SABIC opens new caps & closures Technology and Innovation Center in the Netherlands

MOSCOW (MRC) -- SABIC, a global leader in the chemicals industry has announced the opening of its new Technology and Innovation Center dedicated to the caps and closures segment in Geleen, the Netherlands, as per the company's press release.

Located in SABIC’s Global Technology Center for Europe on the Chemelot Campus, this investment is proof of SABIC’s commitment to the industry to develop new materials and technologies focused on caps and closures.

The opening ceremony of the new facility was led by Sergi Monros, SABIC Vice President of Performance Polymers & Industry Solutions, Petrochemicals. The facility opening comes just a year after SABIC established its Caps & Closures industry segment organization.

"With our dedicated organisation, we already have a strong focus on innovation-driven solutions to meet the changing market trends that our customers within this strategic segment are demanding," says Monros. "This new state of the art facility will enable us to accelerate the pace by using market-leading materials and technologies aimed at a range of related applications – not only caps and closures, but also pumps, dispensing systems and other product delivery mechanisms for beverages, food and non-food applications."

Monros points to the growing need for creative solutions that are sustainable, cost-efficient and compliant. These solutions are coupled with the increased number of regulations governing product safety and consumer well-being. "End-users are looking for convenience too, and we are always thinking about new ways to improve functionality."

SABIC is pursuing cutting-edge technologies related to both new material development and to application testing. Polymers developed specifically for applications in this sector help enable, for example, lighter caps, and pumps and dispensing systems that are more efficient and easier to manufacture, all the while supporting customer efforts to improve overall sustainability.

"This new Caps & Closures Technology and Innovation Center will provide an environment where we can engage with our customers, strengthen our collaboration and ultimately deliver better solutions for the benefit of our consumers," concludes Monros.

The center includes facilities that allow SABIC to simulate the real-life performance of finished products. The dedicated research laboratory has equipment for testing material characteristics such as mechanical properties, dimensional stability and environmental stress cracking resistance (ESCR). Cap specimens can be produced in-house for performance testing for potential applications and for the development of improved products. There will also be capability for developing and testing new product designs.

As MRC reported earlier, SABIC Europe, an affiliate of Saudi Basic Industries Corp (SABIC), has been conducting maintenance works at its cracker No.3 at Geleen site in the Netherlands. The planned maintenance started in September and will last for around 2 months.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Canadian injection molding equipment maker Husky Injection Molding Systems Ltd. is using the K 2019 trade show to highlight its commitment to sustainable packaging solutions, said Canplastics.

As part of this, Bolton, Ont.-based Husky has signed the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment.

And at the K, Husky is highlighting a range of systems that allow for post-consumer resin in packages, including PET preform molding systems that can handle 100 per cent recycled content as well as post-consumer resin options for its multilayer technology.

Husky is also developing a new system focused on post-consumer resin that could enable customers to bring more than 60 million kgs of PET annually into the circular economy within the next two years. The system works in conjunction with equipment that purifies recycled material and eliminates intermediate steps of pelletizing and re-melting, reducing costs while ensuring package quality, Husky said.

"Enabling more recycled content in packaging, researching innovative and sustainable materials, finding more efficient production methods, reducing waste in the injection molding process; these are all factors that impact our customers as they look for ways to be more sustainable,” Joachim Niewels, Husky’s vice president of innovation and sustainability, said at the show. “At Husky, innovation is in our DNA. We endeavour to be a partner to our customers, to the industry and to the environment by continually finding new solutions that further enhance both sustainability and value."

One of Husky’s sustainable technologies being shown at K 2019 is its HyPET HPP5e. Husky is running a fully integrated HyPET HPP5e system on its booth. The system is processing 100 percent post-consumer recycled resin, producing a 12.1 gram preform on a 96-cavity mold and running a 6.2 second cycle time.

As MRC informed earlier, Husky Energy continues to make steady progress towards a return to full operations at the Superior Refinery.
MRC

MOSCOW (MRC) -- Asian petrochemicals markets are likely to remain bearish in the week ahead amid new plant startups, lackluster downstream demand and a supply glut in some of the markets, reported S&P Global.

In benzene, the impending startup of new refineries across the Asian region, namely Zhejiang Petrochemical, Hengyi Refinery and Petronas' RAPID, are expected to produce on-specification benzene by December 2019-January 2020, adding 1.54 million mt of supply to the Asian market and contributing to the weak sentiment going forward. While operations are unlikely to run at full capacities, the additional supply would displace exports at a time when US demand may be thin.

Meanwhile, the Asian styrene market is likely to be weak to stable as many participants will be away from the market, attending an industry conference in Guiyang. Bearish market sentiment is expected to persist this week unless demand picks up and bolsters prices.

Asian purified terephthalic acid prices are expected to come under pressure this week amid bearish sentiment. Even though immediate PTA demand is healthy in China, with downstream polyester producers keeping operations at a rate of around 90%, buying interest is expected to slow down soon as the traditional polyester peak season would have ended by end-October, market sources said.

