Lubrizol starts global expansion for chlorinated PVC

MOSCOW (MRC) -- Lubrizol, an innovative specialty chemical company, is planning a four-year, USD400 million global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites, the company reported on its site.

With continued strong global demand for the company’s CPVC compounds, Lubrizol’s expansion efforts will be divided into two phases:

Phase 1 is to become operational by end of 2014 with the total capacity of 85,000 tonnes of CPVC resin and 100,000 tonnes of CPVC compound. The total investment in the project makes USD200 million.

Phase 1 includes the previously announced construction of a new CPVC resin and compounding facility in the United States. Initial resin capacity will be 55,000 tonnes and compound capacity will be 65,000 metric tonnes with a total investment of USD125 million.

Construction of a new CPVC compounding plant and warehouse in India is also a part of Phase 1. The total investment of USD40 million will include an initial capacity of 35,000 metric tonnes. The sites that are under final consideration are located in Gujarat and Maharashtra.

Besides, the previously announced joint investment in a CPVC resin manufacturing facility in Thailand is also included in Phase 1. Initial capacity will be 30,000 tonnes with a total investment of USD50 million and subject to receipt of all necessary government approvals.

Phase 2 is targeted to be operational by end of 2016. It adds 85,000 tonnes of CPVC resin and 100,000 tonnes of CPVC compound with total additional investment of approximately USD200 million.

Phase 2 includes an addition of 55,000 tonnes of resin capacity and 65,000 tonnes of compound capacity at the sites in the United States and India, which is under consideration at the moment. The total additional investment will be USD125 million.

Besides, it includes an expansion of the Phase 1 India compounding plant, adding 35,000 tonnes of capacity with total additional investment of USD15 million.

Phase 2 will also see the expansion of the Phase 1 joint investment plant in Thailand, adding 30,000 metric tons of resin capacity. The total additional investment is estimated to be USD50 million.

"Lubrizol is committed to ensuring product availability and quality for our global CPVC customers,” states Eric Schnur, president of Lubrizol Advanced Materials. “Through these global capacity expansion efforts, we will be in a strong position to meet global demand as well as better serve the needs of our existing and future customers to help them achieve their business success."

We remind that, as MRC wrote previously, Sekisui Chemical and Lubrizol will initialise a joint venture (JV) company in Thailand, in order to produce chlorinated polyvinyl chloride (CPVC), which is used as a raw material in pipes for supplying hot water, industry and sprinklers.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol’s advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers’ high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC

Clariant concentrates on Polish addition

MOSCOW (MRC) -- Specialty chemicals producer, Clariant, has broken ground on a new plant in Konstantynow Lodzki, Poland, which will commence production of colour concentrates for producers of plastics materials within one year, said Clariant in is statement.

The CHF 11.3 million (USD12m) investment will allow Clariant to increase production capacity and strengthen its position on the Polish and European markets.

Covering an area of 6,800sqm, the facility will enable Clariant to double its production capacity for masterbatches in Poland and create new jobs. It is located in the Lodz Special Economic Zone.

"You cannot underestimate the meaning of this investment for the entire company. The market for masterbatches, though demanding, develops dynamically and a modern facility such as this in Konstantynow Lodzki, will allow us to develop new solutions tailored to the specific needs of customers effectively,” said Hans Bohnen, head of Clariant's Masterbatches business unit.

The company has held a presence in Poland for 22 years.

As MRC wrote earlier, Clariant will build a new plant at Konstantynow Lodzki in the Lodzka Special Economic Zone and in early 2014 move the current production of subsidiary Colex from Zgierz / Poland to the location.

Said Patrick Jany, chief financial officer of Clariant: "Central Europe is a very promising market and Poland, as a large and dynamically growing country in the region, is the natural place for further investments. We are deeply convinced that our engagement in building a new facility in Konstantynow will prove to be beneficial for both Clariant and the Lodz region."

Masterbatches that can be used to colour a wide range of polymers including PE, POM, EVA, PS, SAN, ABS, PET, PC and PVC products.
MRC

BASF strengthens Asia Pacific business

MOSCOW (MRC) -- BASF is enhancing its Asia Pacific operations with the appointments of Albert Heuser as president for Greater China and Functions Asia Pacific, and Gops Pillay as president for South & East Asia, ASEAN and Australia/New Zealand, said Apic-online.

