KBR awarded catalytic olefins technology contract

MOSCOW (MRC) -- KBR Inc. has recently won a contract by Lotte Chemical Titan to provide licensing and basic engineering design services to revamp an existing steam cracker plant in the Asia Pacific Region, as per KBR's press release.

Under the terms of the contract, KBR will supply its catalytic olefins technology and basic engineering design services to increase the plant’s olefins production capacity and help diversify its feedstock. KBR’s catalytic olefins technology is a proven technology for converting low-value olefinic, paraffinic or mixed streams into high-value propylene and ethylene.

"KBR’s catalytic olefins technology is an innovative and competitive way clients in the region can improve their operations," said Stuart Bradie, KBR President and CEO. "This contract demonstrates our increasing technology presence in the Asia-Pacific region."

As MRC reported earlier, last year, KBR was awarded a front-end engineering and design (FEED) contract by Ineos Olefins & Polymers for one of the largest grassroots high-density polyethylene (HDPE) plants to be built in the Americas. The facility will produce 470,000 tpy of bimodal HDPE using Innovene S process technology.

KBR is a global engineering, construction and services company supporting the energy, hydrocarbons, chemicals, industrial, civil infrastructure, minerals, government services and commercial markets.

The Lotte Group currently has a presence in Indonesia via its subsidiary, Honam Petrochemicals, which acquired Malaysia’s polyolefin major Titan Chemicals in July 2010. Included in the acquisition was Titan’s Indonesian subsidiary - PT Titan Petrokimia Nusantara (TPN), which has a polyethylene (PE) production capacity of 450,000 tonnes/year.
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MOSCOW (MRC) -- Solvay SA, the 150-year-old company that’s moving from commodity chemicals to specialty materials and additives, will expand a high-performance plastics plant in India to cope with demand from smartphone and aircraft makers, said the producer in its press-release.

Production of polyether ether ketone polymer resins, known as PEEK, will increase 25 percent at the Panoli plant in the state of Gujarat, the Brussels-based company said today.

Chief Executive Officer Jean-Pierre Clamadieu’s strategy involves focusing on higher-margin offerings amid a plan to exit cheaper polyvinyl chloride plastics through a joint venture. Demand for PEEK and related compounds is growing at about 8 percent to 10 percent annually as handset and tablet makers need heat- and chemical-resistant plastics to fit more technology into a smaller space.

“Today’s announcement to debottleneck capacity shows we are determined to keep pace with this growing demand worldwide,” Augusto Di Donfrancesco, Solvay’s head of specialty polymers, said in a statement.

Solvay’s increase in capacity is a further challenge to market leader Victrex Plc (VCT), carved out of Imperial Chemical Industries, and Evonik Industries AG. The three companies are the main suppliers of PEEK. Victrex reported a gross margin of 64 percent in the first half, with revenue jumping 13 percent.

Solvay is an international chemicals and plastics company. In 2011, Solvay acquired Rhodia for approximately EUR 3.4 billion. Rhodia is one of the three sectors of activities of Solvay. Rhodia is a world leader in the development and production of specialty chemicals, and partner of major players in the automotive, electronics, flavors and fragrances, health, personal and home care markets, consumer goods and industrial markets.
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MOSCOW (MRC) -- Italy-based packaging equipment maker Sipa SpA has purchased all activities related to production of injection-stretch-blow molding (ISBM) equipment at Automa SpA, another Italian company that services the PET packaging sector, said Canplastics.

According to Sipa, the acquisition will enable it to extend its existing offering in single-stage ISBM systems, and boost its position in the market for equipment producing specialty products, such as containers for pharmaceuticals, cosmetics, personal care products, and spirits.

The terms of the deal have not been announced.

In a statement, Enrico Gribaudo, general manager of SIPA, said the company intends to exploit synergies between SIPA and Automa’s ISBM operation, in three areas in particular: firstly, in packaging development; secondly, in research and development of the ISBM process and containers, which is already a major SIPA strength; and thirdly, in technical support, which SIPA now provides through 18 branch offices and 23 technical assistance centers across the globe, complemented by a hot line covering all products.

In 2012, Sipa partnered with Vaughan, Ont.-based Athena Automation Ltd., with Sipa managing the sales, service and integration of all Athena PET preform machines on an exclusive worldwide basis.

Sipa provides the full range of PET container production machines (single stage machines, linear and rotary blowmolders, preform injection and injection-compression machines) as well as complete filling lines. It has production operations in Italy and China. The company’s offering includes preform and bottle design, engineering and industrialization up to the supply of injection and blowing molds for PET machines.


