Sipchem to start trial operation of EVA plant in Q2-14

MOSCOW (MRC) -- Saudi International Petrochemical Co. (Sipchem) said it completed the construction works of its ethylene vinyl acetate (EVA) plant, expecting the experimental operation to commence in Q2-14, said Mubasher.

Sipchem's net profit during twelve months of 2013 amounted to SR 620.5 million compared to SR 601.2 million for the same period last year with an increase of 3.2%. Gross profit during 2013 amounted to SR 1,296.8 million compared to SR 1,267.5 million for the same period last year with an increase of 2.3%.

As MRC reported previously, in early June 2013, Saudi Arabia's Sahara Petrochemicals and Sipchem announced the beginning of initial talks on a potential merger. The Zamil Holding Company Group, one of the Kingdom's most prominent family businesses, is a major shareholder in both companies.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC

MOSCOW (MRC) -- Seasonal stronger demand and an upcoming scheduled shutdown for maintenance at Kazanorgsintez's low density polyethylene (LDPE) production in the first week of April have led to further price increases, according to ICIS-MRC Price report.

Kazanorgsintez, Russia's second largest LDPE producer, intends to shut down its lines for the production of 158 and 153 grade polyethylene (PE) for a one-month turnaround from 18 April. The outage at the key producer's plant boost prices further amid seasonally stronger demand. LDPE prices broke a new record on Tuesday. Thus, prices for shrinkable film grade PE exceeded Rb70,000/tonne.

Virtually all Russian LDPE producers announced in late March increases in April contract prices. Higher prices were largely caused by stronger demand from converters and limited stocks. Contract LDPE prices rose by Rb800-4,100/tonne from March.

Prices grew more significantly in the spot market. Prices of 158 grade LDPE rose in the first day of April to Rb64,500-68,500/tonne CPT Moscow, including VAT. Offer prices for shrinkable film grade PE rose to Rb69,000-71,000/tonne CPT Moscow, including VAT.

Some market participants said this was not the limit for the current prices. Results of the electronic trades are illustrative to this effect. Deals for Kazanorgsintez's LDPE reached on the first day of April Rb67,861/tonne FCA Kazan, including VAT, and Rb70,812/tonne FCA Kazan, including VAT, for 158 and 153 grade PE, respectively.
MRC

MOSCOW (MRC) -- Hundreds of protesters in southern China marched against a chemical plant and environmental degradation on Sunday in a demonstration that the Maoming city government called a "grave violation" by criminals causing chaos, reported Reuters.

Residents of Maoming, in Guangdong province, were protesting the production of paraxylene, a chemical used to make fabrics and plastic bottles at a plant run by the local government and state-owned Sinopec Corp, China's biggest refiner.

The eastern city of Ningbo suspended a petrochemical project after days of demonstrations in November 2012, and protests forced the suspension of a paraxylene plant in the northeastern city of Dalian the year before. A similar demonstration took place in the southern city of Kunming last year.

As MRC informed before, in November 2013, top Asian refiner Sinopec Corp won initial approval last month from China's top economic planner for a plan to build a USD10-billion refinery and petrochemical complex in Shanghai. Sinopec already started formal planning for the 400,000 barrels-per-day refinery and a 1 million tonnes-per-year ethylene project in a plan to curb pollution by shifting an old plant to Shanghai's southern edge.

Sinopec Corp. is one of the largest scale integrated energy and chemical companies with upstream, midstream and downstream operations. Its refining and ethylene capacity ranks No.2 and No.4 globally. The Company has 30,000 sales and distribution networks of oil products and chemical products, its service stations are now ranked third largest in the world.
mrpclast.com

MOSCOW (MRC) -- The expansion of several petrochemical projects currently underway in several parts of the country will enable Indonesia to achieve self-sufficiency in the production of olefin, aromatic and other petrochemical products by 2020, reported GV with reference to "The Jakarta Post".

The Indonesian Olefin, Aromatic and Plastic Industry Association (INAplas) said that the expansions and construction of new plants would increase production capacity by between 30% to 40% in the next three to five years, from the current capacity of 3.9 million tons per year.

"Several investors have announced plans to increase production capacity or build new factories this year so, with the new as well as the expanded factories, we hope to no longer need imported petrochemical products by 2020," INAplas vice president Suhat Miyarso said after a seminar in Jakarta.

Suhat said 12 construction projects will be carried out this year, of which five are the expansion of existing plants, while seven are the construction of new plants. The five expansions are to increase companies’ production capacity of certain petrochemical products.

Japan-based Nippon Shokubai, for example, will increase capacity of its acrylic acid plant in Banten, West Java, while Polychem Indonesia will increase its mono ethylene glycol (MEG) production in Banten and PT Petrokimia Butadiene Indonesia (PBI) will increase the capacity of its butadiene plant. Meanwhile, PT Chandra Asri Petrochemical (CAP) will increase its naphtha cracker production capacity in Banten and PT Asahimas Chemical will increase capacity of its polyvinyl chloride (PVC) plant, also in Banten.

"The five expansions are expected to be completed in 2015 and will be able to start operating in the same year," said Suhat, who is also Chandra Asri’s vice president for corporate relations.

New plants will be built by South Korean Honam Petrochemical Corp., which is planning a naphtha cracker facility in Banten, PT Synthetic Rubber Indonesia, which will build a styrene butadiene rubber (SBR) and polybutylene terephthalate (PBT) plant in Banten and PT Unilever Oleochemicals Indonesia, which is planning an oleo chemical plant. German petrochemical company Ferrostaal Industrial Projects will also work together with Chandra Asri to build a methanol-to-olefin (MTO) plant in Papua.

State-owned oil and gas company PT Pertamina will build three refineries, one of which is a joint venture with PTT Global Chemical Public Company Limited (PTTGC).

As MRC wrote previously, Indonesia is set to see a likely influx of at least USD7 billion in new investment in the petrochemical sector in the next three years as the domestic industry tries to keep pace with rising demand. The director for Indonesian Olefin, Aromatic and Plastic Industry Association, said the investment will be made to expand domestic production capacity, which in turn could curb imports that rose to around USD8 bln last year. This investment would translate to 30-50% growth in the industry.
MRC