Plastic product makers in Malaysia see strong domestic and overseas orders

MOSCOW (MRC) -- Strong domestic and overseas orders for food and beverage packaging materials are giving plastic product producers in the country a bullish feel for 2013, as per GV.

Meanwhile, engineering plastic product manufacturers, faced with a weakened consumer electronic market especially in the audiovisual segment, are turning to the automotive and power tool industries to look for fresh opportunities.

Plastic packaging material manufacturer SLP Resources Bhd expects 2013 to be even better than 2012. Group managing director Kelvin Khaw said it had so far obtained orders up until the third quarter.

“For the first half of this year, the group's orders have a value of over RM30 million. A lot of these orders are from food and beverage manufacturing companies which require packaging materials for the forthcoming Hari Raya celebrations in August.

"Last year was good but 2013 is expected to be even better, making it the best year for the group since it was incorporated in 2006," he said.

Khaw said the group was in the process of installing a new RM5.5 million production line for its Kulim plant that would increase annual output of packaging materials to about 30,000 tonnes this year.

"About 20% to 30% of the packaging materials to be produced are in the thin-gauge category, ranging from six to 20 microns in thickness, which are becoming increasingly popular.

"Thin-gauge plastic materials are more cost-effective to produce as they require less raw material. In terms of quality, they are as strong and durable as the thicker gauge plastic material," he added.

However, Khaw said that the first quarter of 2013 was slightly slower than the previous year's corresponding period.

"Orders picked up in the second quarter. The challenge for us this year is the rising cost of production due to the implementation of minimum wages, which will erode our bottom line. We expect to pass some of the costs to the customers," he said.

Plastic resin prices are now hovering at USD1,500 per tonne compared with USD1,400 about two weeks ago.

“The rise in prices probably has to do with the pick up of demand from China after its manufacturing sector took a break to celebrate the May 1 Labour Day holiday," he said.

Khaw said contribution from the domestic market to revenue would remain at about 50% this year, although the plan was to reduce dependency on the local market by 2016.

"By 2016, the plan is to bring down the domestic contribution to 30% and increase the overseas contribution to 70%," he added.

Cepco Trading Sdn Bhd is also expecting the food and beverage sector to drive its growth. Its director Jansen Lim said that for the first half of 2013, the company expected to see a strong single-digit growth in the orders for its high-impact polystyrene, polypropylene, and polyethylene terephthalate packaging materials compared with the same period a year ago.

Meanwhile, due to the slowdown in demand for audiovisual consumer electronic products, Prestige Dynamics Sdn Bhd is looking at the automotive and power tool business to drive growth this year.

As MRC informed previously, German chemical giant BASF SE and Malaysia's Petronas Chemicals Group will invest USD500 million to build an aroma ingredients production facility in the eastern state of Pahang. The project is part of an existing joint venture between BASF and the petrochemical arm of Malaysia's state energy company Petroliam Nasional Bhd that stretches back to 1997. BASF holds 60% in the joint venture, with the rest owned by Petronas.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has introduced AddWorks, its new brand for polymer additives solutions, reported the company on its site.

It consists of: AddWorks, application oriented solutions specifically designed by segments of the plastics industry
AddWorks LXR, a new range of polymer additives designed to provide particular effects in a wide variety of applications.

AddWorks are developed by matching the needs of companies engineering technologies for polymerization, polymer producers, compounders, and even converters. They address customer requirements in a comprehensive but specific way.

These tailored formulations bring a fundamental change in providing multiple benefits such as improved productivity, stability and durability of converted parts, or protection of manufactured articles during their process; delivering features that are precious to Clariant’s customers.

As MRC reported earlier, Clariant officially opened its new AMPS polymers plant for production of specialty polysulfonates at its facility in Tarragona, Spain.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- BASF announced the opening of its world-scale tert. butylamine (tBA) production plant at the Nanjing Chemical Industry Park in China, said the producer.

