Itochu, Borealis and Borouge announce collaboration to enable uptake of renewable PP in the Japanese market

MOSCOW (MRC) -- Borealis, Borouge and Itochu have jointly announced that they have the strategic intent to jointly evaluate how to enable uptake of renewable polypropylene (PP) in the Japanese market, as per Borealis' press release.

The developments of climate change are attracting attention in Japan and overseas, and countermeasures are urgently required. Under these circumstances, Japan has formulated a basic plan to introduce approximately two million tons of renewable plastic products by 2030. There is a need to shift to renewable plastics, which feature enhanced environmental considerations without compromising the superiority of plastics.

PP is a principal raw material characterised by its high strength and high heat resistance. It is used extensively, including in food containers, daily commodities and automotive parts. Meanwhile, it has been considered difficult to commercialise polypropylene production from renewable materials due to the many technical difficulties in the production.

Since its foundation in 1994, Borealis has been in business in at least 120 countries as a world-class plastic and resin manufacturer. In the environmental sector, it engages in manufacturing and sales of renewable plastics and recycled resins. In March 2020, it embarked on the commercial production of renewable PP and is now working to expand sales in Europe and around the world.

The renewable PP is made from sustainable feedstock from organic waste and residue streams. Unlike using feedstocks produced with agricultural crops suitable for food and livestock feed, this renewable feedstock is composed of various wastes and residues like from vegetable oil production or used cooking oil from the food industry. Re-using waste products to manufacture renewable feedstocks further enhances their appeal from a sustainability perspective. This step clearly showcases ambition in terms of thinking circular. The traceability from the point of origin to the final product is ensured through the mass balance model and certified by a third-party independent body.

Borouge provides innovative plastics solutions for the packaging, energy, infrastructure, mobility, healthcare and agriculture industries. Borouge is working to bring about a plastics circular economy on several fronts, including developing new disruptive packaging designs for re-use and recyclability, and introducing mono-material solutions that enable recyclability and help to unlock value for customers while supporting their sustainability goals.

Borouge is also actively working across the entire value chain to drive innovations in quality, supply and usage of recyclate materials, and create ready to use, value-adding solutions that our customers require to advance their circularity. Borouge aims to be a one-stop shop to its customers for all their sustainable packaging requirements.

Itochu aims to enhance its corporate value by addressing social issues through its core business. Itochu will move forward with the expansion of the global renewable plastics business, particularly in Japan and in Asia. It targets to commercially launch Japan’s first food containers and packaging materials made of Renewable PP by the end of 2020 as well as other sanitary goods, miscellaneous daily goods, cosmetic containers, office supplies, home electric appliances, automotive parts and other items in many different fields.

Itochu will actively use its Group networks in Japan and overseas to create a new business model in the domain of renewable plastics and to accelerate actions towards achieving a society for sustainable global development.

As MRC reported previously, the light-feed 625,000-metric tons/year Borealis steam cracker at Stenungsund, Sweden, is expected to restart operations in the fourth quarter this year after a fire broke out at the plant in May, 2020. The cracker has been under force majeure for almost four months after the blaze at the plant on 10 May, which was subsequently brought under control the following day.

According to MRC's ScanPlast report, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.
MRC

MOSCOW (MRC) -- Indonesia's largest petrochemical producer Chandra Asri and Netherlands-based storage and terminal operator Vopak are planning to set up an infrastructure joint venture in Indonesia, said Chemweek.

The two companies signed a letter of intent on 5 October to set up the partnership, which aims to establish a new jetty and tank farm business that will serve third-party customers and to build secondary infrastructure at Chandra Asri's new petrochemical complex, the Indonesian firm said.

Chandra Asri's second petrochemical complex will include a 1.1mn t/yr naphtha-based cracker, 450,000 t/yr high-density polyethylene (HDPE) unit, 300,000 t/yr low-density polyethylene unit (LDPE) and a 450,000 t/yr polypropylene (PP) unit.

The producer is aiming to commission the complex in 2024, barring any delays because of the Covid-19 pandemic.

Chandra Asri currently operates a 136,000 t/yr HDPE unit, two linear low-density polyethylene/HDPE swing units with nameplate capacity of 200,000 t/yr and 400,000 t/yr respectively and a 590,000 t/yr PP plant at its complex in Cilegon.

Vopak's Indonesian interests include a 49pc stake in an oil terminal in Jakarta and a 95pc stake in a chemical terminal in Merak.

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.
MRC

MOSCOW (MRC) -- Polyplex (Thailand) Public Limited Company (PTL), a subsidiary of Polyplex Corporation Limited (PCL; Gautam Buddh Nagar, India), will invest USD102.8 million to build a biaxially oriented polyethylene terephthalate (BOPET) thin film line at Decatur, Alabama. The production capacity of the planned plant will be 50,000 metric tons/year, said Chemweek.

