Fire broke out at Formosa PP storage tank in Linyuan, Taiwan

Fire broke out at Formosa PP storage tank in Linyuan, Taiwan

MOSCOW (MRC) -- An explosion occurred at a polypropylene (PP) storage tank belong to Formosa Plastics (FPC) in Linyuan, Taiwan in the early hours of 7 July 2021 and caused a flare-up, which was distinguished within an hour, according to CommoPlast with reference to local media reports.

Formosa Plastics Corp (FPC) runs a 230,000 tons/year PP plant in the Linyuan complex.

There are no further details on the affected unit at the time of this report. It is uncertain if the fire incident affects the operation at the PP unit.

As MRC reported earlier, the company encountered a similar issue on 15 May 2020, when the (T-913B) storage tank stowed PP pallets burst into flame due to a faulty safety valve.

We remind that FPC, part of Formosa Petrochemical, conducted a scheduled turnaround at its PP plant in Linyan from mid-June to mid-July 2019.

According to MRC's ScanPlast report, Russia's PP production increased to about 851,100 tonne in first five months of 2021, up by 13% year on year. Three producers raised their output

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

Chinese court rules in favor of Solvay in patent casef iled by Zhejiang Fluorine Chemical New Material

MOSCOW (MRC) -- Chinese court has ruleed in favor of Solvay in patent case, according to the company's press release.

On February 2, 2021, the Patent Reexamination Board of the Chinese Patent Office ruled in Solvay's favor on a patent invalidation case filed by Zhejiang Fluorine Chemical New Material Co. Ltd. (“Fluorine”) against a patent pertaining to certain polyvinylidene fluoride (PVDF) materials specifically tailored for use as binders or separator/separators’ components in batteries, and to method of making the same.

The Guangzhou IP Court had already accepted last May 2020 a claim by Solvay that Fluorine was infringing Solvay's patent No. 200880019571.2 by supplying Zheflon FL2100 PVDF material and using the patented process in China. The infringement action had been stayed by pending the decision of the Patent Reexamination Board. As validity has now been conclusively established, the infringement proceedings before Guangzhou IP Court have been resumed. Solvay will seek injunction prohibiting Fluorine from exploiting the infringing PVDF Materials, and will seek damages for the infringement.

As MRC informed before, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that Russia's output of chemical products rose in March 2021 by 5.4% year on year. Thus, production of basic chemicals increased year on year by 6.7% in the first quarter of 2021, according to Rosstat's data. production of polymers in primary form was 958,000 tonnes versus 861,000 tonnes in February. Overall output of polymers in primary form totalled 2,740,000 tonnes in the first three months of 2021, up by 8.5% year on year.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities.
MRC

Pembina, Inter Pipeline mull petchem project prospects

Pembina, Inter Pipeline mull petchem project prospects

MOSCOW (MRC) -- Canadian midstream energy companies Pembina Pipeline and Inter Pipeline (IPL) are mulling the prospects of dehydrogenation/polypropylene (PDH/PP) production in Alberta province, said the company.

On May 31, 2021, Pembina and Inter Pipeline entered into an agreement (the "Strategic Combination") to create one of the largest and best positioned energy infrastructure companies in Canada. Together the companies' diversified and integrated asset base can support and grow an extensive value chain for natural gas, natural gas liquids and crude oil, from wellhead to end user, that far exceeds anything either company can do separately.

Under the Strategic Combination, Inter Pipeline shareholders will receive 0.5 of a common share of Pembina for each common share of Inter Pipeline. This represents immediate value of USD20.06 per share based on the closing price of Pembina's common shares on June 25, 2021, as detailed in the Joint Circular.

Once completed, the highly complementary asset base is expected to lead to opportunities for significant expansion, customer benefits, material efficiencies and ultimately enhanced value for the combined companies' shareholders. With Pembina and Inter Pipeline shareholders expected to own 72% and 28%, respectively, of the combined company, the significant benefits of the Strategic Combination outlined below will accrue to the shareholders of both companies.

Brookfield’s offer is due to expire on 13 July, if it is not extended again. The IPL shareholder vote on the combination with Pembina is scheduled for 29 July.

As per MRC, the Canadian company Inter Pipeline Ltd will complete the construction of a polypropylene (PP) plant in Alberta province, Canada by the end of the year, and the polypropylene production itself will begin in early 2022. In addition, the construction of a propane dehydrogenation unit is due to be completed next month. The polypropylene production capacity will be 525,000 tonnes.

