Tianjin Bohai shut down PDH plant in China

MOSCOW (MRC) -- Tianjin Bohai has shut down a propane dehydrogenation (PDH) plant in China, according to Apic-online.

A Polymerupdate source in China informed that the plant was shut last week. The reason for the shutdown as well as its restart schedule could not be ascertained.

Located in Tianjin, China, the plant has a propylene capacity of 600,000 mt/year.

As reported previously, on January 12, Tianjin Bohai Chemical Industry Group took off-stream the PDH unit in China with the capacity of 600,000 tonnes owing to technical issues.

We remind that, as MRC wrote before, last year, Ineos Nitriles and Tianjin Bohai Chemical Industry Group Corporation signed their intention to establish a 50/50 JV, to build and operate a world scale acrylonitrile plant to be located in Tianjin, China.

It is expected that the plant, which will be designed using the latest INEOS process and catalyst technology, will be completed by the end of 2016. The initial annual capacity of the new facility will be 260,000 tonnes of acrylonitrile with an expectation of possible future expansion, in line with growing demand across Asia.
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MOSCOW (MRC) -- NILIT, a manufacturer of nylon 6,6 for thermoplastics and apparel applications, announced today that it has signed an agreement to acquire INVISTA’s Americana, Brazil, manufacturing site with intent to continue the site’s nylon 6,6 operations, said Fibre2fashion.

The parties anticipate the transaction will close in the fourth quarter of 2014 pending receipt of necessary regulatory approvals. Terms of the transaction were not publically disclosed as both Nilit and Invista are privately held.

"I want to extend thanks and appreciation to all Invista employees in Americana for their dedication through this process,” said Dave Trerotola, president of Invista Apparel & Advanced Textiles. “We believe the Americana site’s nylon 6,6 operations will enhance Nilit’s global manufacturing presence, and we wish them well as the Americana site opens a new chapter in its history."

Fabio Kahn, Managing Director, Nilit Fibers Division, said: "In addition to our sites in the U.S., China and Israel, this acquisition complements Nilit’s global nylon 6,6 manufacturing operations. South America in general — and Brazil in particular — both represent a key opportunity for Nilit. We have been active in this market since the early 1990s and have developed an excellent reputation for quality and service, with a growing number of active customers. We plan to increase our DTY capacity and to reinforce our local presence."

Zion Ginat, General Manager, Nilit Group, said, "The valuable assets at the Americana site will allow Nilit to increase the value we provide to our customers. With this acquisition, we can significantly reinforce Nilit's commitment to the Brazilian market, enabling us to expand sales to other customers, especially in the circular and warp knitting segments, by taking advantage of a very efficient, well-maintained and highly established site. A local production presence will guarantee a fast market penetration and, in addition, a footprint in Brazil, which will allow further potential expansions. We look forward to cooperating with the local workforce."

Trerotola added, "Invista Apparel remains very much committed to Brazil, and this transaction will allow us to focus our energy in Brazil on our growing Lycra spandex business. We are making very significant investments in our Paulinia, Brazil, spandex manufacturing operation and in marketing initiatives in Brazil."

As MRC wrote before, INVISTA and Solvay signed a settlement agreement that resolves disputes related to adiponitrile (ADN) intellectual property and technology in use at their nylon 6,6 intermediates Butachimie joint venture in Chalampe, France. The settlement confirms INVISTA’s exclusive ownership of the ADN technology at Butachimie and includes a plan to upgrade the facility with INVISTA’s latest and most advanced ADN technology.

INVISTA is one of the world’s largest integrated producers of chemical intermediates, polymers and fibers. The company’s advantaged technologies for nylon, spandex and polyester are used to produce clothing, carpet, car parts and countless other everyday products. Headquartered in the United States, INVISTA operates in more than 20 countries and has about 10,000 employees.
MRC

MOSCOW (MRC) - Russia's consumption of polyamide 6 (PA 6) in Russia declined to 32,600 tonnes in January-September, down 12% year on year, according to MRC ScanPlast.

At the same time, the share of the Russian PA 6 was 94% from the total consumption of the material over the reported period; in the same time in 2013 it was 92%. Demand for Russian PA 6 has decreased to 30,500 tonnes in January-September 2014, down 10% year on year. Average monthly demand for PA 6 in Russia is about 3,500 tonnes.

