Formosa to shut its No.1 cracker in Mailiao for maintenance on 8 June

MOSCOW (MRC) -- Formosa Plastics Company (FPC), part of Formosa Petrochemical, is in plans to take off-stream its No. 1 cracker in Mailiao, Taiwan for a scheduled turnaround on 8 June, 2021, reported Reuters with reference to the company's spokesman.

This cracker with an annual capacity of 700,000 tons of ethylene and 350,000 tons of propylene is expected to remain shut unitl mid-July, 2021.

As MRC wrote before, the company unexpectedly shut its No.1 cracker in Mailiao on 12 April 2021 due to an unspecified technical issue and resumed operations on 19 April 2021. FPC expects to restore 100% capacity utilisation at this facility in a couple of days after the restart.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

Polytama to resume normal operations at its PP plant in Balongan by the end of the week

MOSCOW (MRC) -- PT Polytama Propindo is ramping up operating rates at its polypropylene (PP) plant in Balongan, Indonesia and might be able to achieve normal operations by the end of this week, reported CommoPlast with reference to market sources.

They said that the company is now in middle of this process at this facility that can produce 380,000 tons/year of PP.

As MRC informed earlier, on 29 March, 2021, PT Polytama Propindo took its PP plant in Balongan offline after a fire broke out at the Pertamina's refinery at the nearby location that disrupt the propylene supply to the company.

PT Polytama Propindo has reportedly restarted its PP plant in Balongan over the weekend after three weeks of shutdown. Pertamina has successfully resumed the propylene supply last Thursday, 15 April 2021, allowing Polytama to restart the operation at its PP plant.

We remind that in 2017, the company conducted maintenance at this plant from end-January to mid-February.

According to MRC's ScanPlast report, PP shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

PT Polytama Propindo was established in 1993 as a signifcant manufacturer of polypropylene resin (PP resin) in Indonesia. Polytama is taking a leading role in Indonesia's fast growing economy by utilizing the country wealth i.e. the secondary processing yield of oil and natural gas , through industrial manufacturing. The factory located in Balongan, Juntinyuat district, Indramayu-West Java, using one of the best technology in the world, the Spheripol technology of Montell (now LyondellBasell), with an installed capacity of 100,000 metric tons per year.

Two years later the construction of the factory was completed on July 27, 1995 and PT Polytama Propindo started the production (the product trade name: Masplene), the supply of raw material propylene with high purity from PERTAMINA refinery UP-VI (now RU-VI ) Balongan. In 1996, and the plant capacity grown to 180,000 tons per year. Response to the addition of propylene production capacity of PERTAMINA RU-VI in 2004, PT Polytama Propindo increased its capacity to 200,000 tons per year.
MRC

Sika strengthens its position in the USA by acquiring flooring adhesives business

MOSCOW (MRC) -- Sika,a producer of construction chemicals, has acquired the flooring adhesives business of DriTac, a US-based floor covering adhesives company with an especially strong position in wood floor bonding, reported Intrado GlobalNewswire.

The acquisition will contribute to Sika’s increased presence among floor covering installers and distributors, while accelerating Sika’s expansion in the Interior Finishing market in the USA. In 2020, the acquired business generated sales of CHF 20 million.

DriTac is a well-recognized brand in the US floor covering industry, with a strong reputation especially in the wood floor bonding segment. DriTac brings long-established customer and distributor relationships across the country that are highly complementary to Sika’s existing network, enhancing overall market access and market penetration.

The acquired business strengthens Sika’s growth platform for Interior Finishing in the USA with large potential for cross-selling of Sika’s other complementary products that include moisture-mitigation materials, surface preparation and self-leveling underlayment mortars, as well as tile setting materials. The DriTac product range, which includes polyurethane, modified silicone and water-based technologies, will further enhance Sika’s system solutions for floor covering applications and give customers access to a large, full-range portfolio.

As MRC informed earlier, in November 2020, Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.

We remind that Russia's output of chemical products rose in February 2021 by 5.3% year on year. Thus, production of basic chemicals increased year on year by 7.5% in the first two months of 2021, according to Rosstat's data. February production of polymers in primary form was 861,000 tonnes versus 196,000 tonnes in January. Overall output of polymers in primary form totalled 1,770,000 tonnes over the stated period, up by 8.4% year on year.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.
MRC

Chemours plans to net zero absolute emissions by 2050

MOSCOW (MRC) -- Chemours says it is looking to achieve a 60% absolute reduction of operations-related greenhouse gas emissions by 2030, and net zero greenhouse gas emissions by 2050, said the company.

In addition to refrigerants, Chemours is a major producer of titanium dioxide, industrial fluoropolymer resins and derivatives and other chemical solutions.

