Covestro increases MDI production capacity to convert existing, idled plant for TDI

MOSCOW (MRC) -- Covestro is moving forward with a repurposing of its production operations in Brunsbuttel, Germany. The Board of Management has now officially approved an expansion of production capacity for the foam component MDI (feedstock for polyurethane) at the site, as per Plastemart.

An existing, idled plant for the precursor TDI will be converted for production of MDI. The plans call for roughly doubling production capacity at the site to a total of approximately 400,000 metric tpa of MDI. Commissioning of the new plant complex is scheduled for late 2018. Preliminary plans call for a total investment volume (in euros) in the low hundreds of millions, which is already included in Covestro’s medium-term capital expenditure budget.

The Covestro Brunsbuttel Industrial Park is particularly well-suited for the MDI expansion because raw materials and other precursors are available there, and the site also offers the infrastructure required. Furthermore, the site’s employees also have extensive expertise and experience.

MDI (diphenylmethane diisocyanate) is the basis to produce rigid polyurethane foam, which is used primarily for the efficient insulation of buildings and throughout the cool chain. The resultant energy savings help to substantially reduce CO2 emissions. TDI (toluene diisocyanate), on the other hand, is a key component of flexible polyurethane foam, which is found in products including mattresses, upholstered furniture and automobile seats. The Dormagen site is Covestro’s European center for production of this precursor.

"The planned MDI plant complex is a milestone in terms of energy efficiency, environmental compatibility and productivity, in addition to meeting the highest safety standards," said Dr. Steffen Kuhling, site and production manager in Brunsbuttel. He added that the project also represents a clear commitment to the Brunsbuttel site and will help to secure jobs at the plant and in the region.

The public authorities granted Covestro the permit for converting the plant in March 2014. This allows annual capacity to be expanded by as much as 220,000 metric tons of MDI.

As MRC reported earlier, on 1 September, 2015, Bayer MaterialScience became known as Covestro. Bayer aims to float this business on the stock market by mid-2016 at the latest. The plans for the carve-out of Bayer MaterialScience were announced in September 2014.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
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MOSCOW (MRC) -- With effect from July 1st, 2016, Azelis was appointed global distributor of AnQore’s acrylonitrile in drums, reported Plastemart.

Under this agreement, AnQore will transfer all existing acrylonitrile in drums business to Azelis. Azelis will continue to serve AnQore’s current customers for acrylonitrile in drums and will further develop the business.

Since 1969 AnQore has been manufacturing acrylonitrile at the Chemelot Industrial Park in Sittard-Geleen (The Netherlands). Mr. Pieter Boon, AnQore CEO, comments: "Our mission is to ensure that in our industry people can make use of the unique characteristics of acrylonitrile in the most safe and secure way possible. Azelis has a systematic approach to facilitate safe logistics and safe use of acrylonitrile in drums. Azelis also has a local presence in main markets across the globe, which enables more direct interaction with customers for acrylonitrile in drums. We are convinced that Azelis is the best partner to continue our acrylonitrile in drums business."

Mr. Denis Perruchot, Azelis Regional Business Manager for Chemicals, says: "Azelis has significant supply chain expertise in handling dangerous products, making us the ideal partner to distribute acrylonitrile. Acrylonitrile in drums customers will now benefit from local contacts who are on hand to give technical support and advice on safe handling of the drums. This material will make a valuable addition to the Azelis portfolio, bringing new customers and allowing us to extend our offering to existing customers."

As MRC informed earlier, in August 2015, Azelis was appointed by Evonik Industries as distributor for the Aerosil and Sipernat ranges of silica products to the Food, Personal Care, and Pharma Industries in Denmark, Sweden, Norway, and Iceland.
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MOSCOW (MRC) -- PolyOne has expanded its offerings for the European transportation industry. This includes the launch of OnFlex LO thermoplastic elastomers with reduced VOC levels for vehicle interiors, said Gupta-verlag.

PolyOne said that the TPE technology of OnFlex LO reduces volatile organic compounds (VOCs) by 50 % and it therefore minimises fogging and odour in interior automotive components. The product is well suited for automotive applications including heating/ventilation/air conditioning (HVAC) seals, buttons, controls, coin trays, and drink holder mats. It can be overmoulded onto polyolefin substrates using two-shot injection moulding processes. The company said that it tested OnFlex LO TPE against its existing TPEs according to VDA 278 standard for VOCs and fog, and VDA 270 standard for odour. Results showed OnFlex LO TPE cut VOC emissions by approximately 50 % and fog emissions by 40 %, while maintaining very good low odour performance.

