BASF starts operations at new TDI plant at Ludwigshafen site

MOSCOW (MRC) -- BASF has officially inaugurated the new TDI (toluene diisocyanate) plant at its Ludwigshafen site. The plant has an annual capacity of 300,000 metric tons of TDI, said the producer on its site.

The total investment, including precursors, is over EUR1 billion. This is the largest investment ever made at the site and will create around 200 new jobs.

Guests at the inauguration ceremony included Sigmar Gabriel, Vice-Chancellor of Germany and Minister of Economic Affairs and Energy, and Malu Dreyer, Minister-President of the state of Rhineland-Palatinate. "I am pleased to be at today’s inauguration of the TDI plant and congratulate BASF on this forward-looking project. BASF is undertaking an innovative step with the start-up of the new TDI plant and, at the same time, making a commitment to Ludwigshafen as a location for industry. It is also an important building block in maintaining Germany’s industrial basis," said Sigmar Gabriel at the official opening.

In her welcoming address, Minister-President Malu Dreyer underlined the importance of this investment for the region: "BASF is the largest company in the state of Rhineland-Palatinate and makes a decisive contribution to our region’s economy. A billion-euro investment and 200 new jobs are important economic signals that extend beyond Ludwigshafen. With the new TDI plant, BASF also once again proves that it stands for state-of-the-art German technology."

Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, said: "The knowledge contributed to this project by BASF employees from around the world and the outstanding integration into our BASF Verbund make this plant one of the most modern and competitive facilities in the world. This enables us to serve our customers in Europe even better." Bock thanked everyone who worked on the project - employees, partners and the public authorities - for their smooth cooperation.

The TDI complex comprises plant components that produce DNT (dinitrotoluene), TDA (toluylendiamine) and TDI (toluene diisocyanate). Furthermore, the project involved the updating and expansion of production facilities for key precursors in the Verbund. In addition, BASF made investments in the infrastructure that supplies steam, electricity and water.

TDI is a core component for polyurethanes. It is often used in the furniture industry (elastic foams for mattresses, cushions or wood coating) and the automotive industry (seat cushions). BASF operates TDI plants in Yeosu, South Korea; Caojing, China; and Geismar, Louisiana, which have a combined capacity of 480,000 metric tons. The plant in Schwarzheide, Germany, will gradually be taken out of operation once the plant in Ludwigshafen starts up.

As MRC reported before, BASF, the world's petrochemical major, is further strengthening its production footprint in Asia Pacific with the start-up of its first production plant for polymer dispersions in Pasir Gudang, Malaysia, in early 2015.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Performance materials supplier Ferro Corp. of Mayfield Heights said it has completed the acquisition of Egypt-based tile coatings manufacturer Al Salomi for Frit and Glazes for about USD36 million, including the assumption of debt, said Crainscleveland.

The company had announced the deal on Sept. 3.

Ferro described Al Salomi as one of the leading manufacturers of frits and glazes in the Middle East and North Africa. Al Salomi’s 5,600-square-meter plant in Suez, Egypt, "is expected to be one of Ferro’s lowest-cost frit production sites," Ferro said in a news release.

Current production capacity is 55,000 metric tons per year. An additional two lines, or 12,000 metric tons per year, of new tile coatings capacity is under construction and due to be operational in early 2016, Ferro said. The plant, which will be Ferro’s second frit production facility in Egypt, includes land and infrastructure assets to support expected growth, according to the release.

Ferro said it expects the transaction to add to adjusted diluted earnings by 3 cents to 6 cents in 2016.

Peter Thomas, chairman, president and CEO of Ferro, said the deal "will provide much-needed production capacity, as we have been running at or near capacity levels at our existing plants in Spain and Egypt for some time."

He added, "Despite current weakness, the (Middle East and North Africa) region remains a very attractive, growing market for tile and porcelain enamel products. This acquisition, combined with our investments in Turkey, strengthens our position as a market leader."

As MRC informed earlier, A. Schulman, Inc. in 2014 announced that it had completed its acquisition of a selected majority of the assets of the Specialty Plastics business segment from Ferro Corporation for USD91 million in cash.

Ferro Corporation is a leading global supplier of technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials. Ferro products are sold into the building and construction, automotive, appliances, electronics, household furnishings, and industrial products markets. Headquartered in Mayfield Heights, Ohio, the Company has approximately 4,710 employees globally and reported 2014 sales of USD1.1 billion.
MRC

MOSCOW (MRC) -- The board of directors of Axiall Corporation appointed Timothy Mann, Jr. as the company’s president and chief executive officer, a position to which he was named on an interim basis on July 6, 2015. In addition, Mr. Mann was named to the board of directors, said Investors.

