Indorama Ventures halts PTA production in Indonesia for renovation

Indorama Ventures, a global leader in the manufacturing of Polyethylene Terephthalate (PET), Purified Terephthalic Acid (PTA), Monoethylene Glycol (MEG) in the United States, as well as polyester yarns and fibers, has recently undertaken a scheduled maintenance initiative by temporarily shutting down its PTA production facility in Cilegon, Indonesia, said Chemanalyst.

This strategic move, which commenced in mid-January, is expected to continue until the end of the month, allowing for essential maintenance activities to be conducted on the production facility.

The Cilegon facility, with an impressive annual PTA production capacity of 500 thousand tons, plays a crucial role in Indorama Ventures' global operations. The decision to temporarily suspend production underscores the company's commitment to ensuring the long-term reliability and efficiency of its facilities. Scheduled maintenance is a standard practice in the manufacturing industry, allowing companies to address wear and tear, conduct necessary upgrades, and ensure that equipment is in optimal condition for continued production.

This development comes in the wake of Indorama Ventures' strategic decision to maintain reduced production loads of purified terephthalic acid (PTA) in several European countries, including the Netherlands, Portugal, and Spain. The combined capacity of Chemical, Meta, and Polyester (CMP) production in these regions stands at 1.725 million tons. The ongoing market dynamics have influenced PTA production facilities across Europe to operate at reduced utilization levels.

The temporary shutdown of the Cilegon facility in Indonesia aligns with the company's proactive approach to managing its global production capacities in response to market conditions. By strategically adjusting production levels based on market demand, Indorama Ventures aims to maintain operational efficiency and adapt to the evolving landscape of the petrochemical industry.

The decision to undergo maintenance at the Cilegon facility is not isolated but part of a broader strategy to ensure the overall health and sustainability of Indorama Ventures' operations. The temporary closure allows the technical teams to perform thorough inspections, conduct necessary repairs, and implement upgrades to enhance the facility's efficiency and reliability.

In addition to the scheduled maintenance in Indonesia, the company's approach to managing PTA production in Europe reflects its adaptability to market dynamics. The reduced production loads in the Netherlands, Portugal, and Spain are a strategic response to the prevailing market conditions, demonstrating Indorama Ventures' commitment to optimizing its production capabilities in alignment with global demand.

As the scheduled maintenance activities progress in Cilegon, Indonesia, stakeholders, including employees, investors, and the local community, are keenly observing the developments. The temporary suspension of PTA production is not only a practical necessity for facility upkeep but also a testament to Indorama Ventures' commitment to maintaining high standards of operational excellence.

We remind, Indorama Ventures Public Company Limited, a global sustainable chemical company, has been selected for inclusion in the Dow Jones Sustainability World Index (DJSI World) for the fifth consecutive year and the Dow Jones Sustainability Emerging Markets Index (DJSI Emerging Markets) for the seventh year in a row, said the company. The continued inclusion reflects the company's commitment to sustainability and robust ESG practices. Indorama Ventures ranked in the 92 nd percentile amongst 11 chemical companies eligible for listing out of 89
chemical companies invited, with a Corporate Sustainability Assessment (CSA) Score of 73 out of 100.

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LG Chem and Enilive move a further step forward to the final investment decision on the project of a new biorefinery in South Korea by signing the joint venture agreement, said the company.

Last Sep 2023, Enilive (a company directly controlled by Eni, which holds 100% of its share capital) and LG Chem announced they were exploring the possibility to develop and operate a new biorefinery at existing LG Chem's integrated petrochemical complex in Daesan, South Korea, with the aim to complete the biorefinery by 2026 and to make it process approximately 400,000 tonnes of renewable bio-feedstocks annually using Eni's Ecofining technology and produce multiple products including Sustainable Aviation Fuel (SAF), Hydrotreated Vegetable Oil (HVO), and bio-naphtha. LG Chem and Eni will combine expertise in this initiative. The final investment decision is expected in 2024.

We remind, LG Chem has started the construction of its nickel-cobalt-manganese-aluminium cathode materials plant on a 170-ha site in Clarksville, TN, US. The project is scheduled to come online in 2026. It will produce 60,000 tonnes/y of battery materials, enough for approximately 600,000 electric vehicles, and will be the biggest of its kind in the country. The project has an initial investment of around $1.6 bn.

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In a significant expansion of their longstanding partnership, Braskem and FKUR Kunststoff are broadening their collaboration to encompass a wider range of products from the renowned "I'm green" bio-based portfolio, said Chemanalyst.

This strategic move establishes FKUR as the official distributor for sustainable ethylene vinyl acetate (EVA) in multiple countries. Braskem, a leading biopolymer manufacturer, and FKUR Kunststoff, specializing in bioplastics, have been collaborating since 2011, and this expansion deepens the alliance between the two entities.

A key highlight of Braskem's sustainable approach is the utilization of sugarcane-based ethanol to produce "I'm green" bio-based EVA, mirroring the methodology employed for "I'm green" bio-based polyethylene. Sugarcane, a renewable resource, absorbs carbon dioxide during its growth, contributing to a reduction in greenhouse gas emissions. The biobased content of "I'm green" bio-based EVA ranges from 45 to 80 percent, as per the ASTM D6866 standard. This environmentally conscious sourcing ensures a lower environmental footprint compared to traditional fossil-based counterparts.

FKUR Kunststoff's involvement extends beyond mere logistics; the company, with its dedicated team, assumes the role of a comprehensive partner. In addition to managing logistics in the covered countries, FKUR becomes a knowledgeable point of contact for technology, development, and provides invaluable application and marketing support. This collaborative approach reflects the commitment of both Braskem and FKUR to not only deliver sustainable products but also to provide a holistic support system that facilitates the adoption and utilization of bio-based materials.

