Huntsman opens formulations manufacturing facility in Vietnam

MOSCOW (MRC) -- Huntsman has opened a multi-purpose facility at the Amata Vietnam Industrial Park, near Ho Chi Minh City, Vietnam, as per GV.

The site is a greenfield investment, will house Huntsman's Polyurethanes and Advanced Materials businesses, and comprises manufacturing, R&D capabilities, a technical service center, warehouse and distribution space, and a commercial office.

Commenting on the new facility, Huntsman's CEO Asia Pacific and President of the Polyurethanes business, Tony Hankins, said: "Vietnam is one of the largest and fastest growing countries in Asia Pacific. For Polyurethanes, we've seen double digit growth rates for a sustained period and fully expect this to continue. At the new site, we'll manufacture formulated systems for the footwear and automotive markets, rigid insulation foam used in construction and cold chain applications, and simulated wood for the furniture market. These products will be consumed primarily in Vietnam, with the balance being exported to Cambodia. The facility will enable Huntsman to collaborate more effectively with Vietnamese customers and will also strengthen our strategy of globalising downstream bolt-on acquisitions."

Scott Wright, President of Huntsman's Advanced Materials business, added: "This is the first manufacturing expansion investment outside China for our business in Asia Pacific and we see many opportunities in Vietnam to support large-scale infrastructure and construction projects in one of the fastest growing economies in the region. The new plant will give us the capability to efficiently supply customers across the ASEAN region with high quality electrical insulation, coatings and adhesive solutions that will ensure these ambitious projects are implemented successfully."

In addition to this facility, Huntsman has a distribution warehouse located in the inland container depot at Long Binh – Dong Nai Province, and a site in Hanoi which offers technical service and comprises warehouse and distribution space and a commercial office.

As MRC wrote before, this summer, Huntsman Corporation announced plans to build a new polyurethanes systems house in Dubai. Located within the Jebel Ali Free Trade Zone (JAFZA), the new facility will strengthen Huntsman's differentiated downstream capabilities in the heart of the Middle East.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of more than USD8 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within its four distinct business divisions.
MRC

Bangkok Polyethylene shuts LDPE plant in Thailand

MOSCOW (MRC) -- Bangkok Polyethylene, a PTT Global Chemical (PTTGC) subsidiary, has undertaken a planned shutdown at its low density polyethylene (LDPE) plant, as per Apic-online.

A Polymerupdate source in Thailand informed that the company has taken off-stream its LDPE plant on September 5, 2018. The planned shutdown is expected to remain in force for around two weeks. The plant is expected to resume operations on September 16-17, 2018.

Located at Map Ta Phut in Thailand, the plant has a production capacity of 300,000 mt/year.

As MRC informed previously, PTT started commercial operations at its new 400,000 mt/year metallocene C6 linear low density polyethylene plant at Map Ta Phut, Thailand, in the first quarter of 2018.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

Patrick D. Quarles appointed to Trecora Resources Board of Directors

MOSCOW (MRC) -- Trecora Resources, a leading provider of high purity specialty hydrocarbons and waxes, today announced that Patrick D. Quarles has been appointed as an independent director to the Board of Directors of the Company, effective September 1, 2018, as per the company's press release.

Mr. Quarles will serve as a member of both the Audit and Nominating and Governance Committees and is assuming the Board seat vacated by John R. (Dick) Townsend when Townsend was appointed Executive Vice President, Chief Manufacturing Officer of the Company in May.

Mr. Quarles brings over 25 years of experience in the petrochemical industry elevating the performance of multiple business units including sales, business management, manufacturing, supply chain and finance through development of world class teams, strategic clarity, analytical rigor, prudent cost control and commercial acumen. Most recently Mr. Quarles served as Executive Vice President and President, Acetyl Chain and Global Supply Management at Celeanese Corporation, a $6.1 billion global technology, specialty materials company. Prior to that he spent 25 years with LyondellBasell Industries and predecessor companies in roles of increasing responsibility including serving as Senior Vice President, Intermediates and Derivatives for his last six years with the company.

Mr. Quarles holds a bachelor's degree in Mechanical Engineering from Clemson University and an MBA from Northwestern University, Kellogg School of Management.

TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high purity hydrocarbons and other petrochemical manufacturing. TREC also owns and operates a leading manufacturer of specialty polyethylene waxes and provider of custom processing services located in the heart of the Petrochemical complex in Pasadena, Texas. In addition, the Company is the original developer and a 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
MRC

Louisiana refineries plan to keep running as storm shifts east

MOSCOW (MRC) -- Seven refineries in eastern Louisiana plan to continue normal operations while keeping a careful eye on Tropical Storm Gordon, whose forecast path moved eastward on Tuesday with landfall in Mississippi, reported Reuters with reference to sources familiar with plant operations.