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Inter Pipeline Ltd is a multinational oil transportation and infrastructure limited company that ranks among North America's leading natural gas production and processing companies. It is one of the top 100 companies in Alberta in terms of earnings and assets.

Pembina Pipeline has been a gas supplier to the North American power system for over 60 years. Pembina owns and operates pipelines that transport a variety of hydrocarbon fluids, including conventional and synthetic crude oil and others, produced in Western Canada and North Dakota.
MRC

Roehm to build MMA plant on US Gulf Coast

Roehm to build MMA plant on US Gulf Coast

MOSCOW (MRC) -- Roehm intends to begin construction of its 250,000 tonnes per year methyl methacrylate (MMA) plant on the US Gulf Coast, with completion scheduled for 2023, the manufacturer said.

Integrated into the OQ Chemicals manufacturing facility in Bay City, Texas, the plant will be the first to commercialize Roehm's low energy and wastewater LiMA MMA technology on an industrial scale.

Separated from its former parent company Evonik and acquired by private equity firm Advent International in early 2019, Roehm has already hired Wood to provide engineering, procurement and construction (EPC) services for the project.

OQ, formerly Oxea, signed a Memorandum of Understanding (MoU) with the project firm in February 2021, including agreements to integrate the plant into its existing site and provide raw materials, utilities and services at Roehm's site.

When the market first spoke about the project in question in 2019, sources said the Baytown plant could replace the company's manufacturing facility in Fortier, Louisiana.

Mitsubishi Chemical Corp (MCC) is also considering building an MMA facility from economically viable US ethylene instead of using acetone as a feedstock. Construction of a 350,000 tonnes per year plant in Geismar, Louisiana is under consideration. The final investment decision should be made in mid-2022.

The main sector consuming approximately 75% of MMA is the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to ICIS-MRC Price Report, global polyvinyl chloride (PVC) prices are no longer putting pressure on the Russian market. During the summer months, an acute shortage is the main factor behind the price rise in Russia. At the same time, the shortage of resin intensified in July due to scheduled shutdowns for maintenance at the two largest plants. An acute shortage led to another wave of price increases, and July PVC prices increased by Rb5,000-47,000/tonne, reaching new record levels.


MRC

Gabriel-Chemie presents its new production plant in Vorsino, Russia

Gabriel-Chemie presents its new production plant in Vorsino, Russia

MOSCOW (MRC) -- After slightly more than two years of construction, Gabriel-Chemie is announcing the completion of its state-of-the-art production facility in Russia, said the company.

The Austrian family business has been operating successfully with its own subsidiary in Russia for more than 14 years now. The high degree of technical expertise of the Gabriel-Chemie Group in terms of the range of colour masterbatch has always been highly appreciated by Russian customers.

Due to the steadily growing demand for masterbatch in the Russian market as well as in the neighbouring countries like Azerbaijan, Kazakhstan and Belarus, the third-generation company decided to expand its production capacity. Therefore, Gabriel-Chemie is investing around EUR6 million in the construction of a state-of-the-art production facility in Russia.

The expansion project was built on a 27,500 square meter property in the Vorsino industrial park, 90 kilometres of Moscow, and can thus expand its production capacity to 2,000 tons per year. Gradually and after further construction phases, it can be increased to up to 20,000 tons per year if necessary. In addition to production, there are also departments such as the technical support team and sales on site.

The construction of the Russian plant began in June 2018. The enterprise is located in the Vorsino industrial park on an area of ??27.5 thousand m2, 90 kilometers from Moscow.

Gabriel-Chemie has offices in Austria, the Czech Republic, Germany, Hungary, Italy, Poland, Spain and the UK, with a total of about 600 employees. The subsidiary company "Gabriel-Chemi" has been operating in Russia for over 14 years.

Industrial park "Vorsino" is the largest industrial site in the region - 1610 hectares. More than 40 leading Russian and international companies, including Samsung, L'Oreal, Nestle, AstraZeneca Industries, NLMK, have become residents of the park. The Freight Village Vorsino multimodal transport and logistics complex located in the Vorsino industrial park has become a part of the New Silk Road international logistics project, which unites the economic interests of Russia, China, South Korea and Eastern Europe.
MRC