AkzoNobel opens state-of-the-art vehicle refinishes plant in China

MOSCOW (MRC) -- AkzoNobel has started operations at its state-of-the-art vehicle refinishes plant in Changzhou, China - the company's 30th manufacturing facility in the country, as per the company's press release.

The new factory adds around 25 million liters of capacity for Sikkens, Lesonal and Prime vehicle refinishes products and strengthens AkzoNobel’s position as one of the leading players in China's vehicle refinishes and commercial vehicle OEM markets, building on its acquisition of Changzhou Prime Automotive Ltd. in 2010.

"The Changzhou site is designed to help us meet rapidly increasing customer demand, not only from domestic suppliers, but also from our global automotive customers that have business in China," explained Simon Parker, Managing Director of AkzoNobel’s Vehicle Refinishes business.

He added that the Chinese vehicle refinishes market is worth around EUR750 million and has been growing at around 10% a year. "Changzhou is the ideal location for this facility," continued Parker. "A good infrastructure is already in place and it is ideally situated in the coatings 'center' of China, with close access to many of our customers."

As MRC informed previously, AkzoNobel completed the sale of its Primary Amides chemicals business to PMC Group effective December 31, 2013. Under the terms of the agreement, a manufacturing facility in Kyungju, South Korea, and all 37 employees will transfer to PMC Group with immediate effect, along with the erucamide, oleamide and other primary and secondary amides sold under the Armoslip trade names. The sale follows a review of the business' fit within AkzoNobel's Functional Chemicals portfolio, where it operated as a standalone activity

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people. AkzoNobel currently employs more than 8,000 people in China. Revenues totaled EUR1.6 billion in 2013, with the majority being generated from local demand.
MRC

MOSCOW (MRC) -- Nan Ya Plastics has restarted its No 3 monoethylene glycol (MEG) plant, according to Apic-online.

A Polymerupdate source in Taiwan informed that the plant restarted on November 3, 2014. It was under a month-long maintenance turnaround.

Located in Mailiao, Taiwan, the plant has a production capacity of 360,000 mt/year.

As MRC reported earlier, on 7 September 2014, Nan Ya Plastics shut down its No.4 monoethylene glycol (MEG) plant in Taiwan for a one-month maintenance turnaround. Located at Mailiao, Taiwan, the plant has a production capacity of 720,000 mt/year.

We remind that Sinopec Hubei Chemical Fertilizer has started a new MEG plant on February 8, 2014. Initially the plant was scheduled to start commercial production in late 2013. Located at Zhejiang in Hubei province of China, the plant has a production capacity of 200,000 mt/year.

Another Chinese petrochemical producer Hubei Chemical Fertilizer started up a new monoethylene glycol (MEG) plant in late 2013. Located in Hubei, China, the plant has a production capacity of 200,000 tonnes per year.
MRC

MOSCOW (MRC) -- The November contract price of ethylene in Europe was agreed by EUR90/tonne lower compared to October. Nevertheless, despite such a major fall in feedstock prices, European producers intend to limit the decrease in export polyethylene (PE) prices for the CIS countries by EUR20-60/tonne, according to ICIS-MRC Price report.

A slump in oil prices has led to a similar fall in the prices of refined oil products. Thus, the November contract price of ethylene in Europe was agreed by EUR90/tonne below the October level. In their turn, European producers said they had a strong demand from the domestic market and restricted export quota. Therefore, they do not intend to reduce PE prices proportionally to the cuts in ethylene prices.

The import duty on PE for producers from the Gulf countries and Brazil was raised to 6.5% from 1 January 2014 , leading to lower imports to Europe. The weakening of the euro in recent months has made imports even more unprofitable. And European producers managed to completely balance the market by reducing their capacity utilisation.

Low capacity utilisation and strong demand from the domestic market for several months were the cause of limited export quotas of European producers, particularly, for low density polyethylene (LDPE) and pipe grade high density polyethylene (HDPE).

Nnegotiations over November export prices of European PE began this week. Deals for HDPE were negotiated in the range of EUR1,160-1,200/tonne FCA, down by EUR20-40/tonne from October. Deals for LDPE were negotiated in the range of EUR1,200-1,260/tonne FCA, down by EUR40-60/tonne from October.
MRC

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, and its affiliate companies have announced price increases of EUR50 Euro per dry metric ton for all Styrene butadiene and acrylic latexes sold into the paper, carpet and performance markets in Europe, Middle East, Africa and India (EMEAI), reported the company on its site.

This increase will be immediately or as contract terms permit.

"Styron is investing considerable resources into developing new technologies for its Latex markets while continuing to focus on maintaining its high level of expertise and service. This price increase is necessary in order to address the significant margin erosion which we have seen since 2008 and to allow us to continue to provide the high quality of products and service our customers receive from Styron," says Jan Muller, Styron Global Business Director, Latex.

As MRC informed earlier, in February 2014, Styron announced that it would be doubling its Solution Styrene Butadiene Rubber (SSBR) production capacity of one train, after reaching an agreement with material supplier JSR, to acquire its current production capacity rights at Styron’s world-scale rubber production hub in Schkopau, Germany.

SSBR is used in producing high performance tires and green tires with lower rolling resistance. Styron’s Schkopau production site currently hosts eight world-scale rubber trains that supply tire customers around the world. Prior to this agreement, JSR held the capacity rights to 50% of one of Styron’s three SSBR production trains in Schkopau.

As a result, as from April 1, 2014 Styron received full capacity rights to this train, enabling it to increase its capabilities to serve the global tire market.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. Styron’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world, and approximately 2,100 employees.
MRC