AkzoNobel opens new coatings facility in Kenya

MOSCOW (MRC) -- AkzoNobel has opened a new coatings production facility in Kenya, as per the company's press release.

Located in the capital, Nairobi, the long-term plan is to expand further and use Kenya as a gateway to the whole of East Africa.

The site, which produces coil coatings primarily focused on the building sector, also includes warehousing for the company’s marine, protective and powder coatings. The opening ceremony was attended by H.E. Franz Makken, Ambassador of the Kingdom of the Netherlands in Kenya, who emphasized the importance of direct foreign investment in helping to boost local economic development

"AkzoNobel is making a concerted effort to tap into the growing opportunities in Africa and bolster its operations in the region with strategic investments," explained Baron Schreuder, the company’s Performance Coatings Director for sub-Saharan Africa. "This is an important first step towards unlocking Africa and expanding our performance coatings presence in the east of the continent."

Continued Schreuder: "Operating in Kenya is an essential part of expanding our footprint in the region. The new facility will enable us to be closer to our customers, helping to reduce lead times while strengthening our ability to serve the market better."

Work on the facility started after the company acquired the Industrial Coatings business of BASF. AkzoNobel established a legal entity in Morocco, Kenya and Uganda in 2016 with the express aim of growing its Performance Coatings business in the African market.

The company already runs operations in Africa for its Marine and Protective Coatings, Automotive and Specialty Coatings, Industrial and Powder Coatings and Decorative Paints businesses. Manufacturing facilities are located in Egypt, South Africa, Zambia, Botswana, the Kingdom of eSwatini (formerly known as Swaziland), Morocco and Tunisia.

Products have been supplied for a number of high profile projects throughout the continent, notably in South Africa, where five stadiums used for the 2010 FIFA World Cup feature AkzoNobel’s high performance coatings.

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.
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MOSCOW (MRC) - Russia's production of high density polyethylene (HDPE) was about 571,000 tonnes in January-June 2018, down 0.4% year on year. At the same time, only one Russian producer reduced PP output, according to MRC ScanPlast report.

July HDPE production in Russia grew to 79,600 tonnes, whereas this figure was about 79,000 tonnes a month earlier. At the same time, an increase in production in July was seen only from Kazanorgsintez. Overall HDPE output decreased 571,000 tonnes in the first seven months of 2018, compared to 573,300 tonnes a year earlier; only Nizhnekamskneftekhim reduced production volumes in favour of linear polyethylene (LLDPE).

Structure of HDPE production over the reported period looked as follows.

Russia's July HDPE production at Kazanorgsintez increased to 48,800 tonnes from 44,600 tonnes a month earlier. The Kazan plant's overall HDPE production was 318,400 tonnes in January-July 2018, up by 1% year on year.

Stavrolen last month produced about 21,800 tonnes against 23,400 tonnes a month earlier. The plant's HDPE output reached 172,900 tonnes in the first seven months of 2018, up by 3% year on year.
Gazprom neftekhim Salavat shut its capacities in July for a short scheduled shutdown, with about 9,000 tonnes produced in July, compared with 10,900 tonnes in June. Total HDPE production at the plant reached 69,300 tonnes in January-July 2018, up 35% year on year. Such a high rate of growth in output was a result of the lack of a long scheduled maintenance works this year.

During the period under review, Nizhnekamskneftekhim produced HDPE only in April and May. Total HDPE production at Nizhnekamskneftekhim over the incomplete two months of the year was just 17,700 tonnes against 37,300 tonnes year on year.


MRC

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, has announced that it has signed an agreement for the acquisition of 100% of the shares in Ecoplast Kunststoffrecycling GmbH, an Austrian plastics recycler, as per the company's press release.

This transaction is subject to regulatory approvals.

Based in Wildon, Austria, Ecoplast processes around 35 000 tonnes of post-consumer plastic waste from households and industrial consumers every year, turning them into high-quality LDPE and HDPE recyclates, primarily but not exclusively for the plastic film market.

"It is a logical next step for us to expand our mechanical recycling capabilities, which are key to our sustainability and circular economy efforts. Borealis wants to be a provider for circular economy plastic solutions and we see Ecoplast as an important complement to mtm in Germany. mtm’s focus is on rigid, injection moulding solutions. Ecoplast’s core competence is recycling flexibles from highly contaminated household and commercial waste into a product that is suitable for thin film production," says Borealis Chief Executive Alfred Stern.