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MOSCOW (MRC) -- As part of the ongoing work to maximize the recyclability of its polymers, Eastman Chemical Company has teamed with DSI Plastics to develop a new regrinding and reuse stream for Eastman Tritan copolyester and its other copolyester materials, including Eastar and Durastar, said the producer on its site.

DSI is an innovative designer and integrated producer of plastic solutions and has found that Tritan - a new-generation copolyester resin - and other amorphous and crystalline copolyesters are very suitable for inclusion in the building and construction market for products such as farm flooring and walls.

"Improving polymer recycling is a major issue in our European, Middle East and African markets," said Godefroy Motte, chief sustainability officer, Eastman. "In fact, Circular Economy is a key component of Eastman’s priorities in Sustainability. Collaborating with innovators such as DSI Plastics, to make better products and improve the recycling of all products, opens opportunities for more sustainable solutions and better results for the generations to come."

The culmination of a four-year project, the launch of this new copolyester recycling application introduces new potential for Eastman Tritan copolyester in post-consumer and post-industrial recycling. The initiative - which could benefit all manufacturers, molders and appliance producers using Tritan, as well as consumers and collection facilities - adds further weight to its favorable life cycle assessment and contributes to Eastman’s recyclability goals.

Typical Eastman Tritan copolyester products being positioned for recycling include industrial 20-liter, or 5-gallon, bulk water containers and a variety of small appliances. If the animal pen walls are commercially successful, DSI plans to use 300 MT of Eastman product per year. To support future growth, DSI has the capacity to add volume for future projects.

"The products that have been developed using Eastman Tritan copolyester are hygienic, durable and easy-to-clean internal walls and flooring for pens intended for farm animals, such as pigs," continues Mr. Dubly. "We have developed a tool to demonstrate the versatility of the application, which is not subject to UV degradation. The final color is not important to the walls or flooring, so the raw material can be transparent, colored or even opaque."

As MRC wrote previously, brand owners can now select Eastman Tritan copolyester and Eastar copolyester from Eastman Chemical Company for carbon filtration and reverse osmosis systems. Brands that market point-of-use (POU) and point-of-entry (POE) water filtration systems and components know that the ability to clearly see the filter at work can result in more frequent filter media replacement - and greater sales.

Tritan and Eastar meet the requirements of the National Sanitation Foundation (NSF) for water filtration units and deliver the benefits of transparent filter housings with excellent durability, improved chemical resistance and toughness. Unlike polycarbonate (PC), both materials are made without bisphenol A (BPA), a big advantage for brand owners looking to answer consumers’ needs for BPA-free products.

DSI Plastics is an innovative designer and integrated producer of plastic solutions, specializing in RFID plastics products such as SEALRF for containers, RFID plastic bins and pallets for global tracking solutions, as well as plastic decoration such as painting and flocking.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
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MOSCOW (MRC) -- Swedish firm Hexpol has acquired the US-based rubber compounderPortage Precision Polymers Inc from the founder Doug Hartley and his family in a deal worth about USD13.2 million on a cash and debt free basis, said Business-standard.

The business will be consolidated from December 2014. Portage Precision Polymers, established by Doug Hartley in 2002, is today a well-known rubber compounder in the US market.

Tracy Garrison, President and CEO Hexpol Compounding NAFTA, said, “The acquisition is a very good complement to Hexpol Compounding in the US and broadens and strengthens our presence in rubber compounding. Portage Precision expands our capabilities and capacities to serve our customers in a more efficient way. Portage Precision has also a silicon rubber mixing unit in Mogadore, Ohia, which complements and expands our existing product portfolio."

Portage Precision Polymers, with two manufacturing facilities in Ohio (Ravenna and Mogadore), US, had a turnover of USD29 million in 2013. The Ravenna facility is not included in the transaction and its business will be transferred to other Hexpol facilities.

The acquired business has an EBITDA margin below the Hexpol Group and is expected to give a minor positive impact on earnings per share from start.

“This is a further step in expanding and strengthening the Hexpol Group with a further acquisition within our core business. Portage Precision Polymer product portfolio and customer base will fit nicely into the Hexpol Group," commented Georg Brunstam, CEO,Hexpol Group.

As MRC wrote before, Hexpol TPE group appointed MLPlastics as its distribution partner in the North of Germany.

Hexpol is a compounder of thermoplastics and TPEs as well as a processor of wheels made from polyurethane, other plastics and rubber. The company is headquartered in Sweden but has a global footprint.
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