Meanwhile, market participants are trading "based on expectations", especially in PTA futures listed on the Zhengzhou Commodity Exchange, which weighs on physical spot PTA prices, market sources said. In plant news, China's Yisheng Petrochemical has shut its 2.2 million mt/year No.4 unit at Ningbo over the weekend as well due to PX shortage for a couple of days, a source close to the company said Monday. Two other sources told S&P Global Platts that the duration of the shutdown is expected to last for three to four days. China's Hengli Petrochemical plans to shut its 2.2 million mt/year No.2 PTA unit at Dalian for around 10-12 days of maintenance on the October 26th, a source familiar with the matter said.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's DataScope report, Chinese bottle grade PET deliveries to Russia increased 34% in the first eight months of 2019 to 95,600 tonnes. China accounted for 90% of the total imports, compared to 85% a year earlier.
August imports of material from China decreased by 41% to 7,600 tonnes from 12,800 tonnes in July. Jiangsu Sanfangxiang, Yisheng, Wankai and Sinopec were the leading Chinese suppliersof material to the Russian market.
MRC

MOSCOW (MRC) -- China’s privately owned Bora Enterprise Group has started construction of a US2.5 billion petrochemicals plant in northeast China, with the steam cracker being due for start-up by mid-2020, reported HellenicShippingNews with reference to company sources.

The steam cracker marks the biggest investment yet in petrochemicals by one of China’s private refiners as the country’s so-called "teapots" look to diversify away from the saturated local fuel market.

Bora and LyondellBasell last month signed a preliminary agreement to set up a 50-50 joint venture for petrochemical projects, and are currently in talks to finalise the deal, said two Bora sources and an official at LyondellBasell.

The 18 billion yuan USD2.5 billion) complex in the city of Panjin, Liaoning province, will produce 800,000 tonnes per year (tpy) of polyethylene and 600,000 tpy of polypropylene, used to make products ranging from pipes and plastic containers to agricultural films, the sources said.

Bora is one of more than 40 independent Chinese refiners that have grown rapidly since late 2015 to account for a fifth of China’s total crude oil imports, but which are now facing threats to their survival.

Demand for gasoline and diesel in the country is slipping, while the start-up of mammoth, more efficient refineries like Hengli Petrochemical and Zhejiang Petrochemical has led to a growing supply glut.

Many are now scrambling to enter the higher margin petrochemicals sector, where China is expected to account for around 40% of global demand growth over the next decade.

Bora, which operates a 140,000 barrels per day refinery and is also a bitumen producer, was among the first to respond.

The USD2.5 billion plant was approved in 2017 by the Liaoning provincial government as a key industrial project, while Bora in June secured a 10-year, 10.8 billion yuan (USD1.5 billion) syndicated loan from Chinese banks, two company sources with direct knowledge of the matter said.

The new facilities are slated for start-up in the second quarter next year, said the two sources.

A Bora spokesperson declined comment.

“By combining the project management and construction proficiency of Bora with LyondellBasell’s technology and commercial experience, this joint venture will leverage the expertise of both companies,” Veronica Adamcik, a Houston-based spokeswoman for LyondellBasell, told Reuters.

LyondellBasell already invests in several chemical plants in China, including a joint venture with a unit of state refiner Sinopec Corp.

The Panjin complex, which LyondellBasell said is led by a 1.1 million tpy ethylene unit, will source 1.64 million tonnes of feedstock such as naphtha from the Bora refinery, but will need to procure another 1.1 million tonnes of propane or butane from the market, Bora sources said.

As MRC wrote previously, in August 2016, LyondellBasell made the final investment decision to build a high density polyethylene (HDPE) plant on the US Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The start-up of the new plant is scheduled for 2019.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- China's Hengli Petrochemical plans to shut its No.2 purified terephthalic acid (PTA) unit at Dalian for a turnaround on 26 October, reported S&P Global with reference to a source familiar with the matter.

The line with a production capacity of 2.2 million mt/year is expected to be off-stream for around 10-12 days of maintenance.

The company also operates two other PTA lines with the same production capacity at the site in Dalian.

As MRC wrote previously, in May 2018, INVISTA’s technology and licensing group, INVISTA Performance Technologies (IPT), and Hengli Petrochemical (Dalian) Co.,Ltd. (Hengli) reached an agreement to license INVISTA’s latest purified terephthalic acid (PTA) process technology for Hengli’s fourth PTA line. Hengli’s first three PTA lines, the first of which began operation in 2012, also utilize INVISTA’s technology and have a combined capacity of 6.6 million metric tonnes per year. The fourth line will have a design capacity of 2.5 million metric tonnes per year and will be installed at Changxing Island, Liaoning Province of China.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's DataScope report, Chinese bottle grade PET deliveries to Russia increased 34% in the first eight months of 2019 to 95,600 tonnes. China accounted for 90% of the total imports, compared to 85% a year earlier.
August imports of material from China decreased by 41% to 7,600 tonnes from 12,800 tonnes in July. Jiangsu Sanfangxiang, Yisheng, Wankai and Sinopec were the leading Chinese suppliersof material to the Russian market.
MRC