Lubrizol opens additives production facility in China

MOSCOW (MRC) -- The Lubrizol Corporation, an innovative specialty chemical company, has officially opened a world-class additives manufacturing facility in Zhuhai, Guangdong, China, according to the company's press release.

The plant is the latest addition to Lubrizol's long-term investment and growing presence in China. It is also the cornerstone of Lubrizol's 10-year phased investment plan, launched in 2010, to upgrade operations and increase global capacity in additives.

"The business climate in Asia is an exciting one, particularly when it comes to the rapidly expanding automotive industry, where the demand for advanced fuels and lubricants has never been stronger," said James L. Hambrick, chairman, president and chief executive officer of Lubrizol, at the opening.

Construction on the 400,000-square-meter site began in October 2010. The plant will offer select additive component manufacturing as well as additive package blending. Over the coming years, additional capabilities and capacity will be phased in to meet market demand.

The site also includes a Zhuhai research, development and testing lab in support of Lubrizol's engine oils, driveline, industrial and fuel additive businesses, and is part of the company's global technical network of labs and experts.

As MRC reported earlier, in March 2013, Lubrizol announced its four-year plan worth USD400 million of global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites. With continued strong global demand for the company"s CPVC compounds, Lubrizol"s expansion efforts will be divided into two phases.

Lubrizol Additives is a pioneering global supplier of chemical additive technologies, including additives for engine oils, driveline and other transportation-related fluids, and industrial lubricants, as well as additives for gasoline and diesel fuel. Extensively tested in the lab and in the field under real-world demands, Lubrizol additives are essential to the proven performance of the finished lubricant. Product lines include Engine Additives, Driveline Additives, Industrial Additives, Fuel Additives and Energy and Water Technologies.

The Lubrizol Corporation is a technology-driven global company that combines complex, specialty chemicals to optimize the quality, performance and value of customers' products while reducing their environmental impact. With headquarters in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 7,000 employees worldwide. Revenues for 2012 were EUR6.1 billion. 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

MOSCOW (MRC) -- Russian producers of high density polyethylene (HDPE) managed to boost production in July, despite a scheduled outage at "Gazprom negtekhim Salavat" (GNS - is a part of Gazprom). HDPE production grew by 2% from June, according to MRC ScanPlast.

The increase in capacity utilization at Kazanorgsinez and Nizhnekamskneftekhim (both are part of TAIF group) in July allowed to offset a scheduled shutdown of GNS's HDPE production for maintenance. The total July HDPE output in Russia amounted to 89,700 tonnes, while in June this index was 87,600 tonnes.

As reported earlier, "Gazprom neftekhim Salavatl" shut its HDPE production (with annual capacity of 120,000 tonnes) for a month of maintenance works on 17 July, 2013. The plant produced about 5,000 tonnes of high-density polyethylene for more than two weeks.

Tatar Kazanorgsintez and Nizhnekamskneftekhim increased their capacity utilization last month. The output of HDPE by these plants totalled 41,000 tonnes and 18,300 tonnes, respectively.

Stavrolen (Lukoil group) in July virtually maintained its June level of capacity utilization. The total HDPE output was 25,500 tonnes.

The overall HDPE output in Russia in the first seven months of the year totalled 608,500 tonnes, up 50% year on year.

MRC

MOSCOW (MRC) -- The Supreme Court (SC) has not granted a stay on the stake sale process in eastern India's biggest petrochemical company - Haldia Petrochemicals Ltd (HPL) - and set the stage for the West Bengal government to call price bids by August 31, as per Plastemart with reference to Business Standard.

The apex court said it would hear the HPL case in September and decide on the issue of merit, but did not order any interim stay. TCG (The Chatterjee Group), a key promoter of HPL, had filed a special leave petition (SLP) in the SC against the Calcutta high court order barring it from going to the International Court of Arbitration in France.

The SLP was TCG Chairman Purnendu Chatterjee's effort to stall the stake sale process as TCG has repetitively said it wants management control in the company.

Six major companies from the sector had submitted expressions of interest for buying the state government's stake in HPL. The due diligence process got over last week. Five companies - Reliance Industries Ltd (RIL), Cairn India, Indian Oil Corporation, Gas Authority of India Ltd and Oil and Natural Gas Corporation - are in the fray. The bids are expected to come by August 31, according to an HPL official.