Being west of the storm, the refineries should be on the side of Gordon producing the least rain and wind, though all of the plants have prepared for high wind and possible flooding.

At PBF Energy’s 190,000 bpd Chalmette, Louisiana, refinery, which is 72 miles (116 km) west of Biloxi, Mississippi, where Gordon is forecast to make landfall, scaffolding erected for planned maintenance has been removed until the storm ends, sources familiar with plant operations said.

No change in operations were planned at the Chalmette refinery, the sources said.

A PBF spokesman declined to discuss operations at the plant.

The Valero Energy Corp 125,000 bpd plant in Meraux, Louisiana, also plans to keep running as usual overnight and into Wednesday.

"Business as usual," said a source familiar with plant operations at the Meraux refinery.

A Valero spokeswoman did not reply to a request for comment about operations at Meraux.

Royal Dutch Shell Plc’s refineries in Convent and Norco, Louisiana, are prepared for high wind and rain, a company spokesman said.

Operations at the 502,500 bpd Exxon Mobil Corp refinery in Baton Rouge, Louisiana, were normal on Tuesday, said Exxon spokeswoman Sarah Nordin.

The company has activated its storm preparedness plan for the refinery and adjoining chemical plant, Nordin said.

Production is expected to continue normally overnight and into Wednesday at the Baton Rouge complex, said sources familiar with plant operations.

Phillips 66’s 247,000 bpd refinery in Alliance, Louisiana, was operating normally on Tuesday, a company spokesman said.

A spokesman for Marathon Petroleum Corp declined to discuss operations at the company’s at the company’s 556,000 bpd Garyville, Louisiana, refinery.

Gulf Coast market sources said they expected the Marathon refinery to keep operating.
MRC

Moodys upgrades Wanhua Chemical to Baa2; stable outlook

MOSCOW (MRC) -- Moody's Investors Service has upgraded the issuer rating of Wanhua Chemical Group Co., Ltd. to Baa2 from Baa3, said the agency.

At the same time Moody's has changed the outlook on the rating to stable from positive. "The upgrade reflects the improvement in Wanhua Chemical's market position, competitiveness and diversification followings its acquisition in August 2018 of its major shareholder -- which held 47.92% of Wanhua Chemical and 100% of BorsodChem Zrt. (BorsodChem) -- for RMB52 billion through the issuance of new shares," says Danny Chan, a Moody's Analyst.

Based on the combined annual capacity of 2.1 million tonnes, Wanhua Chemical is the largest producer of methylene diphenyl diisocyanata (MDI) globally, with an approximate 25% market share. Its revenue, EBITDA and assets for 2017 -- pro-forma for the acquisition -- would increase by 22%, 26% and 19% compared with the standalone figures, to RMB64.8 billion, RMB25.8 billion and RMB78.4 billion. This scale make it comparable with most peers in the Baa category.

"Wanhua Chemical's improved business fundamentals, diversification and strong financial profile will help it better weather cyclicality of its chemical products," adds Chan.

Specifically, BorsodChem's production capacity for toluene diisocyanate (TDI)/polyvinyl chloride of 250k/400 kilo-tonnes per annum (ktpa) will help reduce Wanhua Chemical's exposure to MDI prices. Although the company is a major MDI producer in central Europe, BorsodChem generates the majority of its income thought the manufacture of TDI, which accounted for 36.9% of its total gross profit in the first six months of 2018.

Over the past 18 months, BordsodChem has benefited from tight supply conditions in global TDI markets owing to capacity outages and project delays. As a results, its revenue and gross profit rose by 52% and 112% year-on-year to RMB13.1 billion and RMB6.0 billion in 2017.

"The upgrade also reflects our expectation that Wanhua Chemical will maintain its strong operating performance and continue to deleverage amid tight supply-demand conditions over the next 2-3 years," says Chan.

Wanhua Chemical's leverage and interest coverage remained largely unchanged following the restructuring, as the acquisition was effected through share issuance and thus did not result in any cash outlay.

Moody's expects Wanhua Chemical's leverage will decline to 0.8x-0.9x over the next 12-18 months from 1.3x in 2017 (or to 0.9x from 1.2x on a standalone basis), supported by sustained positive free cash flow and double-digit percentage growth in EBITDA. This level of leverage is appropriate for its rating level.
MRC