BASF produces binders for interior paints based on the mass balance process

MOSCOW (MRC) -- For the first time ever BASF is producing dispersions for interior paints based on the mass balance approach, said the producer on its site.

To manufacture the binders of the Acronal brand, the company replaces 100% of the fossil resources used at the beginning of the production process with renewable raw materials. The paint producer DAW from Ober-Ramstadt (in Hesse, Germany) is already using one of these dispersions for its premium paints.

Already during the production of the basic products for the dispersions, biomass is used as feedstock. With the help of the mass balance process, which has been jointly developed by BASF and TUV SUD technical inspection board, the biomass share is then allocated to the dispersions according to their respective recipes. In terms of formulation and quality, the mass-balanced products are identical with their fossil counterparts.

"Since these dispersions are based on the use of sustainably certified renewable raw materials in the production process, they help save fossil resources and reduce greenhouse emissions. That way, we at BASF can help our customers develop interior paints that combine environmental responsibility with uncompromising premium quality," explains Robert Heger, Vice President, in charge of the dispersions business of BASF for construction and architectural coatings in Europe.

"A skillful painter and decorator needs environmentally friendly products that are easy to process, keep for a long time and are affordable," says Wolfgang Hoffmann, Head of Caparol Product Management at DAW. "By offering new paints that are based on the mass-balanced dispersion we are breaking new ground and are closing a gap in the market."

DAW, a European market leader in the field of architectural coatings, uses the dispersion for the production of premium-quality interior paints that are marketed under the brand names Caparol and Alpina. As of March, these interior paints are sold in the stores.

As MRC wrote previously, BASF will expand its capacity for the production of Paliocrom effect pigments by more than 20 percent by 2017 in Ludwigshafen, Germany. The investment will enable the company to accommodate for the growing demand of its aluminum-based effect pigments in the automotive coatings sector. With an investment of approximately EUR10 million, BASF aims to strengthen its position in this fast-growing market.

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.
MRC

MOSCOW (MRC) -- China's polyester producers have been snapping up feedstocks purified terephthalic acid (PTA) and monoethylene glycol (MEG) amid a rise in operating rates ahead of peak demand season, according to producers and market sources TPS spoke to.

TPS reported in February that polyester demand was expected to strengthen in March after the Lunar New Year holidays, ahead of a seasonal rise in production before summer.

Loom operating rates among weavers in the key eastern China provinces of Jiangsu and Zhejiang have hiked to 84.25% March 14, compared to 49.39% reported on February 19.

Polyethylene terephthalate (PET) operating rates have risen to 77.59% for the same period after touching a 2016-low right after the holidays at 60.93% recorded on February 12.

A fiber intermediate broker estimates that polyester production rates were around 75% mid-March, which the broker described as "healthy".

"So far, PET is doing well, and operating rates are near capacity," according to a source from China's biggest PTA producer Yisheng Petrochemical.

However, the upside for PTA may not be so big, since supply is ample, the source said, referencing a recent startup of a 2.2 million mt/year PTA plant by China's Hanbang Petrochemical.

Nonetheless, PTA plants have responded favorably to the rise in PET and loom rates - PTA production buoyed higher to 66.66% March 14, after hitting a low at 54.39% reported on February 19. PTA operating rates lag behind those of the other two industries due a significant capacity overhang.

In the MEG market, most supply is imported as China lacks self-sufficiency, where transaction volume has spiked in March, according to MEG traders and brokers.

"I'm seeing an average of one hundred deals daily," one intermediates broker said.

Assuming parcels traded are in 500 mt or 1,000 mt lots, between 50,000 mt to 100,000 mt of MEG are transacted daily.

China's polyester industry typically enjoys peak seasonal demand ahead of summer.

We remind that, as MRC informed previously, in March 2016, Hanbang Petrochemical successfully started up its second purified terephthalic acid (PTA) unit and production operations are ongoing. However, the plant has yet to achieve on-spec production. According to the source, the plant is currently running one of its two production lines, each with an annual capacity of 1.1 million mt/year. A market source says the company has intentions to run the plant at full tilt once they are able to achieve on-spec production.
MRC

MOSCOW (MRC) -- South Korea’s major petrochemical producers, backed by higher earnings last year, are keen for mergers & acquisitions (M&A) or joint ventures with companies specializing in high-value added specialty products, reported TPS.

The latest move to actively seek for M&As and joint ventures is in tandem with South Korean producers’ efforts to diversify business portfolios amid China’s increasing self-sufficiency rates for petrochemical products.

