Hanwha Solutions Trims Caustic Soda Production in Yeosu

In January, Hanwha Solutions implemented a 10% reduction in the utilization of caustic soda production at its facility in Yeosu, South Korea, said Chemanalyst.

The decision was driven by commercial considerations, although the duration of this reduced production load has not been disclosed. The facility boasts a production capacity of 873 thousand tons of caustic soda annually.

The recent move follows Hanwha Solutions' temporary closure of polyvinyl chloride (PVC) production in Yeosu at the end of August for maintenance purposes. During this period, all production lines, collectively capable of producing 460 thousand tons of PVC per year, were temporarily shut down within a span of two weeks.

Hanwha Chemical, established in 1965 in South Korea, is the parent company overseeing these operations. As a pioneer in the country's chemical industry, Hanwha Chemical holds the distinction of being the first company to initiate the production of polyvinyl chloride, high-density polyethylene, linear polyethylene, and chlor-alkali products.

The reduction in caustic soda production utilization signals strategic adjustments within Hanwha Solutions, reflecting a response to market dynamics, commercial considerations, or other operational factors. While the specific reasons for the reduced production load remain undisclosed, such decisions are often influenced by factors such as market demand, economic conditions, or operational efficiency.

The temporary closure of PVC production in Yeosu in August, aimed at conducting repairs and maintenance, highlights Hanwha Solutions' commitment to ensuring the reliability and optimal performance of its production lines. Maintenance shutdowns are common in industrial settings, providing companies the opportunity to address equipment issues, implement upgrades, and maintain overall operational integrity.

Yeosu, South Korea, serves as a significant operational hub for Hanwha Solutions, contributing to the company's legacy as a key player in South Korea's chemical manufacturing landscape. The facility's diverse production capabilities, including the manufacturing of polyvinyl chloride, high-density polyethylene, linear polyethylene, and chlor-alkali products, underscore its strategic importance within Hanwha Chemical's overall portfolio.

Hanwha Chemical's establishment in 1965 further underscores its longstanding presence and contributions to South Korea's chemical industry. As the inaugural company in the country to venture into the production of polyvinyl chloride, high-density polyethylene, linear polyethylene, and chlor-alkali products, Hanwha Chemical has played a pivotal role in shaping and advancing the chemical manufacturing sector in South Korea.

Hanwha Solutions' decision to reduce the utilization of caustic soda production in Yeosu aligns with strategic considerations for commercial purposes. The temporary closure of PVC production earlier in August for maintenance further demonstrates the company's commitment to ensuring operational efficiency and reliability. Hanwha Chemical's historical significance as a trailblazer in South Korea's chemical industry highlights the enduring impact and contributions of the company to the country's industrial landscape.

We remind, LG Chem, a leading petrochemical company in South Korea, has announced plans to halt operations at its caustic soda production line in Yeosu, South Korea. Scheduled for the 20th of February, this shutdown is part of a routine maintenance strategy. The affected production line has an annual capacity of 320,000 tons of caustic soda, contributing significantly to LG Chem's total annual capacity of 728,000 tons.

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TotalEnergies, a globally recognized energy corporation, recently announced a delay in the reboot of its mixed-feed ethylene cracker facility situated in Antwerp, Belgium, said Chemanalyst.

This facility, which boasts an annual production capacity of 580,000 metric tons, has had its restart schedule pushed to the second half of January, a move that signifies the intricate challenges inherent in such large-scale operations.

The cracker was initially taken offline in October, with the initial projection being that the turnaround would span a period of approximately eight weeks. However, the resumption of operations at the facility has been postponed, thereby prolonging the period of inactivity at the site.

In the preceding month of September, TotalEnergies had laid out plans for a substantial overhaul of two out of the three sites in Antwerp. The scheduled maintenance was set to run until the early days of December 2023. The company had also given a heads-up about potential flaring activities at the refinery from September 25th onwards, as stated in a company-issued announcement during that same month.

