low crop prices, raising the risk for price gouging, said Wenonah Hauter, executive director for Food & Water Watch, an advocacy group.

"The Justice Department’s paltry divestment approach does little to address the extreme control the merged firm will have over farmers’ data, genetics, biotechnology traits or the associated agrichemical industry," she said.

Bayer declined comment on the report, but said in a statement it still anticipated closing the Monsanto purchase in the second quarter.

BASF, Monsanto and the Justice Department declined to comment.

Last week, Monsanto said in a quarterly earnings report that it was confident the US and other needed regulatory approvals would be secured within the second quarter. Monsanto did not host its usual conference call with analysts to discuss the earnings because of the pending merger.

The Justice Department said last month that it was still reviewing the deal and noted that genetically modified seeds are largely prohibited in Europe but widely used throughout the United States.

European Union antitrust regulators approved the deal in March after the companies agreed to sell a swathe of assets to BASF. China, Brazil and Australia have also approved the proposed merger.

The deal was preceded by a merger of Dow and Dupont and a tie-up of ChemChina and Syngenta.

Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen.
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