LANXESS and bp partner on sustainable renewable raw materials for high-tech plastics production

MOSCOW (MRC) -- Specialty chemicals company LANXESS and energy company bp are entering into a strategic partnership for the use of sustainable raw materials in high-tech plastics production, as per LANXESS' pres release.

bp will supply sustainably produced cyclohexane to the LANXESS’ production site in Antwerp, Belgium, starting in the fourth quarter of 2021. The sustainable origin of the raw materials is certified according to ISCC Plus rules (“International Sustainability and Carbon Certification”).

With this partnership, both companies, which already have a long-standing business relationship, want to significantly advance the production of sustainable plastics.

“The chemical industry plays an important role in the expansion of the circular economy and efficient sustainable management. To meet the global challenges of climate change, creative approaches to solutions and collaboration are needed in service of our customers. We are pleased to accompany LANXESS as a strong partner with a broad portfolio of raw materials from renewable sources,” says Wolfgang Stuckle, Vice President Midstream Refining and Specialities Solutions Europe and Africa of bp. bp uses bio-based and bio-circular feedstocks for the production of “green” cyclohexane. These can be, for example, rapeseed oil or biomass.

“High-performance plastics are the solution for many sustainable products, for example in various e-mobility applications. It is now important to also make the production of this valuable material sustainable. In this context, the use of bio-based raw materials, along with modern recycling processes, is a key lever. We are delighted to have bp as a strategic partner at our side,” says Marcel Beermann, Head of Global Procurement and Logistics at LANXESS.

LANXESS uses cyclohexane as a precursor in the production of polyamide 6, a high-performance plastic that is used primarily in the automotive industry as well as in the electrical and consumer goods industries.

As MRC reported earlier, LANXESS completed the second-largest acquisition in its history on August 3, 2021, with the takeover of Emerald Kalama Chemical. The US-based specialty chemicals manufacturer was majority-owned by affiliates of private equity firm American Securities LLC. All required regulatory approvals have been received. The enterprise value of Emerald Kalama Chemical was USD1.075 billion (EUR 900 million). After deducting liabilities, the purchase price was approximately USD 1.04 billion (EUR870 million), which LANXESS financed from existing liquidity.

LANXESS is a leading specialty chemicals company with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.

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, bpP 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

MOSCOW (MRC) - The Eurasian Economic Commission proposes to introduce an anti-dumping duty in respect of primary low-density polyethylene (HDPE) from Uzbekistan in the amount of 20.3% of the customs value for a period of 5 years, the ministry said.

So, on 27 July, 2020, the Eurasian Economic Commission launched an anti-dumping investigation against primary high-density polyethylene originating from the Republic of Uzbekistan.

The object of the investigation is primary polyethylene in solid primary forms with a specific gravity of 0.94 g / cm3 and more, originating from the Republic of Uzbekistan, classified by the EAEU TN VED code 3901 20 900 9.

The conclusions set out in the report indicate the presence of dumping imports of primary HDPE from the Republic of Uzbekistan and the resulting material damage to the EAEU economy.

The agency decided to start an anti-dumping investigation based on the results of consideration of an application filed on behalf of Nizhnekamskneftekhim (NKNKh, part of TAIF) and Kazanorgsintez (KOS, part of TAIF) and supported by the West Siberian Petrochemical Plant (ZapSibNeftekhim, part of SIBUR Holding).

The presence of dumped imports and the resulting damage to the EAEU economy sector is explained by the applicants by the fact that in 2019 primary high-density polyethylene from the Republic of Uzbekistan was supplied to the EAEU territory at dumping prices, that is, at prices below the normal cost in the domestic market of the Republic of Uzbekistan.

According to the applicants, the dumping margin for HDPE supplies in the EAEU exceeded the minimum allowable dumping margin and amounted to 29.2%. At the same time, against the background of an increase in HDPE consumption in the EAEU market (for the period from 2016 to 2019 by 18.1%, in 2019 compared to 2018 by 5.4%), there was a significant increase in the volume of HDPE imports from Uzbekistan for the period from 2016 to 2019 by 4.5 times, and in 2019 compared to 2018 by 21.9%, the rate of which significantly exceeded the growth rate of HDPE consumption in Russia.

