LG Chem to shut MEG plant in South Korea for maintenance

MOSCOW (MRC) -- South Korean petrochemical company LG Chem is in plans to shut its monoethylene glycol (MEG) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in South Korea informed that the plant is likely to be shut on March 21, 2015. It is likely to remain off-stream for around one month.

Located in Daesan, South Korea, the plant has a production capacity of 210,000 mt/year.

As MRC informed previously, LG Chem is in plans to shut its phenol-acetone plant for maintenance turnaround in May 2015. It is likely to remain off-stream for around one month. Located at Daesan in South Korea, the plant has a phenol capacity of 300,000 mt/year and acetone capacity of 180,000 mt/year.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- Imports of high density polyethylene (HDPE) to the Russian market rose slightly in February. However, the overall HDPE imports totalled only 28,800 tonnes over the first two months of 2015, down by 25% year on year, according to MRC DataScope report.

Last month's HDPE imports to Russia grew to 15,500 tonnes from 13,300 tonnes in January. Overall, the total HDPE imports decreased to 28,800 tonnes over the first two months of 2015 versus 38,300 tonnes a year earlier. Seasonal factors, credit financing issues and the rouble devaluation, which made HDPE purchasing in foreign markets unprofitable for Russian converters, were the main reasons for lower imports.

The supply structure by consumption sectors looks the following way over the stated period.

Last month's HDPE imports for pipe extrusion rose to 3,300 tonnes compared to 920 tonnes in January. Such a serious increase of supply was caused by the desire of some local pipes producers to build up additional inventories of material on the back of low prices in Europe and tight supply of coloured PE100 from Russian producers. The overall imports of pipe grade HDPE into Russia totalled 4,200 tonnes, down by 40% year on year.

February HDPE imports for extrusion coating of large diameter steel pipes rose to 5,100 tonnes from 4,600 tonnes a month earlier. 9,700 tonnes this polyethylene (PE) grade were imported over the said period, down by 37% year on year, which was caused by the increased domestic production.

Imports of injection moulding HDPE fell to 2,600 tonnes last month from 4,200 tonnes in January. The overall imports of this PE grade dropped by 9% in January and February 2015 to 6,800 tonnes.

Last month's HDPE imports for extrusion blow moulding (EBM) virtually remained at the level of January and totalled 2,600 tonnes. The overall imports of this PE grade rose to 5,200 tonnes over the stated period, up by 47% year on year. The increase in blow moulding HDPE imports was caused by lower production of Russian manufacturers, as well as by the outage at Stavrolen.

The overall HDPE imports to the other consumption sectors totalled slightly over 1,800 tonnes in January and February 2015.

MRC

MOSCOW (MRC) -- AkzoNobel, a Dutch multinational and one of the leaders in the fields of decorative paints, performance coatings and specialty chemicals, has extended its official supplier partnership with McLaren Racing, as per the company's statement.

The two companies have been working closely together since 2008 when, via its Sikkens brand, AkzoNobel first became official supplier of paint solutions to McLaren Racing, an arrangement that was later extended to McLaren Automotive. AkzoNobel has used its relationship with McLaren to develop its extreme environment technology and use lessons learned in Formula 1 to drive innovations in other industries.

McLaren Racing has been able to field cars that have consistently created a stunning visual impact while also enjoying direct performance gains from the small, but crucial, weight savings that AkzoNobel's technology has been able to provide.

Simon Parker, Director of AkzoNobel’s Vehicle Refinishes business added: "We look forward to the extension of our partnership with McLaren, which shares our passion and commitment to continued innovation. Working together with industry experts at all application levels, combined with our own unrivalled in-house knowledge, means we can exploit the most advanced technologies to maintain our lead in sustainable color and product development."

As MRC wrote previously, in September 2014, AkzoNobel announced that it would establish a new organization for its Performance Coatings Business Area in order to drive leading performance.

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.
MRC

MOSCOW (MRC) -- Saudi Kayan has extended a turnaround at its olefins plant following the discovery of a technical fault, reported Apic-online.

A Polymerupdate source in Saudi Arabia informed that the plant was shut for maintenance turnaround on February 1, 2015 and was expected to remain off-stream for around five weeks. However, the turnaround has been extended for carrying out repairs. The plant is expected to restart operations by the end of this week.

Located in Jubail, Saudi Arabia, the plant has an ethylene capacity of 1.35 million mt/year.

As MRC informed previously, Saudi Kayan, Sadara Chemical and Saudi Acrylic Acid Company (SAAC) have joined forces to establish a new company, which will build the first butanol plant in the Middle East and the largest in the world. The Saudi Butanol Company, which will produce butanol to support the growth of the paints and coatings industry in Saudi Arabia, will be located at Tasnee Petrochemicals Complex in Jubail Industrial City and operated by Tasnee.

Saudi Kayan Petrochemical Company is a manufacturing affiliate of the Saudi Basic Industries Corporation (Sabic).
MRC

MOSCOW (MRC) -- Russia's state-owned oil major Rosneft has completed the transaction on purchase of 100% of shares of SANORS Holding Limited (Novokuibyshevsk Petrochemical Company), as per the company's press release.

The transaction was completed after obtaining all the necessary approvals from antimonopoly and regulatory authorities. The purchase of SANORS group of companies is in line with Rosneft Long-term Development Strategy and implies a profound integration of Rosneft oil and gas production and refining assets with existing SANORS Holding petrochemical production facilities. The synergistic effect of the integration will help to strengthen the vector of petrochemical development and increase the added value of production.

This transaction will allow Rosneft to develop its own line of import substitution as well as meeting growing domestic demand for key polymers and other chemical products, viable commercially in the Russian market regarding their quality and technological characteristics. The integration of the SANORS holding in the perimeter of Rosneft will have a stimulating effect on the economy of the Novokuibyshevsk and Samara region as a whole.

Commenting on the results of transaction’s completion, Igor Sechin said: "Consolidation of the production capacities of Rosneft and SANORS group of companies will allow creating a unique business asset for the Samara region. As a result of this mutually beneficial business alliance, a new promising player will appear at the Russian petrochemical market. At the same time this agreement will extend Rosneft’s access to the marketing outlets for high margin production".

As MRC reported earlier, Rosneft plans to invest 560 billion rubles (USD14.9 bln) in the construction of the first stage of its Eastern Petrochemical Company (VNKhK), said CEO Sechin in September 2014.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
MRC