LANXESS subsidiary Bond-Laminates expands lightweight plastics production in Germany

MOSCOW (MRC) -- Brilon - Bond-Laminates GmbH, a wholly owned subsidiary of specialty chemicals company LANXESS, is strengthening its business with innovative Tepex lightweight plastics, according to Lanxess' press release.

The company is expanding production capacities at the Brilon site, Germany, by around 75% in the period up to summer 2014. A total of 1,300 square meters is being added to the building complex in Brilon, comprising a new production hall and supplementary storage areas and office space.

The additional production capacities are scheduled to go on stream in summer 2014. The high-tech materials of the Tepex brand are used in the automotive, sporting goods and electronics industries among others.

Tepex is the name of the innovative fiber composites that Bond-Laminates produces. These primarily comprise thermoplastics that are reinforced with fibers of various other materials such as glass or carbon, depending on the field of application. Tepex products are characterized by their high strength and stiffness, while also being extremely lightweight and economic to process.

In the automotive industry, these innovative materials from Brilon are making new types of design possible, enabling heavier metal components to be replaced by many parts. Tepex can thus help reduce the weight of vehicles, thereby also cutting fuel consumption and CO2 emissions, while also offering outstanding safety properties.

As MRC wrote previously, Lanxess has recently developed a new polyester material grade based on polyethylene terephthalate (PET). The new material grade - Pocan TP 555-001 - is excellently suited to manufacturing housings, sockets and other components for light-emitting diodes (LED). What makes the product unique is its excellent light reflection, which hardly declines at all over time, and its high heat stability. Besides, it is reinforced with glass fibers and contains special additives.

Bond-Laminates GmbH was founded in Brilon in 1997 and currently employs around 100 people. The company has been collaborating with LANXESS since 2006. The specialty chemicals company acquired the Brilon-based enterprise in September 2012, a beneficial venture for both sides. The link between Bond-Laminates and LANXESS has now become more widely visible to the outside world too: Bond-Laminates' appearance is now supplemented with the LANXESS logo, such as on the signs on the facade of the head office and at the surrounding parking lot and goods entrance.

Lanxess is a leading specialty chemicals company with sales of EUR9.1 billion in 2012 and roughly 17,400 employees in 31 countries. The company is currently represented at 50 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
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MOSCOW (MRC) -- Foster Wheeler has been awarded a contract by Surgutneftegaz for the engineering and material supply of nine fired heaters for the new high-octane gasoline compounds production complex to be built at the KINEF - Kirishinefteorgsyntez refinery in Kirishi, Russia, according to Hydrocarbonprocessing.

The Kirishinefteorgsyntez refinery has a crude oil processing capacity of 230,000 bpd.

"We have a long and very successful track record in designing and supplying heaters for the Russian market, and we are very pleased to have received this major award, which constitutes another vote of confidence in the quality and reliability of our heaters," said Umberto della Sala, chief operating officer of Foster Wheeler.

The value of Foster Wheeler’s contract was not disclosed and will be included in the company’s third-quarter 2013 bookings.

"The supply of all of the fired heaters required for this new complex at one of the largest refineries in Russia is one of the biggest and most critical packages we have awarded, and we are pleased to have selected Foster Wheeler," said V.E. Somov, general director of Kirishinefteorgsyntez.

"We are confident that Foster Wheeler will bring its renowned reputation and experience to this project," he added.

Foster Wheeler’s scope of work is scheduled to be completed in the first quarter of 2015.

We remind that, as MRC wrote previously, Foster Wheeler has recently announced that a subsidiary of its global engineering and construction (E&C) group was awarded a contract by Dow Chemical to provide services for the LA-3 crack more ethane (CME) project at Dow’s Plaquemine petrochemical complex in Louisiana. The objective of the project is to improve the plant's ethane flexibility to take advantage of low-cost feedstock. The scope will include brownfield additions and retrofit modifications to the plant.
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MOSCOW (MRC) -- Japan Polypropylene Corporation, the largest polypropylene (PP) company in Japan is expected to restart its Kashima-based 300 kt/year PP line in mid-October, said Fibre2fashion.

The company operates three PP lines at Kashima, with production capacities of 100 kt/year, 150 kt/year and 300 kt/year.

"The PP lines with 100 kt/year and 150 kt/year capacities are currently operating at 100 percent capacities," a company official told.

"The PP line with 300 kt/year capacity, which is under maintenance since mid-August this year, is expected to be restarted in the mid of October," the official added.

The combined production capacity of all three PP lines at Kashima is 550 kt/year.

