TD West-Vostok will expand capacity for the production of labels for polymer packaging

MOSCOW (MRC) - TD West-Vostok (Vidnoye, Moscow Region) will receive over 90 million rubles in financing to expand production, according to a press release from the SME Corporation, said the company.

The total cost of the equipment modernization project is estimated at 173 million rubles. Modern equipment will allow the company to increase the volume of labels production by almost 2 times, increase production efficiency by reducing the volume of technological waste, increasing the quality and speed of production. The equipment modernization project will create more than 20 new jobs.

As part of the leasing transaction, the SME Corporation (VEB Group), with the support of the Regional Leasing Company of the Yaroslavl Region and the Regional Leasing Company of the Republic of Bashkortostan (subsidiaries of the forms.

The first batch of equipment has already been delivered and put into operation. The second batch will arrive at the enterprise in the fall of 2021 and includes four more pieces of equipment, three of which are equipment for automatic washing of parts, shafts and molds.

It is noted that the introduction of modern washing equipment will increase the life of parts by more than 25% and reduce costs through the introduction of environmentally friendly technology of a closed production cycle and the use of environmentally friendly cleaning fluids.

The SME Corporation provides preferential leasing support through a network of subsidiary regional leasing companies (RLC). Small business representatives or individual entrepreneurs from any region of the country can apply to one of four RLCs (in Tatarstan, Bashkortostan, Yaroslavl Region, the Republic of Sakha (Yakutia) and receive financing up to 50 million rubles for up to 7 years. The preferential rate for leasing domestic equipment is 6% per annum, for foreign - 8%.

Earlier it was reported that Danaflex (Tatarstan) launched the production of IML labels for food and non-food products. IML (In Mold Labeling) is a polymer film-based label that is fused in a mold; the technology is the most progressive method for decorating rigid polymer packaging.

According to the ScanPlast survey of MRC, the estimated consumption of PE in Russia amounted to 953,400 tonnes in the first five months of 2021, which actually corresponds to the indicator for the same period a year earlier. The supply of low-density polyethylene (HDPE) decreased.

TD West-Vostok has been operating on the market since 2007 and is engaged in the production of self-adhesive labels and flexible packaging. Working in niche segments and working with a wide pool of clients allowed the company to increase production by more than 50% in 2020. The company's revenue last year amounted to about 400 million rubles, which is 74% higher than in 2019.
MRC

SAPREF refinery to begin restarting

SAPREF refinery to begin restarting

MOSCOW (MRC) -- South Africa's largest crude oil refinery - SAPREF, a 50/50 joint venture between BP and Shell, will begin restarting, after temporarily shutting down as a wave of violent looting swept across the country, reported Reuters with reference to the operators statement.

The refinery, situated in the east coast port city of Durban, shut down last week due to violence that claimed more than 200 lives and caused billions of rands worth of damage.

SAPREF has a nameplate capacity of 180,000 barrels per day and accounts for around 35% of the refining capacity in Africa's most industrialised economy, a net importer of petroleum products.

The refinery restart will take between 7-10 days to be completed, the operators said.

As MRC informed previously, in April 2021, SAPREF let a contract to KBR Inc. to provide technology for an upgrade of the 33,000-b/d FCC unit at its 180,000-b/d refinery in Durban, South Africa. As part of the contract, KBR will license its Catalyst Regeneration technology as well as deliver basic engineering, detailed engineering, and proprietary equipment for the FCC regenerator project, which will enable SAPREF to improve the unit’s reliability and integrity by optimizing catalyst and air distribution.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC

Trading arm of Pemex bans new business with Trafigura

Trading arm of Pemex bans new business with Trafigura

MOSCOW (MRC) -- The commercial arm of Mexican state oil company Petroleos Mexicanos (Pemex) has temporarily banned new business with Trafigura AG, according to a document and a source, as investigations into the energy trader’s conduct in several countries deepen, reported Reuters.

The world's largest independent commodity traders here are facing scrutiny globally for alleged corruption after years of investigations into bribes of public officials in several countries in Latin America.

Pemex and other state oil companies have become wary of doing business with merchants, which include Trafigura and rival Vitol. Earlier this month, PMI Comercio International suspended new deals with Trafigura and its subsidiaries until further notice, according to company communication seen by Reuters. The document did not state a reason for the ban.

Mexico is the world’s fourth-largest importer of refined oil products and a prominent buyer of natural gas and liquefied natural gas (LNG). Many foreign trading houses and oil companies buy Mexican crude from Pemex and also supply refined products or LNG for Mexican state companies.

Employees at PMI, which is in charge of Pemex’s fuel imports, were told to honor existing agreements with Trafigura but not take on new deals as of early July, a source familiar with the operations said.

