AkzoNobel opens largest powder coatings plant in China

MOSCOW (MRC) -- Production has started at AkzoNobel’s new powder coatings plant in Changzhou, China. The facility - one of the largest of its kind in the world - is located at an existing site and will help to further strengthen the company’s undisputed global leadership position in the powder coatings market, as per the company's press release.

The result of nearly EUR40 million of investment, the Changzhou plant will supply an extensive range of Interpon and Resicoat products to meet growing demand for more sustainable coatings solutions. Key markets include the automotive, architectural and general industrial sectors.

"China is a high priority region for us and the new facility is part of ongoing plans to optimize our production and investment strategy, based on increasing demand," explained Ruud Joosten, AkzoNobel’s Chief Operating Officer. "Our passion for paint will continue to be the driving force for us to provide best-in-class sustainable solutions while expanding our footprint globally to drive growth."

Added Daniela Vlad, Director of AkzoNobel’s Powder Coatings business: "Our operations go beyond production - we’re also focused on innovation. We continue to provide dynamic colors and finishes and the most sustainable solutions for our customers in China and around the world. This new plant will help us develop Changzhou into a hub for the powder coatings industry in China and create more value for customers by providing customized solutions."

AkzoNobel supplies powder coatings to more than 30,000 customers worldwide, covering several market segments. The Changzhou facility will produce almost the complete range, serving customers in the entire Eastern region of the country with products for domestic appliances, architecture, automotive, furniture, IT, functional and general industrial applications. It will also supply automotive customers nationwide.

Reflecting the sustainable nature of the powder coatings it produces, the new Changzhou plant itself is a living demonstration of AkzoNobel’s strong commitment to sustainability. In addition to supplying only VOC and solvent-free products, the plant also uses advanced technology such as a vacuum drum waste water recycling system. This helps to achieve full recycling of waste water and zero waste water emissions.

Meanwhile, the strategic position of the site enables it to collaborate with one of AkzoNobel’s largest technology centers - based in Songjiang, Shanghai - which carries out research on formulas and solutions customized for local needs.

As MRC informed earlier, in February 2018, India’s fourth largest paint company, Akzo Nobel India Limited commissioned its new powder coatings facility at Thane (near Mumbai, Maharashtra).

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- Negotiations over June shipments of suspension polyvinyl chloride (SPVC) began in Russia this Tuesday, on 29 May. All producers announced a further price increase, according to ICIS-MRC Price Report.

Demand for finished products from PVC increased in May, but at the same time, many converters were forced to raise their prices for finished products due to the continuing rise in prices of polymer since the beginning of the year. Demand for suspension is expected to increase further from the Russian market in June, and, as a result, producers announced their intention to achieve an increase of Rb2,000/tonne from May in SPVC prices.

Supply of resin is sufficient in the market, although demand for polymer continues to increase and import quantities are scarce. A short shutdown for maintenance at RusVinyl, Russia's largest PVC producer, in April did not affect the market balance. A long shutdown for a turnaround at SayanskKhimPlast, Russian second largest PVC producer, which is scheduled for the second half of July, is ahead.

Russian consumers virtually do not have a reasonable alternative to Russian resin. The rouble devaluation and high prices in foreign markets makes any PVC imports economically unprofitable.

The key suppliers of resin in the past years - producers from the north of China - reduced their June export prices of acetylene PVC by USD10/tonne from May. But this in fact does not change anything - Chinese resin is still much more expensive than Russian counterparts.

Most Russian consumers understand that it will not be possible to avoid increases in SPVC prices for June deliveries. But at the same time, some converters are trying to limit the amount of the price increase of polymer to a smaller value than the one announced initially.

In general, June deals for resin with K64/67 were negotiated in the range of Rb70,000-72,000/tonne CPT Moscow, including VAT. Deals for PVC with K70 were also discussed from Rb70,000/tonne CPT Moscow, including VAT, and prices of some producers reached Rb73,000/tonne CPT Moscow, including VAT.
MRC

MOSCOW (MRC) -- Lukoil, Russia's second-biggest oil producer, said on Tuesday it had decided not to go ahead with plans to develop projects in Iran at the moment due to the threat of U.S. sanctions, reported Reuters with reference to a company official.

The United States plans to impose new sanctions on Iran after pulling out of a 2015 agreement between Iran and major world powers to limit Tehran's nuclear ambitions.

"Considering the latest developments, I guess, it's too early to say what our plans (about Iran) will be. For the moment, basically, we have everything on hold," the official told a conference call which followed publication of Lukoil's first-quarter results on Monday.

Lukoil said on Monday its first-quarter net profit rose to 109.1 billion roubles (USD1.8 billion), up 75 percent on the previous year with the help of rising oil prices.

The official said that company's focus remained on its domestic business. "We don't plant to do anything material on the international M&A side," he said.

Lukoil has been in talks with Iran over development of Abe Timur and Mansuri oilfields.

As MRC wrote before, in February 2017, Lukoil sold Ukrainian plant Karpatneftekhim. Thus, the Antimonopoly Committee gave permission for the purchase of a 75% stake in Lukoil Chemical B.V. (Netherlands), which owns 100% of LLC "Karpatneftekhim" (Kalush, Ivano-Frankivsk region).

Lukoil is one of the leading vertically integrated oil company in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. In Lukoil structure includes one of the largest Russian and Ukrainian petrochemical industries Stavrolen and Karpatneftekhim.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, will increase June list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in Europe, Middle East, Africa and the Americas, as per the company's press release.

The price increases below will be effective for orders shipped on or after June 1, 2018, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, VAM prices will rise, as follows:

- by EUR150/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD150/mt - for Mexico & South America.

As MRC reported earlier, Celanese last raised its VAM prices for the stated above regions on 18 April, 2018, as follows:

- by EUR75/mt - for Europe, Middle East & Africa;
- by USD0.05/lb - for the USA and Canada:
- by USD100/mt - for Mexico & South America.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of USD6.1 billion.
MRC

MOSCOW (MRC) -- Total and Domo Chemicals has inaugurated a 60 million-euro benzene production and extraction project at Total’s Leuna Refinery in Germany, reported Hydrocarbonprocessing.

The project consisted of constructing a new unit at the refinery that enriches an intermediate product from the gasoline production. The entire output will be sent via a 1.6 pm pipeline to a new caprolactam producing unit at Domo. Both units started operation at the beginning of 2018.

The joint project was announced in 2016 when Domo had demand for 180,000 tonnes-per-year of benzene. It was initially stated that Total would produce 70,000 tonnes per-year of the feedstock to start.

"This investment ensures our long-term access to a strategic feedstock for our integrated polyamide 6 production sequence," Luc De Raedt, managing director of DOMO Caproleuna GmbH said in a 2016 statement.

"Total’s and Domo’s investment represents an important step to further consolidate our networking at our Leuna chemical site. This project impressively demonstrates how potential synergies are successfully developed in Leuna, in close and trustful cooperation across corporate boundaries. I am especially pleased that, in the 100th year of Leuna’s existence, Domo and TOTAL, key customers of InfraLeuna, send out this strong positive signal for the future of this chemical site," Christof Gunther, managing director of InfraLeuna GmbH said in the 2016 statement.

Domo and the Total have been working together for years. The refinery already supplies propylene, an important raw material of caprolactam and polyamide 6 productions.

As MRC wrote previously, in December 2017, Total inaugurated the new units at its Antwerp integrated refining & petrochemicals platform, which had progressively started up in the past few months of last year.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC