Celanese raises vinyl acetate-based emulsions prices in Asia

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company and a global leader in VAE emulsions, has announced that it will increase the price of vinyl acetate-based emulsions sold in Asia, as per the company's press release.

PVAc homopolymer and vinyl acetate ethylene (EVA) emulsions will increase by CNY 200/tonne for China and USD30/tonne for the rest of Asia effective July 18, 2014, or as contracts allow.

This price increase affects all applications including, but not limited to, adhesives, paints and coatings, building and construction, glass fiber, carpet and paper.

As MRC reported earlier, in June, Celanese announced that due to market conditions, including the global supply unavailability of vinyl acetate monomer, it increased prices of vinyl acetate-based emulsions sold in the Americas. Thus, PVAc homopolymer, vinyl acetate ethylene (EVA) and vinyl acrylic emulsions increased by up to USD0.04/wet pound (USD90/tonne) effective June 16, 2014, or as contracts allowed. This announcement was in addition to the price increases for the same vinyl-based emulsions which were announced on March 7, 2014 and effective April 1, 2014, and announced on January 10, 2014 and effective on February 1, 2014.

This price increase affects all applications including, but not limited to, adhesives, paints and coatings, building and construction, nonwovens, glass fiber, carpet, paper and textiles.

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. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
MRC

MOSCOW (MRC) -- Evonik has closed on an equity investment in Biosynthetic Technologies, LLC (BT), a specialist in biobased lubricants headquartered in Irvine (California, USA), said the company in its press release.

BT has developed and manufactures a new class of bio-based synthetic oils called estolides that are used primarily in the passenger car motor oil and industrial lubricant sectors. Field trials have shown that the technical characteristics of the biobased synthetic oils made by BT are exceptionally good, and include the ability to combat soot buildup in engines, which helps keep fuel consumption low. In addition to Evonik, BP Ventures also participated as a second strategic investor in this current funding round that focuses on growth. BP Ventures as well as Monsanto Company have already invested in previous financing rounds.

Evonik is a leader in the development of technologies for the production of lubricant additives. Its high-performance additives increase both productivity and fuel efficiency. Regional technology centers, modern global manufacturing centers, and a secure and reliable supply chain worldwide enable Evonik’s continuous development of customized solutions for customers anywhere in the world.

Biosynthetic Technologies’ new class of bio-based synthetic oils are made from organic fatty acids found in plant oils and have numerous uses in the lubricant, chemical, and cosmetics industries. They are biodegradable, nontoxic and they do not bio-accumulate in marine life. BT holds a broad patent portfolio to protect these novel biosynthetic oils that are marketed under the trade name LubriGreen Biosynthetic Oils.

BT’s lubricants are now being tested and certified by many of the world’s largest lubricant manufacturers who want to use these as components in their existing or new motor oil and industrial lubricant product lines.

As MRC reported before, Evonik Industries is making an investment in the double-digit-million euro range in a new research center at the Rheinfelden site. Starting at the beginning of 2016, research into silanes will be carried out in modern laboratories in the four-story building. Silanes are used in the electronics industry, in the tire industry, for the production of adhesives and sealants as well as plastics, and in the construction industry.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.7 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.

MRC

MOSCOW (MRC) -- Shanghai 3F New Materials Co. Ltd. and Solvay SA have formed a joint venture new fluoromonomer TFE and PTFE polymers production plant in Changshu, China, said Plasticsnews.

The partners officially signed the agreement on July 10 for the new entity, 3F Solvay (Changshu) High Performance Polymers. Shanghai 3F will hold 90% of the share and operate the site, while Solvay will hold 10% of the share.

The JV will draw a total investment of 600 million yuan (USD96.7 million), with 345 million yuan (USD55.6 million) in registered capital, 3F said in a July 12 filing with the Shanghai Stock Exchange. Negotiation started on Nov. 13, 2013, when the companies signed a memorandum of understanding of the JV, 3F said.

Construction of the facility has already completed, according to a release by Solvay. Production is scheduled to begin in the third quarter of this year. The companies said the new facility will produce high performance polymers for both partners, enabling them to serve the fast growing markets in the region.

Shanghai 3F’s Changshu plant will supply Solvay Specialty Polymers’ new adjacent production unit with the strategic raw materials R142b and HFP.

Augusto Di Donfrancesco, president of Solvay Specialty Polymers, noted Shanghai 3F is the leading fluoromaterial manufacturer in China. "The alliance with Shanghai 3F will help us to better support our customers in this very fast growing region, as well as to stabilize our raw material supply."