A TCG official, however, said it was a not setback for the company as the final verdict would come sometime in the month of September. "As of now, things stay exactly how they were a month back. The SC will hear the case again in September and let's see what decision it arrives at," said the TCG official.

As MRC informed previously, in April 2013, Haldia Petrochemicals sought a loan of Rs 100 crore from the state government. The group of ministers has approved it. The West Bengal Industry Development Corporation, the state-owned nodal agency, was co-promoter of the ailing petrochemical major.

Haldia Petrochemicals Ltd is a modern naphtha based petrochemical complex at Haldia, West Bengal, India. Haldia has played the role of a catalyst in emergence of more than 500 downstream processing industries in West Bengal with a capacity to process more than 3,50,000 TPA of polymers, among which are polyethylene (PE) and polypropylene (PP).

MOSCOW (MRC) -- Thai refineries have been asked to boost production in order to offset a supply shortage caused by temporary shutdown of PTT Map Ta Phut unit at Rayong, said Plastemart.

The Ministry has requested cooperation of the refineries in reducing their LPG supply to the petrochemical sector, which will also be asked to use naptha as a raw material, instead of LPG. The meeting was held to seek ways to deal with the impact of the shutdown following a lightning strike on the facility. Last week, lightning struck the waste-heat recovery unit at the Map Ta Phut facility, which supplies natural gas to PTTGC's I4-2 plant. The PTTGC plant has an olefins production capacity of 450,000 tpa.

Unit 5 of PTT's gas-separation plant is expected to take between three and five months to rsume operation. The shutdown will result in the loss of LPG supply of between 70,000 and 75,000 tons per month, which represents up to 25% of the country's overall production capacity of 300,000 tons. Around 220,000 tons of the normal production is from PTT's gas-separation plant units, and the rest from the refineries. PTT will also boost its LPG imports by 40,000 tons per month, from the present 140,000 tons, and cut the LPG supply to the petrochemical sector by 30,000 tons per month.

We remind that, as MRC wrote previously, PTT Global Chemical is looking into building a new plant in China to take advantage of strong demand there. Besides, the company will invest in Indonesia and Vietnam, as both countries have growth potential and purchasing power in the Association of Southeast Asian Nations (Asean). In addition to the investments, the company desires to increase investment in Indochina, particularly in Myanmar.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.

MRC

MOSCOW (MRC) -- The Supreme Court (SC) has not granted a stay on the stake sale process in eastern Indian biggest petrochemical company - Haldia Petrochemicals Ltd (HPL) - and set the stage for the West Bengal government to call price bids by August 31, as per Plastemart.

The apex court said it would hear the HPL case in September and decide on the issue of merit, but did not order any interim stay. TCG (The Chatterjee Group), a key promoter of HPL, had filed a special leave petition (SLP) in the SC against the Calcutta high court order barring it from going to the International Court of Arbitration in France.

The SLP was TCG Chairman Purnendu Chatterjee's effort to stall the stake sale process as TCG has repetitively said it wants management control in the company. Six major companies from the sector had submitted expressions of interest for buying the state government's stake in HPL.

The due diligence process got over last week. Five companies - Reliance Industries Ltd (RIL), Cairn India, Indian Oil Corporation, Gas Authority of India Ltd and Oil and Natural Gas Corporation - are in the fray. The bids are expected to come by August 31, according to an HPL official. A TCG official, however, said it was a not setback for the company as the final verdict would come sometime in the month of September. "As of now, things stay exactly how they were a month back. The SC will hear the case again in September and let's see what decision it arrives at," said the TCG official.

As MRC informed previously, Indian Oil Corporation (IOC) mulls to take a controlling stake in the troubled Haldia Petrochemicals Ltd (HPL) following the West Bengal government's decision to appoint a consultancy firm - Deloitte to advise on the proposed sale of its shares.

Haldia Petrochemicals Ltd is a modern naphtha based petrochemical complex at Haldia, West Bengal, India. Haldia has played the role of a catalyst in emergence of more than 500 downstream processing industries in West Bengal with a capacity to process more than 3,50,000 TPA of polymers, among which are polyethylene (PE) and polypropylene (PP).
MRC