Construction of USD4.5B petrochemical complex in Mexico nearing completion

MOSCOW (MRC) -- Construction is nearly complete on a USD4.5 billion petrochemical complex in the Mexican Gulf coast state of Veracruz that will provide big benefits in terms of import substitution and be the largest of its kind in Latin America, as per ENR.

Etileno XXI is projected to produce around 750,000 tons of high-density polyethylene (HDPE) and 350,000 tons of low-density polyethylene (LDPE) annually starting in December, output that will serve to replace "70% of Mexico's polyethylene imports," Eduardo Lima de Rozendo , the top executive of the Odebrecht-led joint venture company building the complex, told EFE in an interview.

Lima de Rozendo , the Mexican representative of Brazil -based Odebrecht Engenharia e Construcao Internacional S.A. , said the complex would have the capacity to process 66,000 barrels per day of ethane, which will be purchased from Mexican state-owned oil company Petroleos Mexicanos.

The complex near the port city of Coatzacoalcos will use that raw material to produce an annual total of nearly 1.1 million tons of polyethylene (PE), used to make products such as plastic food containers, detergents, shampoos, bags, pipes, baby bottles, toys, diapers and even medical prosthetics.

Mexico was chosen as the site of the project because its Atlantic and Pacific coasts make it a "strategic location" and due to the trade treaties it has signed, the executive said.

A total of 26,000 workers have been involved in the construction stage, which kicked off in 2011. The complex currently occupies an area of nearly 900,000 sq. meters (220 acres), while an additional 300,000 sq. meters were used to store materials.

Engineering, procurement and construction are the responsibility of the Etileno XXI joint venture company, which is led by Brazil -based Odebrecht Engenharia e Construcao Internacional S.A. and also includes ICA Fluor, the industrial engineering partnership between the Texas -based Fluor Corporation and Mexico's Empresas ICA; and Italy's Technip.

The complex will be operated by Braskem-Idesa, a joint venture between Braskem (the petrochemical arm of Brazil's Odebrecht Group and Latin America's largest producer of thermoplastic resins) and Grupo Idesa, a leading Mexican petrochemical company.

As MRC informed previously, in March 2015, Brazilian petrochemical producer Braskem has lifted the investment forecast for its flagship Etileno XXI complex in Mexico by 13% amid rising construction costsю

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
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MOSCOW (MRC) -- Turkish plastics processor and mold maker MTN Kalip Sanayi Ltd. Sirketi is building a second factory to expand its injection molding business, targeting exports to Europe, said Plasticsnews.

The Istanbul-based firm will open the second facility in Turkey early next year with 16 injection molding machines, serving its existing end markets in automotive and appliance manufacturing, said Kadir Yavuz, sales and marketing supervisor.

"MTN has decided to grow strategically in plastic parts manufacturing," he said. "We’re very well known for molds. We are working with all well known automotive and white goods brands. That is why we would like to grow in plastic parts production."

Yavuz was interviewed at the Fakuma 2015 fair, held Oct. 13-17 in Friedrichshafen. The small company builds molds and manufactures plastic parts as a Tier 1 and Tier 2 supplier for global car brands, and in the appliance sector for Whirlpool, BSH Hausgerate GmbH, Turkey’s Arcelik A.S. and others.

MTN started as a mold manufacturing company 20 years ago and in 2011 launched its injection molding business, and sees good possibilities for growth there, Yavuz said.

In a corporate sales presentation provided to Plastics News, MTN said the new factory would eventually grow to 45 injection molding machines in its second phase. No time frame was specified. Its plastics parts business - which has 12 injection molding machines — currently is focused on Turkey’s domestic market. But it would like to grow exports to a level closer to that of its mold making unit, which exports 60 percent of molds it produces, Yavuz said.

The company also wants to pursue what it calls "localization projects," or more generally replacing imported injection molded parts that currently are not manufactured in Turkey. While the country’s economy has been hurt by the wars in neighboring Iraq and Syria and ensuing refugee crisis, Yavuz said Turkey’s plastics sector continues to grow.

