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

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

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

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) is likely to take its No. 2 cracker off-stream for a maintenance turnaround, as per CommoPlast.

This cracker is expected to be taken off-line in the middle of January 2020. The planned maintenance is likely to remain in force for around 35 days.

Located at Map Ta Phut in Thailand, the cracker has an ethylene production capacity of 400,000 mt/year and a propylene production capacity of 50,000 mt/year.

As MRC informed earlier, PTTGC also plans to conducted a 40-day turnaround at its No. 1 cracker in Map Ta Phut from late January 2020.

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

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- PTT Global Chemical (PTTGC) is likely to take its No.1 cracker off-stream for a maintenance turnaround, as per CommoPlast.

This cracker is expected to be taken off-line in late January 2020. The planned maintenance is likely to remain in force for around 40 days.

Located at Map Ta Phut in Thailand, the cracker has an ethylene production capacity of 515,000 mt/year and a propylene production capacity of 310,000 mt/year.

As MRC wrote earlier, in 2018, PTTGC conducted a 40-day turnaround at its No. 1 cracker in Map Ta Phut from early September.

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

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC