Shinkong expanding its PET capacity in Thailand

MOSCOW (MRC) -- Shinkong Synthetic Fibers Corp. plans to increase polyethylene terephthalate (PET) bottle-grade resin capacity at its Map Ta Phut, Thailand, plant by between 10% and 20%, reported GV with reference to local sources.

The company’s plant in Thailand currently produces 15,000 t per month of bottle-grade PET resin, all of which is sold domestically, according to a local report citing Shinkong, which also has PET production facilities in Taiwan and China. Shinkong did not disclose a schedule for the expansion project.

We remind that, as MRC wrote previously, converters of polyethylene terephthalate (PET) in the CIS countries expect a further decline in export prices of Chinese bottle grade granulate in July, according to ICIS-MRC Price Report. In late June, converters of bottle grade PET in the CIS countries reported a decrease in the purchasing prices by USD15-20/tonne. PET prices in Asia were cut on the back of a sluggish buying activity, as well as falling prices of paraxylene. PET prices in the Ukrainian port were at USD1,410-1,445/tonne CIF Odessa, excluding VAT. Import prices of Chinese bottled grade PET for the Russian market ranged USD1,391-1,416 per tonne CFR East, excluding VAT.
MRC

MOSCOW (MRC) -- Styron Europe GmbH and Ravago S.A. have announced jointly that they have signed a definitive agreement under which Styron’s Expandable Polystyrene (EPS) business will be sold to RP Compounds, a subsidiary of Ravago S.A., for an undisclosed sum, reported Styron on its site.

The sale includes the EPS manufacturing facility in Schkopau, Germany, as well as related intellectual property and the SCONAPOR brand. The transaction is subject to regulatory approval and completion of customary conditions.

"We are delighted to bring the EPS activities of Schkopau within the Ravago Group," said Theo Roussis, CEO of Ravago Group. "The expertise of the team and the high level of the factory set-up will further strengthen our Ravago manufacturing platform and technologies. The customer portfolio is very complementary and we look forward to developing our commercial relationships."

"The sale of the EPS business is in line with our strategic portfolio management to refine Styron’s portfolio of businesses," said Chris Pappas, President and CEO of Styron. "The EPS business will be a stronger fit for Ravago, as they are strategically committed to growing in this area."

Expandable Polystyrene (EPS) is a type of plastic used to make foam insulation board and foam packaging.

As MRC wrote previously, last year Styron announced that it was going to adopt a new pricing approach following significant shifts in supply and demand in the polystyrene (PS) market. The main reason of the new pricing approach was the closure of European PS plants, which might result in 10% reduction of active production capacity in Europe.

Ravago is a privately owned group active in distribution, resale, compounding and recycling of plastics and elastomeric raw materials on a global level. It is present in 57 countries, serves more than 1,500 suppliers and more than 40,000 customers globally. Founded in 1961, Ravago employs close to 5.000 employees and has become a EUR5,8 billion multinational through organic growth and acquisitions.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber. Styron'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. Styron had approximately USD 5.5 billion in revenue in 2012, with 20 manufacturing sites around the world. Styron previously announced plans to change the name of all Styron affiliated companies to Trinseo. Some, but not all, of the Styron companies are currently known as Trinseo; Styron companies that have not yet changed their names will continue to do business as Styron until their respective name changes are complete. Styron's operating companies continue to do business as Styron at this time.
MRC

MOSCOW (MRC) -- Chemical giant DuPont is seeking partners for joint ventures in the production of cellulosic ethanol, a next-generation biofuel, said Hydrocarbonprocessing.

"DuPont would take a minority stake and... we would basically take an active role in setting production up" in the joint ventures, which the company is discussing with parties in the US, Southeast Asia, China, Brazil and Europe, Jan Koninckx, DuPont's business director for biorefineries, said in an interview this week.

He declined to name potential partners but said interested parties include fuel companies and agribusinesses.

Ethanol made from corn kernels drove the expansion of the US ethanol industry starting in the mid-2000s, as a federal mandate required increasing amounts of the biofuel to be blended into motor fuel.

Ethanol producers at the time hoped future growth could be driven by cellulosic ethanol, made from other biomass such as the stalks of corn plants, since the next-generation fuel satisfies another part of the federal renewable fuels mandate. But development of cellulosic ethanol has lagged the pace once expected, and little of it is now being produced.