As part of the maintenance work at its polymer site located at Scheldelaan 2-4 in Antwerp, TotalEnergies expressed its intention to invest an additional €3 million ($3 million). This proposed investment is a testament to the company's dedication to maintaining the integrity of its infrastructure and ensuring the uninterrupted operation of its facilities.

In addition to the postponed cracker, TotalEnergies operates another standalone cracker within Antwerp. This second facility has an ethylene production capacity of 570,000 metric tons per annum, a fact that further consolidates TotalEnergies' robust presence within the region of Antwerp.

The Antwerp complex is renowned for its versatility and its ability to produce a diverse array of products. Based on information provided on TotalEnergies' official website, the complex is capable of manufacturing fuel oil, gasoline, liquid petroleum gas, diesel, and jet fuel. Furthermore, the complex also has the capacity to produce other products such as propylene and aromatics.

The delay in the restart of the Antwerp cracker is indicative of the intricate challenges and complexities that could arise in the operation and maintenance of large-scale facilities. However, TotalEnergies' demonstrated commitment to investing in maintenance and ensuring the successful operation of its facilities is a clear indication of the company's dedication to fulfilling its production capabilities.

While the delay in the restart of the Antwerp cracker constitutes a significant development, TotalEnergies' planned investment and commitment to maintenance is expected to be beneficial for the future operations of the facility. The Antwerp complex continues to play a vital role in TotalEnergies' global operations, making a considerable contribution to its diverse range of product offerings.

This decision by TotalEnergies to delay the restart of the Antwerp cracker serves as a reminder of the many factors that can influence the operation of such facilities. These factors can include everything from technical issues to changes in market conditions or regulatory requirements. However, it also underscores the importance of being prepared to adapt and respond to these challenges in order to ensure the continued success and viability of these operations.

We remind, NextDecade has filed for a shelf registration that would allow TotalEnergies to sell its 17.5% stake in the U.S. LNG company over time. A unit of French oil major TotalEnergies currently holds 44.9 million shares of NextDecade, bought for $219 million in June as part of a broader deal to develop NextDecade's Rio Grande LNG export project in south Texas that has faced repeated delays.

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Borouge Plc announced the signing of a $44-MM agreement with NAFFCO to supply NAFFCO’s local and regional infrastructure projects with Borouge’s innovative and sustainable polyethylene materials, said Hydrocarbonprocessing.

Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, said: “Our partnership with NAFFCO underscores how Borouge is leveraging its advanced polyolefin technology to enhance mega projects and support the UAE's economic diversification and industrial growth. The two-year agreement will supply NAFFCO with Borouge’s innovative polyethylene solutions to enable local and regional megaprojects. We are proud to be contributing to the nation’s economic landscape and demonstrating that locally manufactured products are synonymous with global excellence."

Renowned for their corrosion and chemical resistance, pressure pipes made from PE100 can withstand extreme industrial conditions, ranging from high levels of impact to abrasions and stress cracking. In addition, the pipes are notable for their long-term pressure resistance, making them some of the most efficient and dependable solutions in the market.

Ahmed Khalid Al Khatib, Group Managing Director of NAFFCO, said: “Partnering with Borouge allows us to enhance our offering to ever-growing markets such as the UAE. It is important to have a collaboration with a strong partner such as Borouge to cater to the needs of various infrastructure developments. NAFFCO’s commitment to innovation and sustainability, particularly in producing high-quality, ‘Made In UAE’ pipes, aligns with the mission of providing the best in fire safety. This collaboration underlines our commitment to leading the industry, driving innovation, and positioning the UAE at the forefront of fire safety technology.”

Under the two-year agreement, Borouge will provide advanced infrastructure solutions to NAFFCO for various infrastructure projects across the region, including the Guggenheim Museum, the Riyadh city project, Mohammad Bin Zayed City, the Yas Island Development Project, the Dubai Hills Project, Heat of Europe Island, and Etihad Water and Electricity projects.

