Global growth in 7.4 million tonne BOPP film market above that of GDP

MOSCOW (MRC) -- Led by demand in Asia, global consumption of bi-oriented polypropylene (BOPP) films has averaged 6.2% growth per year over the last five years – almost twice average global GDP growth – and this trend will continue, according to Canplastics.

The report, by market research firm PCI Films Consulting Ltd. , identifies a series of factors driving global BOPP film volume growth, including higher sales of packaged food, stimulated by the growth in multiple food retailing and higher personal disposable incomes; growth in convenience foods packaged in BOPP films such as fruit and vegetables, salads, snacks and confectionery; the substitution of other flexible packaging materials such as BOPET, BOPA and other speciality films, speciality coated and label papers and aluminium foils; investment in new converting and packaging equipment allowing BOPP film to be used in a larger number of applications; and environmental legislation which has pushed rigid packaging formats towards flexible packaging.

But this demand is definitely not shared evenly around the globe. "While demand growth in mature BOPP film markets, such as Western Europe, North America and Japan has been lacklustre, demand in emerging markets such as China and India continues to grow strongly while new markets, such as Vietnam and Myanmar, have seen rapid expansion in their domestic flexible packaging industries," the report said.

Indeed, the expansion in the Chinese BOPP film industry is the single biggest development in BOPP films over the past five years. “The numbers often beggar belief and despite numerous industry conferences held in China to slow investment and inform prospective investors of the threats of oversupply, rapid growth continues,” the report said. "Since 2000, the Chinese BOPP film industry has expanded 10-fold, 4 million tonnes of capacity, accounting for 57% of all installations of new film extrusion capacity globally."

Along with Asian growth in demand has been an increase in merger & acquisition activity in the supplier base, and the report highlighted several recent notable transactions: Jindal Poly Films’ purchase of ExxonMobil’s European and US BOPP film assets; Taghleef Industries purchase of the Spanish speciality producer Derprosa; Biaxplen’s consolidation in the Russian industry; and Amtopp’s purchase of the Vifan and Uniscite facilities in North America.

These M&A’s notwithstanding, the report describes what it calls "the total lack of industry planning in plastic film production" that is hampering BOPP production. “Undoubtedly there are opportunities to source large quantities of commodity film from some Chinese producers, with one producer alone soon able to supply the entire US market’s annual needs twice over. However, the commercial terms demanded by a Chinese supplier may make doing business practically impossible," the report said. "It is little wonder, then, that the industry is suffering from low margins and underutilised capacity."
MRC

Perstorp now supplying surfactants market with 2-PH after start-up of new Oxo plant

MOSCOW (MRC) -- Producers of surfactants and hard-surface cleaners around the world now have access to a major new supply of a highly cost-effective raw material, 2-propyl heptanol (2-PH). With the January start-up of its major new Oxo plant for chemical intermediates and finished products in Stenungsund, Sweden, Perstorp now has sufficient capacity to supply 2-PH to the merchant market as well as its own downstream operations, as per Perstorp's press release.

Perstorp is now concluding Project Valerox, its largest plant investment ever, and the new Oxo plant is already manufacturing industrial quantities of various key materials - including 2-PH - for numerous applications, including plasticizers and lubricants. Most output is currently consumed internally in production of Perstorp’s Emoltene 100 PVC plasticizer, but Perstorp has now also become a significant supplier of 2-PH on the open market. The Oxo plant will be a reliable and stable source of this important raw material for surfactants.

"The global surfactants industry is increasingly calling for C10 fatty alcohols and our new capacity for high-purity 2-PH is an answer to that call," says Jerker Olsson, Vice President Business Unit Oxo at Perstorp. "Our customers will be able to count on a reliable long-term supply of this very attractive alternative to existing offerings."

Surfactant producers currently rely to a large extent on natural and synthetic C9-C12 linear and branched alcohols. These have recently been subject to swings in availability and price volatility. The new Perstorp facility now provides more stability to the supply side of the market while also offering consumers a product that has a highly attractive set of properties.

"2-PH is an excellent raw material for alcohol ethoxylates used in surfactants," says Hakan Bjornberg, Vice President Innovation. "It can be used as a replacement for other short-chain branched C9-C12 alcohols, as well as linear alcohol mixes." 2-PH ethoxylates typically have excellent wetting power, good emulsifying power and good solubility. They have high surface activity and they are easy to combine in formulations," says Bjornberg. "This product also has a good water solubility, making it an excellent choice for hard surface cleaning, and is easy to rinse off. It has a low tendency to form gels, good stability, and a degreasing power that is better than most other types and can replace nonylphenol ethoxylates (NPEs)."

Perstorp also intends to offer 2-PH as a raw material for adhesives and lubricants. 2-PH acrylates offer increased tackiness and better low temperature performance for pressure sensitive adhesives formulations, for example, while 2-PH esters with adipic acid, find use in engine oils and gearbox lubricants.

As MRC wrote before, in 2013, Perstorp launched Pevalen as a non-phthalate plasticizer meeting market demand in sensitive applications.

Plasticizers are a vital component in soft PVC plastics where durability and flexibility are important properties - in flooring, artificial leathers, tarpaulins, toys, automotive interiors, and cables.

