Arkema announces a worldwide expansion of its bis-peroxide capacity

MOSCOW (MRC) -- Arkema is announcing a 15% debottlenecking of its bis-peroxide capacity in both its Spinetta (Italy) and Franklin (Virginia) factories, said Wall Street Journal.

This new capacity will allow Arkema to respond immediately to strong demand in the synthetic rubber crosslinking industry, in particular in Asia, and to support recent developments in fast-growing markets.

This increase capacity, already effective, is the first stage of a multi-step plan which intends to grow the global bis-peroxide capacity by 30% by end 2014.

With its two brands Luperox(R) and Vulcup(R) , Arkema is the world leader in the production of bis-peroxide (Bis-Isopropylbenzene-Peroxide), an organic peroxide largely used in the crosslinking of rubber in various sectors such as wire & cable, automotive and footwear. The bis-peroxide market is expected to grow by some 6%/year in the 3 main regions of Asia, Americas and Europe.

Arkema has recently developed the Luperox(R) FreeO grade which provides an alternative to current crosslinking technologies used extensively today in the foamed EVA industry, as it has the advantage of producing no strong smelling and persistent VOCs (Volatile Organic Compounds), a characteristic which has become a major expectation especially for footwear manufacturers.

As MRC wrote before, a Swiss investment group is suing specialist chemicals maker Arkema for 310 million euros (USD403 million), in a dispute over its purchase of the French company's loss-making vinyl division last year. Klesch Group, led by American investor Gary Klesch, said it had discovered significant gaps in the information presented by Arkema's management before it completed the acquisition in July of Kem One SAS, whose products are used in items ranging from pipes and packaging to paper.

A global chemical company and France's leading chemicals producer, Arkema is building the future of the chemical industry every day. Deploying a responsible, innovation-based approach, we produce state-of-the-art specialty chemicals that provide customers with practical solutions to such challenges as climate change, access to drinking water, the future of energy, fossil fuel preservation and the need for lighter materials. With operations in more than 40 countries, some 14,000 employees and 10 research centers, Arkema generates annual revenue of EUR6.5 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.
MRC

MOSCOW (MRC) -- Through the company’s global effort to increase the availability of nylon 6,6 engineering polymers, Invista, a world leader in nylon intermediates, polymers and fibers, signed an exclusive, long-term agreement with Petrochemical Conversion Company Ltd. (PCC) to purchase and market nylon 6,6 engineering resin for export from PCC’s new world-scale nylon 6,6 plant in Al-Jubail, Saudi Arabia, according to Plastemart.

The new facility is expected to start up in late 2013 or early 2014. It will produce up to 50,000 metric tpa of nylon 6,6 polymer through a continuous polymerization process. Other than PCC sales in Saudi Arabia, the product will be sold and marketed under Invista’s TORZEN engineering polymers brand.

"As the automotive, electrical and other industries continue to discover the benefits of nylon 6,6 engineering polymers, we expect demand will continue to grow," said Kurt Burmeister, executive vice president, INVISTA Engineering Polymers.

"Compounders and consumers all over the world - including China, India, Indonesia, Thailand and Turkey - rely on high quality nylon 6,6 polymers to produce innovative end products. This deal with PCC will help provide compounders the necessary polymer to keep their businesses growing and thriving."

As MRC reported earlier, in May 2013, INVISTA signed a Land Reservation Agreement with the Shanghai Chemical Industry Park Development Company for a nylon 6,6 polymer site at the Shanghai Chemical Industry Park (SCIP).The agreement is for additional land adjacent to INVISTA’s planned hexamethylene diamine (HMD) and adiponitrile (ADN) plants and marks Invista’s next step as it continues to make progress on plans for an integrated nylon 6,6 polymer facility in China.

We remind that last summer Invista Performance Technologies acquired from La Seda de Barcelona SA intellectual property relating to its leading purified terephthalic acid (PTA), polyethylene terephthalate (PET) and related process technologies, including the full rights to exclusively license the technologies in the region comprising Europe, the Middle East and Africa.

