Lotte Chemical completes HEC plant in Yeosu

South Korea’s Lotte Chemical Corp. announced on Monday its commencement of commercial production at the plant of Hydroxy Ethyl Cellulose (product name: Hecellose) in Yeosu, South Jeolla Province earlier this month, said Kedglobal.

In December last year, Lotte Chemical constructed the Hecellose production facility on its Yeosu development site, specializing in Lotte Fine Chemical Co. 's key specialty product, Hecellose. Hecellose, a cellulose derivative made from ethylene oxide and pulp, serves as an additive in various industries such as water-based paints, household goods, and cosmetics, providing viscosity and moisture retention.

With the completion of the Yeosu Hecellose plant, the entire process, from sourcing raw materials for 10,000 tons of Hecellose products to production, now takes place in one location.

Lotte Chemical has established a system to safely supply ethylene oxide, a key raw material for Hecellose products, through pipelines to the new plant, instead of conventional land transportation.

This enables Lotte Chemical to generate revenue through the sale of ethylene oxide products and commissioned production of Hecellose. Simultaneously, Lotte Fine Chemical will benefit from a stable raw material supply, strengthening its foundation for expanding the Hecellose business.

We remind, Lotte Chemical sells JV stakes in China, eyes other profitable markets. South Korea’s Lotte Chemical Corp. has sold its entire stakes in joint ventures with Chinese partners as the Korean company faces a supply glut amid weak demand in the world’s second-largest economy. The petrochemical unit of Lotte Group, Korea’s fifth-largest conglomerate, recently sold its stake in the JV, Lotte Chemical Jiaxing Corp.

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Evonik is announcing a net price increase of up to 10% on MetAMINO® (DL-methionine 99%, feed grade) with immediate effect, said the company.

All existing contracts and supply agreements will be honored.

We remind, Evonik Hydroxylterminated Polybutadienes Production CapacityEvonik, a specialty chemicals company, begins work to expand its POLYVEST® HT plant in Marl, Germany. The Coating & Adhesive Resins business line expects the additional production capacity for its hydroxyl-terminated polybutadienes (HTPB), marketed under the brand name POLYVEST®, to be ready as early as the second quarter of 2024 following the double-digit million-euro investment.

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Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced an integrated technology award from BAYEGAN, said Hydrocarbonprocessing.

BAYEGAN will license Lummus' CATOFIN technology for a new 450 KTA propane dehydrogenation unit and Lummus' Novolen technology for a new 450 KTA polypropylene unit. The units will be located at BAYEGAN's complex in the Hatay Province of Turkiye and will be Lummus' first integrated PDH and PP complex in the country.

"We are excited to partner with BAYEGAN on this critical investment, which will help Turkiye meet the market demand for high-quality polymers and reduce the country's dependance on polymer imports," said Romain Lemoine, Chief Business Officer of Polymers and Petrochemicals, Lummus Technology. "Integrating our CATOFIN and Novolen technologies will provide reliability and robustness, lower capital and operating expenses, environmental performance, flexibility and broad product capability and simple processes."

Lummus' scope includes the technology license for the PDH and PP technologies, basic design engineering, advisory services and training. Once complete, the PDH unit will produce the propylene feedstock for the PP unit, which will produce semifinished products for a broad spectrum of applications in the consumer and industrial markets.

CATOFIN is an industry-leading method for light paraffin dehydrogenation that delivers excellent annual production output compared to alternative technologies. The process operates at thermodynamically advantaged reactor pressure and temperature to maximize conversion of propane to propylene, while reducing investment and operating costs.

Part of Lummus' polymers portfolio, Novolen is the industry's leading polypropylene technology and can deliver a sustainable route for polymers production, while maximizing the financial benefits of operations through lower CAPEX and OPEX. The technology is highly flexible, robust, energy efficient and allows production of a full grade slate of leading polypropylene products of all product families, including homopolymers, random copolymers and terpolymers.

We remind, Topsoe, a global leader in carbon emission reduction technologies, has been selected by Essar Oil UK, a leading integrated downstream energy company, to be a technology licensor for its carbon capture facility, based in Stanlow, North West England. Topsoe will deliver its SNOX™ technology for the removal of nitrogen oxides, sulfur dioxide, carbon monoxide, dust and other contaminants from the flue gas emitted in the production process. Topsoe’s technology will be one of a number of integrated licensed solutions supporting Essar’s plant, and will contribute to reducing their CO2 footprint.

