Arlanxeo to increase prices for its Keltan (EPDM) products

MOSCOW (MRC) -- Arlanxeo, a global leader in performance elastomers, raises its prices for ethylene-propylene- diene rubber grades (EPDM), as per the company's press release.

Thus, prices for the mentioned above product increases as follows:

- In Europe, Middle East and Africa effective as of September 18, 2018 up to 100 euro per metric ton.
- In Latin America effective as of October 1st, 2018 up to 120 USD per metric ton.
- In North America effective as of October 18, 2018 up to 0,05 USD c/lb.

Arlanxeo distributes EPDM under the brand name Keltan.

EPDM products are used in applications like automotive, building & construction, plastics modification, consumer goods, cable & wire, and tubes.

As MRC wrote previously, in September 2017, Arlanxeo presented its solutions from the TSR business unit for the first time. Thanks to its good adhesion, aging resistance and low air permeability, the product X_Butyl is the ideal polymer for numerous adhesive applications, such as transparent adhesive tapes, sealants for double glazing, high-quality hot melt pressure-sensitive adhesives, vinyl floor adhesives and even sealants for roofing membranes. X_Butyl is also used for self-fluxing, semiconducting electrical splicing tapes, thereby avoiding the need for separate layers of adhesives.

Arlanxeo was established in April 2016 as a joint venture of Lanxess - a world-leading specialty chemicals company based in Cologne, Germany - and Saudi Aramco - a major global energy and chemicals enterprise headquartered in Dhahran, Saudi Arabia. The two partners each hold a 50-percent interest in the joint venture. The business operations of Arlanxeo are assigned to the High Performance Elastomers and Tire & Specialty Rubbers business units.
MRC

Brazils BRF sees rising competition for corn from ethanol makers

MOSCOW (MRC) - Brazil’s largest poultry processor BRF SA has seen rising competition for corn supplies in the country’s center-west region coming from plants producing corn-based ethanol, Chief Executive Pedro Parente said, as per Reuters.

The executive said the new situation posed a challenge for the company regarding securing raw material for feed at reasonable cost. Corn-based ethanol is a relatively new trend in Brazil, but has been developing quickly in center-west states such as Mato Grosso due to the ample supplies of the cereal.

"We have seen an increase in consumption of corn by ethanol makers in Mato Grosso and Goias, they became a relevant corn user,” said Parente at a presentation in a seminar organized by broker and analyst INTL FCStone in Sao Paulo.

The BRF CEO estimated that ethanol makers were already using between 10 and 15 percent of the supplies in those states, where the meatpacker has processing plants and operates with associated chicken and pork growers.

Brazil is the world’s second-largest ethanol producer behind the United States, but traditionally produces the fuel from sugarcane. New investments in the center-west, however, are increasing the share of ethanol made from corn in total volumes.

BRF’s Chief Financial Officer Elcio Ito said the company has started to add DDGs (dried distiller grain), the byproduct from corn-based ethanol, which is rich in protein, as an alternative ingredient for feed.

He said DDGs compete with soymeal in cost in the areas where corn ethanol plants operate, so BRF buys the DDGs when they are cheaper than soymeal and depending on the type of feed they need to produce.

BRF is struggling to overcome a ban imposed by the European Union due to food quality issues. Parente said the company currently has high stocks of chicken breasts, the product it used to widely export to Europe, as a result of the ban.

The CEO said the firm is selling the breasts at some selected markets at lower prices, to reduce the stocks.
MRC

Brenntag to distribute two product lines from Umicore in the USA and Canada

MOSCOW (MRC) -- Brenntag North America, Inc., part of the Brenntag Group, has been appointed as the exclusive distributor of Valirex catalysts for unsaturated polyester resins (UPR) and Valikat catalysts for polyurethanes from Umicore Specialty Materials Brugge NV in the USA and Canada, as per GV.

"The Umicore UPR & PU catalyst product lines are an exciting addition to our ACES (Adhesives, Coatings, Elastomers, Sealants) portfolio," said Ted Davlantes, ACES Director for Brenntag North America. "Distributing these products in North America will enable our team of technical sales professionals to meet the demands of new product development and the challenges of new regulations."