Invista is one of the world's largest integrated producers of polymers and fibers, primarily for nylon, spandex and polyester applications.
MRC

MOSCOW (MRC) -- Petrobras has handed France’s Technip the contract to build flexible pipes for a key pre-salt field in the Santos basin, said Upstreamonline.

The engineering giant will construct and deliver up to 250 kilometres of pipes for use on the Iracema Sul field, formerly known as Cernambi Sul.

The flexible pipes will link up to the Cidade de Mangaratiba floating production, storage and offloading unit. The field lies in water depths of up to 250 metres. Technip’s operating center in Rio de Janeiro, Brazil will perform the engineering and project management.

As MRC wrote before, Argentina orders shutdown of local Petrobras' refinery. The facility, located in Argentina's Buenos Aires province was closed as of 6 am on Friday for an indefinite period of time as its effluents discharge certificates are said to be overdue since 2003, while the environmental permits have expired four years ago.

Petroleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 revenues.
MRC

MOSCOW (MRC) -- Lanxess, the German specialty chemicals company, will increase its prices worldwide for rubber chemicals supplied by the Rubber Chemicals business unit effective July 1, 2013, reported the company in its press-release.

The increases are required to offset higher production costs.

The price increases will impact the Vulkanox (antidegradant) and Vulkacit (accelerator) product groups, and will range between 0.05 Euro/kg and 0.20 Euro/kg (0.10 USD and 0.30 US$) depending on the product and region.

The rubber chemicals Vulkanox and Vulkacit are primarily used in the manufacture of rubber products such as tires, hoses and profiles and in the production of drive elements.

As MRC wrote previously, Perlon-Monofil GmbH, belongs to the High Performance Materials (HPM) business unit of specialty chemicals group Lanxess, will raise its prices worldwide for synthetic monofilaments by a minimum of 5% depending on the field of application and grade from July 1, 2013. It manufactures an extensive range of polyamide and polyester monofilament products for a wide variety of applications, and markets them worldwide under the brand names Perlon, Atlas and Bayco.

Lanxess is a leading specialty chemicals company with sales of EUR 9.1 billion in 2012 and roughly 17,400 employees in 31 countries. The company is currently represented at 50 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. LANXESS posted lower earnings in the first quarter of 2013 as expected due to a weak market environment, particularly in the tire and automotive industries. First-quarter sales were down by 12% year-on-year to EUR 2.1 billion, mainly due to lower volumes and fallen selling prices.
MRC

MOSCOW (MRC) -- In Egypt, the local PP producer EPPC has been absent from the market for over two months now, said Apic-online.

The producer, who usually makes monthly price announcements, stopped offering to the market at the end of March, pointing to the higher EGP/USD parity issues and lack of dollar reserves inside the country, which led many Egyptian players to turn to the black market to meet their dollar needs at much higher rates than the officially announced ones by the country’s banks, as their motives behind their decision.

Previously a source from the producer had cited that it would have been difficult to judge a fair price amidst the ongoing financial problems in the country in order to justify their withdrawal from the market. When June was nearing, some players were claiming that the producer was to return to the market although this information was not confirmed by the producer. Yet, in June, the expectancies about EPPC’s return did not materialize. A converter commented, "Most players were preparing to cut their import purchases in order to see EPPC’s new prices but it seems like June will be the third month that EPPC will not offer to the market."

Regional producers were said to hold limited quantities while some of them were already reported to be sold out of their restricted quantities.

Meanwhile, the nearby market of Turkey has also lacked Egyptian raffia offers since the end of April although some Egyptian fibre offers have recently started to be reported in that market.

As MRC wrote before, in a move to preserve its public interest, Egypt has lifted anti-dumping fees on polypropylene (PP) imports from Saudi Arabia after a prior investigation of the matter. The investigation on protective measures and anti-dumping fees imposed on Saudi imports due to claims that they are damaging its industry has been conducting by Egyptl. The results of the investigation showed that the damage was caused by other factors and that the measures against Saudi imports were not in interest of the Egyptian public.
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