PP production in Russia grew by 13% in Q1 2021

MOSCOW (MRC) - Russia's production of polypropylene (PP) increased to about 532,700 tonne in first three months of this year, up 13% year on year, compared to the same period of 2020. All producers, with the exception of Nizhnekamskneftekhim and Ufaorgsintez, have increased their production, according to MRC's ScanPlast.

March PP production in the country exceeded 181,800 tonnes, compared with 168,100 tonnes in February. Russia's overall PP production reached 532,700 tonnes in January-March 2021, compared to 470,000 tonnes a year earlier. Five out of seven producers increased their capacity utilisation, with Stavrolen and SIBUR Tobolsk / 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 production in March, the plant's production was 97,300 tonnes versus 91,900 tonnes a month earlier. SIBUR Tobolsk's PP overall output reached 285,900 tonnes in the first three months of 2021, up by 27% year on year.

Poliom increased its capacity utilisation last month, and, as a result, produced about 17,800 tonnes of PP, whereas its production was 15,900 tonnes a month earlier. Overall, the Omsk plant produced 51,900 tonnes of PP over the stated period, up by 1% year on year.

Nizhnekamskneftekhim produced a little less then 18,600 tonnes of propylene polymers in March versus 17,200 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer reached 54,200 tonnes in January-March 2021, compared to 55,200 tonnes a year earlier.

Tomskneftekhim produced 13,100 tonnes of propylene polymers last month versus 12,000 tonnes a month earlier. Total PP production by the producer increased to 38,600 tonnes in January-March 2020, up 2% year on year.

Ufaorgsintez worked in March with higher capacity utilisation, the final indicator of polypropylene production amounted to about 11,400 tonnes against 9,500 tonnes a month earlier. The Ufa plant's overall output of polymer reached 32,800 tonnes in the first three months of 2021, down by 3% year on year.

Neftekhimiya (Kapotnya) produced 13,000 tonnes of PP last month, compared to 11,800 tonnes a month earlier. The producer's overall PP output reached 37,400 tonnes over the stated period, up by 1% year on year.

Stavrolen (Lukoil) produced 10,700 tonnes of propylene polymers in March versus 10,000 tonnes in February. The Budenovsk plant's overall output of propylene polymers reached 31,900 tonnes in the first three months of 2021, up by 6% year on year.

MRC

MOSCOW (MRC) - Domo Chemicals has named Bamberger Polymers an authorised distribution partner effective immediately, according to GV.

Bamberger will offer Domo’s North American product portfolio including Domamid, Econamid and Domonyl Nylon 6 and 66 compounds. For more than 50 years, Bamberger Polymers has serviced the plastics industry distributing thermoplastic resins to customers worldwide. The company offers products to injection moulders, blow moulders, compounders, extruders, and manufacturers of plastic products.

“Offering Domo workhorse nylon grades for the automotive industry, while providing custom nylon compounded solutions and speciality compounded products utilising PPS, TPU, PPA and other base resins, Bamberger is equipped with the entire Domo Engineered Materials product line at their disposal. Their open-minded approach to problem solving, combined with Domo’s custom compounding business model, results in a relationship that has provided results in a short time. I look forward to growing our relationship with Bamberger as we expand our reach together,” said Rob Schultz, General Manager, Domo Engineering Plastics US, LLC.

Domo’s Buford plant in Georgia, USA, already produces a product portfolio, that includes the integrated production of PA6 and PA66 based materials, and many special solutions based on multiple base polymers which are available exclusively for the US market, including Slique, special friction & wear modified solutions, Elastane solutions based on TPU, and high thermal and chemicals resistant solutions based on PPA and PPS base resins.

As MRC reported earlier, Domo Chemicals ceased production of biaxially oriented polyamide (BOPA) films at Leuna, Germany, closing its plant there in August 2020. The company's Domo Film Solutions (DFS) subsidiary will continue operating its BOPA and cast non-oriented polyamide (CPA) film plants at Cesano Maderno, Italy.

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

MOSCOW (MRC) -- Anchorage Investments Ltd. will use Honeywell UOP’s C3 Oleflex technology to produce 750,000 metric tons per year of polymer-grade propylene for its new Anchor Benitoite petrochemicals complex in Suez, Egypt, near the southern terminus of the Suez Canal, said Hydrocarbonprocessing.

Propylene is the primary component in a variety of plastic products that are rapidly growing in demand. As part of the contract, Honeywell will provide technology licensing and basic engineering design, in addition to services, equipment, catalysts and adsorbents for the plant. This represents UOP’s third award for a C3 Oleflex unit in North Africa, following earlier wins in Egypt and Algeria.

"Anchor Benitoite’s PDH unit is an important production unit in the project; being the upstream propylene-producing unit for the whole complex.” said Ahmed M. A. Moharram, Founder and Managing Director of Anchorage Investments. “This underscores the significant importance of implementing Honeywell UOP’s well-proven and globally acknowledged propane dehydrogenation technology."

“The increasing consumption of plastics in the region has created a growing gap between supply and demand for propylene, which has historically been a byproduct of refining fuels,” said Laura Leonard, vice president and general manager, Honeywell UOP Process Technologies. “Our Oleflex technology can bridge this gap by producing ‘on-purpose’ propylene from propane that is derived from natural gas or refining processes."