The production of HDPE in Uzbekistan is carried out by the Uz-Kor Gas Chemial JV (Ustyurt Gas Chemical Complex, UGCC), which produces HDPE under a license from LOTTE Chemical (Korea) and the Shurtan Gas Chemical Complex (ShGKhK, SGCC).

According to the ICIS-MRC Price Report, Uz-Kor Gas Chemical has resumed its HDPE production facilities from 4 October after a planned shutdown for repairs. The preventive downtime was short and started on 4 September. At the same time, during October the enterprise will operate with reduced capacity utilization. The annual capacity is 386,000 tonnes.

Uz-Kor Gas Chemical was commissioned in 2016 and has production capacity for the production of ethylene 400 thousand tons per year, HDPE 387 thousand tons per year, propylene and polypropylene (PP) 83 thousand tons per year. Shurtan GCC has a production capacity for the production of HDPE and LLDPE in the amount of 125 thousand tons per year.
MRC

MOSCOW (MRC) -- Volgograd Kaustik, Russia's fourth largest polyvinyl chloride (PVC) producer, has resumed its production after the shutdown for a scheduled turnaround, according to ICIS-MRC Price report.

A plant's representative said the output of PVC began on 12 October after the scheduled maintenance works were finished. The outage was not long and lasted for 21 days. The plant's annual production capacity is 90,000 tonnes.

It is also worth noting that this is the last shutdown for a scheduled maintenance at Russian PVC plants in 2021. SayanskKhimPlast and Bashkir Soda Company shut their production capacities in June-July. RusVinyl does not plan to carry out maintenance works this year.

The holding company includes: JSC Kaustik is the principal plant of the group, manufactures basic products - caustic soda, chloroparaffins, synthetic hydrochloric acid, chlorine trademark, polyvinyl chloride, sodium hypochlorite, etc .; CJSC NikoMag - production of anti-icing materials, magnesium chloride, magnesium oxide and hydroxide; Zirax, Ltd. - production of high-purity reagents for various industries and JSC Poligran - the production of plastic compounds and rigid PVC compounds.
MRC

MOSCOW (MRC) -- Kazanorgsintez (part of TAIF Group) has completely resumed operations at its polyethylene (PE) production capacities after a scheduled turnaround, according to ICIS-MRC Price report.

The plant's customers said Kazanorgsintez had completely brought on-stream its low density polyethylene (LDPE) and high density polyethylene (HDPE) production capacities after the annual scheduled maintenance by 11 October. The outage was long and started on 14 September.

It is also worth noting that the last shutdown for repairs at Russian plants this year is planned for Stavrolen. The Budennovsk producer intends to shut down its HDPE production for a 36-day maintenance on 12 October. The plant's annual production capacity is 300,000 tonnes.

PJSC "Kazanorgsintez" (part of TAIF Group) is one of Russia's largest plants. Kazanorgsintez produces 40% of overall Russian polyethylene (PE) and is the country's largest exporter. To date, the plant produces PE, polycarbonate (PC), PE pipes, phenol, acetone, bisphenol A. Kazanorgsintez is Russia's only PC producer. It manufactures a total of 170 items of products. Kazanorgsintez's annual output is 1.6 million tonnes. The plant is Russia's largest producer of high density polyethylene (HDPE). The plant's annual HDPE production capacity is 540,000 tonnes and its annual LDPE capacity is 225,000 tonnes.
MRC

1. OMV raises its refinery utilisation by 6% in Q3 on downstream recovery

MOSCOW (MRC) -- Austrian oil and gas group OMV saw its indicative refining margins double and raised its refinery utilisation by 6% to 91% in the third quarter, as upstream production volumes weakened compared with the second quarter, reported S&P Global with reference to the company's statement on Oct. 8. In a trading statement, the Central European company put its European refining margin indicator for the quarter at USD4.43/b compared with USD2.21/b in the second quarter and just 87 cents/b in the third quarter of 2020. Its sales of fuel and other oil products were up 16% on the quarter at 4.66 million mt. The company's upstream production, of both liquids and gas, fell back slightly compared with the second quarter, to 198,000 b/d of oil equivalent and 272,000 boe/d respectively. Its gas production, a significant portion derived from Russia, was also down 3% on the year, however, its oil output was up 20% compared with a year earlier.


MRC