Formosa Plastics shut down PVC plant in China for maintenance

MOSCOW (MRC) -- Formosa Plastics Corp (FPC) has shut a polyvinyl chloride (PVC) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that the plant was shut on September 9, 2014. It is planned to remain shut for around one month.

Located at Ningbo in Zhejiang province of China, the plant has a production capacity of 400,000 mt/year.

As MRC reported earlier, Formosa Petrochemical Corp (FPC) is planning to shut its No. 1 residual fluid catalytic cracker (RFCC) for maintenance turnaround in H2 September 2014. The planned shutdown has been planned to take care of a technical glitch. Located at Mailiao in Taiwan, the unit has a propylene capacity of 375,000 mt/year.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

EC approves acquisition of Rockwood additives and TiO2 businesses by Huntsman

MOSCOW (MRC) -- Huntsman Corporation has announced that the European Commission has approved its previously announced acquisition of the Performance Additives and Titanium Dioxide (TiO2) businesses of Rockwood Holdings, Inc., reported the company on its site.

The Commission approval is subject to the divestiture of Huntsman’s business associated with a product known as TR52 mainly sold into inks applications. This divestiture represents approximately 30,000 tonnes of TiO2 with annual EBITDA of approximately USD5 million to USD10 million and excludes any associated manufacturing assets.

Huntsman has entered into a definitive agreement to sell its TR52 business to Henan Billions Chemicals Co., Ltd. Financial details of this agreement were not disclosed.

The transaction with Rockwood is expected to close in the coming weeks, pending the European Commission’s approval of the sale of the TR52 business to Henan.

Huntsman is a global manufacturer and marketer of differentiated chemicals with 2013 revenues of over USD11 billion. The company's operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

Evonik completes precipitated silica expansion in North America

MOSCOW (MRC) -- Evonik Corporation has opened a new 20,000 metric ton expansion at its precipitated silica site in Chester, Pa. reported the company on its site.

"This is a very exciting day," said Andreas Fischer, Head of Evonik’s Silica Business Line. "Chester is an integral part of Evonik’s global silica business. We have expanded our plants and constructed new facilities in Asia and Europe, and now we’ve built up our capacities for precipitated silicas in North America as well."

Fischer explained the capacity addition in Chester was part of Evonik’s initiative to increase world-wide capacities for precipitated silica by 30% since 2010.

"Demand for precipitated silica is increasing," said Fischer. "Our expansion in Chester will enable us to keep pace with the growth of our customers and to meet the requirements of the tire, food and other industries. Our dedicated employees in Chester and at our other sites throughout the world have enabled Evonik to remain a market leader in silica."

Precipitated silica is also used as an ingredient in the food and animal feed industries, as well as in paints and coatings.

In July 2014, Evonik announced plans to build a plant to produce precipitated silica outside Sao Paulo, Brazil. The facility is scheduled to go on stream in 2016. The increased development in North and South America follows expansions that have already been completed in Europe and Asia. A production plant extension was completed in Thailand in March 2014.

Evonik has a worldwide capacity of about 550,000 metric tons of precipitated and fumed silica and matting agents per year.

As MRC informed before, Evonik Industries is paving the way for a new technology whose applications include automotive finishes that are more scratch-resistant than ever before. The specialty chemicals company has developed an industrial-scale method for producing silane-modified binders for automotive finishes. The advantage of these silane-modified binders: silane groups increase crosslinking density, making it possible to create automotive finishes that are flexible yet harder, leading to improved scratch resistance.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
MRC

Investment firms interested in Klockner

MOSCOW (MRC) -- Three investment firms are considering making an offer for plastic film maker Klockner Pentaplast Group, according to Plasticsnews.

The story, which quotes anonymous sources familiar with the matter, said the buyers may bid up to 1.5 billion euros (USD2 billion) for the company. The report named Apollo Global Management LLC, Ares Management LP and Platinum Equity LLC as potential bidders.

In May, news agencies had reported that Klockner’s majority owner, Strategic Value Partners, had hired advisers and expected to receive tentative bids in July.

Greenwich, Conn.-based hedge fund SVP acquired Klockner Pentaplast in summer 2012 from New York private equity firm Blackstone Group LP. Blackstone had acquired Klockner Pentaplast in 2007 from Cinven Partners LLP of London.
Klockner’s headquarters is in Montabaur, Germany, and its North American headquarters is in Gordonsville, Va.

As MRC wrote before, last summer Klockner revealed it is spending 45.6 million euros in global capacity expansions in 2013-14. Targeted sites are in China, Brazil, Great Britain and Portugal.

Klockner Pentaplast makes films for pharmaceutical, medical device, food, electronics, and general-purpose thermoformed packaging, as well as printing and specialty applications. The company has sales of more than USD1.4 billion, more than 3,000 employees, and 17 plants.
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Ukraine crisis prompts factory move to Russia

MOSCOW (MRC) -- The crisis in the Ukraine has prompted Polish PVC window maker Fakro Co. to consider shifting production from some of its plants in the country to neighboring Russia, said Plasticsnews.

Ryszard Florek, the company’s chief executive and founder, said that the ongoing crisis in Ukraine was undermining the firm’s economic performance. In addition, the military mobilization by the Ukrainian government, which is deploying troops to combat the insurgency in the country’s east, was targeting the employees of local plants, including Fakro’s facilities.

"From time to time, the military drafts our workers. Some of them come back to work injured," Florek told local radio station RMF FM.

The Polish firm operates three window factories in Ukraine, and most of their output is intended for export to the Russian market. The firm already operates a plant in Vologda, in the west of Russia.

The Nowy Sacz-based producer has a total workforce of 3,300 in its 12 production facilities located in Europe, Asia and North America, according to data released by Fakro.
MRC