The company furthermore announced the availability of its IQ Design Labs services in Europe. "PolyOne continues to introduce new polymer solutions and design services to help our customers innovate," explained Holger Kronimus, vice president and general manager, Specialty Engineered Materials, Europe, at PolyOne. "Based on its success in North America, the IQ Design Labs service will now additionally support the creativity of Europe’s manufacturers and help them shrink the time required to introduce new products."

As MRC informed earlier, PolyOne Corporation announced the acquisition of Magenta Master Fibers (Magenta), an innovative developer of specialty solid color concentrates for the global fiber industry.

PolyOne Corporation, with 2014 revenues of USD3.8 billion, is a global provider of specialized polymer materials, services, and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
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MOSCOW (MRC) -- Nexeo Solutions and DSM, a global science-based company active in health, nutrition and materials, have announced their agreement to extend and further develop their existing partnership, as per GV.

Both organisations plan to target to expand to Switzerland and Hungary offering DSM’s product range, including polyamides, PBT, PET and DSM’s thermoplastic copolyester under the brand name Arnitel.

Other areas of interest within the extended geography agreement between the two companies are Romania and Bulgaria. Plans to expand to these regions are said to start later in 2016.

As MRC informed before, in December 2015, Royal DSM announced that it had expanded its distribution capability through strategic partners Nexeo Solutions, Resinex and Ter Plastics Polymer Group to cover the entire EMEA region. As of January 1, 2016, DSM’s engineering plastics portfolio started to be available to customers throughout the EMEA region.

Besides, earlier, in 2013, Royal DSM signed a partnership agreement with long fibre thermoplastic (LFT) specialist Plasticomp (Winona, Minnesota/USA) to develop bio-based LFT composite materials based on DSM’s "EcoPaXX" polyamide 4.10. The lightweight materials, which include compounds reinforced with glass fiber as well as carbon fiber, will be targeted at automotive and other performance-driven markets.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
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МОSCOW (MRC) -- Iran's oil exports in July are set to fall from June levels as the country battles Saudi Arabia and Iraq for market share, but are about 70% higher than a year ago, according to a source with knowledge of the country's crude lifting plans, Hydrocarbonpocessing.

Exports will be about 2.14 MMbpd in July, down from about 2.31 MMbpd in June, the highest since January 2012, the source said. The decline is mostly attributable to a fall in condensate exports as South Korea cuts purchases of the ultra-light oil and reduced crude liftings from European customers.

Iran's oil exports have nearly doubled since December, the last month before sanctions targeting its disputed nuclear program were lifted, but it is facing ever tougher competition from its rival Saudi Arabia and neighbor Iraq.

This year, "we are really seeing the triumvirate turning the screws, especially with the return of Iranian barrels after the lifting of sanctions," Matt Smith, a director of Commodity Research at ClipperData, said on his daily blog.

"Exports for the three nations are averaging more than 2.3 MMbpd higher through May year-to-date compared to the same period last year," he said. Iran has been regaining market share at a faster pace than analysts had projected since sanctions were lifted in January and exports will be above 2 MMbpd for a fourth month in July.

Exports to Europe in July are set to fall to about 430 Mbpd from about 580 Mbpd this month, the source said.

Iran's loadings to Asia in July are about the same as this month at 1.63 MMbpd, according to the source. Loadings peaked this year in April at 1.71 MMbpd.

Loadings for China, Iran's biggest customer, will be slightly over 654 Mbpd in July, up nearly 50 Mbpd from June. India will pick up about 480 Mbpd, the highest since March. South Korean loadings will be about half of those this month at 190 Mbpd. Japan is set to load about 235 Mbpd.

Greece, Italy, Spain and Turkey are all loading Iranian oil, according to the source. Poland is absent this month, after making its the first purchase since last August in June.

As MRC informed earlier, in March 2016. National Petrochemical Company (NPC) of Iran and France-based Total have signed an memorandum of understanding (MoU) to build a petrochemical complex in Iran.
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