Solvay sells barium, strontium, sodium percarbonate businesses to private equity firm

MOSCOW (MRC) -- Solvay says it has reached an agreement to sell its technical-grade barium and strontium business in Germany, Spain, and Mexico, as well as its sodium percarbonate business in Germany to Latour Capital (Paris, France), an independent private equity firm, according to Chemweek.

The company says its joint venture (JV) with Chemical Products Corp. (Cartersville, Georgia) is included in the transaction as part of Solvay's barium and strontium business. The transaction - financial terms of which have not been disclosed - will be completed in the first quarter of 2021 and remains subject to the completion of information and consultation procedures with employee representatives and approval from the relevant regulatory authorities.

Didier Gaudoux, partner at Latour Capital, says that under Solvay’s umbrella, the businesses "have established leading competitive positions and proved to have very efficient production processes. We will support the management to deliver an ambitious and sustainable growth strategy, with the right investments in capacities and continuous improvements on ESG matters,” he says.

The agreement is a key step toward streamlining Solvay’s portfolio while reducing the company’s footprint by exiting its position in niche technical-grade chemical markets, the company says. The divestment also aligns with Solvay’s G.R.O.W. strategy, announced last year, it says.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
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Ineos declares force majeure on LDPE from Cologne

MOSCOW (MRC) -- Ineos declared force majeure on its low density polyethylene (LDPE) supplies from one of its plants in Cologne, Germany due to a power outage on November 11, reported NCT with reference to a source familiar with the issue.

The company could not be reached for comments at the time of publication, however.

The force majeure is slated to last for 3 weeks. The company’s metalocene linear low density polyethylene (mLLDPE) unit at the same site was reported to be unaffected, meanwhile.

The company’s Cologne plant has the capacity to produce around 400,000 tons/year of LDPE, while LLDPE plant has a production capacity of 230,000 tons/year.

As MRC wrote before, a 660,000-metric tons/year phenol-acetone plant operated by Ineos in Gladbeck, Germany, was shut for maintenance from 27 October until 6 December, 2020.

According to MRC's ScanPlast report, September estimated LDPE consumption in Russia fell to 23,930 tonnes from 47,610 tonnes a month earlier. Russian producers reduced their domestic LDPE shipments due to shutdowns for maintenance at production capacities in Ufa, Tomsk and Kazan. Russia's estimated LDPE consumption totalled about 406,500 tonnes in January-September 2020, which virtually corresponded to the last year's figure.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
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Braskem and Haldor Topsoe achieve first production of bio-based MEG from sugar

MOSCOW (MRC) -- Braskem, the largest petrochemical company in the Americas and a world leader in the production of biopolymers, and Denmark-based Haldor Topsoe, a global leader in supply of catalysts, technology, and services for the chemical and refining industries, have announced that they achieved their first-ever demo-scale production of bio-based monoethylene glycol (MEG), reported CISION.

As a result of the collaboration between the two companies, the MOSAIK technology development has been progressing according to schedule at the demonstration unit located in Lyngby, Denmark.

The demonstration unit was started up in 2019 with the primary goal to demonstrate all key design features of the pioneering technology that transforms sugar into renewable MEG. Since then, the remaining process units of the plant have been built and put into operation, and the production process has been optimized.

MEG is a raw material for polyethylene terephthalate (PET), which has numerous applications and is an essential feedstock in sectors such as textiles and packaging, especially beverage bottles. Currently, MEG is predominantly made from fossil-based feedstocks, such as naphtha, gas, or coal. The global MEG market represents a value of approximately USD 25 billion.

The technology will also co-produce, in a lower quantity, monopropylene glycol (MPG), which has a wide variety of applications ranging from unsaturated polyester resins (UPR), commonly used in construction materials, to cosmetic products.

The next phase will involve providing samples to strategic partners for testing and validation. The results of the demonstration plant operations and the validation of products will be essential for the decision to deploy the technology on a commercial scale.

The development of bio-MEG is strategic to Braskem. "This first-ever production of MOSAIK-MEG is a major step forward in our project and underlines Braskem's commitment to the Circular Economy through renewable chemicals. This technology has the potential to revolutionize the PET market. That's why we are increasingly closer to start building this new value chain, so we can deliver the sustainable solution that society is looking for", says Gustavo Sergi, executive officer of Renewable Chemicals and Specialties at Braskem.

"We are extremely pleased to have achieved the first production of bio-based MEG together with Braskem. Topsoe's strategic vision is to deliver technologies to reduce or even eliminate carbon emissions from the production of fuels and chemicals. Advancing technologies to produce bio-based chemicals and making them a commercially attractive option is an essential step on the way to a more sustainable future," says Kim Knudsen, Chief Strategy & Innovation Officer at Haldor Topsoe.

