The European plastics industry moving on up again in 2014

MOSCOW (MRC) -- Polymer demand growth in Europe for 2013 is expected to be static compared with 2012, according to Applied Market Information Ltd., said Plastemart.

AMI calculates that the market for thermoplastics in Europe is currently 36.5 mln tons, a volume that is still nearly 4 mln tons less than the peak it hit in 2007. Although during 2010 and into 2011 the industry made a modest recovery from the devastating effects of the global downturn of 2008 and 2009, by the last quarter of 2011 the recovery was beginning to run out of steam in the face of the looming eurozone crisis. Although the drop in demand over 2012 and 2013 has been far less severe than in 2008-2009 - polymer producers and processors alike have been more savvy about managing their inventories and have not got caught out as they did in 2008 - the decline in government spending, manufacturing and consumer confidence still resulted in an overall contraction of polymer demand of just over 1% in 2012.

Central Europe also continues to show positive growth, even if some of the smaller countries remain vulnerable to external shocks. Poland is the only country in Europe which has not technically gone into recession since 2007. Although polymer demand growth has weakened, it is still managing to show some positive trends for appliance manufacturing and consumer packaging, even though automotive production in 2012 contracted substantially.

PET bottles for the packaging of alcoholic beverages replacing glass bottles; barrier sheet and multilayer rigid and flexible constructions replacing glass and tin cans; plastic one piece closures replacing two-piece closures and metal tops. While markets are expected to return to growth next year, AMI acknowledges that the effects will be patchy and there will continue to be winners and losers across the European plastics industry. The countries of Southern Europe will continue to seeing shrinking demand as their economies structurally readjust, while Germany and northern European markets (Benelux, UK, Nordic markets) are considered to be more economically sound, which should help to drive growth at least in line with GDP. Central European countries are also still expected to show good growth, driven by ongoing investments in car production and electrical goods manufacturing although the success of their plastics industry will be dependent on growth continuing in the West.

However, volume growth will continue to be offset by trends in lightweighting and downgauging meaning that polymer demand growth is unlikely to advance beyond GDP growth rates. As a result it is likely to be 2020 or beyond before the industry see demand back at its 2007 level again.

As MRC wrote before, in Europe, toiletries and cosmetics sectors are the largest consumers of polymers when comes to non-beverage applications, which account for 60% of total caps and closure industry polymer demand in Europe.

MRC

MOSCOW (MRC) -- Honeywell was selected by the Sinopec Maoming Company for business management and automation technology that will rejuvenate and improve operational performance at aging petrochemical plants in Guangdong Province, China, said Plastemart.

Honeywell's Profit Suite R400 process optimization software will be deployed at two of Maoming Company's ethylene-cracking facilities, helping to improve plant performance by increasing energy efficiency, improving flexibility of its operations, and maximizing the plants' yield of high-value products. The plants have been in operation for more than 50 years and currently produce 1 million tons of petrochemicals a year.

"Although new petrochemical plants are being built, globally the petrochemical industry is a mature industry, with many plants having been in operation for decades," said Aldous Wong, vice president and general manager for Honeywell Process Solutions, China. "Honeywell's process optimization solutions can breathe new life into these aging plants, boosting profitability by increasing throughput and yields, improving product quality, and reducing costs."

"We want to establish this project as a benchmark for other similar facilities within the Sinopec Group," said He Lijian, deputy chief engineer, Sinopec Maoming Company. "Using this Honeywell solution, Maoming Company is expecting an increase in production that would improve our profitability by more than USD6 mln per year. Honeywell's experience in advanced process control and support capabilities for a number of industrial projects in China helped us to decide to choose them as one of our trusted vendors."

Profit Suite R400 is the most comprehensive release of Honeywell's Advanced Process Control (APC) and Optimization technology portfolio, with the ability to integrate with many different distributed control systems (DCS) by multiple manufacturers, as well as legacy systems.