Mexico’s longstanding business relationships with Trafigura and other energy traders have become increasingly difficult to sustain because of additional layers of compliance progressively imposed by the company and its units, several sources said.

The primary reason for the increased scrutiny is that Pemex and its subsidiaries are worried about exposure to companies under investigation for corruption elsewhere, two of the sources said. All sources spoke on the condition of anonymity because of the sensitivity of the matter.

Other Pemex units continue trading with the Geneva-based trader, another source said. Reuters was unable to determine the frequency and size of the trading relationship, but the Americas accounted for 31% of Trafigura’s oil revenues in 2020.

As MRC informed before, Pemex will invest USD2.64 billion to complete a coking plant at its Tula refinery as the country seeks to reduce its dependence on imported fuels, said earlier the state company's CEO. The project, which Pemex expects to finish by 2023, will allow Pemex to process 90% of the fuel oil produced at Tula and at neighboring Salamanca, Octavio Romero Oropeza said during the daily press conference held by Mexican President Manuel Andres Lopez Obrador.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC

JV of Westlake and Lotte Chemical picks McDermott for seventh heater addition to its cracker in USA

JV of Westlake and Lotte Chemical picks McDermott for seventh heater addition to its cracker in USA

MOSCOW (MRC) -- McDermott International, Ltd has been selected by LACC, LLC, a joint venture between Westlake Chemical Corporation and Lotte Chemical Corporation, to provide engineering, procurement and construction for a seventh heater addition to its LACC Ethane Cracker Facility in Westlake, La, according to Hydrocarbonprocessing.

Schematic image for seventh heater addition to LACC Ethane Cracker Facility in Westlake, La.

"We look forward to continuing our strong partnership with Westlake and Lotte Chemical through this latest contract award," said Mark Coscio, Senior Vice President for McDermott's North, Central and South America region. "Using McDermott's extensive experience in the petrochemical market, we will demonstrate our commitment to supporting a superior project delivery experience on behalf of our customers."

Engineering, procurement and construction project services will be led by McDermott's Houston engineering group with support from its Mexico City office. McDermott's preferred technology partner, Lummus Technology, will provide the heat transfer technology, SRT-III, central to the seventh heater addition.

The project will commence immediately and is expected to be completed in the fall of 2023.

As MRC reported earlier, Lotte Chemical Titan Holding (Kuala Lumpur, Malaysia), an affiliate of Lotte Chemical (Seoul, South Korea), announced that the group's ethane cracker and ethylene glycol (EG) plant at Lake Charles, Louisiana, commenced commercial operations in August, 2019. Lotte Chemical USA, a 40/60 joint venture (JV) between Lotte Chemical Titan and Lotte Chemical, holds the Lotte group's stakes in the plants. The USD3.1-billion ethane cracker is an 88/12 JV between Lotte Chemical USA and Axiall, a subsidiary of Westlake Chemical.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Lotte is the first South Korean petrochemical company to enter the ethane-cracking business in North America using shale gas. Lotte Chemical operates naphtha crackers at Yeosu and Daesan, South Korea, and Lotte Chemical Titan operates a cracker at Pasir Gudang, Malaysia. Lotte says that the US cracker increases the group's overall ethylene capacity to 4.5 MMt/y, making it the seventh-biggest producer of ethylene worldwide.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC

LyondellBasell selected by Jiangsu Fenghai to supply technologies for polyolefin project in China

LyondellBasell selected by Jiangsu Fenghai to supply technologies for polyolefin project in China

MOSCOW (MRC) -- LyondellBasell announced it has been selected by Jiangsu Fenghai High-tech Materials Co. to supply the technologies for a polyolefin project to be built in Lianyungang, Jiangsu, China, according to Apic-online.

The new facility will include the production of 400,000-t/y polypropylene (PP), based on LyondellBasell?s Spheripol technology, and 300,000 t/y of high density polyethylene (HDPE) using its Hostalen ACP process.

Cost of the project and a completion date were not available.

"We are delighted that Jiangsu Fenghai has awarded LyondellBasell these substantial licenses for their first polyolefin project," said Neil Nadalin, director of licensing at LyondellBasell.

As MRC reported earlier, in August 2020, LyondellBasell (Rotterdam, the Netherlands) announced that Duqm Refinery and Petrochemical Industries Company LLC (DRPIC) has selected LyondellBasell’s world-leading PP and HDPE technologies for a new facility. The new plants will comprise of a PP plant that will utilize LyondellBasell’s Spheripol PP process technology to produce 280,000 metric tons per year (m.t./yr) of PP and a 480-m.t./yr HDPE plant which will utilize LyondellBasell’s Hostalen ACP process technology and will be built in Al Duqm, Oman.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC