Mitsui Chemicals working on commercialisation bio-PP

MOSCOW (MRC) -- Mitsui Chemicals, Inc. is collaborating with Kaisei Inc. on a project aimed at the development of bio-PP at commercial scale. The project has been adopted by Japan's Ministry of the Environment as part of its plans for a carbon-free society ambition, reported BioplasticsMagazine.

Mitsui Chemicals' bio-PP pilot project will aid in the country’s effort to reduce greenhouse gas emissions.

The Ministry of the Environment is further supporting a carbon-free society by accelerating the construction of resource recycling systems for plastics and other materials. This project will run trials for switching to renewable resources as a substitute for petroleum-derived plastics as well as for building recycling processes for plastics and other materials.

Mitsui Chemicals will therefore be conducting the world's first bio-PP industrialization demonstration test. This will involve conducting numerous and varied evaluations of technologies, quality, economic efficiency, and environmental impact such as GHG reduction. After solving these issues, Mitsui Chemicals Group will consider commercializing the production of bio-PP. Production, said the company, will start in 2024 at the earliest. The project will be part of the expansion of the company’s so-called Blue Value products , or environmental contribution value products, based on its climate change policy and plastic strategies. In 2015, Mitsui developed the environmental contribution value, Blue Value, to achieve its goal of realizing a "cohesive society in harmony with the environment". Under the unique environmental impact assessment criteria Blue Value Index, the Mitsui Chemicals Group certifies products and services as having Blue Value that are deemed to reduce CO2, protect resources, and harmonize with nature, thereby contributing to the environment in three elements.

"We aim to commercialize bio-PP, which has yet to be produced from biomass unlike other major resins We will build a circular model throughout the manufacturing supply chain to significantly reduce CO2 emissions," the company announced in a statement released 26 September.

Polypropylene has a wide range of applications, spanning automobile-parts to medical care products, home appliances, housing and food products, and accounts for more than 20 percent of the plastic produced in Japan. However, due to technical difficulties, production of polypropylene from biomass has not been established at the industrial level.

Conventional plastics are produced from fossil resources that have been stored underground for mhundreds of millions of years, while bioplastics are primarily derived from plants. Since plants absorb CO2 from the atmosphere to grow, they offer a more effective way to reduce CO2 emissions, thus helping to mitigate global warming. Bio-PP derived from plants is a product expected to contribute to a more sustainable society.

The new production route towards commercialization involves the fermentation of various type of biomass - mainly non-edible plants - to produce isopropanol (IPA), which is then dehydrated to obtain propylene in a first-of-its-kind IPA method. Compared to other biomass production approaches studied by other companies thus far, this could prove to be a more cost-effective way to manufacture bio-PP.

Kaisei Inc. will cultivate biomass raw materials used by Mitsui Chemicals, collect wastes generated from biomass raw materials, and supply electricity to manufacturing facilities and manufactures fertilizers through its effective use. By collaborating with Kaisei Inc., Mitsui Chemicals aims to contribute to society through environmentally friendly action with a circular model that leverages the supply chain.

As MRC informed before, Mitsui Chemicals restarted its naphtha cracker in Japan on 11-12 May, 2019, following an unplanned outage. The cracker was shut in end-April, 2019 owing to power failure. Located at Chiba in Japan, the cracker has an ethylene capacity of 600,000 mt/year and propylene capacity of 331,000 mt/year.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

LANXESS signs €1bn GHG-linked credit facility

MOSCOW (MRC) -- LANXESS has signed a EUR1bn "sustainable" revolving credit facility, said the company.

The facility’s terms depend partly on LANXESS’ successful reduction of its greenhouse gas (GHG) emissions. The terms are also linked to the increase in the proportion of women on the company’s top three management levels.

The sustainable credit facility has an initial term of five years, with two options for one-year extensions. It replaces a syndicated loan of EUR1.25bn expiring in May 2023.

"We are convinced that sustainable criteria are also becoming increasingly important for the capital markets,” said chief financial officer (CFO) Michael Pontzen. Last month, LANXESS announced that it will go "climate neutral" and eliminate its greenhouse gas emissions of currently around 3.2m tonnes/year of carbon dioxide (CO2) by 2040.

The credit facility was coordinated by Deutsche Bank and UniCredit.

As MRC informed earlier, LANXESS envisages an extensive range of potential applications for blow-molded components made from technical plastics in automobiles.

LANXESS is a leading specialty chemicals company with sales of EUR 7.2 billion in 2018. The company currently has about 15,500 employees in 33 countries and is represented at 60 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.
MRC

BASF-YPC to take off-stream naphtha cracker in Jiangsu for turnaround

MOSCOW (MRC) -- BASF-YPC, a 50-50 joint venture of BASF and Sinopec, is likely to undertake a planned shutdown its naphtha cracker in April 2020, according to Apic-online.

A Polymerupdate source in China informed that the company has planned to start turnaround at the cracker on April 5, 2020. The plant is expected to remain under maintenance for around two months.

Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

As MRC wrote previously, in 2018, BASF-YPC conducted three-week maintenance works at its naphtha cracker in China until May 9, 2018, when the cracker restarted. Located in Nanjing, China, the cracker has an ethylene capacity of 740,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

BASF is the world's leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.

Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.
MRC

Solvay and SGL Carbon collaborate to develop highly-competitive advanced carbon fiber composites

MOSCOW (MRC) -- Solvay and SGL Carbon have entered into a joint development agreement (JDA) to bring to market the first composite materials based on large-tow intermediate modulus (IM) carbon fiber, said the producer.

These materials, which address the need to reduce costs and CO2 emissions, and improve the production process and fuel efficiency of next-generation commercial aircraft, will be based on SGL Carbon’s large-tow IM carbon fiber and Solvay’s primary structure resin systems.

The agreement encompasses both thermoset and thermoplastic composite technologies. It builds on Solvay’s leadership in supplying advanced materials to the aerospace industry and SGL Carbon’s expertise in high-volume carbon fiber manufacturing.

"For Solvay, this is an opportunity to lead the aerospace adoption of a composite material based on 50K IM carbon fiber. This is a highly competitive value proposition that brings more affordable high-performance solutions to our customers. We see this as the first step in a long-term partnership," said Augusto Di Donfrancesco, member of Solvay’s executive committee.

"By combining SGL’s carbon fiber expertise in our newly developed, unique 50K IM fiber with Solvay’s resin formulation and aerospace market expertise, both partners are aiming to develop an advanced aerospace material system. This alliance supports our strategic direction and accelerates our growth in the attractive aerospace market," said Dr. Michael Majerus, spokesman of the management board of SGL Carbon.

Composite materials for aerospace applications represent a multi-billion-dollar market that is expected to grow strongly in the coming decade. Solvay and SGL Carbon are uniquely positioned to develop solutions to address the needs of this market.

As MRC informed earlier, Solvay announces that its subsidiary Solvay Finance SA will exercise its first call option on its EUR700 million hybrid bond after having notified the Luxembourg Stock Exchange where the bond is listed. This perpetual deeply subordinated bond, bearing an annual interest rate of 4.199%, is treated as equity under IFRS rules. Its repayment is due on May 12, 2019 at the end of the first 5.5 years.

Solvay is an advanced materials and specialty chemicals company, committed to developing chemistry that addresses key societal challenges. Solvay innovates and partners with customers worldwide in many diverse end-markets. Its products are used in planes, cars, batteries, smart and medical devices, as well as in mineral and oil and gas extraction, enhancing efficiency and sustainability. Its lightweighting materials promote cleaner mobility, its formulations optimize the use of resources, and its performance chemicals improve air and water quality. Solvay is headquartered in Brussels with around 24,500 employees in 61 countries. Net sales were EUR10.3 billion in 2018, with 90% from activities where Solvay ranks among the world’s top 3 leaders, resulting in an EBITDA margin of 22%.
MRC

Alpek deal marks turnaround on debt

MOSCOW (MRC) -- Alpek has finalized the sale of two co-generation plants in Mexico to ContourGlobal for USD801mn in what is the latest move by the Mexican plastics and polyester maker to shed assets and shore up its balance sheet, as per Bnamericas.

Alpek is the petrochemical business of Mexican industrial conglomerate Alfa. "This transaction represents the largest divestment in our history," Alpek CEO Jose de Jesus Valdez said in a conference call.

The company estimates it made USD40mn from the co-generation plants in 2019. One is in Cosoleacaque, Veracruz, and the other in Altamira, Tamaulipas state.

The companies reached an initial agreement on the sale early this year.

ContourGlobal, a UK-based power company with nearly 4,100MW of capacity across Europe, Latin America and sub-Saharan Africa, took over operations at both Cosoleacaque and Altamira on November 25. Despite the sale, Alpek and its parent Alfa will remain large customers of the plants.

"We consume all of the steam at the co-generation plant, and about 35% of power generation of the plant, so we’re an important buyer," Valdez said. The purchase power contract extends for 11.5 years.

Also, Alpek is starting talks with ContourGlobal to move the two plants toward zero emissions output.

The sale comes as the global petrochemicals sector absorbs the impact of successive tariff escalations between the US and China. The spat has seen demand for production move to Mexico as a third-party producer.

As MRC informed earlier, Alpek has signed a deal to fully acquire a British plant from Lotte Chemical UK Limited. The plant, a unit of South Korea’s Lotte Chemical, has the capacity to produce 350,000 tonnes of polyethylene terephthalate (PET) per year and is located at Wilton, Teesside.

According to MRC's ScanPlast report, Russia's estimated PET consumption dropped in September 2019 by 10% year on year, totalling 58,210 tonnes. Overall, 551,320 tonnes of PET was processed in Russia in the first nine months of 2019, up 9% year on year.
MRC