Perstorp is one of the world leaders in various sectors of the specialty chemicals market, it's pioneer in formalin chemistry, plastics and surface materials. Perstorp was founded in 1881 and is controlled by PAI partners,a major European private equity company. The company has around 1,500 employees in with 22 production plants in Europe, Asia and North America.
MRC

Saint-Gobain Performance Plastics buys ZenPure

MOSCOW (MRC) -- France-based Saint-Gobain SA has acquired Manassas, Va.-based filter and membrane specialist ZenPure Corp., said Plasticnews.

ZenPure designs and manufactures filters and membrane devices of any size, adapter type, fitting type and configuration, using materials including polyethylene, polypropylene, polyvinylidene fluoride, polyethersulfone, polytetrafluoroethylene, nylon and cellulose.

The products are manufactured by its Chinese subsidiary, ZenPure (Hangzhou) Co. Ltd. Founded in 2002, ZenPure primarily serves the health care and life-sciences industries. ZenPure products are marketed and sold across the globe.

The acquisition increases the range of fluid systems made by Saint-Gobain Performance Plastics Corp., which is based in Aurora, Ohio.

Paris-based Saint-Gobain designs, manufactures and distributes building and high-performance materials. Its 2014 sales were 41 billion euros (about USD46.3 billion).

Saint-Gobain Performance Plastics has more than 5,700 employees in 18 countries.

Terms of the deal were not disclosed.

As MRC informed earlier, Saint-Gobain in early April extended an agreement with the Burkard-Schenker family that would see it take control of Switzerland's Sika in order to give it time to complete the deal in the face of opposition.

Compagnie de Saint Gobain SA, (also Compagnie de Saint-Gobain SA), is a France-based producer, processor and distributor of construction and high-performance materials and packaging. The Company is engaged in four business activities: Innovative Materials, including the manufacture and distribution of flat glass, used in the automobile, construction and other sectors, as well as the production of high-performance materials, such as ceramics, plastics and abrasives, among others; Construction Products, focused on gypsum, and pipes, among other products; Building Distribution, specialized in the distribution of building materials to professionals and consumers, and Packaging, comprising the production of glass jars and bottles.
MRC

Chemtura, Tosoh agree deal for flame retardant products in Japan

MOSCOW (MRC) -- Chemtura Corp. (CHMT) and Tosoh Corp. announced that they have signed a letter of intent establishing the framework for a long-term relationship for brominated flame retardant products and technologies in Japan, said the company.

Under the letter of intent, Tosoh would have the exclusive right to promote and sell Chemtura's Emerald Innovation1000 flame retardant products to Japanese customers. Tosoh would also be granted a license to manufacture Emerald Innovation1000 products for sale to Japanese customers.

Tosoh will bring its proprietary production technologies to support the quality-conscious Japanese market. Emerald Innovation 1000 products, developed and manufactured by Chemtura, are designed to replace decabromodiphenylether and decabromodiphenylethane in various end-use markets.

Financial terms or timelines for the signing of a definitive agreement were not disclosed.

Chemtura produces petroleum additives and polyester polyols as well as thermoplastic polyurethanes and urethane pre-polymers. It also produces organometallics and bromine products, many of which are used as flame retardants in applications including insulation foam and electronics.

As MRC informed earlier, in Q1 2015 Chemtura reported net sales of USD438 million and net earnings from continuing operations on a GAAP basis of USD21 million, or USD0.30 per diluted share. Net earnings from continuing operations on a
managed basis were USD20 million, or USD0.29 per diluted share.

Tosoh is one of the largest chlor-alkali manufacturers in Asia. The company supplies the plastic resins and an array of the basic chemicals. Tosoh's petrochemical operations supply ethylene, polyethylene, and functional polymers, while its advanced materials business serves the global semiconductor, display, and solar industries.
MRC

LUKoil Subsidiary to take part in Mexican Oil Tender - Energy Commission

MOSCOW (MRC) -- Last year, CNH approved a 2015 international tender for 14 exploration and production contracts for shallow-water raw materials extraction in the Gulf of Mexico. LUKoil Overseas Netherlands BV is one of 26 applicants approved to participate in this tender, reported SputnikNews with refrence to CNH.

As many as 19 companies are competing for drilling rights as individual entities, including the LUKoil subsidiary. The remainder have set up consortia and will be performing in groups.

According to CNH, LUKoil Overseas is undertaking preparations to participate in an additional unspecified Mexican oil tender.

Foreign companies were allowed to take part in the tender following a December 2013 reform in Mexico's energy sector that put an end to state monopoly in the sphere.

As MRC wrote previously, OAO Lukoil Holdings, Russia's No. 2 oil producer, will invest USD1 billion in the oil firm Samara-Nafta to increase production. Lukoil acquired Samara-Nafta from Hess Corp. this month for USD2 billion as part of a strategy to stabilize and increase oil production. Lukoil has for years fought declining output at its main, Soviet-era fields in Western Siberia. The investment in Samara-Nafta will increase production by between 5% and 7% over the next five years from 2.5 million tonnes a year, Prime news agency cited the company as saying.

LUKoil, a Russian-based company, is one of the global leaders in the production and refining of crude oil and gas resources. The world's largest privately owned oil and gas company, measured by proven oil reserves, LUKoil has operations in over 40 countries.
MRC