ExxonMobil Canada to allocate HDPE grades from Sarnia plant

MOSCOW (MRC) -- ExxonMobil Chemical Canada is allocating sales of rotational and injection molding high density polyethylene products produced at its Sarnia plant, following operational difficulties at the site, said Plastemart, citing a letter to customers dated 24 November.

ExxonMobil said it is "currently assessing the full impact of our polyethylene supply capability" and will determine allocation levels at a later date.

The plant experienced a small "flash fire" on 13 November, which was contained to the polyethylene unit. All production at the unit has stopped as it undergoes a period of unplanned maintenance, a spokesperson said, adding there is no estimate as to when production will resume. In the meantime, ExxonMobil will fill orders with resin from other production facilities.

As MRC wrote before, Foster Wheeler has announced that a subsidiary of its global engineering and construction business has been awarded an engineering, procurement, and construction (EPC) contract by ExxonMobil Petroleum & Chemical (Esso) to upgrade its Antwerp refinery in Belgium.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.

MRC

BASF switched its entire portfolio of PS-based insulation products to a new flame retardant

MOSCOW (MRC) -- BASF is one of the first European manufacturers to have switched its entire portfolio of polystyrene-based insulation products for the European market to a new flame retardant, nine months ahead of the deadline laid down in the EU REACH Regulation on chemicals, as per the company's press release.

Both EPS (expandable polystyrene) products (Styropor and Neopor) and XPS (extruded polystyrene) products (Styrodur) will be manufactured in Europe using a polymeric flame retardant (PolyFR), which has a much better environmental profile than the HBCD (hexabromocyclo­dodecane) used in the past.

According to Giorgio Greening, Global Business Unit Styrenic Foams: "By switching to PolyFR, we can guarantee the supply of eco-efficient thermal insulation products for sustainable building projects in the future. Energy efficiency in the commercial and residential construction sector is now a bigger challenge than ever for the entire value chain. As far as Styropor and Neopor are concerned, it is our job, as a raw material manufacturer, to supply our customers, i.e. insulation material manufacturers, with a high-quality material with optimal properties."

BASF completed the switchover to the new flame retardant in close liaison with its customers. BASF had already switched most of its EPS range by March of this year and has already supplied customers throughout Europe.

Another PolyFR manufacturer has recently announced that it has started up a new production line. This means that the global demand for PolyFR can be satisfied.

With PolyFR, it is possible as before to manufacture insulation materials that meet the strict fire regulations applicable to construction products. It will be possible in future to manufacture insulation materials with this flame retardant that meet class B1 specifications under German standards ("schwerentflammbar": difficult to ignite) and Class E under European standards.

As it is classed as a POP (persistent organic pollutant) under the UN Environment Program and as a svhc (substance of very high concern) under the REACH regulation the use of HBCD as a flame retardant in the EU will be prohibited as of August 21, 2015 and PolyFR, which is harmless, will be used instead . This is the outcome of several years of testing and development supported by BASF.

Although handling of the flame retardant HBCD as such is prohibited, insulation containing HBCD is harmless to humans and the environment, both during use and during removal and energy recovery. That is because the flame retardant is embedded in the polymer matrix.

As MRC wrote before, in May 2014, BASF's first Styrodur plant in Tudela, Spain, in Tudela, Spain, completely switched its production to new flame retardant.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).
MRC

PE imports to Belarus dropped by 2% from January to September 2014

MOSCOW (MRC) -- The overall imports of polyethylene (PE) into the Republic of Belarus decreased by 2% over the first nine months of 2014. The high density polyethylene (HDPE) market showed negative results, while demand for other PE grades increased this year, reported MRC analysts.

September PE imports to Belarus totalled 11,700 tonnes versus 9,400 tonnes a month earlier. The overall PE imports decreased from January to September 2014 to 79,300 tonnes from 81,000 tonnes over the same period a year earlier.

The structure of PE imports to Belarus by grades looks the following way over the said period.