Among major producers, SK Global Chemical (SKGC), a subsidiary of SK Innovation, has been most active in rebalancing its business portfolio to include high-end and high-value added products.

"We are reviewing a variety of options, including a stake purchase and joint ventures," said an official from SKGC. The official said the company is on the lookout for Chinese firms and other smaller foreign rivals for potential takeovers.

SK Innovation’s CEO Chung Chul-khil also said last month that the company is in need of shifting its business structure to focus on high-value added chemical products in order to ensure sustainable growth.

LG Chem, the country's top chemical producer, is also seeking to find new revenue sources via M&As.

During an annual shareholder meeting last week, LG Chem’s CEO Park Jin-soo said that his company will consider a strategic M&A while focusing on traditional and new business areas such as bio and new materials.

In January this year, LG Chem signed a USD442 million (KRW 555 billion) deal to takeover Dongbu Hannong Co., a local fertilizer producer, as part of the company’s efforts to diversify its revenue sources.

Lotte Chemical, which completed the acquisition of Samsung Group’s chemical business arms including Samsung SDI, Samsung Fine Chemicals and Samsung BP Chemical last month, will also consider for further M&As within this year.

The major petrochemical producers’ emboldened push for M&As and joint ventures were possible thanks to their record-high operating profits prompted by profitable product spreads last year.

In 2015, SK Innovation posted an operating income of USD1.7billion (KRW 1.98 trillion), the second highest in the company’s history, while LG Chem and Lotte Chemical posted a record-high operating income of USD1.57 billion (KRW 1.82 trillion) and USD1.39 billion (KRW 1.61 trillion) respectively.

We remind that, as MRC wrote before, in January 2016, South Korea’s LG Chem completed the acquisition of Dongbu Farm Hannong, the country’s largest agricultural products provider. Following a series of negotiations since September 2015, LG Chem has finally acquired 100% equity stake in Dongbu Farm Hannong’s shares worth USD426.49 million (KRW 515.20 billion).
MRC

MOSCOW (MRC) -- Evonik has started the construction of a production facility for organically modified specialty silicones in Shanghai (China), said the company on its site.

The project is part of a global investment initiative. A first expanded production plant became operational in Essen in late 2014. The new facility is being constructed at the Multi-User-Site (MUSC) in the Shanghai Chemical Industry Park, with completion planned for mid of 2017. The investment volume is in the high double-digit million euro range.

Specialty silicones offer a wide range of applications for numerous industries. For example, as additives for plastics, specialty silicones are responsible for comfortable furniture, car seats and ergonomic mattresses. They also play an important role within the formulation of insulation material for building insulation and guarantee of the highest energy efficiency of refrigerators. Other areas of application are defoaming agents, used in industries like construction, textile or plastics. Furthermore, specialty silicones are used in coatings and inks. Markets for specialty silicones have grown substantially over the past years.

Evonik is a globally leading solutions provider in the area of organically modified specialty silicones. The Group’s global production facilities, research and development centers, and local application laboratories offer technical advisement, customized products and local on-site service to customers.

As MRC informed earlier, Evonik Industries has started basic engineering for the construction of a second world-scale production plant for the amino acid DL-methionine in Singapore.

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.

MRC

MOSCOW (MRC) -- Honeywell International, a diversified technology and manufacturing company, said that it has entered into a supply agreement and technology license with an Indian manufacturer to produce Honeywell Solstice yf, said Sonoranweeklyreview.

Solstice yf, also known as HFO-1234yf, is a hydrofluoro-olefin (HFO) refrigerant that is a near drop-in replacement for R-134a, a hydrofluorocarbon (HFC) with a global warming potential (GWP) of 1,300, for use in in vehicle air conditioning systems globally.

Honeywell will license its proprietary process technologies to produce the refrigerant to Navin Fluorine International Limited, which will manufacture Solstice yf in India exclusively for Honeywell. Small-scale production is expected to begin by the end of 2016. Shares closed at USD112.68 with a 52-week range of USD87.00 – USD112.78.

As MRC informed earlier, M. Holland Co., a leading distributor of thermoplastic resin, announced an expanded partnership with global supplier Honeywell Resins and Chemicals. Under this partnership, M. Holland and Honeywell will be expanding their nylon distribution to include flexible packaging applications.

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment offers aircraft engines, integrated avionics, systems and service solutions, and related products and services for aircraft manufacturers and operators, airlines, military services, and defense and space contractors, as well as spare parts, and repair and maintenance services for the aftermarket.
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