BASF first Styrodur plant completely switched to new flame retardant

MOSCOW (MRC) -- BASF is the first European manufacturer to have completely switched a production plant for XPS (extruded polystyrene rigid foam) to a new polymeric flame retardant (PolyFR), as per the company's statement.

Styrodur insulating panels produced at BASF’s plant in Tudela, Spain, are now made exclusively with the polymeric flame retardant, which has a superior environmental profile while offering the same flame retardancy. BASF’s other Styrodur production plants in Ludwigshafen and Schwarzheide, Germany, and Bibbiano, Italy, will all be switched to the new flame retardant by the end of 2014.

BASF thus continues its successful strategy as the market leader for polystyrene-based insulating materials in Europe. "Through our concerted efforts, BASF is supporting the sustainable development of the European polystyrene foam industry," said Giorgio Greening, Senior Vice President of BASF’s global business unit for polystyrene foams. "We have pushed ahead the development and introduction of this alternative flame retardant. Our goal is to enable our customers to make the switch successfully and in good time."

In 2011, BASF announced its determination to switch to the new flame retardant in close cooperation with its customers. BASF is also already using PolyFR in the majority of its range of expandable polystyrene (EPS) products. The changeover of all EPS grades in Europe will also be completed by the end of 2014, and thus earlier than required by law.

As MRC wrote before, BASF now offers high performance Ultramid (polyamide), which is derived from renewable raw materials. BASF uses an innovative approach that replaces up to 100% of the fossil resources used at the beginning of the integrated production process with certified biomass.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).
MRC

MOSCOW (MRC) -- Witnessed by the Chinese President Xi Jinping and the Russian President Vladimir Putin, China Petrochemical Corporation (Sinopec Group) and SIBUR has entered into a strategic cooperation agreement during a state visit of President Putin to China, as per SIBUR's press release.

The arrangements provide for both parties to deepen strategic cooperation.

As part of the cooperation, the parties will discuss potential expansion of trading operations and look into collaboration opportunities in gas processing and petrochemicals projects.

The parties believe that the strategic partnership between Sinopec and SIBUR will facilitate further strengthening of the companies’ leading market positions through sharing of the joint expertise and resources.

Sinopec commented, "This partnership will help diversify and secure Sinopec's long-term sourcing of petrochemical products and expand Sinopec's overseas footprint, facilitating strategic collaboration and continual exchange of expertise".

SIBUR commented, "The partnership between SIBUR and Sinopec, a global chemical industry leader, will enable SIBUR to maximise the efficiency of new large-scale projects, expand its competencies and distribution markets, and support the Russian petrochemical industry in achieving a new level".

As MRC informed previously, last September, Sinopec Corp. and SIBUR entered into a joint venture developed on the site of the Krasnoyarsk Synthetic Rubber Plant (KZSK). Sinopec purchased 25% + 1 share of KZSK. The deal was approved by Russian and Chinese regulators.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2014, SIBUR operated 27 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 27,000 personnel.

Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.
MRC

MOSCOW (MRC) -- During Russian President Vladimir Putin’s state visit to China, SIBUR, a leading Russian gas processing and petrochemicals company, signed a contract with China Petroleum and Chemical Corporation (or "Sinopec") to establish a joint venture for the construction of a 50,000 tpa butadiene nitrile rubber (or "NBR") plant at the Shanghai Chemical Industry Park, 50km south of Shanghai, reported SIBUR on its site.

Sinopec’s share in the joint venture will be 74.9% and SIBUR’s will be 25.1%. Chinese President Xi Jinping and President Vladimir Putin were both present at the signing ceremony.

The parties also signed a technology license agreement for the use of SIBUR's NBR production technology at the new facility. SIBUR’s specialists will take part in establishing the new facility’s production and commercial operations.

Sinopec expressed, "Last year the two parties developed a joint venture on the site of the Krasnoyarsk Synthetic Rubber Plant (or KZSK) in Russia. Sinopec purchased 25% + 1 share of KZSK. Today, a significant proportion of KZSK products are delivered to the Chinese market through their partnership with Sinopec. Sinopec believes that with the establishment of this new joint venture in Shanghai, Sinopec will be better equipped to fulfil market demand and contribute to China’s economic development."

SIBUR expressed, "China remains a fast developing market, committed to replacing imports with domestic production. Sinopec is a leader in this market with significant resource capabilities, and this, combined with SIBUR’s advanced technologies for producing butadiene nitrile rubbers, will enable a successful long-term partnership between the two companies. It will also enable us to develop a highly competitive production facility in China and expand SIBUR’s footprint in the Asia market."

Butadiene nitrile rubber (NBR) is essentially an acrylonitrile and butadiene copolymer obtained by the emulsion polymerization method. Due to high resistance to aggressive agents NBR is widely used for the manufacture of various oil-and-petrol resistant industrial rubber products. NBR is essential to manufacture aircraft fuel tank seals, fuelling hoses, bag fuel tanks, and aircraft window seals. The material is used in conveyor belts for the food industry and in rubberised textile fabrics for aggressive environments.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2014, SIBUR operated 27 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 27,000 personnel.

Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.
MRC

MOSCOW (MRC) -- Idemitsu Kosan, one of Japan’s largest refining and petrochemical companies, is in plans to shut a naphtha cracker for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Japan informed that the plant will be shut in September 2014. It is likely to remain off-stream for around 45 days.

Located in Tokuyama, Japan, the cracker has a production capacity of 623,000 mt/year and propylene capacity of 450,000 mt/year.

We remind that, as MRC informed previously, Idemitsu Kosan is in plans to shut its aromatics plant for maintenance turnaround in July 2014. It is likely to remain shut for around 50 days. Located in Chiba, Japan, the plant has a PX capacity of 265,000 mt/year, benzene capacity of 577,000 mt/year and MX capacity of 353,000 mt/year.

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.
MRC

MOSCOW (MRC) -- Imports of polyethylene terephthalate (PET) into Russia increased by 20,000 tonnes from January to April 2014, up by 32% year on year, and exceeded 85,000 tonnes, according to MRC ScanPlast.

April PET imports reached 30,000 tonnes, which is the highest level since June 2011.

Higher imports in spring is traditional on the back of preperations for a season. However, this year's increased imports were caused by more favorable prices in China and restricted contract quantities this year, market players said.

According to ICIS-MRC Price report, current prices of Chinese PET, including delivery to ports in the East of the country, are in the range of USD1,247-1,260/tonne CIF, excluding VAT. If the current exchange rate of USD1 = Rb34,6 is taken (given it is stable at the time of delivery), then prices of Chinese PET, including delivery to the Central region, will be at Rb59,500-60,000/tonne CPT Moscow, including VAT. At the same time, spot PET prices in Russia start from Rb63,500/tonne.

Chinese grades account for almost 75% of the total imports, if the supply structure is regarded, while Korean grades account for only 10.6%.

MRC