Bayer to close polycarbonate sheets site in Darmstadt, Germany

MOSCOW (MRC) -- Bayer MaterialScience, a Bayer Group company, said that it has decided to close its site in Darmstadt, Germany, as part of the worldwide consolidation of its business with sheets made of the high-performance plastic polycarbonate, said Rttnews.

The closure in Darmstadt affects 90 employees. The European customers will be supplied in the future by the plants in Nera Montoro, Italy, and Tielt, Belgium.

Bayer MaterialScience currently produces sheets at ten locations. The consolidation has also led to decisions in the Asia/Pacific region. The sheet business in Australia and New Zealand as well as the Laserlite brand name are being sold. In addition, sheet production in China was consolidated at the Guangzhou site; the Beijing site was closed.

According to the company, market development in the overall polycarbonate business has changed dramatically in recent years, with new competitors and overcapacities exacerbated by insufficient demand from the customer industries.

Based on results of review of its polycarbonate business model, the company said it decided that a consolidation of sheet activities in Europe was also necessary to ensure the long-term viability of the business as a whole and to remain competitive. Markus Steilemann, Head of the Polycarbonates Business Unit at Bayer MaterialScience, is optimistic about the future of the overall business.

Polycarbonate is used in the automotive industry, where it is increasingly displacing glass and metal. Vehicles are thus becoming lighter and consume less fuel. Polycarbonate sheets are the material of choice in the construction industry, in particular, where they are used for train station and airport roofs, carports and greenhouses.

We remind that, as MRC informed previously, Bayer MaterialScience has opened its first Polymer Development & Technology Center in South Korea, with a goal of developing new polycarbonate applications for Korean firms. Located in Yongin, near Seoul, the new center adds to Bayer's global network of research and development hubs, and is supported by its network of major production sites in the Asia Pacific region.

Headquartered in Pittsburgh, Pa., BMS is part of the global Bayer MaterialScience business with approximately 14,800 employees at 30 production sites around the world. The company’s 2011 sales in North America were USD2.9 billion.
MRC

Chevron Phillips to expand Texas alpha olefins unit

MOSCOW (MRC) -- Chevron Phillips Chemical (CPChem) received approval from its board of directors and obtained an environmental permit from the Texas Commission on Environmental Quality (TCEQ) to expand normal alpha olefins (NAO) production capacity at its Cedar Bayou plant in Baytown, Texas, said Hydrocarbonprocessing.

This investment will provide an additional 100,000 tpy of capacity. Construction completion is anticipated in July, 2015. Houston-based S&B Engineers and Constructors will execute the engineering, procurement and construction, and expects to support up to 600 jobs during the construction phase.

The project will utilize Chevron Phillips Chemical’s proprietary NAO technology. NAOs and its derivatives are used extensively as polyethylene co-monomers, synthetic motor oils, lubricants, automotive additives and in a wide range of specialty applications.

Chevron Phillips Chemical has recently announced the construction of a world-scale ethylene cracker in Baytown, Texas, two world-scale polyethylene reactors in Old Ocean, Texas and the start-up of the world’s largest 1-hexene facility in Baytown. The 1-hexene plant, capable of producing up to 250,000 tpy, is co-located with this expansion project at the Cedar Bayou plant. Chevron says the two plants will enjoy synergies as they both share the same infrastructure and workforce talent.

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC

Gazprom neftekhim Salavat shut its PS production

MOSCOW (MRC) - Gazprom neftekhim Salavat has shut its production of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) on 1, July, according to ICIS-MRC Price Report.

The producer shut its PS capacities on scheduled maintenance works. The company is expected to resume its PS production on 1, August.

Traders reported small carryovers of PS by Gazprom neftekhim Salavat's production at their stocks. They expect a shortage of the producer's PS in July because of the small volumes of the material available.

Price offers for HIPS from Gazprom neftekhim Salavat were heard in the range of Rb78,500-81,000/tonne CPT Moscow, including VAT. Spot prices for GPPS by Gazprom neftekhim Salavat production were heard in the range of Rb72,500-75,000/tonne CPT Moscow, including VAT.
MRC

Lanxess increases prices for Durethan base products

MOSCOW (MRC) -- Lanxess A.G. will increase prices for its Durethan base resin, film and extrusion grades in Europe, Middle East and Africa by 16 cents per kilogram effective July 1, said the producer in tis press release.

The firm said ongoing continuous high level of raw material costs was the primary reason for the increase, but existing agreements will be honored.

The affected products in the Durethan portfolio are polymide six and CoPA based engineering plastics used for the production of films for food packaging, industrial films, semi-finished products, other extrusion applications and as a raw material for compounds.

We remind that Lanxess successfully concluded the pilot phase for a highly efficient production process for butyl rubber in Zwijndrecht/Belgium in April 2014.

Lanxess employs 17,000 in 31 countries and operates 52 production sites worldwide. It reported sales of about USD11.3 billion in 2013. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

PVC imports to Ukraine fell by 25% from January to May 2014

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 25% over the first five months of 2014, according to MRC DataScope.


The change of the political regime, economic slowdown and a major currency devaluation have led to a noticeable slump in demand for SPVC in Ukraine this year. SPVC imports rose in April and May to 8,400 tonnes and 10,900 tonnes, respectively, under the pressure of a seasonal factor. The overall SPVC imports to the Ukrainian market fell from January to May 2014 to 36,400 tonnes from 48,400 tonnes a year earlier.

The structure of SPVC imports into Ukraine over the stated period looks the following way.

May imports of European PVC to the Ukrainian market rose to 5,400 tonnes from 3,500 tonnes in April. The overall imports of resin from Europe totalled about 14,600 tonnes over the five months of 2014 versus 23,300 tonnes in the same period of 2013. Producers from Hungary and Poland remained the key suppliers of suspension PVC to the Ukrainian market because of geographical factors.


This year's PVC imports from the US fell less dramatically than from Europe. May imports of North American PVC to the Ukrainian market virtually remained at the April's level and totalled about 4,800 tonnes. US PVC imports dropped to 20,700 tonnes over the said period from 23,400 tonnes a year earlier.

Imports of acetylene PVC from China were resumed last month, May imports were about 737 tonnes. The resumption of supplies from China was caused by lower prices compared to European and North American producers.

MRC