Jian Jin, general manager of Shanghai 3F, added, "The joint venture will further upgrade product quality of our fluorinated polymers to better serve the growing domestic and international mid- and high-end market for fluorinated plastics."

As MRC wrote before, Solvay SA and Ineos Group AG have given a name to their chlorovinyls joint venture, Inovyn, as the two firms prepare the launch the company by the end of 2014. The new company will officially open following divestments by both companies required by the European Commission. Until completion, Solvay and Ineos will continue to run their businesses separately.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers – fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
MRC

MOSCOW (MRC) -- The Munich-based chemical group Wacker has announced the opening of a new logistics facility at its production site in Amtala near Kolkata (India), according to the company's press release.

The high-bay warehouse has a capacity of 5000 pallet spaces and will be operated by Wacker Metroark Chemicals Pvt. Ltd. (WMC), a joint venture between Wacker and Kolkata based Metroark Ltd. Pvt.. The new logistics center compliments WMC’s existing network of warehouses strategically located in Mumbai, Delhi, Chennai and Kolkata.

At the opening ceremony, attended by WMC Executive Director Levi Cottington and WMC Managing Director Soumitra Mukherjee, Dr. Christian Hartel, President of Wacker’s silicones business division, said the new facility will help maximize flexibilty of logistics, increase delivery speed, and minimize lead times for customers.

"This investment will strengthen our growth opportunities in India. Therefore, the warehouse has more capacity than we will use currently", Dr Hartel said. He emphasized that investing more than EUR 1 million for the facility will have an immediate effect on WMC’s ability to increase the efficiency of its logistics operations. "This will enhance the accuracy and traceability of our deliveries for our customers, and will ultimately help to keep the costs in line."

As MRC wrote before, in early 2014, Wacker started strengthening its presence in India by opening its expanded technical center for silicone products in Amtala near Kolkata. Operated by the joint venture Wacker Metroark Chemicals Pvt. Ltd. (WMC), the enlarged regional competence center now comprises state-of-the-art applications technology and test equipment for silicone products needed in the textiles, personal care and construction industry. The chemical Group is thus responding to the growing demand for silicone products and the emerging needs of regional customers for technical support and expertise. The investment amounts to around half a million Euro.

Wacker Metroark Chemicals Pvt. Ltd. (WMC) is headquartered in Kolkata and responsible for production, marketing and sales activities in the Indian subcontinent relating to Waacker silicone products. The joint venture - in which Wacker has a 51% stake - was set up in 1998 and is active in greater India's most important trade centers with sales offices in Delhi, Mumbai, Kolkata, and Chennai, as well as in Dhaka in Bangladesh. Key markets are the textile, personal care, construction, coatings, transmission and distribution, automotive, plastics, adhesives, and packaging sectors. The company also markets Wacker sealants, silanes and pyrogenic silica in India.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

MOSCOW (MRC) - Supply of suspension polyvinyl chloride (SPVC) in the Russian market fell by 22% in the first six months of 2014 on the back of significant decline in the demand for finished SPVC products, according to MRC ScanPlast.

Russia's SPVC supplies (production plus imports minus exports) fell to 437,800 tonnes in June, compared to 560,500 tonnes in the same time a year earlier. In part, such a serious decline in demand for SPVC resulted from more cautious procurement policy of many local converters.

However, the main reason was a reduction in demand for finished products in the domestic market. PVC supply in the market decreased by 22%, while demand for finished goods fell not so much. According to preliminary data, demand for finished goods decreased by 7-15% depending on the type of finished products.

At the same time in each of the sectors of consumption, there were companies which, despite the overall downtrend, managed to increase their market share. Such a significant difference in SPVC supply and sales of finished products resulted from several factors. First, more cautious purchasing policy. In early 2013, many Russian companies actively bought PVC in foreign markets in the hope of a serious increase in demand in the season. The resulted in a record high imports of more than 53,000 tonnes of resin in March - April. Experience of the first half of last year, high export prices for US resin, Russian rouble devaluation and difficulties with crediting made many companies to less buy in foreign markets, and some have even stopped buying imports, in particular from the United States. As a result of this factor, producers and converters' PVC stocks have been quite low for several months. Market participants remembered overstocked inventories in the end of last year.

All of these stocks have moved in in 2014 and also led to a distortion of figures. Third, "grey" supply of Chinese acetylene PVC continue to increase. According to some estimates, these supplies may be about 15,000-20,000 tonnes in the first half of 2014. Demand for finished PVC products continues to seasonally increase in July, and it will be high enough in the next months.

But we can say that the total demand for SPVC in 2014 will be negative.
MRC