Evonik opens new plants with innovative technology in Marl, Germany

MOSCOW (MRC) -- Evonik Industries has started up new production plants for C4-based products in the Marl Chemical Park, Germany, said the company in its press release.

These were formally opened in the presence of Hannelore Kraft, Minister-President of North Rhine-Westphalia, and Klaus Engel, Chairman of the Executive Board of Evonik Industries. This expansion of production in Marl is part of a capacity expansion throughout Europe for C4-based products, in which Evonik has invested a three-digit million EUR amount in total. At the heart of the new plants at Evonik’s largest site is the widely visible 90-meter column, the highest within the specialty chemicals company. This is a symbol of a new technology that, for the first time anywhere in the world, utilizes special material streams from refineries for production of C4 chemicals. These streams are supplied by the neighboring BP refinery in Gelsenkirchen.

Klaus Engel, Chairman of the Executive Board of Evonik, says: "With the expansion of our C4 capacities we’re sustainably strengthening our market position. What’s more, the new technology for raw-material supply for the Marl plant and our excellent collaboration with BP demonstrate yet again the innovative strength of companies in the Ruhr district and their readiness to collaborate. We are confident, therefore, that there will continue to be a strong industrial base in the region."

In addition to the expansion in Marl, Evonik has also invested in the C4 activities in Antwerp, Belgium, where the plants in question went on stream in the second quarter of 2015. The new production facilities have resulted in capacity expansion for the plasticizer alcohol isononanol in Marl, butadiene in Antwerp, and the fuel additive MTBE in both Marl and Antwerp. Johann-Caspar Gammelin, Chairman of the Board of Management of Evonik Performance Materials GmbH, says: "Our investments are supporting the growth plans of our customers in Europe and worldwide. Market analyses show that global demand for these products is growing by up to 5 percent annually."

FCC stands for fluid catalytic cracking. With the help of this process, refineries transform heavy crude oil components in fuel components. Fluid catalytic cracking produces a C4 material stream that, besides the components that can be used for chemical processing (olefins), contains further accompanying substances. The industry has therefore so far not used this FCC-C4 material stream.

As MRC informed earlier, Evonik Industries is making an investment in the double-digit-million euro range in a new research center at the Rheinfelden site. Starting at the beginning of 2016, research into silanes will be carried out in modern laboratories in the four-story building.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.

MRC

MOSCOW (MRC) -- Nova Chemicals is likely to make a final investment decision on a new polyethylene plant for St. Clair Township only after mid-2017, as per Plastemart.

The new plant, a possible USD1 billion investment in Chemical Valley, was first proposed by Nova in 2011.

Currently, the company is moving forward with its study of the expansion of the Corunna plant by approximately 50%, to boost production from 5 mln lbs of ethylene a day to 8 mln lbs.

Nova is working with a partner on the pipeline project that will also required some internal retrofitting work at the Corunna cracker. The project is expected to cost slightly more than USD350 million.

As MRC informed before, in early 2013 NOVA Chemicals decided build two polyethylene (PE) plants and expand its ethylene capacity. NOVA has taken several actions to secure additional ethane feedstock supply for its crackers in Corunna, Ontario, and Joffre, Alberta.

Nova Chemical is one of the largest world's petrochemical companies, a manufacturer of polyethylene, styrene polymers, monomers, and many other related products.
MRC

MOSCOW (MRC) -- Clariant said at the Clariant Roundtable event that it is significantly expanding its North American workforce to capture opportunities in catalysis, oil & mining services and biotechnology, said the producer in its press release.

Clarinet is the developer of the sunliquid cellulosic ethanol process. The commercial relevance of the North American region in general was highlighted by Hariolf Kottmann, CEO of Clariant. He stated: "For Clariant North America is an important growth market. The U.S. provides the single biggest revenue contribution."

Currently Clariant delivers sales of around USD 1.0 billion in North America with approximate 1,800 employees, and has been experiencing year-on-year growth of around 4% in the region since 2011. Growth in the company Catalysts business has been even stronger, at 5% per year, while the Oil & Mining Services (OMS) business has shown double digit growth per annum. Based on the strength of these businesses, Clariant sales in the first half of 2015 in North America were up by 5%. Kottmann envisions continued growth in North America, accelerated by investments in this region.

Clariant is therefore investing heavily in North America. Examples are the new Polypropylene Catalyst Plant in Louisville with an investment of around USD100 million and the Houdry Catalysts Expansion with an investment of around USD20 million.

Providing details on Clariant’s Catalysis business, Stefan Heuser, head of BU Catalysts, highlighted the current annual growth rate of this business, which is close to 7%.

Clariant is also investing heavily in catalysts R&D, with a spend of more than 7% of sales. To develop the most efficient solutions, Clariant is leveraging its position as an independent catalyst supplier to collaborate closely with leading process licensors as well as with customers and academic partners.

As MRC informed earlier, Clariant took a step closer to satisfying customer needs in the agri-film production sector in China by hosting a seminar in Jinan, Shandong province of China.

Clariant is a Swiss speciality chemicals company which was formed in 1995 as a spin-off from Sandoz. The company has a turnover of around USD8 billion and is headquartered in Muttenz with a corporate centre in Pratteln, both near Basel, Switzerland. Clariant manufactures a range of specialty chemicals based largely on pigment, surfactant and polymer chemistry.
MRC

MOSCOW (MRC) -- Hanwha Chemical has launched a pilot production of superabsorbent polymers, a material commonly used for baby diapers, according to GV with reference to a news provider.

There are speculations in the market that Hanwha Chemical has currently carried out trial production of 1,600 tons of SAP using raw materials from China in its factory in Yeosu, South Jeolla Province.

The news outlet reported that Hanwha Chemical is looking into the SAP industry, but is hesitant on mass-production due to the difficulty of obtaining acrylic acid, its base material.

To obtain acrylic acid, Hanwha must either purchase them from LG Chem, the only company in Korea producing SAP and acrylic acid, or import from China or Japan.

Hanwha is reluctant to buy from a rival company, but is also wary of the quality of Chinese-manufactured acrylic acid, as well as fearing potential customer avoidance, according to speculations.

The global market size for acrylic acid was 4.9 million tons, and SAP was 2.3 million tons in 2014. The industries are expected to grow 5 percent and 6.5 percent, respectively, by 2020.

As MRC wrote before, in March 2015, South Korea's Fair Trade Commission (KFTC) gave conditional approval to Hanwha's proposed acquisition of Samsung General Chemicals. The regulatory authority identified that the combined entity could dominate the domestic ethylene vinyl acetate (EVA) market, which could result in higher prices. However, markets of the other three chemical products including low-density polyethylene, linear low-density polyethylene and high-density polyethylene will not be significantly affected by the transaction,

Hanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc., the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial services.
MRC

MOSCOW (MRC) -- BASF has begun its first production of diphenylmethane diisocyanate (MDI) at its wholly-owned site in Chongqing, China. Production will be ramped up gradually in line with market demand, said the company in its press release.

MDI is an important component for polyurethanes – an extremely versatile plastics material that contributes towards improved insulation, provides lighter materials for cars, and helps save energy in buildings. MDI production will support these key industries in China’s western areas.

As MRC informed earlier, BASF, SK Chemicals (Seoul) and Solvay are in discussions, which may lead to the construciton of a hydrogen peroxide-to-propylene oxide (HPPO) project at Ulsan.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of over EUR74 billion in 2014 and over 113,000 employees as of the end of the year.
MRC