Demand for polymer foam to surge on penetrating application demand

MOSCOW (MRC) -- The current worth of the global polymer foams market (2012) is USD82.6 bln and is estimated to reach USD131.1 bln by 2018, growing at a CAGR of 7.7% from 2013 to 2018, as per Plastemart.

The high demand across industries such as automotive, building & construction and packaging will increase the overall polymer foam consumption, as per MarketsandMarkets.

Polymer foam types are significantly penetrating their applications market. They have different characteristics as per the manufacturing and their application requirement in the end products.

The Asian market is expected to dominate with its growing demand for foams in different applications especially building & construction.

The Western European and North American markets are expected to show a rising growth in the next five years with allied industries expected to stabilize the overall business need in respective regions. Research and development is a key part of this market where manufacturing companies, associations, and end product makers infuse high investments for future advancements and technology modifications of different foam types.

Polyolefin foams are expected to penetrate the global market with the highest growth within competitive foams available in the market.

Polyurethane foams are dominant in consumption and revenue made, reasoned by its optimal cost to performance factor.

Asia-Pacific is the largest region, both in terms of volume and value, followed by Western Europe and North America. U.S., Germany, U.K., Brazil, Russia, China, and India are expected to persist as successful foam markets.

Eastern and Central European nations, emerging South-East Asian and nations that host the Olympics and other events would supplement the growth of polymer foams.

An increase in auto sales, proposals for improvement of infrastructure and rising housing market in emerging economies will drive the polymer foams market.

We remind that, as MRC reported earlier, in May 2013, The Lubrizol Corporation, an innovative specialty chemical company, and Trexel announced a new partnership for Lubrizol to be the preferred thermoplastic polyurethane supplier for Trexel’s MuCell microcellular foaming technology. By working together Lubrizol Engineered Polymers' sports and recreation segment and Trexel will be able to bring an encompassing value to processors from setting up a new MuCell moulding line, modifying an existing line or suggestions of which TPU grades to utilise for quality foam parts.
MRC

MOSCOW (MRC) -- Apache Corporation and Sinopec International Petroleum Exploration and Production Corporation has announced they have launched a global strategic partnership to pursue joint upstream oil and gas projects, according to Apache's press release.

As the first step in this partnership, Apache will receive USD3.1 billion in cash, subject to customary closing adjustments, in exchange for Sinopec gaining a 33% minority participation in Apache's Egypt oil and gas business.

Apache will continue to operate its Egypt upstream oil and gas business.

G. Steven Farris, chairman and chief executive officer of Apache, said: "We are pleased to launch a global partnership with Sinopec, and to welcome them into our business in Egypt. Their technical expertise complements our 20 years of experience operating in Egypt and creates an alliance that will continue to explore and deliver the tremendous hydrocarbon resources in the Western Desert. Sinopec is an ideal partner for us, and we look forward to the growth and value generation ahead for both companies through the expansion of our collaboration to other projects."

The Egypt partnership is subject to customary governmental approvals and is expected to close during the fourth quarter, with an effective date of January 1, 2013.

Net production from Apache's Egypt operations averaged 100,000 barrels of oil and 354 million cubic feet (MMcf) of natural gas per day in 2012. Apache's exploration and production operations, which are located in remote, unpopulated areas, remain unaffected by political events in the region.

Apache employs about 9,000 Egyptians through direct employment, through participation in the Khalda Petroleum Co. and Qarun Petroleum Co. operating joint ventures with Egyptian General Petroleum Corporation, and through employment with oil field service and construction contractors.

As MRC informed previously, in mid-July 2013, China Petroleum and Chemical Corp. (Sinopec) officially commenced operations at its new lubricant facility in Singapore. The lubricant plant, with an initial production capacity of 100,000 tpy, is the company's first direct overseas investment.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom, Australia and Argentina.

China Petroleum & Chemical Corporation, or Sinopec Limited is a Chinese oil and gas company based in Beijing, China. It is listed in Hong Kong and also trades in Shanghai and New York . Sinopec is the worlds fifth biggest company by revenue.
MRC

MOSCOW (MRC) -- Huntsman Corporation has announced that it has completed the acquisition of the business of Oxid L.P., a manufacturer and marketer of specialty urethane polyols in Houston, Texas, for an amount of up to USD75 million, according to the company's press release.