The company also intends to debottleneck the polyethylene terephthalate (PET) resin plant at Decatur, to raise the capacity from the current 58,000 metric tons/year to 86,000 metric tons/year. The project is expected to be commissioned in 24 months.

In June 2019, the company decided to invest USD48 million to build a biaxially oriented polypropylene (BOPP) film plant in Indonesia, with a capacity of 60,000 metric tons/year.

As per MRC' ScanPlast, total calculated polyethylene terephthalate (PET) consumption in Russia in August reached 55,220 tonnes, down 27% year on year. Russia's overall estimated consumption of polyethylene terephthalate (PET) decreased in the first eight months of 2020 by 21% year on year to 476,940 tonnes.

MRC

MOSCOW (MRC) -- Hyosung Vina Chemicals Co Ltd has reportedly shut down its polypropylene (PP) plant in Vietnam on 29 September 2020 due to an unspecified technical issue, reported CommoPlast with reference to market sources.

The 300,000 tons/year PP unit is expected to remain offline between 20-30 days, sources added.

The shutdown is expected to curtail local supply further as two other PP producers in Vietnam have also just restarted operation.

As MRC informed before, following the start-up at the newly constructed PP plant in Vietnam on 12 February 2020, it was reported that Hyosung reached on-spec cargoes approximately in mid-February. The first prime grade parcels were homo-PP yarn grade F501N with a melt index of 3.7.

This is the No. 1 PP unit that has an annual capacity of 300,000 tons/year, operating using external sources of propylene. The company is constructing the Phase II project at the same location, which houses a propane dehydrogenation (PDH) plant and No. 2 PP unit that could produce another 300,000 tons/year.

According to MRC's ScanPlast report, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

Hyosung Corporation is a Korean industrial conglomerate, founded in 1957. It operates in various fields, including the chemical industry, industrial machinery, IT, trade, and construction.
MRC

MOSCOW (MRC) -- Hengli Petrochemical (Dalian, China) will invest 11.5 billion renminbi (USD1.6 billion) to build two purified terephthalic acid (PTA) units at the Daya Bay petrochemical park at Huizhou, Guangdong Province, China, according to Chemweek.

Each PTA unit will have a production capacity of 2.5 million metric tons/year (MMt/y). Operations are planned to commence by the end of 2021. The company’s current production capacity for PTA is 11.6 MMt/y following the start-up of new plants at Dalian.

Hengli says that after the project is complete, it expects annual sales to reach 21.2 billion renminbi and profit to rise to 1.2 billion renminbi.

Hengli says that the Daya Bay petrochemical park at Huizhou is one of the seven key petchem industrial bases in China. It says that the project will fill gaps in the middle and lower reaches of the petrochemical industry chain at Huizhou and in Guangdong. The investment will also improve the park's industrial structure as it develops into an energy, petrochemical, and materials cluster. Multinational companies building world-scale petrochemical complexes at Daya Bay include ExxonMobil and Shell.

Guangdong Province in southern China is one of the key regional economies in the country. It has the largest automotive and electronics industries in China and is a big manufacturer of consumer goods. Guangdong is also the largest consumer market in China, partly because it is the country’s most populous province with more than 110 million residents. Annual growth of household consumption has averaged 8% there in the last five years, according to estimates.

IHS Markit says that China is the world’s largest producer of PTA and downstream consumer of polyethylene terephthalate (PET). China's reliance on imported PTA has dramatically declined with the ramp-up of domestic production capacity, including Hengli adding large capacity at Dalian. Chinese PTA imports declined at an average of 19.5%/year over the last decade to just 676,000 metric tons in 2018, says IHS Markit.

In 2018–23, China is expected to add 22.5 MMt/y of PTA capacity. By 2023, total Chinese capacity is expected to be in excess of 66 MMt/y, according to data from IHS Markit.

As MRC wrote oreviously, Hengli Petrochemical Co Ltd ramped up the operation rate of its new No. 5 purified terephthalic acid (PTA) line at Dalian to around 85% on 11-12 July, 2020. The company managed to produce prime grade PTA cargoes at its new PTA line in China on 30 June. This line was successfully launched on 28 June, 2020. Based in Dalian, China, the company has 5 PTA plants with combined production capacity of 11.6 million tons/year, making Hengli Group the world's largest PTA producer, as each PTA plant has production capacity of 2.5 million tons/year.

PTA is one of the main feedstocks for the production of PET.

As per MRC's ScanPlast report, Russia's estimated PET consumption reached 55,220 tonnes in August, 2020, down by 27% year on year. Overall estimated PET consumption in Russia decreased in the first eight months of 2020 by 21% year on year to 476,940 tonnes.

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