Braskem to build new PE plant at Texas Gulf Coast complex

MOSCOW (MRC) -- Brazilian petrochemical company Braskem plans to build a new polyethylene (PE) plant at its existing complex in La Porte, Texas, reported Hydrocarbonprocessing with reference to the company's confirmation on Monday.

The new plant will manufacture ultra-high molecular weight polyethylene (UHMWPE), making it the first time for Braskem to produce UHMWPE outside of its home base in Brazil.

Construction on the plant will begin in the third quarter of 2014, with completion expected in the first half of 2016.

"We believe our investment reinforces Braskem’s dedication to the plastics industry and to our strategic markets and clients," said Braskem America CEO Fernando Musa.

Braskem sells the UHMWPE material under the UTEC brand name, noting that it offers high abrasion resistance and impact strength. The material is eight times lighter than steel and lasts 10 times longer than high-density PE, they added. Industries that use UTEC include construction, automotive, coal, mining and wastewater treatment.

"This is the next logical step for our UTEC business as we have been providing UTEC to clients in the United States and Europe for over 10 years," said Musa. "Further, this new plant will potentially enable Braskem to serve more markets than we have been able to serve in the past."

Braskem acquired the La Porte complex from Sunoco in 2010. It has 330,000 tpy of polypropylene (PP) capacity, according to news reports.

As MRC informed previously, Braskem's Technology and Innovation Center in Triunfo, Rio Grande do Sul has recently invested RUSD1 million to acquire a new piece of equipment for evaluating the sizes and changes in the polymer chains studied in the laboratories, which are important characteristics for the manufacture and application of the plastic resins developed by the company.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC

MOSCOW (MRC) -- After price increases in June, SIBUR maintained its prices of expandable polystyrene (EPS) the same in July, according to ICIS-MRC Price report.

The company left unchanged both its domestic and export prices. SIBUR-Khimprom's export EPS prices were heard in the range of USD2,040-2,050/tonne FCA Perm, excluding VAT.

EPS traders and producers continued to report strong demand for material in the Russian domestic market. SIBUR was forced to partially refuse customers in foreign markets because of a shortage in the local market.
MRC

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

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

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