"The board completed its CEO search process and is pleased to select Tim Mann to be the president and chief executive to lead Axiall Corporation," said Axiall Board Chairman Mark Noetzel. "Tim has energized the employees and has renewed our focus on Axiall’s primary strategic initiatives. He has demonstrated to the board the right experience and capabilities to lead Axiall as we enhance the company’s competitive position to drive shareholder value."

Axiall President and CEO Mann said, "We are strengthening the company’s competitive position through improved operational reliability and a focus on cost competitiveness. Further, we continue to evaluate the alternatives for the entire portfolio of businesses and assets. I want to thank our employees for their dedication to safe operations and customer service."

Also, the Axiall Corporation board of directors declared a regular quarterly dividend of 16 cents per share of common stock. The dividend is payable Jan. 11, 2016, to shareholders of record at the close of business on Dec. 23, 2015.

As MRC informed earlier, Ineos Americas announced that it has acquired the aromatics business from Axiall Corp., a leading integrated North American chlorvinyl and aromatics manufacturer. Ineos paid USD52.4 million at closing with an additional USD10.5 million payable after closing upon satisfaction of certain conditions. The transaction became effective at the end of 30 September 2015.

Headquartered in Atlanta, Georgia, Axiall produces specialty chemicals and building products.

MRC

MOSCOW (MRC) -- Valero shuts FCCU at Port Arthur refinery in Texas following fire, said Reuters.

The fire stemmed from a hole in the FCCU's fractionator, Reuters reported, citing company sources. The time needed to repair and return the unit to normal operations was unknown.

A gasoline-producing fluid catalytic cracking unit (FCCU) was not running on Monday after a fire at Valero's 335,000-bpd refinery in Port Arthur, Texas, according to a report from news agency Reuters.

The fire stemmed from a hole in the FCCU's fractionator, Reuters reported, citing company sources.

The time needed to repair and return the unit to normal operations was unknown on Monday, accourding to Reuters' sources.

Valero did not respond to a request for comment.

As it was written earlier, in February 2015, Valero Energy Partners LP approved the partnership's acquisition of certain businesses from subsidiaries of Valero Energy Corporation. In the transaction, the partnership will receive the outstanding membership interests in Valero Partners Houston, LLC and Valero Partners Louisiana, LLC for total consideration of about USD671 mln.

Valero Energy Corporation is a Fortune 500 international manufacturer and a marketer of transportation fuels, other petrochemical products, and power. It is based in San Antonio, Texas, United States. The company owns and operates 16 refineries throughout the United States, Canada, United Kingdom, and the Caribbean with a combined throughput capacity of approximately 3 million barrels (480,000 m3) per day, 10 ethanol plants with a combined production capacity of 1.2 billion US gallons (4,500,000 m3) per year, and a 50 megawatt wind farm.
MRC

MOSCOW (MRC) -- Teknor Apex has expanded its "polymer-neutral" product by developing styrenic TPEs with alternative cost and performance profiles to those of TPVs in automotive exterior application, said the producer on its site.

The Sarlink ME-2200 series exhibit higher flow than comparable TPVs, enabling molders of exterior components such as gaskets, seals, and trim to process complex, intricate designs while shortening cycles through reduced packing and cooling time. In applications where TPV compounds are over-engineered, these compounds can provide a cost savings while still meeting the performance requirements of the part. Like TPVs, the compounds are less dense than EPDM and PVC, yielding weight savings of up to 15 and 23 %, respectively.

The TPEs are available in hardnesses from 65 Shore A to 40 Shore D. They are said to offer excellent UV stability, provide good flexibility over a wide temperature range, and yield a Class A surface appearance. The compounds are readily colored and, unlike many TPVs, do not require pre-drying prior to moulding. All compounds in the series are available worldwide in both black and natural formulations.

"Sarlink ME-2200 Series TPEs are already in commercial use for static seals, cowl vent seals, and mirror gaskets," said Jeffrey E. Dickerhoof, senior marketing and sales manager for the Thermoplastic Elastomer Division of Teknor Apex. "These new products are the latest examples of a Teknor Apex program to offer a wide-ranging, polymer-neutral portfolio, one that enables us to recommend a compound not because it happens to be what we make but because it is exactly the right material for a customer’s application."

As MRC informed previously, in 2013, Teknor Apex Company introduced a new rigid PVC compound with a specially developed UV-blocking formulation, which provides clarity for photobioreactor and other outdoor tubing, along with high gloss and toughness for weatherable profile applications.

Teknor Apex is one of the world's leading custom compounders headquartered in Pawtucket, Rhode Island, USA. The company produces PA compounds in the UK, the U.S.A., and Singapore. Teknor Apex is one of the world's leaders of specialty PVC compounds which are used in a wide range of applications from wire and cable to automotive, medical, consumer and industrial products. The company also produces thermoplastic elastomers, nylon, bioplastics, chemicals, specialty compounds.
MRC