NPP "POLYPLASTIC" began exporting compounds to Poland

MOSCOW (MRC) - NPP POLYPLASTIC, the largest Russian manufacturer of thermoplastic composite materials, has begun exporting a compound based on polyamide grade Armamid PA6 SV 15-1E to Poland, the company said.

The volume of the first batch, which has already been delivered to Poland, amounted to 10 tons. The Polish side decided to order an industrial batch of material after preliminary tests of samples.

"This is our first experience of working with Russian suppliers and immediately successful. The ratio of price and quality of products of NPP" POLYPLASTIC "was completely satisfied, we settled all the necessary formalities with the Russian side quite quickly. - noted the representatives of the Polish side.

The entry of RPE "POLYPLASTIC" to the Polish market took place within the framework of the "Export Fast and Furious" strategy, which the company has been implementing since 2017. The strategy is aimed at conquering European markets. Today, regular shipments are already being carried out to Germany and the Baltic states. Compared to the start of the Export Fast and Furious project, they have more than doubled.

The entry to the Polish market in the company NPP "POLYPLASTIC" is assessed as an opportunity to further increase shipments to Europe and come closer to the strategic goal, which is to bring the share of exports to 25% of the total supply.

It should be noted that sales of SPE "POLYPLASTIC" products outside the Russian Federation are growing annually. Shipments to the CIS countries and Europe at the end of 2020 increased by 41.3% compared to the previous year.

Earlier it was reported that SPE "POLYPLASTIC" has developed a polymer nanocomposite based on polyamide-6 for molding car bodies. The production of the wings of the new Gazelles from the polymer nanocompound of NPP "POLYPLASTIC" is planned to begin in 2021.

Earlier it was reported that RPE "POLYPLASTIC" last year increased its sales profit by 9%. At the same time, it is noted that despite the global economic turmoil caused by the coronavirus pandemic, the company maintained its sales volume at the 2019 level.

As MRC previously reported, China has decided to extend its anti-dumping duties (ADD) on polyamide 6 (PA6) imports from the US, EU, Russia and the Taiwan region from April 22. The size of duties for Russian producers was announced in the following amount - PJSC KuibyshevAzot - 5.9%, all the rest - 23.9%.

Research and Production Enterprise "POLYPLASTIC" specializes in the production of thermoplastic composite materials and polymer raw materials for processing by injection molding, injection molding and extrusion and occupies a leading position in the Russian market of compounds based on thermoplastics. The company is in the TOP-10 among European compounders. The total production capacity of the enterprise is more than 115 thousand tons per year.
MRC

ENOC expands petrochemical storage terminal in Saudi Arabia

MOSCOW (MRC) -- Dubai’s ENOC Group and Rotary Arabia have completed construction of pipelines and tanks to store and transport petrochemicals in Saudi Arabia, according to ArabNews.

The infrastructure development between Horizon Terminals Limited, ENOC’s terminals arm, and Rotary Arabia - the front-end contractors for the project, saw the construction of four new pipelines from Farabi Petrochemicals’ Yanbu facility on the Red Sea coast to storage tanks at Arabtank Terminal.

The GCC’s chemical capacity is expected to increase by more than a third over the next decade reaching 231.8 million tons, driven by refining expansion and chemical integration.

Arab Tank Terminal Limited (ATTL) - which is Horizon Terminals’ Saudi based terminal, has a petroleum and chemical storage capacity of 288,100 cubic meters spread across 26 storage tank. Two additional pipelines were also constructed from ATTL to Berth 21 at Port of King Fahad Yanbu.

“The GCC chemical industry today is predominantly focused on petrochemicals which make up 72 percent of its total production, with Saudi Arabia being the leading producer in the region, accounting for 68.2 percent of total chemical output,” said ENOC Group CEO Saif Humaid Al-Falasi. “Our expansion into the Kingdom comes at a time when the regional market is poised to step up overseas production capacity by 7.6%.”

Farabi Petrochemicals currently supplies to the domestic market and benefits from the Port of King Fahad Yanbu infrastructure to export chemicals to the GCC, Europe and Asia. The new pipelines from its Yanbu facility will enable faster and more efficient transportation of petrochemical products.