The expanded distribution partnership aligns with the shared commitment of Braskem and FKUR to drive sustainable practices in the plastics industry. By making "I'm green" bio-based EVA more accessible to a broader geographic region, the companies contribute to the widespread adoption of eco-friendly materials, addressing environmental concerns associated with traditional plastics. This collaboration also underscores the importance of aligning technology, logistics, and support services to empower industries in their transition toward more sustainable practices.

As Braskem and FKUR Kunststoff expand their distribution collaboration, the "I'm green" bio-based portfolio takes a step further in establishing itself as a viable and eco-friendly alternative in various industries. The incorporation of sustainable sourcing, coupled with comprehensive support from FKUR, positions "I'm green" bio-based EVA as a compelling choice for businesses looking to integrate environmentally conscious materials into their product lines. This expanded partnership not only reflects the evolution of bio-based materials but also demonstrates the commitment of industry leaders to drive positive change and foster a more sustainable future for plastics.

We remind, the world's leading biopolymer manufacturer Braskem S.A. and bioplastics specialist FKuR Kunststoff GmbH are expanding their distribution agreement to include further products from the I'm greenTM bio-based portfolio, said the company. This development deepens the partnership between the two companies, which has existed since 2011. Effective immediately, FKuR will now also be the official distributor for I'm greenTM bio-based (EVA) ethylene vinyl acetate in the EU, Switzerland, Norway, UK, Turkey, Israel and India.

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Henkel has officially opened its new Asia R&D center for Consumer Brands in Shanghai with an investment of approximate 100 million RMB, said the company.

As Henkel’s largest R&D facility in Asia, the new center will attract top scientific talent, bolster local R&D capabilities in both Hair and Laundry & Home Care, and further position Henkel consumer products at the forefront of the industry. It will contribute to agile product innovations based on local consumer habits and insights across eleven markets in Asia.

Frank Meyer, Corporate Senior Vice President R&D of Henkel Consumer Brands, remarked: “Across our illustrious 147-year history, Henkel has consistently revolutionized consumer markets, positively impacting the lives of millions through our innovative products. The new R&D center, one of our facilities integrated with consumer centers worldwide, will contribute to a robust global research network spanning Europe, North America, the Middle East, and Asia Pacific. Anticipating the impact of this state-of-the-art facility, we aim to deepen our understanding of evolving consumer behaviors, fortifying Henkel's commitment to pioneering leading-edge technologies tailored for both local and global markets."

David Tung, Regional President of Henkel Consumer Brands Asia, said: “This investment represents a pivotal milestone as the first Asia-based R&D center supporting product development and ingredient formulation for both business categories. Leveraging unique research synergies, the center is set to shape our portfolio for higher growth, adding substantial value to the Asian market and propelling Henkel Consumer Brands to new heights."

Occupying over 2,500 square meters of floor space, the new R&D center offers ample capacities for future growth ambitions and expanded capabilities. Built on the design concept of 'innovation, digitalization, and sustainability,' the R&D center features advanced equipment and encompasses comprehensive capabilities, catering to both current and future needs of Henkel Consumer Brands. It integrates six functional areas: consumer center, advance research, product development, packaging design, chemical and physical analysis, and product evaluation.

We remind, Henkel Polybit Dammam has achieved full circularity for waste material at its manufacturing site in Dammam, Saudi Arabia. This milestone marks the first fully circular use of production waste material for Henkel in the India, Middle East and Africa region, underlining the company’s long-term commitment to sustainability and innovation.

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FASTEN Packaging, a company of leading global beauty solutions provider IBG (Innovative Beauty Group), has introduced its next-generation refillable jar concept, Goodloop, named for its contribution to a circular economy, said Spnews.

Combining innovative design, sustainability and luxury, the Goodloop refillable jar is a multi-award-winning concept that serves as a powerful example of how beauty brands can meet lofty sustainability goals while still strengthening their brand identities.

Suitable for cream products, the Goodloop refillable jar features a transparent outer jar with a curved inner portion for a sleek appearance. The jars are fully recyclable, and are comprised of recycled polypropylene (PP) and polyethylene terephthalate (PET).

The Goodloop refillable jar affords multiple decoration areas to reinforce brand identity – for example, by combining embossing on the inner wall with printing on the outer wall. The lightweight bayonet closure eliminates the need for a liner while ensuring leak-free use. Refilling is performed from the bottom with a simple twist.

Previous iterations of FASTEN’s Goodloop refillable jar concept recently received multiple prestigious awards including: a Gold Award at the 2023 German Innovation Awards, a Silver Muse Design Award, an iF Design Concept Award and a Bronze Pentaward.

“At FASTEN, we know just how important it is for brands to elevate their product’s presentation and consumer appeal, but also ensure alignment with corporate sustainability values,” said Ilja Zutt, Managing Director of FASTEN Packaging. “The Goodloop refillable jar checks all the boxes and is a solid example of how our design team continues to push the envelope in developing forward-thinking, eco-friendly packaging innovations.”

We remind, Russia will likely cut exports of naphtha by some 127,500 - 136,000 bpd, or around a third of its total exports, after fires disrupted operations at refineries on the Baltic and Black Seas, according to traders and LSEG ship-tracking data. Asia's naphtha markets surged about 19% this week against the backdrop of supply disruption fears from Russia. There are jitters in the market because Russia is a key exporter of naphtha to Asia, and this kind of short-term disruption could cause prompt tightness, a naphtha trader said.

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