DSM and Ravago partnership introduces portfolio of recycled PA compounds

MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Materials Sciences company, has announced that it has expanded its partnership with the Ravago Group, a leader in distribution, resale, compounding and recycling of plastic and elastomeric raw materials, as per Plastemart.

The two companies have combined DSM’s expertise in polyamide 6 with Ravago’s recycling know-how to develop a portfolio of glass reinforced recycled PA6 compounds.

The materials will be offered by DSM directly and distributed by Ravago Group member Resinex, which has a leading position in the plastics and rubbers distribution market across Europe and Turkey, and which is already a well-established distributor of DSM engineering plastics.

The new recycled PA6 grades, which DSM is marketing under its Akulon brand and which are available now, contain more than 50% post-consumer resin from well-identified and dependable sources. DSM is supplying grades with 30% and 35% glass fiber reinforcement.

Thanks to their inherent strength and performance profile, the grades are particularly suited to automotive under-the-bonnet applications such as air intake manifolds and engine covers, as well as furniture applications, including structural parts in office chairs.

As MRC wrote earlier, in July 2013, DSM signed distribution agreements for Engineering Plastics B.V. with Nevicolor and Nexeo Solutions to strengthen its presence in Italy. DSM entered into new agreements with two distributors for its Engineering Plastics portfolio in Italy to improve its coverage across the entire country. The move means that Italian customers (like DSM customers in other European countries) will now have a choice of distributors for their thermoplastics. The agreements with Nevicolor and Nexeo Solutions apply to the full range of DSM’s engineering plastics products.

DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
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MOSCOW (MRC) -- Formosa Plastics declared a force majeure for polyethylene from its HDPE II production unit at Point Comfort, Texas, as a result of unexpected operational difficulties, reported IHS Chemical Week with reference to a letter sent to customers.

Sources said Formosa's HDPE II unit was down for maintenance Friday when a flash fire injured five workers. The force majeure covers its Formolene Polyethylene HDPE II products.

Industry sources said the biggest impact will likely be on the supply of high density polyethylene blowmolding. The company is currently evaluating the impact of this event on its production capability and will provide additional information once it is assessed, according to the letter.

We remind, as MRC wrote previously, Formosa Plastics Corp (FPC) is in plans to shut a polyvinyl chloride (PVC) plant for maintenance turnaround. The plant is likely to be shut in September 2013 and expected to remain off-stream for around two weeks. Located in Mailiao, Taiwan, the plant has a production capacity of around 500,000 mt/year.

Formosa Plastics Corporation is a Taiwanese company based in Taiwan that primarily produces polyvinyl chloride (PVC) resins and other intermediate plastic products.
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MOSCOW (MRC) -- Dow Chemical Company, the largest U.S. chemical producer by sales, no longer plans to sell its plastics-additives business, as per Bloomberg.

This decision was taken because the offers received from bidders were not enough.

Dow is "quite comfortable" continuing to run the additives business for cash, Chairman and Chief Executive Officer Andrew Liveris said. "This is a valuable business that is currently being undervalued by buyers in the market."

Dow, based in Midland, Michigan, continues to pursue the sale of other units as outlined earlier this year, Liveris said. The plastics-additives unit was part of USD1.5 bln in proposed divestitures, along with a fumigants unit and polypropylene licensing and catalysts, announced in March.

Plastics additives, with about USD680 million in annual sales and USD80 million in earnings before interest, taxes, depreciation and amortization, is worth about USD520 million, Hassan Ahmed, a New York-based analyst at Alembic Global Advisors, said in an Aug. 5 note.

As MRC wrote previously, Dow Chemical has already divested non-core businesses worth about USD8 billion in revenue since 2009 and is targeting an increased divestiture list of nearly USD1.5 billion over the next 12 months.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
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MOSCOW (MRC) -- Two Russian producers Tomskneftekhim and Ufaorgsintez have announced an increase in contract low density polyethylene (LDPE) prices for the domestic market from 16 September. Prices rose by Rb1,000-1,550/tonne, according to ICIS-MRC Price report.

LDPE prices grew amid tight supply in the market and scheduled shutdowns for maintenance at Ufaorgsintez and Kazanorgsintez. Tomskneftekhim and Ufaorgsintez announced increased contract LDPE prices from 16 September by Rb1,000/tonne and Rb1,350-1,550/tonne, respectively. Other Russian producers have left their prices intact so far.

Ufaorgsintez reduced its LDPE capacity utilisation in the first half of September because of the lack of hydrocarbons. And since 16 September, the plant shut down its second reactor for LDPE (158 and 153) production for one week of maintenance works. The first LDPE (108) reactor will be shut down for a week turnaround next week.

Given tight PE supplym Ufaorgsintez announced an increase in contract prices for LDPE 108 and 158 from 16 September by Rb1,350/tonne and Rb1,550/tonne, respectively.

Kazanorgsintez intends to shut down its production for five days from 21 September. The outage was caused by a scheduled turnaround at the ethylene production. Many market participants reported disruptions in LDPE shipments to the domestic market, but contract prices remained stable.

Gazprom neftekhim Salavat had technical issues at its LDPE production last week. Its PE prices also remained steady.
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MOSCOW (MRC) -- Ufaorgsintez has announced an increase in contract polypropylene (PP) prices by Rb550-2,000/tonne amid strong demand and tight supply, according to ICIS-MRC Price report.

Ufaorgsintez said it will raise contract PP prices from 16 September by Rb550-1,000/tonne for homopolymer of propylene (homopolymer PP) and by Rb2,000/tonne for block-copolymer of propylene (PP-impact). The growth in contract prices was driven by strong demand and tight supply of polypropylene.

The capacity utilisation at Ufaorgsintez PP production was reduced by 20% in the first half of September because of the lack of hydrocarbons. A strong seasonal demand for polypropylene, particularly, raffia, led to an almost complete lack of stocks, given low operational rates at the plant.

OAO Ufaorgsintez manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. The company exports its products to Byelorussia, Kazakhstan, Finland, Germany, France, and Brazil. Ufaorgsintez was founded in 1956 and is based in Ufa, Russia. As of January 22, 2010, Ufaorgsintez OAO operates as a subsidiary of Bashneft Joint Stock Oil Company.
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