PTT and Pertamina combine for huge Indonesian petrochemical complex

MOSCOW (MRC) -- Thailand’s PTT Global Chemical Public Company (PTTGC) and Indonesia’s Pertamina have signed a Heads of Agreement (HoA) this week to jointly invest up to USD5bn in a giant petrochemical complex in Indonesia. The facility will be operational by 2017, said Seashipnews.

Karen Agustiawan, Pertamina’s ceo, stated that, "Due to promising demand of petrochemicals in Indonesia and Pertamina's huge potential to integrate refining and petrochemical business, we have set our petrochemical business as one of Pertamina's growth pillars. We have chosen PTTGC based on the fact that both of us are respected companies that represent our own countries, Indonesia and Thailand, in each of their respective business sectors."

The complex will manufacture olefins and polymer units.

As MRC wrote earlier, PTT owns the largest petrochemical facilities in Thailand, with an annual capacity of 8.2 million tons, using advanced technology and high energy efficiency. Pertamina has the largest oil refinery assets in Southeast Asia.

The facility will be built near one of Pertamina’s existing oil refineries in Balongan, West Java; Plaju, South Sumatra; and Tuban, East Java. The company has not yet decided which location to use.

Hanung noted that Pertamina accounts for 10 % of the petrochemical market in Indonesia. Due to low domestic refinery capacity, it imports around USD5 billion worth of petrochemicals a year.

Pertamina’s net income climbed 26% to Rp. 25.9 trillion (USD2.7 billion) last year.

MOSCOW (MRC) -- Petkim petrochemical complex's share in the domestic market of Turkey will increase from the current 25 to 40 per cent by 2023, CEO of Petkim, Saadettin Korkut said at a ceremony marking the 48th anniversary of the company's establishment, said Reportlinker-news.

"This will happen as a result of an increase of the capacity of gross production from the current 3.2 million tons to six million tons," Korkut said. According to him, Petkim will become one of the largest bases for the production of energy in Europe.

Korkut mentioned the growth in consumption of plastic products in the country. To date Turkey is second after China on this indicator. Therefore, he said, the country needs to create at least another two petrochemical complexes.

"Following the privatisation of Petkim by SOCAR (State Oil Company of Azerbaijan) four years ago, about USD500 million has been invested in the development of the petrochemical industry," he said.

On March 30, 2012, SOCAR Turkey Enerji A. and SOCAR International DMCC OGG acquired a 10.32% stake in Petkim, increasing its stake to 61.32%. Some 38.67 per cent are in free circulation on the Istanbul Stock Exchange.

As MRC wrote earlier, Petkim Petrokimya Holding AS, Turkey's biggest petrochemicals maker, plans to invest as much as USD8 billion by 2016 on projects including a refinery, a new port and power plants.

Petkim Petrokimya Holding manufactures plastic packaging, fabric, PVC and detergents. It is the only Turkish producer of such products and exports a quarter of its production.

MRC

MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Materials Sciences company, has announced that its development partner MF Folien GmbH in Kempten, Southern Germany, successfully introduced a new polyamide film, which is based on DSM’s bio-based EcoPaXX polyamide 410, according to DSM's press-release.

MF Folien is a leading expert in the production of polyamide film, and has been DSM’s development partner for EcoPaXX film from the start. In 2011, the company was the first to create samples of 30 micron cast film from EcoPaXX. This film has the same high quality level for which MF Folien is very well known in the market. Potential application areas are in flexible food packaging, building & construction, medical, aviation and shipping.

DSM introduced EcoPaXX in order to meet increasing market demand for high performance durable bio-based engineering plastics. Kees Tintel, Business Manager EcoPaXX at DSM, says: "We recognize the market’s desire for more sustainable solutions that have a lower footprint and are bio-based. By applying DSM’s Bright Science, we were able to develop this material, which in addition to its green performance, delivers the same or even better properties compared to its traditional alternatives."

In addition to EcoPaXX, DSM offers a range of other bio-based high performance materials, including Arnitel Eco, a bio-based thermoplastic copolyester, and Palapreg ECO, a bio-based duroplast.

We remind that, as MRC reported earlier, recently DSM has opened its first application development technical center for engineering plastics in Japan on 26 March 2013 in Yokohama City. The launch of the DSM Engineering Plastics Japan Technical Center is fully in line with DSM’s strategy to support and grow business not only with customers in Japan but also with overseas Japanese Transplants, for which material specifications are determined in Japan. DSM recognizes the importance of developing new innovative and more sustainable applications together with its customers in Japan.

DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) -- Engel, the largest producer of injection moulding machinery worldwide, intends to almost double the present output of injection moulding machines at its plant in Pyungtaek City, South Korea, according to GV.

Thus, the company plan to produce around 1,200 injection moulding machines every year at its South Korean plant.

In March, Engel completed the expansion and modernisation of the facility. The company has invested a total of EUR8 million in South Korea.

"Engel wants to lead the world when it comes to generating customer benefit. To achieve this, customer proximity has to be a firm priority. We also need to ensure our injection moulding machines and system solutions are of a consistently high quality around the world. Our considerable success in Asia has shown that we're on the right track with this strategy", emphasised Dr. Peter Neumann, the CEO of Engel Holding in Austria.

In recent years, Engel has succeeded in steadily raising its market share in Asia. In fiscal year 2011/2012 the figure approached 10% for the first time as an Asian sales record of EUR125 million was achieved.

On the fast-growing markets of Asia, the Pyungtaek City subsidiary plays a key role for Engel. The company has been producing small and medium-sized machines in the clamping force range of 25-400 tonne in Korea since 2001, including machines for the Engel victory, e-mac, e-motion, and insert series. 30% of these machines stay in Korea, with 70% exported to China and other Asian nations. Clients include high profile global players (especially in the automobile and electronics industries) alongside smaller local plastics processing firms.

Engel's production plant in Shanghai was also significantly expanded just last year. The company has been producing large-scale machines for the duo series in China since 2007. According to Engel, the company is now the only western producer of injection moulding machines with two production sites in Asia.

Also, as MRC wrote previously, in late 2012, Engel invested EUR2.3 mlm in its facility in Dietach, Austria in order to introduce synchronised line assembly and modernise the machine farm in its robot plant. The latest investment in Dietach sees the third Austrian production facility follow suit.

Engel is, as a single brand, the largest producer of injection moulding machinery worldwide and a leader in the field of injection moulding technology. Engel's integrated systems solutions include injection moulding machinery, automation, process technology, tool design, training and service. Engel supplies 50% of all large-scale machines and 35% of the small to medium-sized machines with automation included, and the figures are still rising.
MRC

MOSCOW (MRC) -- Oil major BP PLC is seeking to sell its US. wind energy business as part of efforts to refocus on oil and gas and position the company for growth in the future, reported The Wall Street Journal.

BP has built one of the largest wind businesses in the USA. As such, any subsequent divestment will be the subject to attractive offers being received, according to BP's statement. The company didn't say how much it expected to get. A report in U.K. newspaper the Financial Times estimated the assets to be worth about USD1.5 billion.

In the last five years, BP has invested more than USD55 billion in US. energy development, almost USD15 billion more than its nearest competitor, and more than BP invests in any other country.

We remind that, as MRC informed previously, in october 2012, BP announced an agreement to sell its refinery in Texas City, Texas, and a portion of its retail and logistics network in the southeast US to Marathon Petroleum for USD2.5 billion. With this agreement, the total value of the divestments that BP has agreed since the beginning of 2010 made more than USD35 billion. BP expects this total to reach USD38 billion by the end of 2013.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC