Air Products wins contract to supply chip maker in Malaysia

MOSCOW (MRC) -- Air Products announced it has been awarded a long-term onsite contract from a global leader in memory and storage solutions to supply its state-of-the-art new facility in Penang, North Malaysia, said the company.

The latest win will further strengthen Air Products’ long-standing relationship with its global customer and its leading position to serve the fast-growing electronics markets. Air Products will install a proprietary PRISM cryogenic nitrogen generator to supply high purity, reliable and economical on-site gaseous nitrogen, and a significant volume of liquid nitrogen to the new facility, located in one of the fast-growing industrial parks in Penang. The gases will be used in the customer’s chip assembly processes and cold testing of the memory products, helping improve product quality, productivity, and environmental performance.

Air Products has been serving Malaysia since 1974 and is recognized for its excellence in safety, reliability and operations. Air Products has established a leading position in North Malaysia. In Penang, the company’s two advanced air separation units in the Prai Industrial Park, together with an extensive supply network that expands into the Bukit Minyak Industrial Park and the Batu Kawan Industrial Park, provide a strong and highly reliable gases supply to its customers.

"We are honored by the continued trust of our customer in our capability to support their growth plans with this significant investment in Malaysia,” said Alex Tan, president of Air Products Southeast Asia. “Malaysia is one of the largest exporters of electrical and electronics (E&E) products. The E&E industry is not only a key growth driver of the country’s industrial development, it also enables the country to move into Industry 4.0 by leveraging the latest smart technologies such as Internet of Things and artificial intelligence with the intermediary products and components produced. We strive to grow with our customers and fuel thriving E&E industry in Malaysia through our safety, reliability, efficiency and excellent service."

Serving the global electronics industry for over 40 years, Air Products’ total solutions, including gas supply, application solutions and equipment help electronics packaging and assembly manufacturers meet the increasing demand for the newest generation of semiconductors. The company’s electronics packaging, assembly and testing laboratory at its state-of-the-art Asia Technology Center develops advanced application solutions to support the fast-paced growth of the Asia markets.

As MRC reported earlier, in December 2014, SIBUR-Khimprom (a subsidiary of SIBUR Holding) and Air Products entered into an agreement to build a new air separation unit in Perm and to supply the facility with locally produced gases. The unit came on-stream in 2016. After the commissioning Air Products will supply industrial gases for SIBUR-Khimprom over the next 20 years.

Besides, we remind that in September 2019, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, agreed to closely cooperate on sustainable development to share their best practices.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Air Products is a world-leading industrial gases company in operation for nearly 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals.
MRC

MOSCOW (MRC) -- PTT Global Chemical Public Co Ltd (PTTGC) has unexpectedly shut its low density polyethylene (LDPE) unit in the morning of 9 September due to minor plant issue, reported CommoPlast with reference to market sources.

Based in Map Ta Phut, Thailand, the LDPE plant has a production capacity of 400,000 tons/year.

A source closed to the company informed that the unit was expected to restart by 10 September, meanwhile the initial turnaround schedule of this unit on 24 September is still in plan.

As MRC wrote before, PTTGC undertook a planned shutdown at its LDPE plant for turnaround on July 7, 2019. The plant remained shut for around 3 weeks.

PTT has a total capacity of 800,000 mt/year of high density polyethylene (HDPE), 345,000 mt/year of LDPE and 800,000 mt/year of LLDPE at the same site.

According to MRC's ScanPlast report, June estimated LDPE consumption in Russia grew to 55,260 tonnes from 45,490 tonnes a month earlier. Kazanorgsintez raised its PE output after a spring shutdown for a scheduled turnaround. Russia's estimated LDPE consumption rose to 291,270 tonnes in January-June 2020, up by 5% year on year. Russian producers raised their production, and LDPE imports also increased.

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

1. Chevron Phillips Chemical delays final investment decision on USGC petrochemical JV with QP

MOSCOW (MRC) -- Chevron Phillips Chemical has deferred a final investment decision on a USD8 billion joint venture petrochemical complex project along the US Gulf Coast that was expected in 2021, reported S&P Global with reference to Phillips 66's statement. Company executives did not mention the project or its FID deferral during a second-quarter 2020 earnings call, as discussions focused largely on coronavirus pandemic fallout on Phillips 66's crude oil and refined fuels businesses. The company's earnings release noted the FID deferral, but did not specify a new target date. The project, in partnership with Qatar Petroleum (QP), was announced in July 2019. It is slated to include a 2 million mt/year cracker and two 1 million mt/year high density polyethylene plants. The FID delay will also push the original target startup date past 2024.

MRC

MOSCOW (MRC) -- Songwon has signed an exclusive distribution agreement with First Quality Chemicals (Naucalpan, Mexico), a specialty chemicals distributor, for the coatings, adhesives, sealants and elastomers markets, said Chemweek.

The agreement is effective from August 2020. First Quality Chemicals will be the exclusive distributor of Songwon’s specialty chemicals in Mexico.

As MRC informed earlier, Songwon Industrial Co., Ltd. said it entered into a partnership with Disheng Technology Co., Ltd, (Jiangsu Province, China) for the production of some of its UVA light stabilizers. Disheng is currently in the process of building a new state-of-the-art factory dedicated to light stabilizers in Fujian Province, China.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Songwon will leverage its global reach and leading position in polymer and coatings stabilizers to market the products, while Disheng will focus on managing the manufacturing side. In this way we can make the best use of both companies’ complementary strengths” added Xingping Pan, president of Disheng Group.
MRC

MOSCOW (MRC) -- Air Liquide has finalised an agreement with Sasol to acquire the biggest oxygen production site in the world with a plan to reduce its carbon dioxide (CO2) emissions by 30%, said Gasworld.

After the announcement on July 29, the international major industry gas company has now entered into a business purchase agreement with Sasol to acquire the oxygen production site in Secunda, South Africa.

The solution provided by Air Liquide would allow, in coordination with energy and chemical company Sasol, a targeted reduction of 30% to 40% in CO2 emissions arising from the oxygen production by 2030.

Under the terms of the business purchase agreement, Air Liquide will own and operate the 16 air separation units (ASUs) of this site, with an installed capacity of 42,000 tons/day, in addition to the unit it already operates.

Subsequent to the acquisition, Air Liquide will supply various gases to Sasol’s operation under a long-term gas supply agreement with an initial term of 15 years.

The amount of the initial investment would be approximately 8.5 billion South African Rand (circa 440 million euros).

The agreements are subject to usual suspensive conditions (notably the South African Competition Authority’s approval), which should not be fulfilled earlier than December 2020.

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. SasolпїЅs 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.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

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