Shandong refiner Haiyou extends crude unit shutdown indefinitely

MOSCOW (MRC) -- Independent Chinese refiner, Shandong Haiyou Petrochemical Group, has no definite plan to reopen its crude oil distillation unit (CDU) after shutting it down sometime in late May, reported Reuters with reference to two industry sources with knowledge of the plant's operation.

The plant, in the city of Rizhao in Shandong province, owns a CDU with a capacity of around 70,000 barrels per day (bpd), which it shut down after a local government order to cut down pollution ahead of a regional summit in June, the sources said.

Haiyou, however, will keep open its 1 million tonne-per-year delayed coker, a unit that processes residual fuel oil into lighter refined products such as diesel and gasoline, said one of the sources.

Falling profit margins following Beijing's move to tighten tax rules for independent oil refiners and blenders could be one reason for Haiyou's extended shutdown, the two sources said.

Haiyou's large debt burden could be another reason as the plant struggles to secure financing for oil purchases, said the second source, who has knowledge of the plant's financial status.

Haiyou has an annual crude oil import quota of 3.2 million tonnes.

Both sources declined to be named as they are not authorized to speak to press. Multiple calls to the company went unanswered.
MRC

MOSCOW (MRC) -- Austria’s oil and gas group OMV said planned maintenance at its Petrobrazi refinery in Romania will negatively affect its operating profit in the second quarter, reported Reuters.

The full-site turnaround will impact its second-quarter clean current cost of supplies (CCS) earnings in its downstream business by around 35 million euros (USD41 million) versus the first quarter, the group said on Wednesday.

The shutdown required OMV to store more crude, leading to not yet realized profits of around 60 million euros, it said.

As MRC informed previously, OMV Petrom estimates a net profit of RON 2.58 billion (EUR 555 million) this year, up by 7.5% (in local currency) versus 2017.
MRC

MOSCOW (MRC) -- A fire occurred at Ascend Material's plant in Cantonment early Tuesday morning, but was quickly extinguished, as per Pensacola News Journal.

Escambia County Fire Rescue was dispatched to the plant for a mutual aid call just after 4 a.m. Tuesday morning.

The company tweeted at 6:36 a.m. that a fire had occurred at the site.

"A fire at our Cantonment, FL site occurred this morning," Ascend's tweet said. "The fire was put out immediately and there were no injuries."

Alison Jahn, a spokeswoman for Ascend, told the News Journal there was no risk to the public at any time, and the cause of the fire is under investigation.

Jahn said she would release more details once they become available.

Escambia County firefighters stayed on scene until 5:35 a.m., according to county spokeswoman Kaycee Lagarde.

As MRC wrote previously, in May 2016, Ascend Performance Materials said it had put plans to build a propane dehydrogenation (PDH) plant on hold because of market conditions. The two-train project at Chocolate Bayou, TX, with a combined capacity of more than 1 million m.t./year of propylene, was expected to become the largest such facility in the United States and cost an estimated USD1.2 billion. It has already been delayed once from the original onstream date of 2016 to mid-2019. Ascend is expected to use the UOP Oleflex PDH technology.

Ascend Performance Materials is a global leader in the production of Nylon 6,6.
MRC

MOSCOW (MRC) -- Solvay has announced a EUR48 million investment in the modernization of the gas cogeneration unit in its soda ash & bicarbonate plant based in Bernburg, Germany, as per the company's press release.

This investment secures the long term position of the site and increases its competitiveness, while maintaining the current production capacity. It is also in line with Solvay’s commitment to sustainable development and CO2 intensity reduction.

"With this new project, Solvay reiterates its commitment to serve its customers and answer their needs, by providing reliable and competitive supply of high-quality soda ash and sodium bicarbonate", said Christophe Clemente, President of Solvay’s Global Business Unit Soda Ash & Derivatives.

Solvay is an advanced materials and chemical company, committed to developing chemistry that addresses key societal challenges. Solvay innovates and partners with customers in diverse global end markets. Its products are used in planes, cars, batteries, smart and medical devices, as well as in mineral and oil and gas extraction, enhancing efficiency and sustainability. Its lightweighting materials promote cleaner mobility, its formulations optimize the use of resources and its performance chemicals improve air and water quality. Solvay is headquartered in Brussels with around 24,500 employees in 61 countries. Net sales were EUR10.1 billion in 2017, with 90% from activities where Solvay ranks among the world’s top 3 leaders, resulting in an EBITDA margin of 22%. Solvay SA is listed on Euronext Brussels and Paris and in the United States its shares are traded through a level-1 ADR program. (Figures take into account the announced divestment of Polyamides.)

Solvay Soda Ash and Derivatives (SA&D) is a world leader in its sector, producing soda ash serving the glass, detergent and chemical markets and developing solutions based on sodium bicarbonate and trona serving the healthcare, food, animal feed, and flue gas cleaning markets. SA&D has 11 industrial sites worldwide, more than 3,300 employees and serves 90 countries.

As MRC informed before, in early July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries.
MRC

MOSCOW (MRC) -- From July 1, 2018 the new distribution partner TER ITALIA, headquartered in Milan, will market the complete portfolio of Evonik’s PLEXIGLAS and PLEXIMID molding compounds in Italy, as per the company's press release.

TER Plastics has been operating successfully in the plastics market for many years and offers its customers high-quality plastic products backed by expert technical service. The extensive product portfolio of PLEXIGLAS molding compounds for all injection-molding and extrusion applications is the ideal supplement to TER ITALIA’s existing range. The collaboration with the previous distribution partner, Vamp Tech (Italy), ended on June 30, 2018.

The existing partnership with the dealer Guberti S.p.A. in the Veneto, Friuli-Venezia Giulia, and Trentino-Alto Adige regions remains unaffected by the change. "With Guberti and TER ITALIA, our two distributors for the Italian market, we’re very well positioned for the future and have two partners with excellent knowledge of the market and sales expertise," says Peter Freisler, head of Business Management Europe.

PLEXIGLAS, Evonik’s branded polymethyl methacrylate (PMMA), is the perfect solution for applications requiring exceptional brilliance and transparency, unparalleled weather resistance, and excellent surface characteristics. The main uses for these products are in medical technology, in the automotive, watch-making, and lighting industries, in optics, communication, building, and household applications

MRC