Celanese to expand redispersible polymer powers capacities in Europe by debottlenecking

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, has announced plans to expand its redispersible polymer powders growth through debottlenecking efforts currently underway at the company’s European powders facilities, resulting in an increase of approximate 20KT of annual capacity by 2023, as per the company's press release.

With the April 2020 acquisition of the Elotex business, Celanese further strengthened its derivative expansion program by adding a global redispersible polymer powders product line to help drive growth of ethylene-acetate-ethylene (EVA) emulsions.

“As a world leader in the acetyls and derivatives space, Celanese has an exceptional, globally integrated production, distribution and sales network to maximize the Acetyl chain’s downstream optionality and capture growth in key regions and end uses,” concluded Kohl. “Building on a commitment to our global customers, Celanese is making key investments in monomer vinylactate (VAM), EVA and RDP facility expansions, as well as expanding on our ‘green technology’ product development, to deliver on their global growth demands.”

This planned expansions is subject to regulatory approvals of the local authorities, and financial details of this project are not being disclosed at this time.

As MRC reported previously, Celanese Corporation has also announced that it plans to continue its EVA growth at the company’s Nanjing and Frankfurt facilities through the construction of two new EVA reactors.

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

DSM acquires bio-based intermediates business from Amyris

MOSCOW (MRC) -- DSM has reached an agreement to acquire bio-based flavours and fragrances intermediates business from US-based renewable chemicals firm Amyris, as per the company's press release.

The acquisition will expand DSM's foothold in bio-based ingredients in the aromas sector. The business consists of a portfolio of seven intermediate products - four which generate revenues, two which have just been launched and one under development.

DSM will acquire the business for an upfront consideration of USD150 million, which represents an estimated 15x EV/EBITDA 2021 multiple. Amyris will share in the EBITDA growth over the period 2021-2024 of certain of the activities (mainly the products just launched/ under development), receiving additional earn-outs equal to 9x the realized EBITDA in 2024, which is estimated to result in a total earn-out amount of USD100-150 million.

DSM and Amyris will continue their R&D partnerships.

As MRC informed before, earlier this year, SABIC, a global leader in the chemical industry, collaborated with DSM and Viscofan in the development of an innovative multi-barrier film for meat casings. The film combines layers of a SABIC’s certified circular polyethylene (PE) from its TRUCIRCLE portfolio and a circular polyamide (PA) from DSM Engineering Materials in a more sustainable packaging solution without compromising the high functional and aesthetic performance required in the fresh food packaging market.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased.

Royal DSM, commonly known as DSM, is a Dutch multinational corporation active in the fields of health, nutrition and materials. The Materials cluster is made up of DSM Engineering Materials, DSM Protective Materials and DSM Resins & Functional Materials. DSM Engineering Materials’ specialty plastics are used in components for the electrical and electronics, automotive, flexible food packaging and consumer goods industries.
MRC

PT Pertamina put out a fire at Balongan refinery storage units

MOSCOW (MRC) -- Indonesia's state oil company PT Pertamina said it has put out a fire that had engulfed part of its 125,000 barrel per day refinery in Balongan, West Java and had begun making preparations to restart the plant, said Hydrocarbonprocessing.

The fire broke out just after midnight on Monday, forcing Pertamina to shut the plant and evacuate around 950 nearby residents. Six were treated at the hospital due to the fire. Pertamina said in a statement that by Wednesday afternoon, fires in all four affected storage units have been extinguished.

The company was conducting a cooling down process and planning to begin preparation to restart the refinery as soon as it is safe to do so, it said. "Hopefully Balongan refinery can be operational again after a thorough inspection is carried out," Agus Suprijanto, a Pertamina spokesman said in the statement.

Pertamina expected the shut down could be lifted in four to five days as damage was limited to the storage area of the plant and did not affect its oil processing area, company officials said on Monday. The company has said that only 7% of the refinery's 1.35 million kilo litres (KL) of storage capacity was affected, and that the tanks that caught fire had been only holding around 23,000 KL of gasoline.

Pertamina said national fuel stocks remained secure, and any shortage of fuel to Jakarta, which Balongan supplies, could be made up by refineries in Cilacap and Tuban. Pertamina said there were no fatalities, though media reported one resident had died from a heart attack that coud have been caused by the shock of the explosion. West Java police said it will investigate the cause of the fire.

Earlier, Pertamina said it aims to restore operations at its Balongan oil refinery in West Java in 4-5 days, as firefighters worked to extinguish a massive blaze that broke out overnight, injuring six people. Pertamina shut the plant with the capacity of 125,000 barrels per day after the massive fire erupted.

We remind that PT Pertamina shut its cracker in Indonesia for maintenance works from 18 March, 2020. This cracker with a production capacity of 578,000 tons remained off-stream until 18 April 2020.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).
MRC

Tamilnadu Petroproducts to expand production units in India

MOSCOW (MRC) -- Chennai-based Tamilnadu Petroproducts (TPL), the petrochemicals arm of AM International Group, is expanding its production divisions at an investment of Rs 435 crore, said Financialexpress.