As MRC wrote before, UOP LLC, a Honeywell company, announced the launch of a new membrane element that more efficiently removes contaminants from natural gas and reduces the amount of valuable methane and natural gas liquids (NGLs) lost during the contaminant removal process.
MRC

MOSCOW (MRC) -- Tosoh Guangzhou is likely to shut its polyvinyl chloride (PVC) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant is likely to be shut on November 16, 2013. It is likely to remain off-stream for around 5 days.

The intended closure has been attributed to shortage of feedstock.

Located in Guangzhou, China, the plant has a production capacity of 220,000 mt/year.

As MRC informed earlier, Tosoh Corporation announced in September it will construct a plant to produce Rzeta, the company’s new emission-free reactive amine catalyst for polyurethane foams. The plant will be built on the grounds of the ethyleneamine production facilities at the Nanyo complex for an estimated investment of JPY 2 billion (about EUR 15.3 million). Construction of the Rzeta plant is expected to be completed by November 2014.

Tosoh is one of the largest chlor-alkali manufacturers in Asia. The company supplies the plastic resins and an array of the basic chemicals that support modern life. Tosoh's petrochemical operations supply ethylene, polymers, and polyethylene.
MRC

MOSCOW (MRC) -- Yokogawa Electric Corp. has been selected as the main automation contractor for Chevron Phillips Chemical Company LP’s USGC Petrochemicals Project, as per Plastemart.

The project, first announced in March 2011, will include an ethane cracker with capacity to produce 1.5 mln tpa and two new polyethylene facilities, each with an annual capacity of 500,000 tons.

The ethane cracker will be built at Chevron Phillips Chemical’s Cedar Bayou plant in Baytown, Texas, and two polyethylene units will be built at a site in Old Ocean, also in Texas and near Chevron Phillips Chemical’s Sweeny plant.

As the Main Automation Contractor for the project, Yokogawa will supply the control systems, safety systems, remote instrument enclosures, and the analyzer shelters and analytical systems.

As MRC wrote previously, Chevron Phillips Chemical, the petrochemical venture of US oil producer Chevron Corp. and refiner Phillips 66, has recently finalized the sale of its Chinese polystyrene business to Grand Astor Ltd. Nevertheless, Chevron Phillips Chemical says it will maintain its long, committed presence in China and the Asia region through both local and regional manufacturing as well as its extensive marketing network, which provides value-added products to the region including polyethylene, polypropylene, alpha olefins, specialty chemicals, aromatics, engineering polymers and styrenics.

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC

MOSCOW (MRC) -- Brazilian petrochemical company Braskem and national oil company Petrobras have made no progress towards an agreement on investing in new petrochemical plants at the Comperj site in Rio de Janeiro, according to Plastemart.

Emergence of shale gas as a source for petrochemical feedstock in the US has raised doubts about the competitiveness of the Comperj project.

Petrobras' first refining train at Comperj is due to start operating in mid 2016, but Braskem has delayed a decision on making an estimated USD5 bln investment in new petrochemical production at the site.

According to a report in Valor Economico, Petrobras and Braskem have so far failed to come to an agreement over the pricing of the light feedstock that Petrobras will supply to any new petrochemical plants at Comperj.

An official from Brazil's ministry of trade and development said that the government is looking at ways to reduce the price of natural gas in Brazil. He said that would make Comperj more competitive with petrochemical production in the US. However, according to the report, Comperj would still not be competitive in products such as polyethylene (PE).

Petrobras is the second largest shareholder in Braskem, behind construction giant Odebrecht. Braskem is also looking for incentives from the Brazilian government and the government of the state of Rio de Janeiro before committing to Comperj.

As MRC reported earlier, Braskem is participating in the bidding to acquire the polyvinyl chloride (PVC) assets of Belgium's Solvay in South America. Braskem said the negotiations had not yet concluded and it could not say when they would be completed.

Braskem is Brazil's main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC