Hengli Petrochemical to start up its new No. 5 PTA line in Dalian in late June-early July

MOSCOW (MRC) -- Hengli Petrochemical's new No. 5 purified terephthalic acid (PTA) line located on Changxing Island, Dalian City, Liaoning Province, China, is expected to come online in end-June or early-July, reported S&P Global.

The new line's production capacity will be 2.5 million tonnes per year.

As MRC reported earlier, Hengli Petrochemical (Dalian) Co. reached full rate at its No. 4 PTA line in Dalian City in mid-March, 2020. The 2.5-million-t/y PTA line, which came online in January 2020, utilizes Invista's P8 PTA technology. The line also produces benzoic acid, using Invista's RP2PR technology.

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.

As per MRC's ScanPlast report, April total estimated PET consumption in Russia virtually did not change year on year, totalling 60,840 tonnes (in April 2019 - 60,980 tonnes). 235,160 tonnes of PET chips were processed in Russia in January-April 2020.

Hengli Petrochemical Co., Ltd. manufactures chemical fibers. The Company researches, produces, and sells polyester filament and chips for consumer and industry products. Hengli Petrochemical markets it products worldwide.
MRC

MOSCOW (MRC) -- Zhejiang Petrochemical Co Ltd is on track to start their new acrylonitrile (ACN) plant plant this week, reported S&P Global.

Based in Zhejiang, China, this plant is able to produce 260,000 tons/year of ACN. Initially, the company planned to begin operations at this production in early May, but then postponed the start to the second half of May. Zhejiang Petrochemical last announced mid-June to be the start.

As MRC informed earlier, Zhejiang Petrochemical Co Ltd started up its ethylene cracker in late December 2019 and its polyolefin plants in late December 2019-January 2020.

Market sources reported then that one of its polypropylene (PP) plant with capacity of 450,000 tons/year started up by 30 December 2019, followed by another line with same capacity by 15 January 2020.

Meanwhile its 450,000 tons/year of linear low density polyethylene (LLDPE) and 300,000 tons/year of high density polyethylene (HDPE) were launched around similar time with PP plants.

ACN is the main feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to MRC's DataScope report, overall ABS imports to the Russian market increased in the first four months of 2020 by 5% year on year to 10,900 tonnes. This figure was at 10,400 tonnes in January-April 2019. April imports of material to the Russian Federation rose by 5% to 3,300 tonnes from 3,100 tonnes a year earlier. March ABS imports into the country were 2,800 tonnes.
MRC

MOSCOW (MRC) -- Chroma Color Corp., (McHenry, Illinois), a leading specialty color and additive concentrate supplier owned by Arsenal Capital Partners, has acquired Epolin Chemicals (Newark, New Jersey), a company that specializes in near-infrared absorbing dyes and thermoplastic compounds, said Chemweek.

Epolin serves customers developing groundbreaking products in sensors, security inks, light filters, touchscreens, night vision products, and eyewear. Epolin will operate as an independent subsidiary of Chroma Color and continue to maintain and invest in its strong customer and supplier relationships.

“This acquisition of Epolin will contribute significantly to Chroma Color’s leadership in the colorants and additives industry,” says Tom Bolger, CEO of Chroma. Greg Amato, Epolin CEO, adds, “Of the many advantages Epolin customers will enjoy as a result of this transaction is access to Chroma Color’s extensive product development, testing, and validation capabilities. Epolin’s customers can now be served by Chroma Color’s ongoing R&D efforts to deliver new solutions for the markets that both Epolin and Chroma Color serve."

Genesis Capital acted as the investment banking advisor to Chroma Color, and Grace Matthews provided advisory services to Arsenal Capital Partners. The law firm of Benesch, Friedlander, Coplan & Aronoff acted a legal counsel to Chroma Color. BDA Partners acted as the investment banking advisor to Epolin.

