Nestle to invest USD2.1bn in virgin-to-recycled polymer packaging shift

MOSCOW (MRC) -- Nestle is to invest up to Swiss francs (Swfr) 2bn (USD2.1bn) to shift packaging production from virgin to recycled polymers over the next five years, the the producer.

The company is to source up to 2m tonnes of food-grade recycled plastics and has allocated Swfr1.5bn up to 2025 to pay a premium for those materials as part of a drive to create a viable market for those products. The company will seek operational efficiencies to keep the process revenue neutral.

Nestle will use Swfr250m of the funding to set up a venture capital fund to back start-ups developing new packaging materials, refill systems and recycling solutions. Nestle has committed to making 100% of its packaging recyclable or reusable by 2025.

"In addition to minimising plastics use and collecting waste, we want to close the loop and make more plastics infinitely recyclable," said Nestle CEO Mark Schneider.

The company did not disclose what proportions of different plastic grades it would be investing in sourcing.

Packaging innovation, including new materials, refill systems and recycling solutions, is another key challenge on the path towards a waste-free future. In addition to its significant inhouse research through the Nestle Institute of Packaging Sciences, the company will launch a CHF 250 million sustainable packaging venture fund to invest in start-up companies that focus on these areas.

These two initiatives come in addition to Nestle’s major ongoing efforts in research, sourcing and manufacturing to make its packaging recyclable or reusable and contribute to its goal to achieve zero net greenhouse gas emissions by 2050. As part of the company’s packaging commitment and to increase transparency, Nestle will continue to outline further initiatives and provide regular progress updates.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

Firefighters tackle blaze at Ineos Grangemouth petrochemical plant

MOSCOW (MRC) -- Firefighters have been tackling a large blaze in the dock area of the Grangemouth petrochemical plant, reported BBC.

The emergency services were called to the plant shortly after 10:45.

Three appliances from Scottish Fire and Rescue are attending the incident in the grounds of the Ineos site.

Police Scotland said the fire had been isolated to the dock area and there were no reported injuries or risks to local residents.

As MRC informed earlier, in 2017, petrochemical giant Ineos unveiled plans to increase the ethylene capacity of its cracker facilities at Grangemouth in Scotland and Rafnes in Norway to over 1 million tonnes each. The company produced then nearly 4.5 million tonnes of ethylene and propylene annually across Europe, but remained the largest buyer of ethylene and propylene in the region.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

Zhejiang Petrochemical starts up new HDPE plant in China

MOSCOW (MRC) -- Zhejiang Petrochemical Co Ltd (ZPC) has successfully started up its high density polyethylene (HDPE) plant since last week, reported CommoPlast with reference to market sources.

Based in Zhejiang, China, the petrochemical complex consists of 450,000 tosn/year of HDPE, 400,000 tons/year of linear low density polyethylene (LLDPE) and two polypropylene (PP) plants with combined production capacity of 900,000 tons/year.

As MRC informed before, on 30 December 2019, Zhejiang Petrochemical Co Ltd started up its ethylene cracker. Based in Zhejiang, China, the cracker is able to produce 1.4 million tons/year of ethylene.

According to MRC's ScanPlast report, November estimated HDPE consumption in Russia rose to 84,460 tonnes from 55,990 tonnes a month earlier. Russian producers raised their output after the shutdowns for maintenance in October, imports also increased. Russia's estimated HDPE consumption totalled 1,002,590 tonnes in January-November 2019, up by 3% year on year. HDPE imports grew by 42%, whereas production dropped by 9% due to a long period of maintenance works at three production capacities.
MRC

Shintech to start up its new cracker in Louisiana in late January-February 2020

MOSCOW (MRC) -- Shintech's new 500,000 mt/year cracker is expected to start up this month or February after more than a year of delays, reported S&P Global with reference to sources familiar with the company operations.

It will be the eighth new cracker after Formosa's one to come online in the first wave of petrochemical infrastructure to emerge from the US natural gas shale boom that unearthed cheap ethane feedstock.

All told, the eight crackers starting up since 2017 will bring more than 9.7 million mt/year of new ethylene capacity online. A second wave of new cracker capacity under construction or planned beyond 2020 will add at least 8.8 million mt/year of output, though Saudi Aramco's Motiva Enterprises has not disclosed the capacity of a new cracker planned near its 603,000 b/d refinery in Port Arthur, Texas.

As MRC wrote previously, originally, Shintech's cracker was slated to start up in summer 2018, Shintech delayed that milestone to December 2018, then to the first half of last year, and again to December 2018.

The cracker will expand Shintech's in-house feedstock output and reduce ethylene purchases from other producers. Ethylene from the company's new cracker will be sent as feedstock to Shintech's polyvinyl chloride (PVC) production at the same site.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

Hyundai Chem lets contract to Daelim for heavy feed petrochemical complex in Daesan

MOSCOW (MRC) -- Daelim has been recently awarded a contract by Hyundai Chemical, a joint venture of Hyundai Oilbank and Lotte Chemical, for a heavy feed petrochemical complex being built in Daesan, South Korea, as per Apic-online.

The project, scheduled to be completed in 2021, will include the production of 300,000 t/y each of low-density polyethylene (LDPE) and high-density polyethylene (HDPE), as well as 250,000 t/y of polypropylene (PP).

Daelim's contract, valued at KRW 535.4-billion, in-volves responsibility for design, materials and equip-ment, procurement and construction.

LyondellBasell's Lupotech T process technology will be used for the LDPE plant. The HDPE and PP unit will utilize Univation Technologies' Unipol PE technology and W. R. Grace & Co.'s Unipol PP technology, respectively.

As MRC wrote before, in February 2019, Saudi Aramco with its partner Total has announced the signing of a Memorandum of Understanding (MoU) with Daelim, a South Korean petrochemical company. Under the MoU, Daelim is planning to build a new 80,000 tons state-of-the-art Polyisobutylene (PIB) plant, which is expected to come on-stream in 2024. This agreement is another step to drive Saudi Aramco’s petrochemicals growth strategy. This follows Saudi Aramco’s announcement in October 2018 to launch an engineering study to build a large petrochemical complex in Jubail.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC