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Evonik to expand sodium methylate capacity

December 09/2019

MOSCOW (MRC) -- Evonik plans to increase its capacity for sodium methylate at its Rosario/Santa Fe facility from 60,000 metric tons up to 90,000 metric tons until 2021, said Hydrocarbonprocessing.

The expansion is driven by growing demand for biodiesel in South America, mainly Argentina and Brazil. Sodium methylate is an important catalyst for large-scale biodiesel production.

"Confirmed higher mandates in Brazil such as the biodiesel blend increase from 11% to 15% by 2023, but also the competitiveness of biodiesel exports from Argentina throughout the world drive our decision, said Marcos Salgueiro, general manager at Evoniks Functional Solutions business line in South America. This is why we continue to invest in our efficient reliable plant, which is strategically located right in the center of the Argentinean soybean and biodiesel production region."

"This investment, coupled with the ongoing expansion of our sodium methylate plant in Mobile, Alabama, demonstrates our commitment to our core market of the Americas, noted Andreas Kripzak, vice president and general manager Americas.

Alexander Weber, global head of the product line Alkoxides & Potassium Derivatives, added: This decision fits perfectly into our global strategy and strengthens further our market leadership position for alkoxides."

In addition to the increase in capacity, Evonik Functional Solutions is also investing in infrastructure and logistics improvements in South America, including expanded storage solutions in the region. These developments will ensure continuous high supply reliability to its customers.

A string of recent biodiesel production capacity additions in the region reflects the increased importance of the product in Central & South America. We are following our customers investments with our own to ensure ample future supply for this important renewable fuel, which helps to reduce emissions, said   Elias Lacerda, regional president Central & South America.

Besides Argentina and the U.S., Evonik also produces high volumes of sodium methylate in Luelsdorf, Germany, mainly for the European and Asian markets.

As MRC informed earlier, PSC TAIF-NK, a wholly owned subsidiary of TAIF Group of Kazan, Tatarstan, Russia, has let a construction-related contract to Linde Group, Munich, for two hydrogen plants at its 7 million tonnes/year Nizhnekamsk refinery. The contract is valued at about ?120 million, according to Linde.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year.  Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evoniks corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, petrochemistry, Evonik.
Category:General News
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