As MRC imformed earlier, Russia's output of chemical products rose by 4.4% year on year in May 2020 . Thus, production of basic chemicals increased year on year by 5.4% in the first five months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-May. Production of benzene was 110,000 tonnes in May 2020, which equalled the figure a month earlier. Overall output of this product reached 615,000 tonnes over the stated period, up by 1.7% year on year.
MRC

MOSCOW (MRC) -- Sasol still has the last remaining unit to come online at its Lake Charles Chemicals Project (LCCP) - the low density polyethylene (LDPE) plant. This is on track for beneficial operations by the end of September 2020, said the producer on its site.

As MRC reported earlier, Sasol has taken its newly constructed LDPE plant in Lake Charles off-stream following an explosion and fire occurred on 13 January 2020. The unit was under trial operation at the time of the incident and has yet to reach on-spec cargoes.

The LDPE plant has an annual capacity of 420,000 tons/year.

Meanwhile, other units at the same site including the ethane cracker and the linear low density polyethylene (LLDPE) lines were not affected by the fire and continued operating at the normal rates.

We remind that Sasol's world-scale US ethane cracker with the capacity of 1.5 mln tonnes per year reached beneficial operation on 27 August 2019. Sasol’s new cracker, the heart of LCCP, is the third and most significant of the seven LCCP facilities to come online and will provide feedstock to our six new derivative units at the company's Lake Charles multi-asset site.

According to MRC's ScanPlast report, April estimated LDPE consumption in Russia decreased to 52,270 tonnes from 55,160 tonnes a month earlier. Kazanorgsintez reduced its capacity utilisation. Russia's estimated LDPE consumption rose to 191,000 tonnes in January-April 2020, up by 5% year on year. Russian producers raised their production significantly, and LDPE imports also increased.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.
MRC

MOSCOW (MRC) -- Solvay provided a trading update for the second quarter noting that the COVID-19 pandemic has had a major impact on demand from customer industries. The company has also announced a noncash impairment charge, said Chemweek.

Solvay says that businesses related to oil and gas, automotive, and aerospace were the most significantly impacted, with revenues down about 40%, whereas businesses related to construction and mining were down about 20%. Other key markets such as healthcare, agro/food, home and personal care, and electronics resisted well and helped to offset some of the challenged markets.

Solvay’s group sales were down 20% in aggregate across April and May versus 2019 levels. Similar demand trends are expected to continue during June. “Decisive actions on structural and temporary cost reduction programs and the focus on cash generation help to ease some of the effects and position the group for strong growth when markets rebound,” the company says.

An impairment review is currently under way and likely to lead to a noncash impairment charge estimated at around EUR1.5 billion (USD1.7 billion), with the final number depending on exchange and discount rates as at 30 June 2020. Approximately 80% of the impairment charge is associated with the goodwill resulting from the 2015 Cytec acquisition, and the balance is related to various tangible and intangible assets. The company says that the fundamental long-term attractiveness of the composite materials and technology solutions businesses remain unaffected, driven by demand for lightweighting, electrification, and resource efficiency. Solvay will provide additional details when it publishes its first-half results on 29 July 2020. “We continue to act decisively to mitigate the effects of COVID-19 and we remain unrelenting in our focus on free cash flow generation, cost reduction, and serving our customers," says Ilham Kadri, CEO.

On 15 May, Solvay announced a cost reduction program for its composite materials unit in light of reduced activity, particularly from the aerospace industry, due to COVID-19. The company is to cease operations at its plants in Manchester, UK, and Tulsa, Oklahoma. In addition, job reductions are being implemented across the business, and total headcount will likely decrease by approximately 570 positions, or around 20% of the unit’s workforce.

As MRC informed earlier, Solvay SA said it would close two plants making composites for Airbus SE and Boeing Co. in a sign the deepening aerospace crisis is hitting suppliers of even the latest aircraft materials. The Belgian chemical maker is adding to savings achieved in the past year following the grounding of Boeing’s 737 Max.

As MRC imformed earlier, Russia's output of chemical products rose by 4.4% year on year in May 2020 . Thus, production of basic chemicals increased year on year by 5.4% in the first five months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-May.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities and delivered net sales of €10.2 billion in 2019. Solvay is listed on Euronext Brussels (SOLB) and Paris and in the United States, where its shares (SOLVY) are traded through a Level I ADR program.

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