IRPC to invest US$800 mln to expand propylene capacity

(Plastemart) -- In a bid to meet growing demand in the region, IRPC - the polymer business arm of PTT Plc, is to invest US$800 mln to expand propylene capacity by 260,000 tons to 710,000 tpa. The expansion is a part of a five-year business plan with an investment outlay of US$2 bln to develop high-grade plastics, which offer high better margins.

US$700 mln will be invested in building three power plants under the small power producer scheme and US$500 mln will be invested in upgrade of existing facilities such as industrial land, oil pipelines and tanks. All the investments are part of IRPC's Phoenix Project which covers 19 ventures to be developed between 2010 and 2014, some of which are under construction and some pending board approval and feasibility studies.

MRC

(Azelis) -- Azelis, the leading pan-European specialty chemicals distributor, today completed the acquisition of Finkochem d.o.o., a company specialising in the sales and distribution of a wide range of raw material for the food, chemical industries (detergents and homecare), plastics additives, metallurgy and rubber.

With this strategic acquisition in Serbia, Azelis greatly reinforces its position in the region as Finkochem is the second largest distributor in the country.

Finkochem was established in 1991 by Al Metalchem Ltd Cyprus, employs 20 people, mostly in sales & marketing and is based in the centre of Belgrade. This well known company in the Serbian market services more than 300 customers from their warehouse located near Belgrade.

MRC

(ICIS) -- PetroChina has entered into a framework agreement with INEOS to form joint ventures for trading and refining activities at Grangemouth in Scotland and Lavera, France, it said on Monday.

Core to INEOS is also an agreement signed on Monday with PetroChina's ultimate parent company, China National Petroleum Corporation (CNPC) to share refining and petrochemical technology and expertise. The agreement gives INEOS the opportunity to lever its technology and expertise into the China market.

PetroChina and INEOS would work towards the formation of the proposed joint ventures by the end of June 2011, PetroChina said. No financial details were immediately available but an INEOS spokesman clarified that the agreement covered all INEOS refining and trading activities associated with the two refineries.

MRC

(ICIS) -- Asia's polyolefin markets are likely to remain turbulent in the first quarter of the year despite recent price hikes, as feedstock costs are fluctuating and future demand remains uncertain, market players said on Monday. Producers told ICIS they were also concerned about the rapid rise in crude oil and naphtha prices, which have put margins under pressure.

Nonetheless, polyethylene (PE) and polypropylene (PP) prices rose by $10-50/tonne (┬8-39/tonne) last week in China, as traders returned to the market after the New Year holidays.

High-density polyethylene (HDPE) film-grade prices were higher at $1,230-1,280/tonne CFR (cost & freight) China, while linear low-density PE (LLDPE) values were at around $1,330-1,380/tonne CFR China and low-density PE (LDPE) were at $1,680-1,740/tonne CFR China, ICIS data showed.

MRC

(ICIS) -- Eastman Chemical on Friday confirmed that it has an agreement to sell a mothballed Texas methanol and ammonia plant to a Swiss-based firm led by entrepreneur Deo Van Wijk, with the deal expected to close in the first quarter. Eastman did not disclose the terms of its pact with Pandora Methanol, a subsidiary of Janus Methanol.

Van Wijk, a former Methanex executive, said on Thursday that the agreement was signed in late December. He said the plant would begin testing in April and begin consumer production by July.

The plant will have a capacity of 850,000 tonnes/year of methanol and 250,000 tonnes/year of ammonia, he said.

In a statement, Eastman said the sale includes related ammonia tank and methanol terminal assets and a methanol pipeline in Beaumont.

MRC