As MRC wrote before, in a bid to reduce costs, Japan Polypropylene Corp. closed two relatively old polypropylene plants in 2011. A 90,000 tpa plant at Kashima, operational since 1970,was shut in May 2011. A 79,000 tpa plant in Ichihara, operational since 1967, was shut in June 2011.

Japan Polypropylene Corporation engages in the research, development, manufacture, and sale of polypropylene resin in Japan. Its products include WINTEC resins, the metallocene catalyzed random copolymers for various applications; and WELNEX, a metallocene-based flexible reactor made thermoplastic elastomer. The company was founded in 2003 and is based in Minato-ku, Japan. Japan Polychem Corporation operates as a subsidiary of Japan Polychem Corporation.

MRC

MOSCOW (MRC) -- JN Fibers Inc., a Zhejiang, China-based manufacturer of recycled polyester staple fiber products, is establishing a new manufacturing facility in Chester County in the US state of South Carolina, said Fibre2fashion.

To be set up with USD45 million investment, the new plant will recycle discarded soda and water bottles and transform them into recycled polyester staple fibers for use in home textiles, furniture, upholstery and automotive industries.

The JN Fibers plant is expected to begin operations in the third quarter of 2014 and hiring for the new positions would begin in the second quarter of 2014. Around 318 new jobs are likely to be created at the plant.

"We are pleased by the opportunity to establish new operations in Chester County. South Carolina is the perfect fit for our business’ needs. With an excellent business environment and access to markets, as well as top-notch workforce talent, we look forward to getting our operations in Richburg up and running," said Mark Bachner, senior vice president of operations for JN Fibers Inc.

"We celebrate JN Fibers’ decision to invest USD45 million and create 318 new jobs in Richburg. This announcement shows that South Carolina has done the right things to be competitive on the global stage," said Governor Nikki Haley.

JN Fibers Inc. will operate the factory and market its products under its subsidiary Sun Fibers LLC.

As MRC wrote before, Zhejiang Hengyi will be building an aromatics plant in the southeast Asian nation of Brunei. This will be the country's first aromatics plant. The plant is scheduled for completion in 2016. To be located in Pukau Muara Besar, Brunei, the aromatics plant will have a paraxylene (PX) production capacity of 1.5 million mt/year and benzene production capacity of 500,000 mt/year.

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MOSCOW (MRC) -- Lukoil is reportedly planning to leave a Russian consortium engaged in a heavy oil project in Venezuela after compatriot players Surgutneftegaz and TNK-BP earlier decided to take the exit, said Upstreamonline.

Russia’s largest privately-owned oil company currently has a 20% stake in the Rosneft-led National Oil Consortium that is part of the PetroMiranda joint venture with state-owned PDVSA developing the Junin-6 block in the Orinoco heavy oil belt.

However, Lukoil chief executive Vagit Alekperov discussed the sale of the company’s holding and exit from the project with Rosneft counterpart Igor Sechin about a month ago in order to “optimise its asset portfolio”, according to a report in Russian daily Kommersant.

A source close to Lukoil confirmed the proposed move to Reuters, adding: "The process of departure could take several months." He refused though to disclose the reasons for the planned exit. A Lukoil spokesman declined to comment.

Surgutneftegaz and TNK-BP – which has been acquired by Rosneft for USD55 billion - have both declared their intention to quit the Russian consortium, citing a need to focus on domestic business, which would leave Rosneft, Lukoil and Gazpromneft as the remaining partners.

The Russian consortium holds an overall 40% stake in the project with PDVSA on the remaining 60%. Alexander Pasechnik, an analyst with the National Energy Security Fund think tank in Moscow, said: "The consortium is falling apart… The companies have understood the political risks and begun to leave the project, one by one. “The political risks are directly connected to the current shaky regime, which was elected by a thin margin," he added.

Last month, Malaysian state-owned Petronas said it would quit the USD20 billion Petrocarabobo heavy oil scheme in the Orinoco belt – one of the country’s biggest petroleum projects – amid disagreements with PDVSA.

The exits by foreign players have raised questions over the ability of the new government of President Nicolas Maduro, elected to succeed late socialist leader Hugo Chavez earlier this year, to revive the country’s stagnant oil output and realise the Orinoco basin’s potential.

As MRC wrote before, the largest Ukrainian polymers producer Karpatneftekhim (LUKOIL Group) is increasing production volumes, MRC analysts inform. On 10 September 2013, Karpatneftekhim restarted production of high-density polyethylene (HDPE) after a long-term forced suspension. Production has been launched on the basis of import ethylene by TVK, Hungary. In September the enterprise plans to produce about 4,500 tonnes of HDPE. Production is planned to be increased up to 6,000 tonnes in October. Since 1 October 2013, PE is planned to be sold within UAH17400-17900 per tonne, VAT included, FCA Kalush.

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