Vinnolit declares force majeure on SPVC supplies from its Knapsack plant

MOSCOW (MRC) -- European PVC producer Vinnolit has declared force majeure (FM) on shipments of suspension polyvinyl chloride (SPVC) from its plant in Knapsack, Germany because of technical issues caused by flooding in the region, reported NCT.

The force majeure was declared on 19 July, 2021.

At present, its is unknown when FM at this plant with the capacity of 160,000 mt/year of SPVC will be lifted.

As MRC informed earlier, in October, 2020, Vinnolit decided to close its 50,000 tons/year PVC plant in Schkopau, Germany due to the lack of profitability and the lack of long-term competitiveness of the location in the current environment.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

Vinnolit company is a key player in the Russian market of emulsion.
MRC

MOSCOW (MRC) -- Shintech, a subsidiary of Shin-Etsu Chemical Co. and the largest US polyvinyl chloride (PVC) producer, has been running its PVC production capacities at Plaquemine, Louisiana, complex at reduced rates after fire, reported S&P Global with reference to market sources.

One unit with the capacity of 445,000 mt/year of PVC was shut on 2 July, 2021, after lightning struck and ignited a fire at a transformer at the site, and it still remained off-line in mid-July. The company's overall production capacity for PVC at its Plaquemine site is 1.606 mln mt/year.

Market sources said the interruption has reduced Shintech's August export volume availability,

As MRC informed earlier, in late Marchl, 2020, Shintech shut its PVC facility in Freeport, Texas for a turnaround. The complany ended maintenance works at its 1.4 million mt/year PVC complex in Freeport in early May, 2020.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

Shintech Inc. is the world's largest producer of polyvinyl chloride (PVC). PVC is a general-use resin that is finding wide application in goods used in daily life and a significant number of industrial materials. Shintech is committed to operating safe and environmentally responsible facilities
MRC

MOSCOW (MRC) -- Russia's overall production of high density polyethylene (HDPE) totalled slightly over 1 mln tonnes in the first six months of 2021, up by 12% year on year. At the same time, only one producer increased its output, according to MRC's ScanPlast report.

June total HDPE production in Russia dropped to 170,200 tonnes, whereas this figure was 177,600 tonnes a month earlier; Gazprom neftekhim Salavat and Kazanorgsintez reduced their capacity utilisation. Thus, overall HDPE output exceeded 1 mln tonnes in January-June 2021, compared to 892,900 tonnes a year earlier. Only ZapSibNeftekhim's production increased, whereas three others reduced their output.

The structure of polyethylene (PE) production by plants looked the following way over the stated period.

ZapSibNeftekhim's June total HDPE production reached 103,200 tonnes versus 101,300 tonnes a month earlier. The Tobolsk plant's overall HDPE output reached 576,200 tonnes in the first six month of 2021, up by 46% year on year.

Kazanorgsintez's total HDPE production fell to 31,100 tonnes last month from 38,600 tonnes in May, lower output was caused by the increase in linear low density polyethylene (LLDPE) production. Thus, the plant's overall output of this PE grade totalled 206,000 tonnes in the first half of 2021, down by 24% year on year.

Stavrolen's June HDPE production was 26,300 tonnes, which corresponded to the figure a month earlier. The plant's overall HDPE output was 160,700 tonnes in January-June 2021, down by 2% year on year.

Gazprom neftekhim Salavat's total HDPE production decreased to 9,600 tonnes last month from 11,400 tonnes in May. Thus, the Salavat plant's overall output of this PE grade totalled 58,500 tonnes in the first half of 2021, down by 9% year on year.

MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, has announced its entry into an agreement with SK AA Holdings, LLC, an affiliate of Falcon Private Holdings, LLC, to acquire Aristech Surfaces LLC, a leading North American manufacturer and global provider of polymethyl methacrylates (PMMA) continuous cast and solid surface sheets, serving the wellness, architectural, transportation and industrial markets, as per the company's press release.

“The acquisition of Aristech allows us to provide a full offering of PMMA technologies and innovative products that serve customers in new, high-growth markets,” said Frank Bozich, Trinseo President and Chief Executive Officer. “This is an important next step towards our goal of becoming a global specialty materials and sustainable solutions provider. We are eager to welcome the Aristech team and we believe the complementary technical capabilities and focus on customer relationships will drive superior results for the PMMA business globally.”

The transaction is expected to generate approximately USD10 million in annual pretax cost synergies by 2024 and additional revenue synergies by leveraging Trinseo’s footprint and customer relationships in North America, Europe and Asia. The collective technical and commercial teams will work together to accelerate growth and deliver meaningful value to shareholders.

Aristech is a global leading producer of continuous cast acrylic sheet for the wellness, architectural, transportation and industrial markets. Aristech’s products are used for a variety of applications, including the construction of hot tubs, swim spas, counter tops, signage, bath products and recreational vehicles. Aristech’s high margin profile and strong cash flow conversion is expected to drive long-term value for shareholders. The business will become part of Trinseo’s Engineered Materials segment.

The transaction is expected to be funded with cash on hand and existing credit facilities. Trinseo expects its net leverage ratio to be in the low-2x range at the end of the year, including proforma adjustments for the Synthetic Rubber divestiture and the Aristech and Arkema PMMA acquisitions. Trinseo anticipates the transaction will close by year-end 2021 subject to customary closing conditions and regulatory approvals.

As MRC reported earlier, in May, 2021, Trinseo announced the closing of the previously announced transaction to acquire Arkema’s polymethyl methacrylates (PMMA) business. PMMA is a transparent and rigid resin with a wide range of end uses that augments Trinseo’s existing offerings across several end markets including automotive, building and construction, medical and consumer electronics.

The main application, consuming approximately 75% MMA, is in 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 MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

MOSCOW (MRC) -- Enterprise Products Partners reported a rise in second quarter profit 28 July as an ongoing recovery in demand spurred increases in natural gas pipeline and processing volumes, said the company.

Enterprise Products Partners’ Q2 sales and operating income improved year on year, reflecting the recovery in demand as the global economy continued to reopen from coronavirus pandemic-related lockdowns.

NGL, crude oil, refined products & petrochemical pipeline volumes — as a combined category — also advanced quarter on quarter. With the continued improvement in market conditions, the US operator of pipelines, processing plants, and export and storage facilities sees opportunities to potentially increase spending on growth projects over the next two years beyond current estimates, following the significant cuts that were first implemented in 2020 because of the coronavirus pandemic.

It also is considering emissions reduction initiatives, though pricier proposals such as carbon capture could take years and require policy changes in Washington, executives said during an investor conference call. In the near term, Enterprise continues to look for opportunities to repurpose pipelines to carry different resources, depending on demand.

The US-based midstream energy and petrochemicals company saw improved demand for crude oil, natural gas liquids (NGLs), petrochemicals and refined products.

Propylene plant production volumes rose to 113,000 bbl/day, from 72,000 bbl/day in the Q2 2020. Propylene production included a 16,000 bbl/day increase from Enterprise’s propane dehydrogenation (PDH) facility, which had 46 days of unplanned downtime in Q2 2020.

As per MRC, on June 26, a technological failure occurred at the No. 2 propylene splitter in Mount Belvieu, Texas, USA. In particular, according to the statement, an ethane compressor at this plant with a capacity of 450 thousand tons of propylene per year was closed due to a malfunction. For about 8 hours, chemical emissions into the atmosphere were observed. The breakdown was repaired on the same day.

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 density 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.

Enterprise Products Partners L.P., headquartered in Houston, USA, is a US based gas and crude oil company that manufactures petrochemicals such as propylene.
MRC