SIBUR increases PET production capacity in Blagoveshchensk

MOSCOW (MRC) -- POLIEF, SIBUR's subsidiary, has completed its polyethylene terephthalate (PET) production expansion project, increasing its capacity from 140 ktpa to 210 ktpa, said Hydrocarbonprocessing.

As part of the production expansion project, POLIEF has modernised its existing PET production lines and constructed a new line. The expansion is one of Bashkortostan’s priority projects and will enable POLIEF to process terephthalic acid of its own production into in-demand polymers and substitute imports in some Russian PET market segments.

In 2013, PET consumption in Russia amounted to 580 kt, compared with only 405 kt of domestic production, which was supplemented by imports. Food-grade PET consumption per capita in Russia is 4.1 kg compared with 6.6 kg in Western Europe and 9.5 kg in the US. The expansion of POLIEF's production capacity will reduce reliance on imported PET. On completion of the project, SIBUR’s total PET production capacity increased by one third to reach 285 ktpa.

The decision to expand the PET production capacity at POLIEF was made in December 2010. Construction and installation work began in December 2012 and lasted one year. The modernisation equipment was delivered from 35 countries: Russia, Germany, Italy, Belgium, the US, Japan, etc. More than 70 contractors worked on the project; 70% were Bashkortostan-based companies and the remaining 30% came from other Russian regions.

Guarantee tests on the upgraded and new PET lines were conducted with the technology licensors, BIO CHEMTEX (Italy) and UOP (Belgium). Investment in the project totalled USD532 billion.

POLIEF's PET fully complies with Russian and international quality standards for food contact materials. The Pira International Certificate of Conformity authorises POLIEF to sell its products in the European market.

Dmitry Konov said: "Expanding PET production is a major element of the Company's strategy to provide deep processing services for converting hydrocarbon production by-products into valuable petrochemicals. POLIEF's new capacities will enable us to meet the increasing market demand for high-quality safe products."

POLIEF is a joint venture, in which SIBUR is the major shareholder, while the government of the republic of Bashkortostan holds a 17.5% stake. Losses of Sibur's Polief in 2013 stood at Rb1.3 bn, up 18% from Rb 1.1 bn of losses in 2012.
MRC

MOSCOW (MRC) -- Indian refining and petrochemical giant Reliance Industries Ltd. has reported a 7.9% year-on-year decline in its gross refining margin for the January-March quarter, to USD9.30/barrel, according to Apic-online.

However, the company showed an increase of 22.3% over the previous quarter, as demand bounced back and margins improved towards the end of the financial year, a senior company official said at a press conference in Mumbai.

Crude processing at its 1.24 million b/d Jamnagar complex on India's west coast for what is the fourth quarter of the financial year was 16.3 million mt, compared with 16.1 million mt in the corresponding period a year earlier, RIL said in a statement.

For the financial year ended March 2013, RIL reported a gross refining margin of USD8.10/b, down 12% over the previous year's USD9.20/b.

Reliance processed 68 million mt of crude for the financial year 2013-14, marginally lower than 68.5 million mt in the previous year.

RIL said the average utilization rate at its refineries was 110% for the full financial year, which runs from April through March. The refineries processed 68 million mt for the financial year 2013-14, marginally lower than 68.5 million mt in the previous year.

Revenues from the refining segment increased 8.4% on-year to USD60.4 billion in fiscal year 2013-14. Exports of refined products during the year rose 4.6% to USD41.1 billion, and in volume terms was 6.3% higher at 43.8 million mt.

RIL is India's largest private refiner. The Jamnagar complex houses two refineries, a new 580,000 b/d export-oriented refinery and an older 660,000 b/d plant.

As MRC wrote previously, in October 2012, Reliance Industries unveiled its plans to expand capacity at its refineries in the western state of Gujarat. Earlier, the company presented an USD18 billion investment plan for India over the next five years.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, at Chinaplas 2014 is displaying its Zenite and Vectra family of halogen free liquid crystal polymers (LCPs) for compact camera modules (CCM) used in today's smartphones and tablets, reported the company on its site.

These LCPs are tailored to help CCM manufacturers improve their products and manufacturing processes so they can meet the growing demand for portable devices with high-end camera modules.

Device users are demanding ultra slim, high definition options that require CCM manufacturers to design components with a focus on multifunctional integration, better performance and low power consumption. As a result, CCM manufacturers are looking for ways to improve their products and manufacturing processes. In response, Celanese formulated Zenite LCP to deliver superior dimensional stability and less particle generation for improved productivity and higher yield of assembled CCM parts.

"Celanese worked closely with major global CCM manufacturers to develop this Zenite LCP technical breakthrough that provides electrostatic discharge properties," said Kevin Liao, Celanese Electrical & Electronics global market director. "This development reflects the combined strengths of Celanese with a customer focus to bring step-change technology to the electrical and electronics industry."

As MRC informed previously, Celanese Corporation has recently announced a range of detectable polymer technologies that can help original equipment manufacturers (OEMs) and suppliers ensure products contain components and parts that meet their material specifications. Engineered materials from Celanese are available with anti-counterfeiting technologies to help assist OEM and Tier suppliers in reducing the potential risk and loss of revenue from counterfeits in automotive parts, consumer products, medical devices, packaging and consumer electronics.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications.
MRC

MOSCOW (MRC) - Production of polyethylene (PE) in Russia decreased by 1% in the first quarter of this year. The decrease in PE production occurred for high density polyethylene (HDPE), according to MRC ScanPlast.

Russia's PE production was 132,600 tonnes in March, compared with 141,100 tonnes in February. Total PE production in Russia was about 430,800 tonnes in Q1 2014, compared with 434,000 tonnes in the same period a year earlier.

Russia's output of HDPE was significantly reduced, particularly in March, while the production of low density polyethylene (LDPE) grew. The structure of PE production in Russia in the first quarter of the current year was as follows.

Stavrolen shut ethylene production on 26 February because of the technical problems at its ethylene capacities. The company did not announce the date of the restart, but it is obvious that the production will be shut at least nine months, as it was in 2012.

Nizhnekamskneftekhim switched to the production of linear low density polyethylene (LLDPE) in March. As a result, Russia's production of HDPE fell to 61,600 tonnes in March, compared with 86,200 tonnes in February. Total HDPE production in Russia was 245,200 tonnes in Q1 2014, compared with 264,700 tonnes in the same period a year earlier.

March output of LDPE in Russia increased to 60,900 tonnes, compared with 55,000 tonnes in February. Total Russia's LDPE production was 175,500 tonnes in Q1 20014, up 4% from the same period a year earlier.

LLDPE production Russia remains weak. Nizhnekamskneftekhim produced about 10,000 tonnes of LLDPE over the incomplete March. Russia did not produce LLDPE in January and February, as it was in the same period in 2013.


MRC

MOSCOW (MRC) -- The output of main products from polymers in Russia rose by 2.4% over the first three months of 2014. Films accounted for the largest increase in production, reported MRC analysts.

After the disastrous January and February, a major increase in production of finished products from polymers was registered in March, up by 17.8% from February. The overall output of plastic products totalled 2.4% in the first quarter 2014. Films accounted for the largest increase in production, while negative figures were still registered in the construction sector.

According to the Federal State Statistics Service, March production of unreinforced and non-combined films rose to 90,400 tonnes (in January - 49,200 tonnes and 73,900 tonnes - in February). Thus, the output of these products in Russia reached 213,500 tonnes from January to March 2014, up by 14.9% year on year.

Last month's production of porous plates and sheets went up to 18,300 tonnes (in January - 14,800 tonnes and 16,200 tonnes - in February). The output of these products increased by 4.5 % over the stated period and totalled about 49,300 tonnes.

March production of large bottles, bottles and flask from polymers grew to 1.268 billion items (January - 917 million items and February - 1.03 billion items). The overall output of large bottles, bottles and flasks in Russia was about 3.215 billion items over the first three months of the year, up by 3.2% year on year.

Last month's output of plastic windows, their frames and sills reached 1.7 million square meters (in January - 1.2 million square meters and in February - 1.4 million square meters). The production of plastic windows and window sills dropped to 4.3 million square meters in the first quarter of 2014, down by 0.4% year on year.

March production of plastic pipes, hoses and fittings totalled about 41,400 tonnes (in January - 26,300 tonnes and in February - 35,000 tonnes). The overall production of these products reached 102,700 tonnes from January to March 2014, down by 20% year on year.
MRC