Celanese to expand its UHMW-PE production capacity in Europe

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, has announces its intent to expand its GUR ultra-high molecular weight polyethylene (UHMW-PE) production capacity in Europe, as per the company's press release.

In addition to the recently announced Bishop, Texas, GUR expansion of approximately 15,000 tonnes per year coming online beginning in 2022, Celanese intends to invest in additional capacity for GUR in Europe.

The expansion in Europe is expected to be online beginning in 2024 with an annual nameplate capacity of approximately 34K,000 tonnes. Site selection for this new European facility is underway, and Celanese is considering both existing and greenfield locations for a GUR production unit.

The addition of a new UHMW-PE production facility in Europe will support the significant growth in the company’s high-value GUR engineered materials portfolio. With this investment, Celanese will be able to support the double-digit growth for LIBS (Lithium Ion Battery Separators) in the electric vehicle (EV) market. The new facility will also have the option to produce medical grade GUR.

Financial details of this GUR expansion are not being disclosed at this time. Additional project details will be announced as further developments are available.

As MRC reported earlier, Celanese Corporation has also announced that its Clear Lake, Texas integrated chemical manufacturing facility will begin utilizing recycled carbon dioxide (CO2) as an alternative feedstock in the production of methanol, a key raw material in the manufacture of numerous acetyls products, including acetic acid, vinyl acetate monomer (VAM), ethyl acetate and other derivatives.

We remind that in H2 February, 2021, Celanese declared force majeure on its products in the Americas and EMEA region due to the severe winter weather that has heavily curtailed US petrochemicals and refinery production and operations on the US Gulf Coast.

According to MRC's DataScope report, January EVA imports to Russia rose only by 0,07% year on year to 3,084 tonnes from 3,087 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-December 2020 by 3,41% year on year to 38,170 tonnes (39,520 tonnes in 2019).

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 2020 net sales of USD5.7 billion.
MRC

1. Oil prices fell over 3% on concerns that new coronavirus curbs and slow vaccine rollouts in Europe willl put downward pressure on demand

MOSCOW (MRC) -- Oil prices decreased more than 3%, hit by concerns that new pandemic curbs and slow vaccine rollouts in Europe will hold back a recovery in demand, while a stronger dollar also weighed, according to Hydrocarbonprocessing. Brent crude futures dropped by USD2.20, or 3.4%, to USD62.42 a barrel by 0948 GMT. US West Texas Intermediate (WTI) crude futures fell by USD2.10, or %3.4, to USD59.46 a barrel. The market structure was also pointing to weakness, with the front-month Brent spread flipping into a small contango for the first time since January.


MRC

MOSCOW (MRC) -- Overall polypropylene (PP) production in Russia grew in the first two months of 2021 by 8% year on year to 350,000 tonnes. All Russian producers increased their output, with Nizhnekamskneftekhim being the exception, according to MRC's ScanPlast report.

Russian producers' overall PP production did not exceed 168,100 tonnes in February, compared to 182,400 tonnes a month earlier, several producers simultaneously reduced their capacity utilisation. Russia's overall PP output reached 350,000 tonnes in January-February 2021 versus 323,800 tonnes a year earlier. Seven out of eight producers increased their capacity utilisation, with Stavrolen and ZapSibNeftekhim accounting for the greatest growth in the output.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk/SapSibNeftekhim raised its capacity utilisation in February, the plant's production was 91,900 tonnes versus 96,700 tonnes a month earlier. SIBUR Tobolsk's PP overall output reached 188,600 tonnes in the first two months of 2021, up by 14% year on year.

Poliom reduced its capacity utilisation last month, and, as a result, produced about 15,900 tonnes of PP, whereas its production was 18,200 tonnes a month earlier. Overall, the Omsk plant produced 34,100 tonnes of PP over the stated period, up by 2% year on year.

Nizhnekamskneftekhim produced a little less then 17,200 tonnes of propylene polymers in February versus 18,500 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer reached 35,600 tonnes in January-February 2021, compared to 36,100 tonnes a year earlier.