Wilmington, Del.-based DuPont is investing more than USD200 million to build a cellulosic ethanol plant in Nevada, Iowa, that will produce ethanol from corn-plant residue left in fields after farmers harvest their grain. DuPont expects the facility to open next year.

The plant will be profitable based on its production of 30 million gal/year of ethanol, but it is also meant to demonstrate the use at full scale of DuPont's cellulosic production methods, Mr. Koninckx said. DuPont will seek further revenue from licensing or partnerships.

Licensing agreements would include equipment and DuPont's plant design, and DuPont would supply the enzymes needed to produce the fuel, Mr. Koninckx said.

MRC informed previously, earlier this year DuPont Co. struck a deal to sell its car paint business to Washington-based investment firm Carlyle Group LP for USD4.9 billion. The transaction is expected to close in the first quarter of 2013.
MRC

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, has announced a comprehensive range of PEKK (Poly Ether Ketone Ketone) ultra high performance polymers comprised of three families of products whose properties meet the requirements of aerospace, oil exploration and electronics applications, as per the company's press release.

These new materials significantly expand Arkema’s high performance materials offerings to high added value markets.

PEKK is a polymer for the extremes; in terms of mechanical resistance, it compares favourably with metals like aluminium. The Kepstan range, developed by researchers at CERDATO, Arkema’s technical polymers research center, complements the Group’s other advanced materials including Kynar fluoropolymers, Altuglas PMMA, Rilsan and Rilsamid polyamides, Pebax thermoplastic elastomers, as well as Nanostrength and Graphistrength nanostructured materials.

The new Kepstan range stands out from competitive materials; its copolymer structure can be adapted to the requirements of the end-application. Based on the requirements therefore, the main properties in one application might be very high compressive strength, and in another, extreme resistance to aggressive environments, or excellent adhesion to fibers (composites) or to metal (powder coatings).

The Kepstan range is manufactured in France on a dedicated line using a process developed in Arkema’s Research Centers. It is marketed around the world in particular by technical teams from Europe, the United States and Japan.

We remind that in March 2013, Arkema developed technology to manufacture Kynar PVDF foam structures for wire and cable jacketing and insulation applications. The technology is based on the patent-pending foam concentrate Kynar Flex 2620 FC masterbatch resin.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. As MRC reported previously, Moody's Investors Service had upgraded Arkema S.A.'s senior unsecured rating to Baa2 from Baa3. The outlook on the rating was changed to stable from positive.
MRC

MOSCOW (MRC) -- SABIC, the world's biggest petrochemicals group by market value, posted a 13.96% rise in its second quarter net profit, but missed anlaysts' forecasts, according to Arabianindustry.

SABIC, which is 70% state owned, said its net income for the three months to June 30 was 6.04 billion Saudi riyals (USD1.61 billion) compared with 5.3 billion riyals in the same period last year.

Ten analysts surveyed by Reuters forecast SABIC would earn, on average, 6.4 billion riyals for the second-quarter.

SABIC attributed the increase in net income to a decrease in cost of sales and financial charges, despite reduced revenues due to lower sales prices for certain products, according to a statement on the Saudi bourse.

Concerns over slowing global economic growth has weighed down on SABIC's financial performance in recent quarters as demand for its main products such as petrochemicals, metals and fertilisers slows. SABIC's products are used extensively in construction, car manufacturing and other major consumer goods.

As MRC informed previously, SABIC, Saudi petrochemical major, posted fourth quarter net profits of 5.83 billion riyals (USD1.55 bln), an 11.3% increase compared to 2011. Despite the quartely increase, the company said 2012 net income had dropped by 15.5% to 24.72 billion riyals (USD6.59 billion) from 29.24 billion riyals the year before.

Sabic is ranked among the world's largest petrochemicals manufacturers. It is the largest public company in Saudi Arabia. The comany manufactures chemicals and intermediates, industrial polymers, fertilizers and metals. It is currently the second largest global ethylene glycol producer. Among its products are propylene, paraxylene, styrene, vinyl chloride monomer. Sabic's venture capital arm is looking for opportunities in the U.S., Europe and China to buy stakes in start-up companies that can turn shale gas into petrochemicals. Formed last November, the Netherlands-based business is negotiating 30 to 40 deals and is looking especially at technologies that use different feedstocks.
MRC