Oxid generated USD86 million of revenue in 2012.

Oxid’s polyols are a key component in the production of energy saving polyurethane insulation products that are used in residential and commercial construction. The polyols are combined with methylene diphenyl diisocyanate (MDI) – in which Huntsman’s Polyurethanes division is a leading global producer – to create polyurethane foam insulation for walls, roofs, refrigerators and many other applications.

Oxid markets its diverse product line of specialty polyols under the trademark Terol and distributes products worldwide from its manufacturing facility in Houston.

Commenting on the sale, Anthony P. Hankins, President of Huntsman’s Polyurethanes division, said: "We are very pleased with the acquisition of Oxid. In the past 18 months we have strengthened our downstream capabilities with the acquisition and establishment of new systems houses in Turkey, Russia and Indonesia; acquired a 20% stake in Nippon Aqua Co. Ltd., a Japanese spray polyurethane foam insulation company; we’ve commissioned a new, state-of-the-art MDI splitter and downstream manufacturing unit in Rotterdam, the Netherlands; and we’ve invested in the expansion of our worldscale MDI manufacturing facility in Geismar, Louisiana.

As MRC wrote previously, the addition of Oxid's MDI product portfolio will support Huntsman's offerings to downstream insulation markets in North America and provide new opportunities globally.

Terol is a registered trademark of Huntsman International LLC.

Oxid L.P., with headquarters in Houston, Texas, manufactures specialty chemical products for the rigid urethane industry and has produced its line of Terol polyester polyols since 1981. Its diverse product line of aromatic polyester polyols is available with a wide variety of properties to address the demanding needs of the polyurethane formulator. Oxid distributes products worldwide from its manufacturing facility in Houston.

Huntsman is a global manufacturer and marketer of differentiated chemicals. The company manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. The Company had 2012 revenues of over USD11 billion.
MRC

MOSCOW (MRC) -- Russian producers intend to increase polypropylene (PP) prices in September, according to ICIS-MRC Price report.

Producers explain their intentions by strong demand in the domestic market, tight supply for certain types of polypropylene, as well as higher prices for imported goods. Scheduled outages for maintenance at Nizhnekamskneftekhim (TAIF group) and Polyom (Titan group) might increase pressure on converters.

Polyom intends to shut down its production for two weeks of maintenance works from 1 September. The Omsk producers has suspended its PP sales already since the end of last week.

Nizhnekamskneftekhim plans to shut down its production for a turnaround for a week from 16 September. This week, some companies reported cutting back in supplies of injection propylene homopolymer (homopolymer PP) from the Nizhnekamsk producer.

The price increase is mostly negotiated for copolymers of propylene as imported alternatives are more expensive. However, prices for homopolymer PP are likely to grow on the back of scheduled outages for maintenance at Russian plants.
MRC

MOSCOW (MRC) -- Tisza Chemical Group (TVK) has approved the basic engineering package submitted by the Lurgi/OTF consortium for a new 130,000-t/y butadiene unit to be built in Tiszaujvaros, Hungary, as per GV.

TVK’s MOL subsidiary last year notified the Budapest Stock Exchange of its plan to build a butadiene plant in
Tiszaujvaros, but did not disclose the plant’s capacity or a construction schedule. At the time, MOL noted that butadiene is “a completely new product” for the company.

TVK said the tender of several key pieces of equipment has been closed and the procurement of other equipment is underway.

“Accomplishment of the butadiene extraction unit is ongoing according to schedule and the planned start-up of commercial production in Q1 2015 seems to be feasible,” stated Zsolt Petho, chief executive of TVK.

Petho said that in addition to the extraction of butadiene, TVK is investigating opportunities to enter into the synthetic rubber business.

According to MRC, TVK is a significant player in market of polyolefins in Ukraine.

Tiszai Vegyi Kombinat (TVK) is a Hungarian manufacturer of olefins and polyolefins such as polyethylene and polypropylene. Feedstock is supplied by MOL of which TVK is a subsidiary and which also processes a major portion of resulting by-products from the olefins plant.
MRC