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Celanese to expand UHMWPE production at Bishop, Texas

October 27/2020

MOSCOW (MRC) -- Celanese (Dallas, Texas), a global technology and specialty materials company and a global leader in vinyl acetate ethylene (EVA) emulsions, has announced plans to add a 15,000-metric tons/year line for the production of GUR ultra-high molecular weight polyethylene (UHMWPE) at its facility in Bishop, Texas, as per the company"s press release.

Startup is expected by.the beginning of 2022.

�Electric vehicle demand is expected to have a compounded annual growth rate of greater than 25% through 2025, resulting in strong demand for Celanese GUR for lithium-ion battery separators,� says Tom Kelly, senior vice president, engineered materials.

Celanese expanded production of UHMWPE at its Nanjing, China, facility by 15,000 metric tons/year in June 2019. In March 2020, the company asked the US government for antidumping duties on imports of non-medical grades by Korea Petrochemical Industry Co. (KPIC; Seoul, South Korea).

UHMWPE is a small-volume specialty grade of high-density polyethylene (HDPE). IHS Markit estimates global demand at 100,000�150,000 metric tons/year. Braskem produces the material in Camacari, Brazil, and since 2016 at a new plant in La Porte, Texas. LG Chem has production at Daesan and Yeosu, South Korea.

As MRC wrote before, Celanese Corporation has announced an increase in its September low density polyethylene (LDPE) prices in the Americas. The price increases below are effective for orders shipped on or after 15 September 2020, or as contracts otherwise allow, and are incremental to any previously announced increases. Thus, LDPE prices rose, as follows:

     - by USD0.05/lb - for the USA and Canada;
     - by USD100/mt - for Mexico & South America.

According to MRC"s ScanPlast report, LDPE and HDPE prices continued their upward trend in September in Russia due to shutdowns for maintenance at Russian plants. At the same time, the record level of LDPE prices led to a major decrease in demand, converters could not transfer record prices of material for finished products. In September, supply grew significantly in the HDPE market, despite Kazanorgsintez"s shutdown for a turnaround. Supply of HDPE from SapSibNeftekhim and Ufaorgsintez increased. There was a surplus in the linear low density polyethylene (LLDPE) market during September, however, polyethylene (PE) prices went up.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.
Author:Margaret Volkova
Tags:PE, LLDPE, LDPE, HDPE, Braskem, Celanese, Korea Petrochemical, LG Chem, China, Russia, USA, South Korea.
Category:General News
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