Last month, the company announced it was seeking to make significant reductions in emissions of HFC23 at its Louisville, Kentucky manufacturing site. A unique product used in ultra-low temperature refrigeration and the manufacture of semiconductors, HFC23 has a huge GWP of 14,800.

In its latest climate goal announcement, Chemours says that, under Scope 1 of the GHG Protocol, it will continue to enhance emissions control technologies at its manufacturing sites and drive energy efficiency improvements across its operations, reducing the volume of greenhouse gas emissions and energy use.

In addressing Scope 2 emissions, Chemours will increase the amount of electricity and other energy generated from renewable sources. The company is also in the process of defining goals related to indirect emissions from its value chain (Scope 3) and says it will announce them at a later date.

Chemours also announced the appointment of Sheryl Telford to the newly created position of Chief Sustainability Officer. Telford has more than three decades of experience in the environmental, safety and health fields in the government, utility and chemistry sectors. She joined Chemours upon its creation in 2015 as Director, EHS and Remediation before being named vice president, environment, health, safety and corporate responsibility in 2018.

As MRC informed earlier, Chemours will close its aniline and nitrobenzene site in Pascagoula, Mississippi state, by the end of the year. The First Chemical site produces aniline, nitrobenzene and nonylated diphenylamine (NDPA) lubricant antioxidant.The company has decided to exit the business and cease production at the site. Chemours said it was reviewing options for productive reuse of the site. Aniline is used to make polyurethanes, dyes and rubber chemicals among other products.

As MRC informed before, in December 2019, Chemours announced plans to sell its methylamines and methylamides unit to Belle Chemical, an affiliate of Cornerstone Chemical. The sales price was not disclosed. Thus, Chemours had signed a letter of commitment with Belle Chemical Co. to sell Chemours' methylamines and methylamides business and production facilities at the Belle location. Earlier in 2019, Chemours announced it would stop making methylamines and methylamides at the plant. In 2020, it planned to start dismantling the methylamines operations. Once Belle takes possession of the plant, most of the employees at Belle and others assigned in supporting roles at other locations will become part of Belle, Chemours said. Cornerstone makes acrylonitrile (ACN) and melamine at Fortier, Louisiana.

ACN is a feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to the ICIS-MRC Price Report, Plastik (Uzlovaya) increased the cost of ABS for Russian converters for the second half of March. So, unpainted material is offered by the plant at a price of Rb282,000-290,000/tonne, FCA Nodal, VAT included.

Chemours is a global leader in titanium technologies, fluoroproducts and chemical solutions, providing its customers in a wide range of industries with market-defining products, application expertise and chemistry-based innovations. Chemours ingredients are found in plastics and coatings, refrigeration and air conditioning, mining and oil refining operations and general industrial manufacturing. Chemours has approximately 9,000 employees across 37 manufacturing sites serving more than 5,000 customers in North America, Latin America, Asia-Pacific and Europe. Chemours is headquartered in Wilmington, Del.
MRC

Alpek reported higher sales in Q1

MOSCOW (MRC) -- Alpek swung to a Q1 net income because of higher sales, and it raised its guidance for 2021, said the company.

The following shows the company's financial performance. Figures are in millions of pesos. During the quarter, Alpek's plants operated without interruption, allowing them to capitalise on the disruption caused by winter storm Uri.

In addition, Alpek was able to sell natural gas. The following shows the financial performance of the company's Polyester segment.

During the first quarter, Asian integrated reference margins for polyester rose to an average of USD330/tonne, up 36% from the fourth quarter of 2020. The increase exceeded Alpek's forecast of USD245/tonne.

The polyester segment produces purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester fibres.

As per MRC, Nova Chemicals (Calgary, Alberta, Canada) has agreed to sell its expandable styrenics business to a subsidiary of Alpek (Monterrey, Mexico) for an undisclosed sum. The transaction is expected to close in the fourth quarter, it says. The sale encompasses Nova’s expandable polystyrene (EPS) and Arcel-brand resin product lines, with manufacturing facilities in Monaca, Pennsylvania, and Painesville, Ohio, as well as commercial operations in Asia, it says. The plant at Monaca has an EPS production capacity of 123,000 metric tons/year, with 36,000 metric tons/year of capacity for Arcel, as well as an R&D pilot plant. The facility at Painesville has an EPS capacity of 45,000 metric tons/year, according to Alpek subsidiary Styropek, which is acquiring Nova’s business.

According to ICIS-MRC Price Report, Russian HIPS and GPPS producers traditionally did not adjust their prices of material in the middle of the month. A shortage of Nizhnekamskneftekhim's material remained in the domestic market. The situation with the shortage of Russian polystyrene (PS) is also expected to remain in November.

Alpek operates two main business segments, focused on polyester, and plastics and chemicals, and is a leading producer of purified terephthalic acid (PTA) and polyethylene terephthalate (PET). It is also the largest EPS manufacturer in the Americas.
MRC