Formosa Plastics to resumes investment in petrochemichal complex in China

(cens) -- The largest supplier of plastics in Taiwan, Formosa Plastics Group, will resume its large-scope investment in construction of manufacturing base of ethylene in Ningbo, eastern China following the decision of the Chinese government to ease restrictions on foreign investment in naphtha cracking in the mainland.

According to the company, the group will resume the investment project by spending USD5 billion to set up the petroleum complex encompassing an ethylene plant with annual output of 1.2 million tonnes and factories of plastics in Ningbo. Under the amended rules and regulations, the group won’t have to share the complex with any single Chinese enterprises as ordered in the past, but run it with the stock partly owned by Ningbo City Government.

Besides, the new regulations grant the group full ownership of ethylene derived from naphtha cracking in the complex, so the group will be able to secure ample supply of the material to produce PVC, ABS, PTA, PP, AE, etc. locally at its other factories in Ningbo, instead of relying on shipment from Taiwan.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- In October, Russian makers increased PVC output to 57,600 tonnes, up 75% from September. Over the past ten months, the growth of PVC output in Russia made about 500,000 tonnes, according to MRC ScanPlast.

In October, Russian producers increased PVC production (suspension and emulsion) to 57,600 tonnes, up 75% from September. Such a low index in September was due to a scheduled outage for maintenance at Sayanskkhimplast in September and the forced reduction of capacity utilization following the limited supply of ethylene from Kaustic (Sterlitamak). Last month, Sayanskkhimplast and Kaustic (Sterlitamak) showed record production volumes.

In October, Sayanskkhimplast produced record 27,000 tonnes of suspension PVC. In 2011, the plant produced 259,300 tonnes of PVC and, in 2012, the facility is going to increase the production volume by 4% to the level of 270,000 tonnes. Sayanskkhimplast is conducting a scheduled reconstruction and modernization of the polymer complex. By 2014, the company plans to increase its production capacity of suspension PVC up to 350,000 tonnes. Kaustic (Sterlitamak) also increased its capacity utilization after September restrictions of ethylene supply. The plant produced over 19,000 tonnes of the resin, which is two times higher compared to September.

In general, over the past ten months, the total production volume of PVC in Russia made about 500,000 tonnes, up 8% year-on-year. The output of suspension PVC grew to the level of 482,900 tonnes, up 8% year-on-year. All Russian makers increased production volume of suspension this year with the exception of Kaustic (Volgograd).

The only producer of emulsion PVC, Khimprom (Volgograd), keeps decreasing its output. Over the past ten months, the production volume of emulsion declined to 17,200 tonnes, down 5% year-on-year.

MRC

MOSCOW (MRC) - In October, the Russian producers increased the production of polypropylene (PP) to 54,800 tonnes. The ten months’ production of PP in Russia made about 541,800 tonnes, according to MRC SkanPlast report.

In October, Russian producers increased the production of polypropylene to 54,800 tonnes, up 8% from September.

So low September figures resulted from several factors. Firstly, Tomskneftekhim and Neftekhimiya (Kapotnya) in September stopped their capacities for a scheduled maintenance. Secondly, in September also Nizhnekamskneftekhim and Stavrolen reduced their PP production due to the maintenance work on the pyrolysis furnaces.

Last month, all Russian producers increased their PP production, with the exception of Neftekhimiya (Kapotnya) and Ufaorgsintez. The output of polymers of propylene at these enterprises amounted to about 4,000 tonnes and 10,900 tonnes respectively. Nizhnekamskneftekhim increased production to 18,000 tonnes, Tomskneftekhim to 12,800 tonnes and Stavrolen to 9,200 tonnes.

In general, the ten months’ total production of polypropylene in Russia amounted to 541,800 tonnes, down 5% compared to the same period last year. Long stoppage of Stavrolen (from mid-December to mid-March) was offset by the growth in production from Tomskneftekhim and Ufaorgsintez.


MRC

(Natinal Post) -- The Canadian Plastic Bag Association (CPBA), which represents manufacturers and distributors, has launched legal action over the City of Toronto’s looming plastic bag ban, arguing council failed to properly consult the public. The plastic bag ban of 'single use plastic shopping bags' (Resolution No. 2 in Item No. EX20.2 and confirmed by By-law No. 805-2012) is slated to take effect in January.

The association says its members would be "significantly impacted" by virtue of their substantial economic interest in the production and distribution of plastic shopping bags in Toronto.

The CPBA argues that the plastic bag ban is unlawful and that it was passed in bad faith because council has not received any advice, evidence, or opinion from its staff or any other person indicating that banning "single-use plastic carry-out (shopping) bags" would further the economic, social, and/or environmental well-being of the City or would protect the health, safety and well-being of any person.

We remind, that, as MRC informed earlier, in September the Delhi government imposed a blanket ban on the manufacture, storage and usage of plastic bags in the capital, regardless of thickness. This ban will curtail demand for PE film and coating grades, which are the raw materials in the production of plastic bags.

The Canadian Plastic Bag Association (CPBA) is an incorporated advocacy organization representing a wide range of manufacturers and distributors of plastic shopping bags throughout Canada. Its members service a variety of retail sectors in Toronto including supermarkets, department stores, discount stores, drug stores, convenience stores and many others.
MRC