As MRC reported earlier, Yanbu National Petrochemical Company (Yansab), part of Saudi Basic Industries Corporation (Sabic), has restarted its cracker after a planned turnaround. Thus, the cracker in Yanbu, Saudi Arabia, which can produce 1.38 mln mt/year of ethylene and 400,000 mt/year of propylene, resumed operations on 15 February, 2021. It was shut for a turnaround on 5 February.

The company also has polyolefin plants at the same site with production capacity of 400,000 tons/year of polypropylene (PP) and linear low density polyethylene (LLDPE) each. They were also taken off-line for maintenance on 5 February. Both plants resumed production shortly after the cracker.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

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.
MRC

Evonik is investing in specialty lipids production for COVID-19 vaccines

MOSCOW (MRC) -- Evonik is investing in the short-term expansion of its specialty lipids production which are essential for mRNA-based COVID-19 vaccines, said the company.

Commercial lipid quantities are to be produced at Evonik’s Hanau and Dossenheim sites in Germany as early as the second half of 2021 as part of a strategic partnership with vaccine manufacturer BioNTech. Evonik is making an important contribution to increasing the supply security of the Pfizer-BioNTech COVID-19 vaccine.

"The pandemic requires decisive action," says Christian Kullmann, chairman of Evonik’s executive board. "We are therefore doing everything possible to supply our partners with the critical lipids they need. At the same time, we are expanding our production capacity and competencies along the entire value chain."

Lipids are fundamental to produce highly effective mRNA-based vaccines. Only with an increase in lipid supply can the volume of vaccine be further increased. This move marks an expansion of the strategic partnership between Evonik and the vaccine manufacturer BioNTech.

In mRNA-based vaccines, the mRNA is enclosed in a lipid nanoparticle (LNP) that is comprised of specific lipids. The LNP protects the mRNA and delivers it safely into the cell. There it is released so that the vaccine can exert its effect. Evonik has been a contract development and manufacturing organization (CDMO) leader for advanced drug delivery for many decades, supporting pharmaceutical companies worldwide in the development and production of complex parenteral drug products that require formulation technologies such as lipid nanoparticles.

The Germany-based company is one of the few integrated development and manufacturing partners for cell and gene therapies, and has been actively involved in various mRNA-based vaccines projects for COVID-19. "With our partnership with BioNTech, we are systematically expanding our leading position as an integrated development partner in cell and gene therapies," says Thomas Riermeier, head of Evonik's Health Care business line. Evonik’s portfolio includes pharmaceutical excipients such as lipids, as well as CDMO services for the formulation development, GMP manufacturing and aseptic filling of complex parenteral drug products."

The COVID-19 vaccine, which is based on BioNTech proprietary mRNA technology, was developed by both BioNTech and Pfizer. BioNTech is the Marketing Authorization Holder in the European Union, and the holder of emergency use authorizations or equivalent in the United States, United Kingdom, Canada and other countries in advance of a planned application for full marketing authorizations in these countries.

The Evonik Health Care business line, which includes products, services and technologies for cell and gene therapies, has been characterized by strong growth and high innovation power for many years. Evonik recognized the potential of gene-based therapeutic approaches early in the emergence of these advances. For example, the specialty chemicals company already develops and formulates lipid nanoparticles in Burnaby, Canada, and operates a facility for the production and fill-finish of commercial quantities in Birmingham, Alabama, USA. "We made a targeted investment in this promising technology in 2016 with the acquisition of Burnaby-based Transferra Nanosciences," Riermeier explains. The portfolio was further expanded at the beginning of 2020 with the acquisition of Wilshire Technologies, an American manufacturer of non-animal derived excipients for the pharmaceutical industry. This includes PhytoChol, a non-animal derived cholesterol, used in many commercial parenteral pharmaceutical products.

As per MRC, American company Kraton reported that the US Environmental Protection Agency (EPA) has granted an emergency exemption for the use of its new sulfonated polymer, which rapidly inactivates the coronavirus. The Environmental Protection Agency has issued an emergency permit for the use of the polymer in the states of the United States, Georgia, Utah and Minnesota for specific applications to protect against the COVID-19 virus.

