Hengli Petrochemical lets contract to Axens for integrated refining complex

MOSCOW (MRC) -- Hengli Petrochemical (Dalian) Co. Ltd. (HPDC) has let a contract to Axens SA, Rueil-Malmaison, France, to provide a suite of processing units and technologies for a grassroots crude-to-paraxylene complex under construction at its integrated refining and petrochemical project in Hengli Petrochemical Industrial Park (HPIP) on Changxing Island in Dalian, Liaoning Province, China, said Ogj.

Alongside a final-conversion refinery designed to process 400,000 b/sd of crude oil into mostly naphtha, the refining complex also will include an aromatics plant that will maximize output of high-purity paraxylene to serve as feedstock for HPDC’s existing purified terephthalic acid (PTA) plants at HPIP, Axens said.

As part of the contract, Axens will deliver the following suite of proprietary technologies for the project.

In addition to high-purity paraxylene, the new crude-to-paraxylene complex also will produce gasoline and diesel fuels that meet China 5-quality specifications, as well as jet fuel, base lube oils, and LPG.

The service provider did not disclose a value of the contract or a timeline for the project’s completion.
HPDC, which broke ground on the crude-to-paraxylene refining complex in late 2015, plans to invest a total of 74 billion yuan to complete the integration project, which is the largest refinery project in China ever to be approved, HPDC said in a release on Dec. 19, 2015.

A subsidiary of Hengli Group, Wujiang, Jiangsu Province, China, HPDC commissioned the first two 2.2 million-tonne/year PTA production lines of HPIP’s Phase 1 development in September 2012 and Phase 2’s first 2.2 million-tpy line in February 2015, according to Hengli.

Axens is an international provider of advanced technologies, catalysts, adsorbents and services. The main scope of Axens' business is focused on the conversion of oil, coal, natural gas and biomass to clean fuels as well as production and purification of major petrochemical intermediates. Axens’ global offer is based on: highly trained human resources, modern production facilities and extensive commercial feedback from plants using our processes and catalysts all around the world.

Hengli Group which was founded in 1994 now owns the largest PTA factory of monomer capacity, the largest production base of superbright polyester yarn and industrial yarn, the largest weaving enterprise in the world. It now has more than 50,000 staffs, and has been established into "Enterprise Technology Center" of our country. Its business sets foot in several industries such as petrochemical, polyester,chemical fiber, weaving, thermal power, machinery, hotel and real estate,etc. The enterprise competitiveness and brand value of the products stand first on the list among the same industry. In 2014, the sales volume of Hengli Group is RMB 163 billion, which ranks 11th in China's top 100 private enterprises.

Shin-Etsu to undertake maintenance at PVC plant

MOSCOW (MRC) -- Shin-Etsu is in plans to shut its polyvinyl chloride (PVC) plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Japan informed that the plant is scheduled to be taken off-stream in May 2016. It is likely to remain off-stream for around four weeks.

Located in Kashima, Japan, the plant has a production capacity of 550,000 mt/year.

We remind that, as MRC wrote before, in 2015, Shintech Inc. added almost 700 million pounds of PVC capacity as part of a USD500 million expansion of its plants in Louisiana. Shintech's parent firm - Shin-Etsu Chemical Co. Ltd. of Tokyo - said in a June 19 news release that the firm will addd 660 million pounds of PVC capacity in Louisiana by 2015. Houston-based Shintech makes PVC in Plaquemine and Addis, La. The project also includes 660 million pounds of new capacity for PVC feedstock vinyl chloride monomer (VCM) and 440 million pounds of new capacity for caustic soda.

Shin-Etsu is the world and US' largest PVC producer.

UK chemicals sector could face GBP7bn loss of exports if withdraws from EU

MOSCOW (MRC) -- The chemical industry in UK could face a GBP7bn loss of exports if the country chooses to withdraw from the European Union (EU) without signing a new Free Trade Agreement (FTA), according to a report by trade credit insurance group Euler Hermes, said Chemicals-technology.

In addition, the report has warned that the machinery and equipment industry would face a loss of GBP3.5bn and the automotive industry would face GBP3bn loss, if new FTA is not agreed. The UK's chemicals, automotive, machinery, and equipment sectors are known to be highly dependent on the European market.

Euler Hermes European economist Ana Boata said: "The chemicals industry is one of the most important exporting sectors in the UK, with GBP55bn of goods sent abroad each year.

In its 'Brexit Me If You Can' report, Euler Hermes analysed the effects on the UK companies if the country leaves EU from two perspectives, one with a new FTA in place and one without an FTA. As per the report, in the absence of an FTA, margins would suffer dut to higher import and financing costs, and international divestment could lead to a reduction in exports.