Russia is a net exporter of PA 6. Exports of PA 6 from Russia were 76,700 tonnes in January-August 2014, up 17% year on year.

Russia's production of PA 6 increased to 107,000 tonnes over the reported period, up 8% year on year. One of the main reasons for the reduction of PA 6 consumption in Russia was its high price amid weaker economic situation in the country.

In this regard, converters had to buy material at more affordable price or reduce the volume of PA 6 consumption.
Russia's main producer of primary PA 6 is KuibyshevAzot. The company's share in the Russian production of PA 6 in 2013 was 99%.

PA 6 is used for the production of a wide range of products: nylon industrial yarn, composite materials with different properties (impact-resistant, cold-resistant, water-resistant, fire-retardant), textile fibers, polymer film.

MRC

MOSCOW (MRC) - Devaluation of the rouble in Russia resulted in a price rise for imported polystyrene (PS), according to ICIS-MRC Price Report.

Imported polystyrene, which entered the market in October, grew in price almost every week. Importers had to pay more, despite the fact that prices in foreign currencies remained steady.

According to ICIS-MRC Price Report, prices for high impact polystyrene (HIPS) by LG production was in the range of Rb106,000-108,000/tonne CPT Moscow, including VAT. The same price range was typical for HIPS from Polimeri Europa production.

Extrusion grades for Korean general purpose polystyrene (GPPS) from Styrolution (Polystyrol 168 N) at the current dollar exchange rate were in the range of Rb94,700-96,000/tonne CPT Moscow, including VAT.

Demand for expandable polystyrene (EPS) was strong. Prices for EPS from Asian producers Loyal and Wuxi were heard in the range of Rb92,000-95,500/tonne CPT Moscow, including VAT.

Some traders had to increase the low end of the price to Rb95,000/tonne CPT Moscow for November delivery on rising costs for the feedstock in the connection increase of the currency exchange rate.

Market players did not exclude further rise in prices in roubles. On Monday, the exchange rate from Centrobank rose to Rb41.81=USD1. Centrobank increased the euro exchange rate to the level of Rb52.9=EUR1.

MRC

MOSCOW (MRC) -- Badlands NGL has announced the development of a North Dakota manufacturing plant that will convert ethane, a by-product of natural gas processing, into polyethylene (PE), reported Hydrocarbonprocessing with reference to the announcement of the state governor's office.

Badlands NGL, LLC, and its partners expect to invest USD4 billion to build the PE manufacturing facility in North Dakota. The project will be the largest private investment in state history.

The value-added manufacturing plant will tap into North Dakota’s abundant supplies of liquid natural gas to source ethane. The facility will convert ethane gas to low-density and high-density plastics (LDPE and HDPE), which are used to make a wide range of end products for consumers and industry.

The facility will be able to produce 1.5 million tpy of polyethylene, or 3.3 billion lb/year, and will employ 500 highly trained people in manufacturing, marketing, administrative, safety, financial and executive positions.

The project will take at least three years for full development.

Badlands intends to market the majority of the polyethylene products domestically, but product will also find its way to markets in Asia, South America and Europe. Project developers say that the plant’s location in North Dakota will enable them to efficiently ship to world markets from the Pacific Northwest and from Atlantic ports.

"Badlands is proud to bring this manufacturing facility to North Dakota," said William Jeffrey Gilliam, CEO of Badlands NGL. "We are committed to maximizing the value of Bakken ethane for producers, their midstream partners and all gas processors. This facility is the solution needed to add value to North Dakota’s ethane supply and make it a commercially marketable product".

In developing the world-class manufacturing plant, Badlands is working with two strategic partners, Tecnicas Reunidas (TR), which is based in Madrid, Spain, as well as Vinmar Projects of Houston, Texas.

TR, one of the largest petrochemicals and polymers contractors in the world, is completing a preliminary engineering analysis for Badlands. This work is scheduled for completion in 2014 and will include technology evaluations, engineering and planning, and final site selection.

As MRC reported previously, in August 2014, Malaysia's Petronas awarded Tecnicas Reunidas (TR) a contract for the engineering, procurement, construction and commissioning (EPCC) for a refinery package in Petronas’ refinery and petrochemicals integrated development (RAPID) project in Pengerang, Johor. The EPCC scope includes all the hydrotreating units, catalytic reforming unit, hydrogen production units, saturated gas plant, interconnection and flare for the refi
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