Alpla teams up with Henkel in USD100m expansion

MOSCOW (MRC) -- Blow moulder Alpla Inc. is working with consumer products maker Henkel to spend more than USD100m (EUR90m) to expand and improve operations at a laundry products plant in Kentucky, said the company.

Alpla will invest in infrastructure and equipment for a new bottle production area at Henkel's Bowling Green, Kentucky, campus. Dusseldorf, Germany-based Henkel owns a wide variety of well-known brands, including Persil, Purex and All laundry detergents as well as Snuggle fabric softeners, Dial soaps and Right Guard deodorants and antiperspirants.

The total value of the work, which will increase capacity and efficiency as well as cut energy costs, is more than USD130m (EUR117m), the companies said. The new packaging operation will total more than 170,000 square feet and be operated by Alpla. The packaging company will hire and manage employees at the on-site blow moulding facility.

Henkel operates its largest laundry products plant in the South Central Kentucky Industrial Park, measuring more than 2 million square feet. That's about the size of 40 football fields, the company said.

Henkel already has spent more than USD100m (EUR90m) on improvements at the Bowling Green facility, which is 25 years old. The added investment for Henkel will include improve infrastructure, equipment and information technology, or IT, systems.

"While these packaging operations will be handled by a trusted supplier with expertise in this area, Henkel will focus on its core expertise of manufacturing and marketing," Dirk Holbach, a senior vice president at Henkel, said in a statement.

Alpla said the new project in Bowling Green expands its 34-year global partnership with Henkel. The companies expect the new bottle-making operation to begin production in the middle of next year. The new project is expected to add 60 new workers for Alpla.

"Beyond Henkel's direct employment contribution and community service efforts, the investment partnership with Alpla is a prime example of how the company's supplier network, especially within the transportation and packaging sectors, further magnifies their economic impact locally," Chamber CEO Ron Bunch said in a statement.

Alpla first arrived in Bowling Green in 2013 when the company spent more than USD20m (EUR18m) to open a blow moulding plant for Sun Products Corp., a maker of laundry detergent that Henkel subsequently acquired.

Alpla Inc. is a member of Hard, Austria-based Alpla-Werke Alwin Lehner GmbH & Co. KG, which has more than 20,000 employees at 178 manufacturing sites in 46 countries.

Alpla makes bottles, closures, moulded parts and packaging systems. The company ranks No 5 among North American blow moulders, with estimated blow moulding sales in the region of USD1.1bn (EUR990m), according to Plastics News data.
MRC

MOSCOW (MRC) -- Nouryon has made a series of investments at its metal alkyls plant in Rotterdam, the Netherlands, to improve efficiency and increase capacity, said Plasticseurope.

The investment includes automating raw material handling, improving overall efficiency and safety at the site by reducing potential exposure risks, Nouryon announced 21 Aug without giving the financial details of the project.

“The Rotterdam plant has increased production capacity by more than 40% in the last three years, and this latest investment series positions us for sustained growth,” said Jeroen Jungschlager, Rotterdam plant manager.

“It will enable us to move greater volumes with improved reliability and consistency to our customers.”

Organometallics such as metal alkyls are used as co-catalysts in olefin polymerisation processes and are used to produce polyethylene, polypropylene and certain types of synthetic rubber.

Nouryon expects the upgrades to enable it to meet the growing demand from customers in the polymer industry and improve supply reliability in Europe.

The former AkzoNobel speciality chemicals business has strengthened its position in metal alkyls with the recent acquisition of Zhejiang Friend Chemical Co.

The company is the largest Chinese producer of triethyl aluminium (TEAL) – a metal alkyl used in the production of high-volume polymers, including polypropylene and polyethylene.
MRC

MOSCOW (MRC) -- With an ever-growing demand for recycled-content packaging from consumer product brand owners, the world's largest PET maker is investing at least USD1bn (EUR900m) to meet that upcoming need, said Reuters.

Indorama Ventures Public Co. Ltd. has established what it calls a separate vertical within the company's structure to combine all the company's recycling assets.

"And we've allocated a budget of USD1bn (EUR900m) to recycling so that by 2025, when the brand owners want 25% content in packaging, ILV will be able to deliver," CEO Aloke Lohia said on a recent quarterly conference call. "IVL is the largest PET company in the world. So all the brand owners are talking to us on whether we understand the importance."

"They're wanting to keep PET as a main packaging choice. We also see more plastic packaging diverting towards PET packaging. So that is good news for us. We just have to ensure that we can deliver 25% recycling content," Lohia said.

Along with the USD1bn (EUR900m) total mentioned on the conference call, the CEO told Reuters the company plans an additional USD500m (EUR451m) investment to help its customers meet 25% recycled content rate. News of Indorama's bigger push into recycling comes at a time when chemical and virgin resin companies increasingly look to get involved in that segment of the market.

Pressure from both governments and consumers are causing these large firms to take a more holistic view of market. Indorama, just earlier this year, purchased a PET recycling facility in Athens, Alabama, from Custom Polymers PET LLC. That location has a capacity to reprocess about 34,000 tonnes of material each year. The acquisition joined existing Indorama recycling facilities in Mexico, Thailand and Europe.

The company viewed acquiring the Alabama site as a launching point for its deeper involvement in recycling. Indorama is known as a virgin PET maker, but Lohia believes embracing recycling will not harm that portion of the business. That's because the move will increase the company's profile as demand for recycled-content packaging grows.

"It does not disrupt anything at the IVL front. Actually, it helps IVL gain more recognition and improve its profitability," he said on the conference call. Lohia believes container deposit rules will "become much more viable globally" and increase the number of bottles collected for recycling. That will help push recycling rates higher and provide more material for new packaging.

Indorama, based in Bangkok, Thailand, makes both feedstocks for PET and PET resin itself. The company also makes fibres as well as packaging, including preforms, bottles and closures. The company began in 1994 as the first worsted wool yarn producer in Thailand. That business, still operating, now is a niche for the plastics giant.

Indorama also recently announced the purchase of the chemical intermediates and surfactants of Huntsman Corp. in a USD2bn (EUR1.8bn) deal. The company expects to be "quiet" during the next 18 months — except for recycling assets — in terms of future acquisitions as it digests the Huntsman deal. "We'll be concentrating on M&As revolving the recycling space," Lohia said on the call.
MRC

MOSCOW (MRC) -- Sinopec Yanshan Petrochemical (part of Sinopec) has restarted its No. 1 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 August 19, 2019. The plant was shut for maintenance on July 29, 2019.

Located in Beijing, China, the plant No. 1 LDPE plant has a production capacity of 70,000 mt/year.

As MRC informed before, Sinopec Yanshan Petrochemical restarted its No. 2 LDPE plant in Beijing 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.

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

MOSCOW (MRC) -- US crude oil stockpiles fell more than expected last week with supplies at the Cushing, Oklahoma hub dropping for a seventh week, while gasoline and distillate inventories rose, reported Reuters with reference to the Energy Information Administration.

Crude inventories fell by 2.7 million barrels in the week to Aug. 16, compared with analysts’ expectations for a decrease of 1.9 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 2.5 million barrels, EIA said, the seventh consecutive weekly fall in stocks at the delivery point for US crude futures.

At 42.3 million barrels, Cushing stocks were at their lowest since February, as the startup of pipelines from the Permian region to the US Gulf Coast has reduced the number of barrels going to Cushing.

"The report was supportive with the overall crude oil inventory decline and the continuing declines at the Cushing delivery hub, which is a trend that needs to be monitored, as pipeline build out dynamics play out," said John Kilduff, partner at energy hedge fund Again Capital Management.

Crude futures were largely steady after the report. US West Texas Intermediate crude was up 21 cents to USD56.34 a barrel as of 10:49 a.m. ET (1449 GMT), while Brent crude rose 61 cents to USD60.64 a barrel.

Net US crude imports fell last week by 616,000 barrels per day, and crude production was steady at 12.3 million bpd.

Refinery crude runs rose by 400,000 bpd, EIA data showed. Refinery utilization rates rose by 1.1 percentage points to 95.9 percent of total capacity.

Gasoline stocks rose by 312,000 barrels, compared with analysts’ expectations in a Reuters poll for a 169,000-barrel gain.

Distillate stockpiles, which include diesel and heating oil, rose by 2.6 million barrels, versus expectations for a 314,000-barrel increase, the EIA data showed.
MRC