New catalysts include:

- Valirex Co: accelerators for UPR based on cobalt, available in concentrations between 1 % and 21 %, and a variety of solvents such as white spirit, xylene, TXIB, and DINP;
- Valirex K15 DEG: booster for cobalt accelerators in UPR;
- Valirex Cu 8 D60: exotherm peak reducer for UPR curing;
- Valikat Bi, Valikat Zn, and Valikat ZB: catalysts based on bismuth and zinc for polyurethanes, replacing tin and mercury-based catalysts, which are available in multiple concentrations;
- Valikat DCC: delayed cure catalysts for polyurethane, mimicking the effect of mercury.

"Umicore has realized a tremendous growth in its sales of catalysts for PU and UPR within the past five years, taking clear market leadership in its product range in Europe. It is a logical step to expand our geographical footprint toward North America, and we believe Brenntag is the best possible collaborator to make a success story out of it," said Jensen Verhelle, Business Line Manager Carboxylates at Umicore.

Umicore’s manufacturing and R&D is located in Bruges, Belgium, and supplies catalysts for a variety of industries, including paints and coatings, inks, adhesives, sealants, elastomers, insulating materials, PU flexible foam, artificial stone, and gel coats.

As MRC reported earlier, Brenntag, the global market leader in chemical distribution, has started to distribute the cellulosic additive and latex powder portfolio of Dow Construction Chemicals in Germany and Austria since February 1, 2014.

Brenntag is the global market leader in full-line chemical distribution. Linking chemical manufacturers and chemical users, Brenntag provides business-to-business distribution solutions for industrial and specialty chemicals globally. The value-added services include just-in-time delivery, product mixing, formulation, repackaging, inventory management, drum return handling as well as extensive technical support. Headquartered in Mulheim an der Ruhr, Germany, the company operates a global network with more than 400 locations in 70 countries.
MRC

USD380M phase 2 expansion of Jurong Island plant complete

MOSCOW (MRC) -- Afton Chemical Corporation, a global leader in the lubricant and fuel additive market, today announced the completion of the Phase II expansion of its Chemical Additive Manufacturing Facility in Jurong Island, Singapore, said Hydrocarbonprocessing.

This milestone was marked by a special visit from Singapore’s Minister for Trade & Industry Mr. Chan Chun Sing, who also made a speech and toured the facility.

As a wholly owned subsidiary of NewMarket Corporation (NYSE: NEU), Afton has been a leading player in the lubricant and fuel additive marketplace for over 90 years. The company was founded on a Passion for Solutions® and has maintained a focus on customizing commercial and industrial solutions that meet customer needs.

Afton begun its Singapore manufacturing operations in May 2016, when it announced the Phase I opening of its Jurong Island plant. Phase II’s investment of USD222 million is more than Phase I’s initial investment of USD158 million, bringing the total investment in Singapore to USD380 million.

"This facility was key to Afton’s plans to ensure that our products are ‘Made in Asia for Asia’. Our Jurong Island plant now has the full capability to produce core engine oil additives that we need for the Asia Pacific region,” commented Gina Harm, Afton Chemical’s President. “We are also proud to say that we are investing in advanced technologies that will contribute towards longer term goals of reducing carbon emissions," said Harm.

Phase II’s expansion kickstarts production of advanced ashless dispersants and anti-wear components. All are critical components in several of Afton’s products, and will help passenger vehicles and commercial vehicles meet performance standards of the future. The latest expansion also enhances the support network in Asia Pacific, which already has established R&D innovation centers in Suzhou, China and Tsukuba, Japan.

"We continue to invest in Singapore because we see it as the central hub of the region. It has a strong record of safety, security and integration – conditions we value. Furthermore, there is a strong talent pool and retention is very positive. From a manufacturing perspective, Singapore is the perfect place to distribute not only to ASEAN but also China. For the three major demand clusters in China, it only takes 20 days to deliver to and from Singapore,” added Sean Spencer, Afton Chemical Asia’s Vice President. “Essentially, we are improving customer satisfaction with shorter lead times and enhanced security of supply."