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Dairen Chemical, based in Taiwan, is gearing up for a temporary shutdown of its vinyl acetate monomer (VAM) plant located in Mailiao. The scheduled closure is set to commence on March 11 and will extend until April 30, facilitating essential repairs and maintenance activities, said Hydrocarbonprocessing.

This particular facility boasts a production capacity of 120 thousand tons of VAM annually. Notably, the plant has been operating at a reduced capacity of 70% since February 1, as per information from reliable sources.

A precedent for such maintenance endeavors was set by Dairen Chemical on April 10, 2023, when the company temporarily halted production at its Plant No. 1 dedicated to VAM production in Mailiao. The previous maintenance operation, lasting for one month, impacted an enterprise with an annual VAM capacity of 300 thousand tons.

Vinyl acetate monomer (VAM) holds significance as the primary raw material for the synthesis of ethylene-vinyl acetate (EVA). Dairen Chemical operates as a joint venture, featuring collaboration between Chang Chun Group entities (Chang Chun Petrochemical and Chang Chun Plastics) and Nan Pao Resins. In the production chain, Dairen Chemical supplies VAM to its parent companies for further processing into polyvinyl acetate.

The inception of VAM production at Dairen Chemical traces back to its licensing agreement with Bayer AG (Germany) for the establishment of the first VAM production plant. This initial facility boasts an annual production capacity of 85 thousand tons.

The strategic decision to undertake maintenance activities on the VAM plant in Mailiao reflects Dairen Chemical's commitment to ensuring operational efficiency and the longevity of its production infrastructure. Maintenance endeavors play a crucial role in sustaining the reliability and performance of industrial facilities, preventing potential issues and ensuring the seamless continuation of production activities.

The temporary reduction in production capacity, initiated since February 1, aligns with Dairen Chemical's proactive approach to manage operations efficiently during the maintenance period. Such measures are essential to balance the impact of maintenance activities on production output while addressing the need for repairs and enhancements.

In the broader context, Dairen Chemical's role as a key player in the VAM production sector contributes to the supply chain for EVA, a versatile polymer used in various industries. The collaboration between Chang Chun Group and Nan Pao Resins underscores the synergy among industry leaders to drive innovation and meet the demands of downstream applications relying on polyvinyl acetate.

As Dairen Chemical undertakes this planned maintenance at its Mailiao facility, the company reinforces its commitment to quality, safety, and environmental responsibility in the production of essential chemicals. The periodic shutdowns for maintenance not only ensure the reliability of the manufacturing infrastructure but also align with industry standards for sustainable and responsible chemical production.

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Methanex Corporation announced that commercial production of its new 1.8 MMt methanol plant, Geismar 3, in Geismar, Louisiana has been delayed due to complications that occurred in the autothermal reformer during the late stages of the initial start-up process, said Hydrocarbonprocessing.

This issue required the ATR to be cooled and brought to a safe state where teams could conduct detailed inspections of the vessel.

Upon completing initial inspections, it has been determined that there is significant damage to a large number of supporting refractory bricks in the vessel which will require replacement. The specialty formed refractory bricks require time to procure and, as a result, management believes commercial production could be delayed up to the end of the third quarter of 2024. The investigation and planning to rectify the issue is ongoing and management is exploring all avenues to accelerate the repair time. Based on the preliminary findings of its root cause analysis, management believes that this issue relates to complications in the initial start-up process and is not a plant design or construction issue. Management believes that the total capital cost will not significantly exceed the upper end of the capital cost guidance of $1.30 billion.

Rich Sumner, President and CEO of Methanex commented, “We are disappointed by this delay, and we are actively working with our critical suppliers to expedite delivery to facilitate the start-up of G3. I want to thank our G3 team who are working tirelessly to ensure a safe startup of the plant. Safety remains our top priority followed by our commitment to deliver a quality plant.”

We remind, Methanex (Vancouver, Canada) will idle its 875,000-metric tons/day Titan methanol facility in Couva, Trinidad, “indefinitely” and is restructuring its operations there to support a “one-plant operation,” it says. The company halted production at Titan on 16 March 2020 due to the COVID-19-related downturn in manufacturing activity globally. Today’s announced restructure will result in the loss of approximately 60 jobs for employees and long-term contractors in Trinidad, it says.

Methanex is a Vancouver-based, publicly traded company and is the world’s largest supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX” and on the NASDAQ Global Market in the United States under the trading symbol “MEOH”.

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