Heuser, president of Market & Business Development Asia Pacific, will assume responsibility for BASF’s Market & Business Development and Operations in Greater China, as well as for all functional units in Asia Pacific, effective 1 Apr. Heuser will be based in Shanghai.

Pillay, senior vice president of Dispersions & Pigments Asia Pacific, will on 1 May assume responsibility for all regional business units and countries outside of China. He will be based in Hong Kong. This is expected to reduce organizational complexity and increase market and customer focus in the Asia Pacific markets.

These changes will enable BASF "to better capture the opportunities in this dynamic region," said Martin Brudermuller, vice chairman of the board of executive directors responsible for Asia Pacific. "China accounts for approximately 50% of our Asia Pacific business," he noted. "Moving one of our three top management positions to Shanghai with direct responsibility for our activities in China will enable us to keep our growth momentum."

As MRC wrote earlier, BASF and China-based Xinjiang Markor Chemical are planning to set up two joint venture (JV) companies, for the production of butanediol (BDO) and polytetrahydrofuran (PolyTHF), in Korla, Xinjiang Uygur, China.
MRC

Sadara launches sukuk sale to raise USD1.4 billion for it Jubail chemical complex

MOSCOW (MRC) -- Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical, launched an Islamic bond sale that could raise at least USD1.4 billion to finance a large petrochemical complex, reported Saudi Gazette.

The USD19.3 billion facility, located at Jubail Industrial City, will be the world’s largest chemical complex ever built in a single phase. The first production units are expected to come on line in the second half of 2015, with all production units coming on line in 2016 with the total estimated output to make more than 3 million tonnes of petrochemicals each year.

Sadara may increase the size of the planned sukuk to USD2.5 billion depending on market demand, it said in a prospectus for the sale, adding if the company raises more than USD1.4 billion other sources of financing will be adjusted accordingly.

Pricing of the sukuk, which is only available to Saudi investors, will be determined once roadshows have taken place. The sukuk has a 16-year lifespan, the company said.

The sukuk forms part of a USD12.5 billion debt package currently being raised to fund the construction of the project.

Of the total, USD4.975 billion has been provided by the US Export-Import Bank - the largest direct loan ever given by the agency to a single project.

Deutsche Bank, Riyad Bank, Alinma Bank and Bank Al Bilad have been mandated to arrange the sukuk, the statement said.

Once sold, it will be only the second project finance sukuk ever sold in Saudi Arabia - the first was the SR3.75 billion (USD1 billion) issue in October 2011 from Saudi Aramco Total Refining and Petrochemical Co. (Satorp), a joint venture between Aramco and France’s Total.

The Sadara complex, which will have 26 manufacturing facilities, is claimed to be the world's largest petrochemical facility ever built in a single phase and will manufacture more than three million tonnes of chemical and plastics products.

Earlier, Intertec has won the contract for the environmental protection cabinets and shelters that will protect the field-based process analyzers at the planned Sadara petrochemical complex. The outdoor cabinets will be constructed from high-performance grades of GRP (glass reinforced polyester).
MRC

CB&I wins engineering contract from SK for Korea propane dehydrogenation project

MOSCOW (MRC) -- CB&I has been awarded a contract by SK gas, South Korea’s largest importer and distributor of liquefied petroleum gas (LPG), for the license and engineering design of a grassroots propane dehydrogenation (PDH) unit to be built in Ulsan, Korea, according to Hydrocarbonprocessing.

The startup of "the largest PDH unit in Korea" is scheduled for 2016, according to Daniel McCarthy, president of CB&I’s technology operating group.

The unit will use the CATOFIN dehydrogenation process from Lummus Technology to produce 600,000 tpy of propylene.

“We are pleased to be able to provide this cost-effective and reliable route to on-purpose propylene to meet SK gas’ plans to expand their product portfolio," said CB&I's president.

We remind that, as MRC informed earlier, in October, 2012, CB&I was awarded a contract by Huating Coal Group for the license, basic engineering and related services for a polypropylene (PP) plant at the Huating industrial development area in China. The plant is to produce the full scope of polypropylene homopolymers, random copolymers and impact copolymers. The 200,000 tpy polypropylene project is expected to start up operations in 2014.
MRC