These include capacity augmentation of Linear Alkyl Benzene (LAB) division, revamp of caustic soda facilities and setting up a Propylene recovery unit (PRU). TPL has its plant at Manali in Tamil Nadu that houses different divisions. The LAB capacity would be increased from 1.2 lakh TPA to 1.45 lakh TPA at an estimated cost of Rs 240 crore. The project would be commissioned in about 24 months. The company will invest Rs 165 crore to modernise the caustic soda and chlorine unit by replacing the mono-polar membrane technology with a more advanced bipolar membrane technology.

On completion in about 18 months after required approvals, the production capacity for caustic soda unit will go up to 250 tonne per day from the current 150 tonne. At the present price levels, additional revenue of about 70% is expected from the project, with improved or higher value addition, the company said in a statement.

The PRU, first of its kind in India by a private sector player in the non-refining sector, would involve an outlay of about Rs 30 crore. This will be set up in the same PO manufacturing complex, saving significant trucking and energy costs. Propylene, a bulk chemical intermediate, is the raw material for Propylene Oxide and is derived from LPG.

TPL is in advanced talks with various domestic and international vendors for LPG for the project. The project, technology of which has been developed in-house by the company’s R&D team of engineers and environmental scientists, will be implemented in 12-18 months.

Ashwin Muthiah, vice-chairman, TPL & founding chairman, AM International, said, "TPL will be the first Indian non-refining company in the private sector to build a propylene recovery unit plant. It shows our commitment to bring manufacturing efficiencies by continuous upgrading and introducing state-of-art technology solutions. It is in line with our group philosophy to maximise margins by introducing process efficiency and value additions."

In adherence to the group’s philosophy of optimum leverage, a significant part of the expansion will be funded via internal resources and the remaining through other sources. TPL is a three-decade old LAB manufacturer and has facilities for production of heavy chemicals and Propylene Oxide also.

Earlier it was reported that India imposed anti-dumping duties (ADD) in the range of USD60.92 to USD200.66 per tonne on imports of polyethylene terephthalate (PET) from China for a period of five years from March 27. The duties were introduced after more than a year of investigation based on complaints filed by local manufacturers IVL Dhunseri Petrochem Industries and Reliance Industries Ltd (RIL), which account for over 90% of India's PET production.

According to MRC's ScanPlast report, Russia's February production of sodium hydroxide (caustic soda) amounted to 98.4 thousand tons (100% of the main substance) against 113 thousand tons a month earlier. In the first two months of the year, the total production of caustic soda amounted to 211,400 tonnes, which is 4.6% less than the same indicator of the previous year.
MRC

PP prices reached another historical record in Russia at the end of March

MOSCOW (MRC) - The shortage of polypropylene (PP) in several regions of the world has become the main reason for the rapid rise in prices since the beginning of the year. The Russian market did not stand aside, and in February - March, local converters faced an unprecedented rise in prices. By the end of March, prices reached another record, with some sellers announcing further increase for April shipment, according to the ICIS-MRC Price Report.

PP prices grew dynamically in the markets of Latin America, Europe and Turkey, and at the same time, export prices for Russian producers also grew. As a result, under the pressure of the export alternative and limited supply from a number of suppliers, PP prices began to rise in the Russian market as well.

In the late March prices of homopolymer PP in Russia increased by more than 50% since the beginning of the year, setting new historical records. The export prices of Russian producers exceeded the prices in the domestic market in February - March.

So, depending on the direction of export, export deals in the first month of spring were in the range of USD1,840-2,130/tonne FCA, for homopolymer PP. And only by the end of March, domestic prices of polypropylene in Russia approached export parity for certain regions, while prices stabilised in some export markets. It was very difficult for Russian converters during February - March to pass the new polypropylene price to the cost of finished products.
The processes of renegotiating the prices of finished products were very painful, especially with retail chains.

Because of this the market was divided into three parts. The first group reduced purchases due to difficulties in passing new PP prices to finished products, there were cases of complete suspension of work. The second group of companies, despite record price levels, has good demand for finished products and is ready to accept higher prices in order to fully fulfill obligations to their customers.

The third group of buyers does not have an increased demand for finished products and is ready to put up with low capacity utilisation. Spot offers for the supply of homopolymer PP raffia in the first days of February started at Rb113,500/tonne CPT Moscow, including VAT, whereas at the end of March the cost of this PP from some sellers exceeded the level of Rb170,000/tonne CPT Moscow, including VAT.

A similar situation was with other types of polypropylene. Last week, price discussions started regarding April supplies of polypropylene, with some sellers discussing further price increases. Deals of propylene copolymers were discussed above Rb200,000/tonne CPT Moscow, including VAT.
MRC