As MRC informed before, in mid-November 2020, Braskem said it had completed a USD10-million expansion of its innovation and technology center at Pittsburgh, Pennsylvania. The expansion adds eight R&D labs, and equipment for developing technologies around catalysis, recycling, and 3D printing. This includes capabilities in catalysis and petrochemical process technologies, 3D printing research, as well as chromatography, polymer cracking and microscopy analyses.

MEG is used to produce PET, which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

As per MRC' ScanPlast, calculated consumption of polyethylene terephthalate (PET) reached 52,71o tonnes in September 2020, down 27% compared to the same time a year before. Total consumption of PET in Russia in the nine months of 2020 reached 530,750 tonnes, down 22% than the same indicator last year.

Haldor Topsoe is a global leader in supply of catalysts, technology, and services to the chemical and refining industries. Topsoe aims to be the global leader within carbon emission reduction technologies by 2024. By perfecting chemistry for a better world, we enable our customers to succeed in the transition towards renewable energy. Topsoe is headquartered in Denmark and serves customers around the globe.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

Invista Completes Nylon 6,6 Capacity Expansion in Shanghai

MOSCOW (MRC) -- Invista has completed its nylon 6,6 polymer capacity expansion at its polymer plant at the Shanghai Chemical Industry Park (SCIP), according to Kemicalinfo.

The company added a 40,000 ton per year capacity bringing the plant’s total capacity to 190,000-ton per year.

“This new polymer capacity is part of Invista strategic investments to supply the strong local and regional demand for high-quality nylon products,” said Angela Dou, Invista’s Asia Pacific regional business director, nylon polymer.

“We estimate China could become the world’s largest consumer of nylon 6,6 in the next few years - with many growth sectors, including an increased demand for engineering polymers used in automotive, electrical & engineering markets, such as light weighting, powertrain parts optimization, electrification, and automation.”

This expansion is Invista’s fourth continuous polymerization line at SCIP where the company now has 30,000-ton per year autoclaves and 160,000-ton per year continuous process nylon 6,6 polymer capacity.

Pete Brown, Invista’s executive vice president, nylon polymer, added, “The additional polymer capacity is another key element of Invista’s integrated nylon 6,6 value chain at SCIP where we also have a 215,000-ton per year hexamethylenediamine (HMD) plant and a 400,000-ton per year adiponitrile (ADN) plant currently under construction.”

The completion comes nearly two weeks after the company’s ADN project at the SCIP secured a final construction permit.

Construction commenced this June. The new approval will enable the company to start construction work in the remaining areas. ADN is an intermediate ingredient used in the production of nylon 6,6.

As MRC reported previiously, in early November 2020, Invista and Hengli Petrochemical (Huizhou) reached agreement to license INVISTA’s P8 PTA technology for two purified terephthalic acid (PTA) lines. These two lines will be installed at Xiachong, Daya Bay, Huizhou City, Guangdong province, China. The kick-off meeting was successfully concluded on October 23, 2020, between Hengli, Invista and CTCI (the engineering contractor).

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' ScanPlast, calculated consumption of polyethylene terephthalate (PET) reached 52,71o tonnes in September 2020, down 27% compared to the same time a year before. Total consumption of PET in Russia in the nine months of 2020 reached 530,750 tonnes, down 22% than the same indicator last year.
MRC

Eastman to hike tertiary amines capacity in Belgium

MOSCOW (MRC) -- Eastman Chemical (Kingsport, Tennessee) says it will make a “major investment” to expand production capacity for tertiary amines at its facility in Ghent, Belgium, by the end of 2021, said Chemweek.

The specific size of the capacity hike and the investment value has not been given. The company is also considering further investments at its tertiary amines unit at Pace, Florida, where it has already significantly increased capacity, making it the largest such unit in the world, it says. The investment to “significantly increase” capacity at Ghent is being made to help customers meet the need for hand sanitizers, wipes, sprays, liquid dish soap, and other household cleaning products, according to Eastman.

Eastman will continue to invest in tertiary amines if its customers support its expansions, says Bob Ash, product director/care chemicals at Eastman. "We appreciate their patience as we complete the work. In the meantime, our units are running at a high level," he says.

Tertiary amines are key raw materials for surfactants used in a wide variety of industrial, personal and home care markets.

As MRC informed previously, Air Liquide plans to invest over USD160 million in new capacity and upgrades to support a long-term agreement under which the company will supply additional gaseous oxygen, nitrogen, and syngas to Eastman Chemical’s Longview, Texas, facility.

We remind that in 2016, Eastman Chemical's chief executive Mark Costa announced that the company wanted to reduce its surplus ethylene and commodity intermediates, but did not intend to sell its cracker in Longview, Texas.

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

According to MRC"s ScanPlast report, Russia"s estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,500 people around the world.
MRC