Kolon Plastics and BASF to set up joint venture for polyoxymethylene production in Korea

MOSCOW (MRC) -- Kolon Plastics and BASF have signed an agreement to establish a joint venture in Korea to manufacture polyoxymethylene (POM), an engineering plastic used in industrial, transportation, construction and consumer markets as per BASF's press release.

The 50:50 joint venture named "Kolon BASF innoPOM, Inc." will have an annual capacity of 70,000 metric tons. It will be located at the existing manufacturing site of Kolon Plastics in Gimcheon, Korea, which already includes a POM production. The start of operation is scheduled for the second half of 2018 creating in total the world’s largest complex for the production of POM.

Both companies have long-term experience in POM production and will use Kolon’s highly efficient production technology to provide best-in-class product quality. "In the new joint venture the strengths of each company will be reinforced enhancing our overall competitiveness. Kolon Plastics’ globally leading technology and the efficiencies of the existing infrastructure will generate significant synergies. We are looking forward to this joint venture that may lead to further opportunities for cooperation," said Mr. Hee Goo Jang, CEO of Kolon Plastics.

The products are to be marketed around the world separately by the two companies under their respective trade names and proprietary formulations. "Kolon and BASF have had an excellent business relationship for many years," said Raimar Jahn, President of BASF’s Performance Materials division. "The markets for POM are growing around the world. Particularly in Asia the joint venture will strengthen our ability to support our customers with high-performing, innovative specialties."

Following the start-up of the new plant in Korea in the second half of 2018, BASF will discontinue production of POM in Ludwigshafen.

Polyoxymethylene resins are engineering plastics used in complex and highly durable components. Their high strength and resilience, friction performance and chemical resistance enable a broad range of applications used in automotive manufacturing as well as for electric and electronic goods, consumer goods, medical products and construction.

Kolon markets its POM product line under the trade name Kocetal. BASF offers POM products for a wide range of applications under the trade name Ultraform.

We remind that, as MRC wrote previously, in September 2015, BASF began its first production of diphenylmethane diisocyanate (MDI) at its wholly-owned site in Chongqing, China. Production will be ramped up gradually in line with market demand. MDI is an important component for polyurethanes - an extremely versatile plastics material that contributes towards improved insulation, provides lighter materials for cars, and helps save energy in buildings. MDI production will support these key industries in China’s western areas.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of more than EUR70 billion in 2015
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company and a global leader in vinyl acetate/ethylene (EVA) emulsions, has announced that it has increase the price of vinyl acetate-based emulsions sold in Asia, as per the company's press release.

EVA emulsions increased by Yuan 200/MT for China and USD25/MT for the rest of Asia effective March 10, 2016, or as contracts allow.

This price increase affects all applications including, but not limited to, adhesives, paints and coatings, waterproofing, building and construction, glass fiber, carpet and paper.

This increase is attributed to the continued pressures on raw materials, notably ethylene and vinyl acetate monomer (VAM).

As MRC informed previously, Celanese Corporation last increased its prices of EVA emulsions sold in Asia on 31 October, as follows: EVA emulsions increased by Yuan 260/tonne for China and USD35/tonne for the rest of Asia.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,000 employees worldwide and had 2015 net sales of USD5.7 billion.
MRC

MOSCOW (MRC) -- BASF, the world's petrochemical major, has presented SLENTITE, the new high-performance insulating material, said the producer on its site.

In the design and construction sectors, the properties of SLENTITE are opening up totally new potential. The innovative material based on a polyurethane aerogel is manufactured as a heavy-duty panel displaying exceptional insulation performance. Owing to its open-porous structure, the material provides moisture regulation and thus contributes to a pleasant interior climate: сustomized climate management with the new high-performance insulating material. Inserted between the window frame and the masonry, SLENTITE makes window modernization even more attractive. The PU aerogel can be installed as thermal insulation wedges between walls and windows indoors and outdoors, regardless of the window frame material. Existing window jamb systems can be reduced further in size, as the new high-performance insulation panel is extremely slim.

"We now have the chance to eliminate thermal weak points in the building envelope, prevent damage and enhance interior comfort," says Dr. Marc Fricke, SLENTITE Project Manager at BASF Polyurethanes.

SLENTITE also facilitates further product improvements in roller shutter casings and lamellar blind boxes. For a new or upgraded building to be truly energy-efficient, attention has to be paid to the details. Roller shutter casings insulated with SLENTITE deliver excellent insulation values regardless of the wall structure and thickness. "With the new BASF high-performance insulating material, we’ve succeeded in improving our existing top products by another 35 percent," says Michael Kruger, Development Director at Beck + Heun.

As MRC reported earlier, in September 2015, BASF began its first production of diphenylmethane diisocyanate (MDI) at its wholly-owned site in Chongqing, China. Production will be ramped up gradually in line with market demand.

MDI is an important component for polyurethanes - an extremely versatile plastics material that contributes towards improved insulation, provides lighter materials for cars, and helps save energy in buildings. MDI production will support these key industries in China’s western areas.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of over EUR70 billion in 2014 and over 113,000 employees.
MRC

MOSCOW (MRC) -- Amec Foster Wheeler announces today the award of a contract by Pakistan Refinery Limited (PRL) for a detailed feasibility study to upgrade their refinery in Karachi, Pakistan, said the company on its site.

PRL’s refinery, on the coastal belt of Karachi, is designed to process various imported and local crude oil. It is one of the principal manufacturers and suppliers of petroleum products to domestic markets.

This feasibility study will investigate and propose ways that the refinery can be upgraded to meet tougher product specifications through regulatory changes, as well as expansion to provide more of the petroleum products that are in demand in the domestic market, whilst ensuring the sustainability of the refinery.

A particular focus of the study will be into upgrading technologies to minimise the production of fuel oil from the refinery as well as making cleaner and higher quality products.

As MRC informed earlier, Amec Foster Wheeler was awarded a front-end engineering design (FEED) contract by PetroVietnam for their Dung Quat oil refinery expansion in Quang Ngai Province, Vietnam.

Amec Foster Wheeler designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors. Employing around 40,000 people in more than 55 countries and with 2015 revenues of GBP5.5 billion, the company operates across the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, clean energy, power generation, pharma, environment and infrastructure markets.
MRC