We remind, Borouge Plc, a leading petrochemical company that provides innovative and differentiated polyolefin solutions, announced that it has signed a Memorandum of Understanding with National Petroleum Construction Company, a UAE-based Engineering, Procurement and Construction Company.

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Nigeria's state oil company NNPC is expected to supply four crude cargoes from its February program to the $20-B Dangote refinery, which is poised to begin operations after years of construction delays, three sources with direct knowledge of the matter told Reuters.

What will be Africa's biggest refinery has said it could begin test runs as early as this week, adding that it has received six initial crude cargoes. OPEC member Nigeria currently relies on imports for most of the fuel it consumes, but the Dangote refinery is expected to make it self-sufficient and able to export fuel to neighbors in West Africa, potentially transforming oil trading in the Atlantic Basin.

Dangote received 1 million barrels of Nigeria's Agbami crude on Monday, lifting total volumes received since December to 6 million barrels. NNPC supplied the 650,000 bpd plant with four of the cargoes, two of the sources said. A spokesperson for NNPC declined to comment.

Dangote's group executive director for strategy, portfolio development and capital projects, Edwin Devakumar, said the company did not request cargoes from NNPC for January. "We are starting the refinery and if we continue to line up cargoes our inventory will build up as well as costs," he said. "If everything goes well, we will run for 8-10 days of operation then we will begin to line up cargoes."

The refinery is also looking at crude supplies from other countries, he said without disclosing further detail. One of the sources said that the refinery has nominated four NNPC cargoes for February. A second source said that NNPC wanted to wait for the plant's test runs before sending more oil. Initial processing capacity is expected to reach 350,000 bpd, with the aim of ramping up to full capacity by the end of the year, Dangote said.

We remind, MAIRE announced that its subsidiary Tecnimont successfully achieved the mechanical completion of the rehabilitation works of the old plant (Area 5) for a subsidiary of the Nigerian National Petroleum Company (NNPC) in Nigeria. The rehabilitation works, awarded in April 2021 for a total value of USD 1.5 billion, entail engineering, procurement and construction (EPC) activities aiming at fully restoring the Port Harcourt complex to a minimum of 90% of its nameplate capacity.

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In a year of high inflation, rising interest rates, and sharp currency depreciations, Sika held firm and achieved record sales, said the company.

These amounted to CHF 11.24 billion in the year under review, equating to a rise of 7.1% in CHF. Almost all currencies depreciated considerably against the Swiss franc, which led to a negative currency effect of -7.4%. One key growth driver in the past fiscal year was the acquisition and successful integration of MBCC and the systematic merger of its business activities. However, the negative currency effect also played a major role in the MBCC business that was consolidated as of the beginning of May. Sika is expecting annual synergies of CHF 180–200 million following the acquisition.

"Sika has once again proved its resilience over the past twelve months. Thanks to our well-functioning business model, our high level of innovation, and the strong commitment of our 33,000 employees around the world, we have continued to grow substantially and gained market share in what has been a challenging year. We are benefiting from high customer demand from the major growth trends such as sustainability, urbanization, and automation. With our Strategy 2028, our geographical footprint, and our leading technologies, we are ideally positioned to continue to achieve sustainable growth in the coming years and create added value for all our stakeholders."

In general, the growth trends of the first nine months continued in the final quarter of fiscal 2023. All regions performed well and contributed to Sika’s further growth and the systematic expansion of market shares. In 2023, Sika experienced positive organic growth, compared to a market that was characterized by a negative organic development.

We remind, Sika has put into operation new production lines for the concrete admixture Sigunit® in Kirchberg, in the Canton of Berne, thereby investing in the expansion of manufacturing capacities in its home market, said the company. The shotcrete accelerator is mainly used in tunneling and excavation stabilization.

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