The plant is wholly-owned by BASF and is integrated into the production facilities of BASF-YPC Co. Ltd. in Nanjing. With an annual capacity of 10,000 tons, the new facility further strengthens BASF’s globally leading position as a supplier to the rubber and tire industry.

"The tBA plant is a vital element of our Asia Pacific strategy with a target to produce 75% of the products we sell in the region. The production process is wastewater-free and minimizes emissions," said Dr. Albert Heuser, President, BASF Asia Pacific.

"The successful startup of this wholly-owned plant is an important milestone for us. We have now complemented our global network with production facilities for tBA in Asia, Europe and North America. This further strengthens BASF’s global leading position in tBA. From this local production facility, our customers can enjoy shorter lead times and higher supply reliability," said Dr. Guido Voit, Senior Vice President, BASF Intermediates, Asia Pacific.

tBA is a primary aliphatic amine that is used as an intermediate for the production of accelerators for the rubber and tire industry. It is also used in the pharmaceutical and agricultural industries as a building block. In addition to the plant in Nanjing, BASF produces tBA in Geismar, Louisiana, and in Antwerp, Belgium.

As MRC wrote earlier, BASF is implementing its global strategy in Asia Pacific with a set of ambitious targets and a focus on sustainability. To achieve sales of EUR25 billion to customers in the region by 2020, BASF’s Asia Pacific strategy "grow smartly" outlines investments of EUR10 billion, around 9,000 new jobs, and annual savings of EUR1 billion.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success with environmental protection and social responsibility. BASF had sales of EUR72.1 billion in 2012 and more than 110,000 employees as of the end of the year.

MRC

MOSCOW (MRC) -- H.B. Fuller Company announced that it has finalized the previously announced purchase of Plexbond Quimica S/A, a provider of chemical polyurethane specialties and polyester resins based in Curitiba, Brazil, said Wbay.

"This acquisition solidifies our position in the South American adhesives industry, particularly in the highly attractive, fast growing and demanding flexible packaging market," said Jim Owens, president and CEO, H.B. Fuller. "H.B. Fuller has a strategic focus on packaging, hygiene and durable assembly, and the Plexbond Quimica business will bring us strong customer relationships and manufacturing capabilities that we can leverage globally in the important packaging industry."

The Plexbond Quimica business generated nearly USD20 million in revenue in 2012. The results of this business will be included in the company's Latin America Adhesives operating segment going forward.

As MRC wrote earlier, HB Fuller closes six manufacturing facilities and eliminate approximately 130 positions across its North America adhesives business segment as part of its integration of the recently-acquired industrial adhesives business of Forbo Group. The closures will occur by mid-2013.

H.B. Fuller is a global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2012 net revenue of USD1.9 billion, H.B. Fuller serves customers in packaging, hygiene, general assembly, electronic and assembly materials, paper converting, woodworking, construction, automotive and consumer businesses.
MRC

MOSCOW (MRC) -- Tosoh is likely to restart its caustic soda plant following a maintenance turnaround, said Apic-online.

A source in Japan informed that the plant is planned to be restarted in end-June 2013. It was shut in mid-May 2013. Located in Nanyo, Japan, the plant has a production capacity of 1.125 million mt/year.

As MRC wrote earlier, Tosoh's proposed restructuring of operations in Nanyo could lead to a net loss of 320,000 tpa of vinyl chloride monomer (VCM) capacity, thereby tightening feedstock supply to the polyvinylchloride (PVC) industry. Almost one year after a fire seriously damaged its complex in Nanyo, Tosoh Corporation (Tokyo, Japan) has touted plans to raise output at the site"s number 3 vinyl chloride monomer plant. The building phase of the 200,000 t/y capacity expansion was to kick off in November last year, with completion scheduled for October 2014.

Tosoh is one of the largest chlor-alkali manufacturers in Asia. The company supplies the plastic resins and an array of the basic chemicals that support modern life. Tosoh's petrochemical operations supply ethylene, polymers, and polyethylene.

MRC