As MRC informed earlier, in March 2018, Borealis and United Chemical Company LLP (UCC) signed a Joint Development Agreement (JDA) for the development of a world-scale polyethylene project, integrated with an ethane cracker, in the Republic of Kazakhstan. A Memorandum of Understanding (MoU) was also signed to cooperate on a 500 ktpa polypropylene project that is currently being implemented by Samruk-Kazyna Sovereign Wealth Fund and is under construction.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.
MRC

MOSCOW (MRC) -- Vietnam’s Ministry of Industry and Trade will respond to a request from the Nghi Son oil refinery to export fuels such as gasoline and diesel "soon", reported Reuters with reference to a statement.

Nghi Son Refinery and Petrochemical LLC, the owner of a 200,000 barrel-per-day (bpd) refinery in northern Vietnam, has requested to export oil products in what would be a first for the country, a net importer of oil, Reuters reported last week.

"The refinery has the right to export its oil products if they meet standards requirements and in accordance with the ministry’s plan," it said in an emailed statement, without giving a timeframe for a response to the request.

Nghi Son, the country’s second refinery, made the request to export fuels as local traders and consumers have been unable to absorb fuel sales from the plant as it ramps up toward commercial operations in November.

Most local buyers have already procured supplies under long-term contracts, limiting what they can take from the plant.

Nghi Son, and the 130 Mbpd Dung Quat refinery that started production in 2009, are expected to jointly meet about 70 percent of the country’s refined oil product demand.

Nghi Son is located 260 km (160 miles) south of Hanoi.

The USD9 billion refinery is 35.1 percent owned by Japan’s Idemitsu Kosan Co, 35.1 percent by Kuwait Petroleum 25.1 percent by PetroVietnam and 4.7 percent by Mitsui Chemicals Inc.

As MRC informed previously, Nghi Son Refinery and Petrochemical started up on Feb. 28, 2018. The USD9 billion plant, co-owned by Kuwait Petroleum Europe BV and Japanese firms Idemitsu Kosan and Mitsui Chemicals , is designed to help Vietnam cope with a shortage of refined oil products.
MRC

MOSCOW (MRC) -- Diversified Engineering & Plastics LLC is adding new equipment and making improvements to its 70,000-square-foot facility in Jackson, Mich, as per Hydrocarbonprocessing.

The facility — known as "Building 3" by the injection molder — is getting a new roof. In addition, employee restrooms on the shop floor will be remodeled as well as the production office, which houses supervisors and process technicians, according to Nick Quillen, DEP's general manager who also oversees business development.

"Those are the big projects, so a complete remodel," he said in an Aug. 8 phone interview. "Basically, demoing the existing space and starting new."

Office space near the front of the facility will also get a slight remodel, with the company opting for a more open and collaborative work environment in lieu of "lots of walls" and closed off areas, Quillen explained.

"Big, open spaces — that's the vision," he said. "It's kind of a work in progress. We've got some drawings and designs, but it's not anywhere close to being complete."

Quillen said the goal is to have the work completed within the next year. He estimated the company's investment in the improvements to be around USD1 million.

At the start of 2018, DEP purchased three new robots as well as some conveying and auxiliary equipment that are currently up and running in Building 3. The three-axis robots are from Yushin America Inc.

"The idea is just so a lot of our operators are focused more on the quality of a part versus moving parts around," Quillen said of the automation equipment.

Within the next six months, DEP also plans to add a total of five workers. Two of which — an engineering manager and a process technician — have already been hired.

And in the next two years, Quillen said the company plans to add an additional 10 workers, depending on overall growth.

"We're constantly adding, whether it's molding operators or higher level technical people, so really the goal is to continue hiring, looking for people who are going to work on the manufacturing floor, but also have the technical skills," he said.

DEP, which primarily serves suppliers to the automotive and heavy truck industries, is also eyeing growth in other markets, such as consumer products, as it looks to diversify its customer base. The company's overall business strategy includes bringing on a minimum of three new customers in the next two years.

Quillen said the company is already ahead of schedule with that goal and is set to work with a new customer in the automotive and aerospace industries early next year.

And in September, DEP is starting production on a program for a part that will ship to a Tier 1 supplier and end up on the 2019 Ford Ranger midsize pickup.

"Sales have been very steady and very good, and 2019 is looking even brighter with our new supplier," Quillen said. "It's a lengthy process to bring on new suppliers, but we're feeling really positive about the outlook."

DEP employs 75 workers and operates out of two other facilities at the Jackson site: a roughly 65,000-square-foot building and an adjacent 15,000-square-foot building.

The company joined Plastics News' annual listing of North American injection molders this year, ranking No. 287 and reporting sales of USD15 million in 2017.
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