Limited propylene supplies leads to force majeure at PP plants in Europe

MOSCOW (MRC) -- Limited propylene supply in Europe has led to two force majeures, according to Plastemart.

Borealis declared force majeure on polypropylene deliveries from its plant in Schwehaschat, Austria, due to a force majeure situation at its third-party monomer supplier, a company spokeswoman was reported in Platts.

A lack of monomer supply also led to a force majeure declaration on polypropylene production at LyondellBasell's PP unit in Tarragona and Ferrara, Italy.

It was still unclear if the plants had emerged from it.

At least 15% of European propylene production from crackers is now offline, including the largest of Total's three crackers at its Antwerp complex and its cracker in Feyzin, France; Repsol's cracker in Puertollano, Spain; the largest of Dow's three crackers in Terneuzen, The Netherlands; and Versalis' cracker in Dunkirk, France.

Chemical-grade propylene supply, produced at crackers and as a byproduct of refinery operations, saw greater pressure on supply due to production issues across oil refineries in Northwest Europe and the Mediterranean. Among those refineries in maintenance were Germany's largest, Mineraloelraffinerie Oberrhein (MIRO) in Karlsruhe; Shell's in Pernis, The Netherlands; ExxonMobil's in Port Jerome, France; Total's in Lindsey, UK; and Isab, Italy, 80%-owned by Lukoil and 20% owned by ERG.
MRC

ThyssenKrupp Uhde Chlorine Engineers starts business operations

MOSCOW (MRC)--ThyssenKrupp has completed the formation of a new joint venture, ThyssenKrupp Uhde Chlorine Engineers, said the producer in its press release.

It will trade under the name ThyssenKrupp Uhde Chlorine Engineers and is operational with immediate effect. The new company combines the electrolysis business of the two companies under the managerial control of ThyssenKrupp Industrial Solutions, the majority shareholder, and will be consolidated in the group. The plan to create a joint venture had been announced in November 2013 but was subject to approval by the supervisory bodies and the relevant antitrust authorities.

An increased global presence will be achieved by combining and harmonizing the worldwide capabilities for engineering, procurement and construction of electrolysis plants as well as technical support and sales. The new global setup will be rolled out during the next months. The company is headquartered in Dortmund and its main entities are based in Okayama, Tokyo, Shanghai, Milan and Houston.

As MRC informed earlier, ThyssenKrupp Industrial Solutions, the engineering and construction specialist of the ThyssenKrupp Group, has won a follow-up order from the Hungarian fertilizer manufacturer Nitrogenmuvek Zrt. to expand its production capacity.

ThyssenKrupp is a diversified industrial group with traditional strengths in materials and a growing share of capital goods and services businesses. Around 155,000 employees in nearly 80 countries work with passion and technological expertise to develop high-quality products and intelligent industrial processes and services for sustainable progress. Their skills and commitment are the basis of our success. In fiscal year 2013/2014 ThyssenKrupp generated sales of around EUR41 billion.

MRC

Clariant in India announces acquisition of Lanxess black pigment preparations portfolio

MOSCOW (MRC) -- Clariant, a world leader in Specialty Chemicals, has announced that it has acquired the black pigment preparations portfolio of Lanxess, located at Nagda, Madhya Pradesh, reported the company on its site.

This product line of Lanxess manufactures black pigment preparations used for processing of viscose fibre, which goes in the manufacture of mainly viscose-based apparels, knitwear, towels, bed-linen, etc. With this acquisition, Clariant in India gains additional pigment preparation capacity to cater to a larger, wider customer base.

Commenting on the acquisition, Dr. Deepak Parikh, Vice-Chairman and Managing Director, Clariant Chemicals (India) Ltd said, "Over the last couple of years we have made significant strides in building a value proposition for our stakeholders by sharpening our business focus and increasing our footprint in India. This was achieved through organic resource optimisation and capitalising on inorganic value opportunities."

Sambit Roy, Regional Director – Marketing and Sales (Pigments), Clariant in India said, "The pigment preparations business has been the mainstay of our India operations and we continuously adapt product offerings to suit evolving customer needs. This acquisition is a strategic decision to expand distribution networks. We will upgrade technical services and provide state-of-the-art technology in order to generate high quality products to support our customers' business growth."

As MRC wrote before, in April 2014, Clariant Chemicals (India ) Ltd., an affiliate of Clariant AG announced the successful closure of the acquisition of Plastichemix Industries - a Gujarat based masterbatches business in India, with production facilities at Rania, Kalol and Nandesari.

Clariant in India has local pigment production activities at its Roha (Maharashtra) and Cuddalore (Tamil Nadu) sites. In the year 2014, Clariant invested in the expansion of its Roha pigments facility, thus strengthening its commitment to India.
MRC

Lotte Titan to shut LLDPE plant in Indonesia for maintenance

MOSCOW (MRC) -- Lotte Titan is in plans to shut its linear low density polyethylene (LLDPE) plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Indonesia informed that the plant is likely to be shut towards end-June 2015. The duration of the shutdown could not be ascertained.

Located in Merak, Indonesia, the plant has a production capacity of 450,000 mt/year.

As MRC wrote previously, in December 2014, KBR, Inc. received a licensing and engineering design services contract from Malaysia-based olefins and polyolefins provider, Lotte Chemical Titan Holding Sdn. Bhd. The scope of the contract requires KBR to extend its catalytic olefins technology to enhance the olefins production for Lotte Chemical Titan. The company’s catalytic olefins technology efficiently converts low-value olefinic, paraffinic or mixed streams to propylene and ethylene, which hold higher value in the market.

The Lotte Group currently has a presence in Indonesia via its subsidiary, Honam Petrochemicals, which acquired Malaysia’s polyolefin major Titan Chemicals in July 2010. Included in the acquisition was Titan’s Indonesian subsidiary - PT Titan Petrokimia Nusantara (TPN), which has a polyethylene (PE) production capacity of 450,000 tonnes/year
MRC

PC prices are expected to rise in Ukrainian market in April

MOSCOW (MRC) - Ukrainian importers and consumers are anticipating the increase in European polycarbonate (PC) prices in mid April, according to ICIS-MRC Price Report.

Traders said that one of the major PC suppliers in the Ukrainian market, Sabic Innovative Plastics, announced a seasonal rise in prices for all PC grades of EUR200-300/tonne, depending on the grade and type of product.
The increase is to take effect from 15, April.

One reason for the rise in prices was the desire to improve margins, which were previously weakened. Import duties for PC granules increased by 5% in Ukraine since the late February. This led to the fact that small converters had to change their procurement structure and look for more affordable polymeric material or use recycled materials.

Consumption of PC in Ukraine decreased to 365 tonnes in January-February 2015, down 20% year on year. Thus, the demand for unblended PC granules fell by 14% (up to 327 tonnes) over the reported period. It is unclear how the market will react to the price increase.

The shortage of working capital for the timely repayment of debts also puts pressure on the converters.
In any case, we can expect an increase in the price of the final product. Supply of PC granules for sheet extrusion are expected to be resumed in April because of seasonally stronger demand for finished product.

Some producers of injection moulding products in recent time have difficulties with deliveries to Russia. Given the rising cost of feedstock, energy, taxes, instability of the course in the Ukrainian PC market, there comes a difficult period.

MRC