HDPE production in Russia rose by 0.4% in Q1 2019

MOSCOW (MRC) -- Russia's production of high density polyethylene (HDPE) totalled 236,300 tonnes in the first three months of 2019, up by 0.4% year on year. Only two producers out of four increased their output, according to MRC's ScanPlast report.

Total HDPE output in Russia grew to 79,300 tonnes in March, whereas this figure was about 71,500 tonnes a month earlier. Stavrolen increased its capacity utilisation after February short maintenance. Thus, overall HDPE production reached 236,300 tonnes in the first quarter of 2019, compared to 235,300 tonnes a year earlier. Only Gazprom neftekhim Salavat and Kazanorgsintez raised their output.

The structure of polyethylene (PE) production by plants looked the following way over the stated period.


Kazanorgsintez's March total HDPE output virtually remained at the level of February and was 42,800 tonnes. The Kazan plant's overall HDPE production reached 137,300 tonnes in January-March 2019, up by 2.2% year on year.

Stavrolen produced 27,900 tonnes last month versus 18,200 tonnes in February, the plant shut its production capacities for a one-week turnaround in early February. The plant's overall output reached 72,900 tonnes over the stated period, down by 4% year on year.

Gazprom neftekhim Salavat reduced its capacity utilisation in March, the plant produced 8,600 tonnes last month, compared to 9,300 tonnes a month earlier. The Baskhir plant's overall HDPE output exceeded 28,700 tonnes in the first three months of 2019, up 3% year on year.

Nizhnekamskneftekhim produced exclusively linear low density polyethylene (LLDPE) over the stated period.

MRC

No. 2 LDPE plant brought on-stream by Sinopec Yanshan

MOSCOW (MRC) -- Sinopec Yanshan Petrochemical (part of Sinopec) has restarted its No. 2 low density polyethylene (LDPE) plant in Beijing, as per Apic-online.

A Polymerupdate source in China informed that the company has resumed operations at the plant on April 14, 2019. The plant was shut for maintenance on March 19, 2019.

Located in Beijing, China, the plant No. 2 LDPE plant has a production capacity of 70,000 mt/year.

As MRC informed previously, in September 2018, Sinopec Corp joined a group planning to build an oil refinery in Alberta, an enterprise that would strengthen demand for the Canadian province's heavily discounted crude. Thus, state-owned Sinopec, formally known as China Petroleum & Chemical Corp, along with an Alberta indigenous group, China State Construction Engineering Corp and Alberta management company Teedrum, plan to build a refinery to process 167,000 barrels per day of crude into gasoline and other products.

China Petroleum & Chemical Corporation or Sinopec Limited is a Chinese oil and gas company based in Beijing, China. Sinopec's business includes oil and gas exploration, refining, and marketing; production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products; storage and pipeline transportation of crude oil and natural gas; import, export and import/export agency business of crude oil, natural gas, refined oil products, petrochemicals, and other chemicals.
MRC

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.
MRC

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.

MRC

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.

MRC