Teijin taking dramatic restructuring steps and closing polycarbonate unit

MOSCOW (MRC) -- Teijin Ltd. has disclosed "dramatic restructuring" initiatives that reflect changes in the business environment and are intended to move the company toward a solutions-oriented business model, reported Apic-online.

Among the planned actions, Teijin said it will with-draw by the end of December 2015 from its Teijin Polycarbonate Singapore subsidiary which lacks competitiveness in terms of energy costs. According to a recent notice to the Tokyo Stock Exchange, the Singapore plant has 225,000 t/y of polycarbonate (PC) capacity.

The company explained that the plastics business has been impacted by a supply-demand balance that remains persistently adverse, and an inability to pass on price increases for raw materials by raising sales prices.

In the future, Teijin said the company's polycarbonate production will be concentrated on its competitive Matsuyama plant in Japan and in Jiaxing, China.

Additionally, Teijin will discontinue production of dimethyl terephthalate by the end of fiscal 2015. The company noted "the cost competitiveness of the integrated production business model, which encompasses from raw materials to polyester finished products, is unlikely to recover." Polymerization operations currently split between the Matsuyama plant's northern and southern sectors will be cen-tralized in the facility's northern sector.

Going forward, Teijin will implement additional dra-matic measures to further reduce costs. "This will include the reassessment of each plant in Japan to modify facility size and operations as required, the development of innovative production processes, the merger of product families, and the improvement of the productivity of existing equipment."

As MRC informed before, last October, Teijin Limited announced that it had established a joint venture with South Korean chemical producer SK Chemicals opening a new window to develop and sell polyphenylene sulfide (PPS) resins and compounds in Ulsan, South Korea.

Teijin is a technology-driven global group offering advanced solutions in the areas of sustainable transportation, information and electronics, safety and protection, environment and energy, and healthcare. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 150 companies and around 17,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY745.7 billion (USD 7.4 billion) and total assets of JPY 762.4 billion (USD7.6 billion) in the fiscal year ending March 31, 2013.

MRC

MOSCOW (MRC) -- Wacker, the Munich-based chemical group, introduced its new WACKER SG 3377 Low Temperature Oil Demulsifier at the 2014 Annual Technical Conference and Exhibition (ATCE) of the Society of Petroleum Engineers, as per the company's press release.

The formulation permits the breaking of oil emulsion in areas where sufficient temperature is not available at process sites such as older wells or arctic drilling fields. The company is also showcasing its comprehensive portfolio of performance-enhancing silicone- and polymer-based materials designed for the oil and gas industry.

Crude oil contains water which needs to be removed in order to avoid problems downstream from the production. This is done with the help of demulsifiers. The demulsifier molecule reaches the oil and water interface and destabilizes the emulsion, thus separating the brine from the oil. Conventional demulsifiers have their best performance at temperatures over 40C. At lower temperatures, performance and effectiveness deteriorate significantly.

Due to its high surface activity, the additive breaks the emulsion rapidly and removes the water effectively. This improves both the crude oil and the effluent water quality significantly. WACKER SG 3377 reduces the water fractions in crude oil to one percent and minimizes the oil remnants in the waste water down to 10 ppm.

WACKER SG 3377 is suited to all international onshore and offshore applications. When mixed with conventional demulsifiers, it is an economically attractive and effective solution that permits the breaking of oil in areas where sufficient temperature is not available for the process, such as older wells or offshore drilling fields.

Wacker also presented its silicone and polymeric additive lines engineered to meet the rigorous demands of down-hole cement during both the installation phase and the operational phase.

SILFOAM SD 986 is a low viscous antifoam solution containing a low proportion of a highly viscous silicone fluid. It can be used in numerous mineral oil products as well as in other non-aqueous systems, even in extreme environmental conditions.

Special attention will also be given to AQUAPHOB 8173, an aqueous solution of potassium methyl siliconate, which develops its water-repellent properties by reaction with carbon dioxide. The product improves the hydrophobicity and bulk physical properties of cement. This translates into higher cement integrity, less potential failure and long term durability.

As MRC wrote previously, in July 2014, Wacker announced that it was expanding its product range with a new liquid silicone rubber for the production of automotive gaskets.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

MOSCOW (MRC) - Imports of polycarbonate (PC) to Russia declined to 35,300 tonnes in the first ten months of year, down 10% year on year, according to MRC DataScope.

Importers said that this trend first of all resulted from the rouble devaluation. That was why the domestic prices for imported PC significantly increased. Converters in their turn were faced with an extremely negative reaction of consumers when trying to raise the price for the finished products, as purchasing capacity has fallen.

It became problematic to keep the minimum margin level both for traders and producers of sheets, bottles, injection moulding products. In case of further rouble devaluation some companies will not be able to continue their work. In the most difficult situations were importers of Asian PC. On the back of the dollar strengthening the rouble has lost its positions less to the euro than to the dollar. Consequently, the domestic prices of European PC became lower than the Asian material.

Imports delivery were also under the pressure of domestic producer. In particular, in the extrusion sector, where only Russian PC producer Kazanorgsintez occupies about 65%. In addition, demand has seasonally weakened in the sector of sheet extrusion in the fourth quarter of the year, which also affected in the imports.


Imports of PC has been declining not only in Russia but also in Europe. In particular, this refers to the Asian polymer. In the situation where the prices for Asian PC granules are close to the European price, converters often prefer the latter.

MRC

MOSCOW (MRC) - November contract price of propylene in Europe was agreed down EUR90/tonne below the level of the October. Nevertheless, despite such a significant decrease in the feedstock price, European producers intended to cap the decline in export prices of polypropylene (PP) for CIS markets by the level of EUR30-60/tonne , according to ICIS-MRC Price Report.

Serious drop in oil prices led to a similar decrease in the prices of petroleum products, in particular, November propylene contract price in Europe was agreed down EUR90/tonne below the October level. European producers, in their turn, said that they had a strong demand in the domestic market and the export quotas restrictions. In this regard, they did not intend to go on a proportional price reduction of polypropylene.

Last week deals for November homopolymer PP for CIS markets were discussed in the range of EUR1,130-1,190/tonne, FCA, down on average of EUR30-60/tonne below the level of the October. Negotiations on the propylene copolymers supply started from the level of EUR1,200/tonne FCA.

Many market participants said the European PP was the cheapest at the moment. Speaking about Middle Eastern producers, their price offers for November PP shipments were not less than USD1,500/tonne CFR.
MRC

MOSCOW (MRC) Chevron Phillips Chemical has announced a study to expand its low viscosity polyalphaolefins capacity by 10,000 metric tons per year of capacity at its Cedar Bayou plant in Baytown, reported The Baytown Sun.
Currently, its low viscosity PAO capacity at its Cedar Bayou plant is 48,000 metric tons per year.

Additionally, the company has filed the necessary environmental notifications with the Texas Commission on Environmental Quality. Final project approval would be sought in the second quarter of 2015, and project completion is targeted for 2016.

As MRC informed earlier, in July 2014, Chevron Phillips Chemical received approval from its board of directors and obtained an environmental permit from the Texas Commission on Environmental Quality (TCEQ) to expand normal alpha olefins (NAO) production capacity at its Cedar Bayou plant in Baytown, Texas.

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US, 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