Honeywell UOP’s C3 Oleflex technology converts propane to propylene through catalytic dehydrogenation. The technology is designed to have a lower cash cost of production and higher return on investment when compared to competing dehydrogenation technologies. Its low energy consumption, low emissions and fully recyclable, platinum-alumina-based catalyst system helps minimize its impact on the environment. The independent reactor and regeneration design of the Oleflex technology helps maximize operating flexibility and onstream reliability.

Oleflex technology has been selected for 71 dehydrogenation projects globally since 2011, including applications for propane, isobutane (iC4) and mixed propane and isobutane feeds.

As MRC reported earlier, in May, 2020, Honeywell announced that Enterprise Products Partners L.P. will use Honeywell UOP’s C3 Oleflex technology in its second propane dehydrogenation plant, called "PDH 2". Located near Mont Belvieu, Texas, PDH 2 will produce 750,000 metric tons per year of polymer-grade propylene as part of Enterprise’s expansion of propylene manufacturing capacity.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- W. R. Grace & Co. has licensed its UNIPOL PP Process Technology to the new MTO Gas Chemical Complex located in the Bukhara region of Uzbekistan to Enter Engineering, according to Hydrocarbonprocessing.

The UNIPOL PP Technology facility is expected to be launched by 2025 and will include one reactor line with the capability to produce 257KTA of polypropylene (PP).

Enter Engineering Pte. Ltd., one of the largest construction companies in the region, will act as a licensee on behalf of the JV Jizzakh Petroleum LLC who will own and operate the Gas Chemical Complex.

Grace's all gas-phase UNIPOL PP Process Technology delivers technology, innovation, and services for plant lifetime performance. The versatile process technology provides the broadest range of PP homopolymers, random copolymers, and impact copolymers in the industry.

All UNIPOL PP Technology licensees can take advantage of Grace’s PPartner Program which provides continuous process and product improvements, access to global technical services, catalyst development updates, and ongoing support for the lifetime of the plant.

As MRC wrote before, in April 2018, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation.

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.

A leader in polyolefin catalysts and licensing, W.R. Grace has the world’s broadest portfolio of polypropylene and polyethylene catalyst technologies used to produce thermoplastic resins for a variety of applications. A leading innovator and strategic partner to its customers, Grace supplies catalyst solutions for all polyolefin processes, as well as polypropylene process technology and process controls. Grace employs approximately 3,700 people in over 30 countries.
MRC

MOSCOW (MRC) - SIBUR may sell some of its assets if the Federal Antimonopoly Service (FAS) requires it to approve the merger of petrochemical businesses with the TAIF group of companies, said Interfax.

"I would not rule out, perhaps, that these are the types of business in respect of which the FAS decides that they should not be part of the merged company. Let's wait for a deep analysis of the FAS, we will promptly submit documents," Konov told reporters, answering the question of the possible sale of part of the assets.

On April 23, SIBUR and theTAIF Group announced plans to merge their petrochemical businesses. As a result of the transaction, a merged company will be created on the basis of SIBUR, in which the existing shareholders of the Taif group will receive a 15% stake in exchange for the transfer of a controlling stake in the group, which consists of petrochemical and energy enterprises. The remaining stake in Taif may subsequently be bought out by the combined company. After the completion of all ongoing investment projects, the combined company will enter the top 5 world leaders in the production of polyolefins and rubbers.

TAIF includes 28 enterprises, the group conducts its activities in many areas, the key of which are oil and gas processing, chemistry and petrochemistry, energy, investment activities. The enterprises in the field of chemistry and petrochemistry of TAIF Group produce 581 items of products, of which large-tonnage are synthetic rubbers, various brands and types of polyethylene, polypropylene, polycarbonate and styrene plastics.

At the end of 2020, TAIF's share in the total production of the Russian Federation was: for rubbers - 64%, for plastics - 28%, while the group is the only producer of polycarbonates, sevilen and a number of other popular types of polymer products in Russia.

After the completion of all investment projects underway - the Amur GCC and the construction of a new pyrolysis facility at Nizhnekamskneftekhim, the combined company will enter the TOP-5 global leaders in the production of polyolefins and rubbers, whose combined capacity will amount to 8 million tons of polyolefins and 1.2 million tons of rubbers.

Earlier it was reported that SIBUR increased sales of polypropylene and polyethylene last year amid growing utilization of the ZapSibNeftekhim complex. This led to an increase in the company's revenue in the olefins and polyolefins segment by 77.1% to Rb187.3 bn. This growth was mainly due to an increase in sales of polypropylene and polyethylene as a result of increased utilization of the ZapSibNeftekhim complex and was partially offset by a decrease in prices for these types of products.

SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.

PSC "TAIF" was established in 1995, is the parent company of the group of the same name, which includes enterprises structured in four business areas: oil and gas processing, chemistry and petrochemistry (energy); investment and financial services; building; telecommunications and complex services, including trade. TAIF Group of Companies is a large Russian holding that controls 96% of the chemical, petrochemical and oil and gas processing industries in Tatarstan. The most important of its areas is the Chemistry, Petrochemistry and Oil and Gas Processing Division, which includes the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.
MRC