Even the signing of a new FTA may lead to a drop of up to GBP2.5bn in exports for chemical companies, while the machinery, equipment and automotive sectors will each face a GBP1.1bn reduction in exports.

Euler stated that if the UK left EU without a FTA, the turnover of domestic companies could be reduced by 1% per year on average, compared to an existing predicted growth rate of 4% on average after 2017 if the UK stayed in the EU.

The entire scenario could result in up to GBP30bn, or 8%, of losses to the UK's total goods exports, and the country would require a minimum of ten years to fill the gap.

Additionally, the already high trade balance deficit could widen by GBP35bn to GBP180bn within 12 months of the formalisation of a UK exit from the EU.

Next year, the UK European Union membership referendum is scheduled to take place, and those in favour of a British withdrawal from the EU, commonly referred to as Brexit, say that outside the EU, the country would be better able to address its own issues.

UK became a member of the European Economic Community in 1973.

As MRC informed earlier, the European Commission is demanding that the largest chemical producer in the world, BASF, pay 200 million euros (USD217 million) in unpaid taxes to Belgium. The European Commission announced that Belgium had granted tax advantages that are at odds with the Commission's rules to at least 35 multinational companies, and ordered the country to recover 700 million euros in unpaid tax.

Evonik and TeamTec agree on cooperation on ballat water treatment system

MOSCOW (MRC) -- TeamTec AS and Evonik Resource Efficiency GmbH have signed a cooperation agreement for the marketing of AVITALIS Ballast Water Treatment System (AVITALIS), said Evonik in its press release.

AVITALIS is a fully automated system for the disinfection of ballast water aboard of ships. AVITALIS utilizes the highly efficacious and biologically degradable PERACLEAN Ocean, which has been specifically developed for the treatment of ballast water.

Within the cooperation with Evonik, TeamTec takes over the global responsibility for the manufacture, sales and service of AVITALIS. Evonik with its global presence and established supply chains for specialty chemicals ensures the supply of the customers with PERACLEAN Ocean as well as the further development of the technology.

TeamTec is a globally leading supplier of waste incinerators and stripping ejectors for the use aboard of ships. Beyond this, TeamTec’s parent company IMS Group is a market leader in watertight ship doors.

"In TeamTec as a globally leading supplier of maritime specialty equipment we have found the ideal partner for the marketing of AVITALIS. With its broad market access and production know how for specialty components for the ship industry, TeamTec perfectly complements our own technology competencies", explains Michael Traxler, head of the Business Line Active Oxygens of Evonik.

Olav Voie, CEO of TeamTec emphasizes: "AVITALIS is the ideal addition to our maritime product portfolio. With AVITALIS, we are now able to also offer our customers a reliable and environmentally friendly solution for the treatment of ballast water. We are very much looking forward to the cooperation with Evonik, a leading company in specialty chemicals and in the field of ballast water treatment".

As MRC informed before, in June 2015, Evonik and Brenntag agreed to cooperate on hydrogen peroxide and peracetic acid for pharma and cosmetics markets. Evonik Industries introduced new hydrogen peroxide and peracetic acid grades for drug, medical products, and cosmetics manufacturers in response to increasingly more stringent regulatory requirements in these close-to-consumer industry segments. In Europe, customers will receive tailored solutions, enabling them to provide end consumers with safe and fully certified products.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.

HDPE imports to Ukraine dropped by 13% in January 2016

MOSCOW (MRC) -- January overall imports of high density polyethylene (HDPE) into Ukraine decreased by 13% from December, totalling 8,900 tonnes. The pipe extrusion sector accounted for the largest fall in imports, according to MRC DataScope report.

Last month's HDPE imports to Ukraine dropped to 8,900 tonnes from 10,200 tonnes a month earlier. HDPE imports decreased to all consumption sectors under the pressure of seasonal factors, film grade polyethylene (PE) being the exception. Pipe grade PE accounted for the greatest decline in demand in January.

Supply structure by PE processing sectors looked the following way over the stated period.

Last month's imports of film grade HDPE to the Ukrainian market rose to 4,800 tonnes from 4,600 tonnes in December 2015. European producers accounted for a small increase in shipments.

January imports of injection moulding and extrusion blow moulding (EBM) HDPE to Ukraine fell to 1,300 tonnes and 1,200 tonnes from 1,500 tonnes and 1,600 tonnes, respectively, a month earlier.

Last month's imports of pipe grade HDPE (excluding natural HDPE grades) were 1,400 tonnes versus 2,300 tonnes a month earlier.

HDPE imports into other sectors did not exceed 200 tonnes in January.