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.
MRC

IOC refineries operating at 95% capacity in April

MOSCOW (MRC) -- Indian Oil Corp Ltd's (IOC) refineries are operating at about 95% of their capacity, down from 100% at the same time last month, reported Reuters with reference to source's statement.

Coronavirus cases have surged in India, leading to curbs on movement across the country, a move analysts say could hit fuel demand in the world's third largest oil importer and consumer.

An official at IOC, India's biggest oil refiner, said the cuts in runs at its refineries were "marginal" but analysts and industry officials say there could deeper reductions in output from the country's refineries in coming days.

"If cases continue to rise and curbs continue or intensify for a longer period, we may see cuts in refinery runs and lower demand after a month," an industry source said. Consultancy FGE said it estimates gasoline demand will drop by 100,000 barrels per day (bpd) in April and by more than 170,000 bpd in May if further restrictions are imposed. India's total gasoline sales came to nearly 747,000 bpd in March.

Diesel demand is expected to contract by 220,000 bpd in April and by another 400,000 bpd in May, according to FGE.

India's diesel consumption, a key indicator linked to economic growth and which accounts for about 40% of overall refined fuel sales in India, was 1.75 million bpd in April.

While curbs to restrict movement are in place in many parts of India, it has not imposed a total shutdown as it did in March last year. Most businesses are still operating normally.

As MRC informed before, Indian Oil has just announced plans to expand the capacity of its refinery at Panipat, India, from 15 million metric tons/year (MMt/y), to 25 MMt/y. The company will also build a polypropylene (PP) unit and a catalytic dewaxing unit at the site. The cost of the project is 329.46 billion Indian rupees (USD4.45 billion). The plan is the latest in a series of projects approved by Indian Oil to improve integration with petrochemicals at the company's refinery sites. The capacity of the planned PP facility has not been disclosed.

Ethylene and propylene are the mail feedstocks for production of polyethylene (PE) and polypropylene (PP), respectively.

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.
MRC

Valero posts larger Q1 loss due to polar storm

MOSCOW (MRC) -- US refiner Valero Energy Corp posted a larger quarterly loss as a winter storm hit its operations in February, but its top boss shrugged off the rare event to focus on rising fuel demand and fatter refining margins, reported Reuters.

A cold snap in Texas earlier this year disrupted energy supply and sent numerous refineries offline, prompting profit warnings from companies including Exxon Mobil and Phillips 66. But the storm-related disruptions also boosted fuel prices and in turn, margins for refiners, with Valero's Q1 refining margin surging 33% sequentially to USD1.45 billion.

The sector also benefited from rising fuel consumption as an easing of restrictions and the mass rollout of vaccines prompted more people to travel.

"We are encouraged by the substantial increase in products demand and refining margins in the last three months," Chief Executive Officer Joe Gorder said in a statement.

However, rising coronavirus cases in some countries are threatening the fuel demand recovery.

Valero, the first US refiner to post quarterly results, said refining throughput, or the amount of crude it processed, fell nearly 8% sequentially to 2.4 million barrels per day.

Net loss attributable to its stockholders was USD704 million, or USD1.73 per share, for the three months ended March 31, compared with a loss of USD359 million, or 88 cents per share, in the prior quarter. Its results included costs of about USD579 million due to the impacts from Winter Storm Uri.

As MRC wrote before, Valero Energy Corp restarted the large crude distillation unit (CDU) at its 335,000-bpd Port Arthur, Texas, refinery the first week of September, 2020. The 268,000-bpd CDU was shut with all other units at the refinery on Aug. 25 because of the threat from Hurricane Laura.

We remind that in June 2020, Valero Energy Corp’s Memphis, Tennessee, crude oil refinery was operating at two-thirds of its 180,000 barrel-per-day (bpd) capacity because of low demand in the COVID-19 pandemic. The Memphis refinery cut production by as much as 50% in early April and has been raising production gradually since then.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

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.
MRC