September imports of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) rose to 5,000 tonnes under the pressure of seasonal factors from 4,400 tonnes in August. The overall imports of these PE grades reached 38,100 tonnes from January to September 2014 versus 33,300 tonnes a year earlier. Producers from Saudi Arabia (22,500 tonnes) and Russia (about 5,400 tonnes) are the main PE suppliers to the local market.

HDPE imports rose to 6,600 tonnes in September versus 5,000 tonnes a month earlier. This significant increase in imports was caused by scheduled outages for maintenance at Russian plants, which share exceeds 40% in the local market. The overall HDPE imports to Belarus fell to 41,200 tonnes over the stated period, down by 13.5% year on year.
MRC

Lubrizol and Mitsui Chemicals enter alliance agreement

MOSCOW (MRC) -- The Lubrizol Corporation, an innovative specialty chemical company, and Mitsui Chemicals, Inc. have announced that they have entered into an alliance agreement making Lubrizol the exclusive worldwide seller and marketer of the LUCANT(TM) polymer product range to the lubricant industry, as per Lubrizol's press release.

This agreement will maximize each company's strengths and utilizes a joint development approach to new polymer R&D. LUCANT will be marketed as a viscosity modifier for lubricant applications as well as a synthetic base fluid component for lubricant formulations.

The addition of LUCANT significantly expands Lubrizol's portfolio of performance polymers. Through Lubrizol's extensive application knowledge and testing capabilities, Mitsui Chemicals expects to strengthen the appeal of LUCANT to the lubricant oil industry and better respond to individual customer needs by accelerating research and development efforts for new products and expanding applications.

The LUCANT technology portfolio consists of well-established viscosity modifiers primarily used for driveline and industrial applications, providing strong end-user benefits in multiple applications. The products are typically used based on their good balance of treat cost and performance, including good low temperature characteristics, high shear stability, high viscosity index and enhanced traction coefficient.

Lubrizol expects to begin supplying LUCANT products in the first quarter of 2015 and both Mitsui Chemicals and Lubrizol are committed to making the transition as seamless as possible for existing LUCANT customers.

Mitsui Chemicals will continue to offer LUCANT for applications outside of the lubricants industry (synthetic resin modifier), and focus on expanding applications and developing sales of its high-performance polymer.

As MRC wrote previously, last year, Lubrizol unveiled a four-year, USD400 million global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites. With continued strong global demand for the company's CPVC compounds, Lubrizol's expansion efforts will be divided into two phases.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol's advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC

Hanwha Group to acquire Samsung chemical, defense units

MOSCOW (MRC) -- South Korea's Samsung Group said it is selling stakes in four chemical and defence firms for 1.9 trillion won (USD1.72 billion) to Hanwha Group, the latest move in the massive task of restructuring the country's largest conglomerate, as per Reuters.

Samsung Group said in a statement Samsung Electronics Co Ltd , Samsung C&T Corp and other Samsung affiliates decided to sell a 32.4 percent stake in Samsung Techwin to Hanwha Corp for 840 billion won, and a 57.6 percent stake in Samsung General Chemicals Co Ltd to Hanwha Chemical Corp and Hanwha Energy Corp for 1.06 trillion won.

The control of Samsung Thales Co Ltd, a joint venture unit with French defence electronics firm Thales, and Samsung Total Petrochemicals Co Ltd, a joint venture unit with France's Total SA, is also being transferred to Hanwha units, Samsung Group said.

The sale is expected to be completed in the first half of next year.

As MRC informed before, in July 2014, Hanwha Chemical created a task force to manage the process of bidding for Dow Chemical's chlorine business. Hanwha retained Credit Suisse earlier this year to advise on the possible purchase, which involves about 40 production facilities at 11 sites, including Dow's chlor-alkali and chlor-vinyl units in Plaquemine, La., and Freeport, Texas, as well as DowпїЅs interest in the Dow Mitsui chlor-alkali joint venture in Freeport.

Hanwha Group, South Korea's 10th-largest conglomerate, said separately the acquisitions would boost its petrochemicals and defence-related businesses, and add around 12 trillion won in sales based on 2013 figures.

MRC