MTN carries out production of moulds with professional management attitude based on the approach of Mould Innovation. MTN have experienced team, software, machinery and other equipment with latest technology. MTN can do Co-Design and FSS (Full Service Supplier) for the customers. MTN is a solution partner for customers in various projects.
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MOSCOW (MRC) -- LG Chem Co., South Korea's top chemical company, said that it had decided to hand over its organic light-emitting diode (OLED) business to its affiliate as part of efforts to focus on its flagship business, as per Yonhap News Agency.

In a regulatory filing, LG Chem said it plans to sell its OLED business unit to LG Display Co. on Dec. 15, for 160 billion won (USD142 million).

"LG Chem will focus on its material business, while LG Display will develop OLED-based products," said a LG Chem official.

LG Display, which counts Apple Inc. as one of its major clients, has shored up production of its flagship OLED, as well as quantum dot-based panels known for their high color reproduction. The move is to vie with its bigger rival Samsung, which has been pushing its quantum dot TVs.

LG Chem, the country's leading maker of car battery packs, is making efforts to focus on developing high-end chemicals and electric vehicle-related battery packs.

As MRC wrote before, last week, LG Chem shut its polyvinyl chloride (PVC) plant for a maintenance . It is expected to remain shut till end-October 2015. Located in Daesan, South Korea, the PVC plant has a production capacity of 240,000 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.
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MOSCOW (MRC) -- India’s largest flexible packaging company UFlex Ltd has targetted an April 2017 start up of its aseptic packaging plant, at Sanand in Gujarat, said Plasticsnews.

The company, which already has manufacturing facilities at Noida, Jammu and Malanpur, will spend Rs 580 crores in the first phase and employ around 250 people, as per Business Standard.

Uflex is planning multi-phase expansion at the new site and estimates a total investment of about Rs 1500 crores in all the phases of the project. About 90% of the output from this factory will cater to the domestic demand. Starting with initial capacity of around 3.5 bln packs, the plant will finally produce up to seven billion packs over time.

As MRC informed earlier, Reliance Industries Ltd. (RIL) has successfully put into operation two plants in Dahej, Gujarat, India. The first is a polyethylene terephthalate (PET) resin plant, which consists of two lines with a combined manufacturing capacity of 650 KTA. The plant has been built with Invista technology for continuous polymerization and Buhler AG technology for solid state polymerization.

Uflex is one of the major players in the flexible packaging industry world over with clients like P&G, PepsiCo, Tata Global, Mondelez, L’Oreal, Britannia, Haldiram, Amul, Ferro Rocher, Perfetti, GSK, Nestle, etc.

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MOSCOW (MRC) -- Bemis Co. Inc. saw net profit increase during the third quarter compared to last year, said Plasticsnews.

The Neenah, Wis.-based packaging company said net profit was USD62.5 million, or 64 cents per diluted share, on sales of USD1.02 billion for the quarter. That compares with net profit of USD17 million, or 17 cents per diluted share, on sales of USD1.1 billion for last year’s third quarter.

Net profits from last year were impacted by a loss of USD44.5 million, or 44 cents per diluted share, from discontinued operations.

"Our third quarter results demonstrate continued progress in the implementation of our long-term strategy, as we again delivered increased margins, return on invested capital, and cash from operations," said CEO William F. Austen said in a statement.

Bemis breaks out financial details for its U.S. packaging and global packaging operations.

Global packaging had net sales of USD328.1 million for the quarter, down 14 percent from the year before. Currency impacts decreased net sales by 22.1 percent. Increased unit volumes and “positive sales price and mix” helped offset currency issues.

U.S. packaging had net sales of USD690.2 million for the third quarter, down 3.7 percent from the third quarter of 2014. About 3 percent of the drop was from unit volumes and the remaining decrease was from a pass through of lower raw material costs, the company said.

Bemis Co. closed a plant in St. Louis Park and will close one in Minneapolis. Both facilities make flexible packaging for food under the Curwood brand, a division of Bemis.

Bemis, based in Neenah, Wis., is one of the country's largest packaging firms and is North America's largest film and sheet manufacturer with annual sales of USD5.3 billion.
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