Pretium Packaging acquires injection molder Olcott Plastics

MOSCOW (MRC) -- In a bid to boost its injection molding and personal care/beauty offerings, plastic container and closure maker Pretium Packaging has acquired Olcott Plastics Inc. for an undisclosed amount, said Canplastics.

The deal is also designed to allow St. Charles, Ill.-based Olcott to offer blow molded containers and a national footprint to its customers.

Founded in 1969, Olcott specializes in injection molding and decorating of single- and double-wall PP jars, as well as injection molding and lining of PP closures.

"Joining forces with Pretium is a perfect fit for the next chapter of Olcott Plastics,” Olcott co-owners Joseph and John Brodner said in a statement. “We are excited to be able to offer our customers a broader product portfolio and national footprint while continuing to provide the same level of service they are accustomed to receiving from Olcott. We believe this transaction will be beneficial to both our customers and employees."

This is the sixth acquisition by Chesterfield, Mo.-based Pretium since its 2016 purchase by San Francisco-based private equity firm Genstar Capital LLC.

Pretium manufactures approximately two billion PET and HDPE containers annually from its 17 locations across the U.S. and Canada.
MRC

Formosa experiences explosion at aromatics facility in Yunlin County

MOSCOW (MRC) -- Formosa Chemicals and Fibre Corp. (FCFC), a subsidiary of Formosa Plastics Group (FPG), experienced an explosion on 7 Apr. 2019 at its aromatics facility in Mailiao Township, Yunlin County, Taiwan, as per Apic-online with reference to several local news reports.

The explosion was caused by a cracked pipeline leaking liquefied petroleum gas. No casualties were reported.

FCFC was fined about USD162,000 by the county government due to the violation of air pollution regulations.

Separately, following the explosion, members of the legislature's Social Welfare and Environmental Hygiene Committee insisted that government agencies improve the disaster alert system and set up a national-level petrochemical disaster response center, the Taipei Times reported.

As MRC informed before, in March 2018, Formosa Petrochemical Corp (FPCC) undertook an emergency shutdown at its No. 1 cracker in Mailiao. The company halted operations at the cracker on March 19, 2018 owing to technical issues. The plant remained off-line for around one day. Located at Mailiao in Taiwan, the No. 1 cracker has an ethylene production capacity of 700,000 mt/year, propylene production capacity of 350,000 mt/year and butadiene production capacity of 109,000 mt/year.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

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