BP Zhuhai to start up new PTA plant in China

MOSCOW (MRC) -- BP Zhuhai Chemical Co Ltd is likely to start a new purified terephthalic acid (PTA), reported Apic-online.

A Polymerupdate source in China informed that the plant is planned to be started in March 2015.

Located in Zhuhai, China, the plant has a production capacity of 1.25 million mt/year.

As MRC wrote before, BP has planned to invest over USD200 million to upgrade its purified terephthalic acid (PTA) plants at Cooper River, South Carolina and Geel, Belgium. The investments will position these assets amongst the most efficient PTA manufacturing facilities in the world.

PTA is the raw material used to make polyethylene terephthalante (PET) and polyester which is found in a wide range of consumer goods ranging from fabrics to food and beverage containers. The BP Cooper River site is the largest PTA producer in the Americas and BP Geel is the largest in Europe.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.

WR Grace to split into catalysts, construction units

MOSCOW (MRC) -- W.R. Grace & Co., a US chemical producer that spent almost 13 years in Chapter 11 bankruptcy, plans to separate into two companies. The shares rose the most in five years, as per Hydrocarbonprocessing.

One of the new companies will comprise Grace's catalysts-technologies and materials-technologies businesses and be led by current CEO Fred Festa, the company said in a statement. The other will contain the construction-products and packaging units and be led by Grace chief operating officer Greg Poling.

Grace is "effectively spinning out its more economically sensitive construction products business," said Ahmed Alamin, a New York-based analyst at Cowen & Co. who rates the shares the equivalent of buy.

Grace, which exited bankruptcy protection in February 2014, expects that creating two companies with simplified structures will allow management to better focus on strategy and productivity. A similar breakup strategy has been recommended by activist investors pushing for higher returns at Grace competitors DuPont and Dow Chemical.

"We think it sets up two very strong companies to pursue their agendas," chief financial officer Hudson La Force III said on a conference call Thursday. La Force will join the catalysts company.

As MRC informed earlier, in December 2013, W.R. Grace completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company for a cash purchase price of USD500 mln. The acquisition includes UNIPOL Polypropylene Process Technology and makes Grace the second largest polypropylene licensor in the world based on installed capacity, advancing Grace's leadership in the broader polyolefin sector.

Indian plastics industry to grow 10% a year through 2018

MOSCOW (MRC) -- India’s plastics processing sector is expected to grow 10 percent a year through 2018, although from a small base, as the manufacturing industry and economy shows signs of rebounding, according to industry statistics released at the Plastindia trade show, said Plasticsnews.

The country’s plastics market will reach 18 million metric tons of material processed by 2018, but will still face many challenges, including having too many small companies that are not competitive globally, according to an analysis by a senior executive at India’s largest plastics producer, Reliance Industries Ltd.

As MRC informed previously, RIL had announced that it would invest over Rs 100,000 crore in expansion of its petrochemical capacities and adding value to its refining business. Besides, in October 2012, the company unveiled its plans to expand capacity at its refineries in the western state of Gujarat.

In general, though, there were positive signs, including low oil prices that make the country’s naptha-based plastics feedstock more competitive.

Plastics consumption in India remains very low by world standards, with per capita plastics use at about 9.7 kilograms in India, compared with 45 kg in China and 109 kg in the United States, Reliance said. What that means is that India, with 17 percent of the world’s population, accounts for only between 4 and 7 percent of global plastic demand, depending on resin type, Shah said.

India’s use of engineering plastics in cars, for example, is about half per car compared to developed markets, according to information from Dutch resin manufacturer Royal DSM N.V. But India is likely to catch up quickly, in part as auto makers increasingly have global platforms and want standardized platforms for manufacturing vehicles, said Sanjay Jain, business director — India, for DSM.

PolyOne Corporation announces quarterly dividend

MOSCOW (MRC) -- The Board of Directors of PolyOne Corporation, has declared a quarterly cash dividend of ten cents (USD0.10) per share on the common stock outstanding, reported the company on its site.

Devidend is to be paid on April 8, 2015, to stockholders of record on March 16, 2015.

As MRC informed earlier, in February 2014, PolyOne Corporation announced the addition of new capabilities to its OnColor HC Plus portfolio. These expanded offerings add medical-grade LDPE, nylon, PEBA, PS and PVC to the globally available palette of specialty healthcare colorants, and are pre-certified to meet or exceed biocompatibility requirements for ISO 10993 and/or USP Class VI protocols.

PolyOne Corporation, with 2014 revenues of USD3.8 billion, is a premier provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.

Muhibbah gets USD32 mln Petronas Rapid subcontract

MOSCOW (MRC) -- Muhibbah Engineering (M) Bhd ( Financial Dashboard) clinched a USD32 million (RM116 million) construction subcontract for the Petroliam Nasional Bhd's (Petronas) Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor, said Theedgemarket.

In a statement to the exchange today, Muhibbah said it clinched the contract from Petronas contractor Tecnicas Reunidas S.A. Group.

Muhibbah said it was appointed by Tecnicas Reunidas to design and build "temporary construction facilities and accommodation camp". The subcontract comes under package 3 of the Rapid project.

According to Muhibbah, Petronas has awarded Tecnicas Reunidas, the Rapid package 3 contract which involves construction of oil and gas downstream facilities. The list includes kerosene, diesel and naphtha hydrotreating units for Petronas.

Muhibbah's subcontract package is expected to take one year to completeThe plant's engineering, procurement, construction and commissioning (EPCC) phase is scheduled to start in November 2015 and mechanical operations will begin in July 2018.

"The contract is expected to contribute positively to the earnings and net assets of Muhibbah group for the current and future financial years," Muhibbah said. Muhibbah shares rose seven sen or 3.7% as at 12:30pm to settle at RM1.97 for a market capitalisation of RM850.5 million. The stock had risen 5% this year, outperforming the FBM KLCI's 2% gain.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.