This expansion will increase Afton’s workforce in Singapore by 123%. The facility will house state-of-the-art equipment and will be the first plant in the Afton family to offer integrated management systems and automated full traceability. It will occupy approximately 45,500sqm in land area and will continue production of key components used in engine oil additive packages such as ZDDP Antiwear, Ashless Dispersants and Sulfonate Detergents.
MRC

Evonik and Wynca to form fumed silica joint venture in China

MOSCOW (MRC) -- Evonik Industries and the Chinese company Wynca have agreed to form the joint venture company Evonik Wynca (Zhenjiang) Silicon Material Co., Ltd. for the production of fumed silica under the Aerosil brand, according to GV.

The new company, in which Evonik will hold 60 %, plans to build a fumed silica production facility in the Zhenjiang New Material Industry Park, Jiangsu Province, China, investing an amount in the mid double-digit million Euro range. The facility, with a projected annual output of 8,000 t, is scheduled to become operational in 2021. The overall project still requires the approval of the relevant corporate bodies and the competent authorities.

According to Evonik, the global market for fumed silica is growing at around 5 % annually, showing stronger growth than the global economy. Key drivers for the fumed silica market in China include the silicone industry for adhesives and sealants in buildings and cars as well as gel batteries such as those used in electric bikes. The joint venture will supplement Evonik's global network of Aerosil production facilities, while Wynca plans to further expand its business with silicon-based products, using the benefits of a shared approach.

"With the joint venture, we are consistently continuing to strengthen our Resource Efficiency segment. Following the acquisition of the Huber silica business and the associated expansion of our precipitated silica capacities as well as the growth of our fumed silica capacities in Antwerp, we are now taking the next step with the first fumed silica plant in the attractive Chinese market. Wynca is a strong partner to do this and we look forward to the future cooperation", said Harald Schwager, Deputy Chairman of the Executive Board of Evonik Industries.

Based on synthesised organic silicon monomers, Wynca has formed a complete organic silicon industry chain from smelting cores, ganister sand processing, monomer synthesis to the final products, generating the four large product series of silicone rubber, silicone oil, silicone resin, and silane coupling agent, and becoming an organic silicon company covering the full industry value chain. “The cooperation with Evonik is a good opportunity for Wynca to realise its strategy of moving towards end products and its mission of creating better living with green chemistry. We are committed to serve the society and mankind by developing the company with circular economy, and in a resource-efficient and environmentally friendly manner,” said Jianhua Wu, Chairman of the Wynca Group.

Wynca is expanding its capacity for organochloro-silanes, which is a raw material used in the production of Aerosil, to 300 kt/y. A small part of this capacity expansion will supply the joint venture. Tao Wei, Vice President of Wynca Group, said: "The joint venture plant will further improve the integrated production structure of Wynca Zhengjiang Site. Evonik's leading fumed silica technology will be introduced into the joint venture. All the intermediate products, like monomethyltrichlorosilane, chlorosilane from Wynca and by-product of hydrochloric acid from JV, will be fully utilized, achieving perfect resource recycling of Wynca Zhenjiang Site and synergies from organic silicon monomer, chlorosilane and fumed silica production."

"The production site for silica in China will enable us to supply our high-quality products to the growing Asian market with significantly shorter transport routes," said Johannes Ohmer, member of the Board of Management of Evonik Resource Efficiency GmbH. "Asia, especially China is a key growth region for Evonik. The new joint venture proves that Evonik is committed to grow our business in China by continuous investment and cooperation with local partners," added Claas Klasen, President of Evonik’s Asia Pacific North region.

In addition to the fumed silica Aerosil and the precipitated silicas Ultrasil, Sipernat, Zeodent and Spherilex, Evonik also produces silica-based matting agents under the brand Acematt and other fumed metal oxides under the brand Aeroxide. Overall, Evonik has a global production capacity for all silica-based products of about 1 million t/y.

As MRC informed previously, half a year after the announcement of the 2030 strategy, MOL Group has reached an important milestone in its industrial transformational journey. The license agreements signed with Evonik and thyssenkrupp in August 2017, will enable MOL to produce propylene oxide, a key component for the production of polyether polyols. MOL intends to become a significant producer of polyether polyols, high-value intermediates for products applied in the automotive, packaging and furniture industries.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-orientated innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. Evonik is active in over 100 countries around the world with more than 36,000 employees. In fiscal 2017, the enterprise generated sales of EUR14.4 billion and an operating profit (adjusted EBITDA) of EUR2.36 billion.
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