BASF investing EUR70m in US expansion

MOSCOW (MRC) -- BASF SE will proceed with the second phase of its production expansion for methylene diphenyl diisocyanate (MDI) at its Geismar chemical complex, said the company.

The expansion will double its production of MDI from 300 kilotonnes per annum (ktpa) to about 600 ktpa with the multiphase project, according to a BASF news release.

BASF will make an USD87m (EUR69m) capital investment to continue the expansion, following a USD150m (EUR133m) investment for the first phase.

The first phase is expected to be finalised in the first half of 2020, BASF said.

The second phase of the project will retain 1,238 BASF jobs at Geismar, the company's largest manufacturing site in North America. Construction is expected to start by the end of 2019, with completion scheduled for 2021. The company estimates the project will support 170 construction jobs. The MDI plant has been a central aspect of the Geismar manufacturing center for more than 30 years.

"With the development of the American market, BASF needs this investment to support the growth of our existing customers," Stefan Doerr, head of BASF's regional business unit monomers in North America, said in a statement. "The Geismar site is ideally suited for this investment thanks to the existing infrastructure, competitive raw materials and favorable business support from state and local governments."

BASF has invested more than $800m (€708m) in major capital projects in Ascension Parish, the area where the facility is located, since 2009. For the second phase, the company is expected to utilise the state's Industrial Tax Exemption Program, BASF said.

MDI is used by industrial customers to produce polyurethanes, which contribute to improved insulation for appliances, lighter materials for cars and energy efficiency in buildings. BASF operates a global production network of MDI facilities in China, South Korea, Belgium and the US.
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Kingspan buying Recticels insulation, flexible foams units

MOSCOW (MRC) -- Irish building material manufacturer Kingspan Group has made an offer to buy Recticel’s insulation and flexible foams divisions for €700m, the company announced 16 April, as per Plasticsnewseurope.

The offer is subject to approval by the board of Belgium-based Recticel and the usual regulatory officials.

“There can be no certainty that the offer to the Board of Recticel will result in an agreement being concluded or, if concluded, receiving regulatory approvals,” the Kingscourt, County Cavan-based company said.

Kingspan also said that it had entered into an exclusive back-to-back agreement with a third party for the disposal of Recticel’s flexible foams business, if the deal is completed.

The Irish group has been on the acquisition trail lately, spending over €620m for ten acquisitions over the past two years.

The largest of these deals was the acquisition, in March 2017, of the Spanish polyurethanes business, Synthesia International, Poliuretanos and Huurre, which the group said would give it a leading position in both insulated panels and insulation boards on the Iberian Peninsula.

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Bilcare expanding PETG capacity in Germany

MOSCOW (MRC) -- Bilcare Research AG is investing EUR10m in expanding PETG film production capacity at its two plants in Staufen and Botzingen in southern Germany, the company has confirmed to PNE, said Plasticsnewseurope.

Headquartered in Basel, Switzerland, Bilcare Research is a subsidiary of Indian pharmaceutical packaging research company Bilcare Ltd.

The new round of investment will go towards the expansion of Bilcare’s PETG shrink-film capacity, but will also enable the company to move into the production of PETG films for the medical device market.

“This investment will not only help us service the growth requirement of our existing shrink-film customers but also help us expand our product portfolio with PETG films for the medical device market and drive our global growth strategy forward,” said Vineet Mehrotra, CEO of Bilcare Research, in a statement 16 April.

Bilcare Research operates seven sites globally and manufactures rigid films and foils.

The company employs 1,200 people and registered annual sales of €300m last year.

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Finland’s Neste, Air BP to supply renewable jet fuel to Swedish airlines

MOSCOW (MRC) -- Neste, the world’s leading renewable products producer from wastes and residues, and Air BP, the international aviation fuel products and services supplier, have entered into an agreement to deliver sustainable aviation fuel to airline and airport customers in Sweden in 2019, said the company.

Neste and Air BP announced in 2018 their plans to explore and develop supply chain solutions for delivering sustainable aviation fuel to airports and airlines. As a next step in their collaboration Neste will combine its expertise in the production and blending of sustainable low-carbon aviation fuel with Air BP’s recognized excellence in safe, efficient and effective aviation fuel distribution solutions to jointly develop a viable supply-chain solution for sustainable aviation fuel to the Swedish market.

“I am very happy to announce that our collaboration with Air BP has taken its first concrete step, as aviation is one of our strategic growth areas. Sweden is becoming a leading country in decarbonizing aviation with its proposal to introduce a greenhouse gas reduction mandate for aviation fuel sold in Sweden. Together with Air BP we are able to support air transport in Sweden in their efforts, and this collaboration gives both of us valuable insight into developing similar supply chains to decarbonize aviation in other markets,” says Neste’s President and CEO Peter Vanacker.

Jon Platt, Air BP Chief Executive Officer added: “I am pleased that through our collaboration with Neste we will be able to offer our Swedish customers sustainable aviation fuel at a number of airports across the country in 2019. We are committed to supporting our customers, through initiatives such as this, as they work towards reducing their emissions and realising their low carbon ambitions."

Currently, sustainable aviation fuel offers the only viable alternative to fossil liquid fuels for powering commercial aircraft. The sustainable aviation fuel which Neste produces has proven its technical capability in thousands of commercial flights. It is produced from non-palm renewable and sustainable raw materials, and can reduce up-to 80% of greenhouse gas emissions over its life-cycle compared to conventional jet fuel.

Air BP has supplied sustainable aviation fuel in the Nordics since 2014 at around 10 airports, including most recently at Kalmar airport in Sweden and Oslo airport where they were the first to supply sustainable aviation fuel produced by Neste through the existing airport fuelling infrastructure, in collaboration with other key industry stakeholders.
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OOG seeks more partners, supply for USD15B refinery

MOSCOW (MRC) -- Oman’s Overseas Oil and Gas LLC (OOG) is actively looking for new partners to develop USD15 billion new refinery in Bontang, East Kalimantan, as per Hydrocarbonprocessing with reference to OOG Chairman Khalfan Al Riyami.

OOG is currently in discussion with Japan’s Cosmo Oil International, a unit of Cosmo Energy Holdings, while looking for more investors "because it is a big project", Al Riyami said.

OOG currently controls 90 percent of the project and Indonesian state energy company PT Pertamina controls 10 percent

He said the cost of the project, which consist of a refinery and petrochemical plants, is USD15 billion. Pertamina initially estimated the project cost at USD10 billion.

The company aims to decide on financing source of the project within five months, Al Riyami said. The plant is scheduled to start operation around 2025-2026.

He added that OOG is also looking for more supply of crude oil for the 300,000 bpd refinery, preferrably from national oil companies.

OOG has signed memoranda of understanding with two local companies, PT Sanurhasta Mitra Tbk dan PT Meta Epsi Tbk, to build supporting facilities in Bontang, such as power stations, pipe infrastructure and water treatment for a combined value of USD3 billion.
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