Tomskneftekhim produced 11,700 tonnes of propylene polymers last month versus 13,500 tonnes a month earlier. The Tomsk plant's total PP output reached 25,200 tonnes over the stated period, up by 2% year on year.

Ufaorgsintez's production capacities operated with lower capacity utilisation in February due to a shortage of propylene, the plant's PP production was 9,500 tonnes, compared to 11,900 tonnes a month earlier. The Ufa plant's overall output of polymer reached 21,400 tonnes in the first two months of 2021, up by 1% year on year.

Neftekhimiya (Kapotnya) produced 11,800 tonnes of PP last month, compared to 12,600 tonnes a month earlier. The producer's overall PP output reached 24,400 tonnes over the stated period, up by 2% year on year.

Stavrolen (LUKOIL) maintained high capacity utilisation in February and produced about 10,000 tonnes of propylene polymers versus 11,200 tonnes a month earlier. The Budenovsk plant's overall output of propylene polymers reached 21,200 tonnes in the first two months of 2021, up by 15% year on year.

MRC

MOSCOW (MRC) -- Mehr Petrochemical Company (MHPC), a major petrochemical producer in Iran, is in the middle of resumption of operation at its high density polyethylene (HDPE) plant in Assaluyeh, Iran, reported CommoPlast.

This HDPE line with an annual capacity of 300,000 tons/year was shut unexpectedly last week after a technical glitch.

A source close to the company confirmed that the shutdown has not severely affected the supply.

As MRC informed before, Iranian petrochemical company Ilam Petrochemical resumed production at its HDPE plant in Ilam (Ilam, Iran) on May 22, 2019, which was shut earlier due to an explosion on an ethylene pipeline, which supply ethylene to the plant. This plant with a capacity of 300,000 tons/year of HDPE was taken off-strem in early April, 2019.

According to MRC's ScanPlast report, Russia's HDPE production totalled 329,800 tonnes in the first two months of 2021, up by 13% year on year. At the same time, only one Russian producer increased HDPE output.

Mehr Petrochemical’s HDPE plant is a joint venture between Thailand’s PTT Chemical and Siam Cement, Iran’s National Petrochemical Co (NPC) and Japan’s Itochu.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, has announced that its Clear Lake, Texas integrated chemical manufacturing facility will begin utilizing recycled carbon dioxide (CO2) as an alternative feedstock in the production of methanol, a key raw material in the manufacture of numerous acetyls products, including acetic acid, vinyl acetate monomer (VAM), ethyl acetate and other derivatives, as per the company's press release.

This carbon capture and reuse process is expected to produce sustainable methanol with a high capital efficiency at competitive pricing via an expansion of the company’s Fairway joint venture. The methanol production unit at the Clear Lake facility, operated as Fairway Methanol LLC, is a manufacturing joint venture between Celanese and Mitsui & Co., Ltd., and will contribute to the sustainability targets of both companies.

Once fully operational, it is expected that by using by-product CO2 in the production of methanol, after a low capital capacity expansion, the 1.62 million metric ton Fairway production unit will eliminate the waste equivalent of approximately 39,000 automobiles per year from U.S. highways, thereby displacing approximately 180,000 metric tons of CO2. Furthermore, an estimated 60 percent of currently vented process CO2 from the entire Clear Lake site will be transformed into sustainable methanol.

CO2 capture and reuse further demonstrates the company’s commitment to sustainability and the potential impact to the broader Celanese portfolio as the company is both a consumer of upstream products and a supplier of sustainable materials to other products within the portfolio. As such, the benefits of CO2 capture and reuse can be allocated or derivatized to the company’s engineered materials, acetyl chain or acetate tow product offerings.

As MRC reported earlier, in H2 February, 2021, Celanese declared force majeure on its products in the Americas and EMEA region due to the severe winter weather that has heavily curtailed US petrochemicals and refinery production and operations on the US Gulf Coast.

According to MRC's DataScope report, January EVA imports to Russia rose only by 0,07% year on year to 3,084 tonnes from 3,087 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-December 2020 by 3,41% year on year to 38,170 tonnes (39,520 tonnes in 2019).

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 2020 net sales of USD5.7 billion.
MRC