Solvay completes divestment of Inovyn stake to Ineos

MOSCOW (MRC) -- Solvay has completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos, Solvay announced on its site.

Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities.

The partners sold assets with combined sales of more than EUR850 million per year to International Chemical Investors Group (ICIG; Frankfurt) in August last year, to secure European Commission approval for Inovyn. After the sale and for the 12 months ended 31 December 2015, Inovyn had post-pemedy revenue of about EUR3.1 billion, and a post-remedy adjusted EBITDA before exceptionals of EUR429 million, on an un-audited basis, according to Moody's.

Inovyn was formed on 1 July 2015 as a jv between Ineos and SolVin, a subsidiary of Solvay. Solvay and Ineos signaled their decision to end their chlorvinyls jv in March this year.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries. It generated pro forma net sales of EUR12.4 bn in 2015, with 90% made from activities where it ranks among the world’s top 3 players.

Invista to discontinue nylon 6,6 polymer production in Chattanooga

MOSCOW (MRC) -- Invista announced that it will end nylon-6,6 polymer production at its Chattanooga, Tennsesee, facility as part of a multi-phase restructuring of its global nylon-6,6 polymer manufacturing, said Chemweek.

"Kevin Robles, senior v.p./operations at Invista says the infrastructure at Chattanooga is less competitive than at other Invista polymer assets in North America. The impact of the restructuring on other Invita businesses and assets at the Chattanooga facility has not been finalized, the company says.

Productivity improvements and investments at polymer facilities at Camden, South Carolina; and Kingston, Ontario, have enabled the restructuring. Also, because it is a multi-phase restructuring process, the company says it is premature to know how many employees will be impacted and when.

The closure of the Chattanooga facility had been widely anticipated because Invista has increased production at Kingston and Camden. Users of Chattanooga-sourced chip are being switched to product from other sites. The closure also coincides with Invista’s start-up of a 150,000-metric tons per year nylon-6,6 resin plant at Shanghai, China, which may displace exports from North America.

Bob Merrill, IHS Chemical’s senior principal analyst for nylon and polyester fiber and feedstocks, says it is doubtful that curtailing this capacity will have much impact on downstream users. “The impacted users we’ve talked to are being given until the end of the year, if not faster, to qualify and transition to an alternate Invista source," Merrill says. "It remains to be seen whether those sources can adequately handle the uptick, but, in our estimation, it shouldn’t be a problem, especially with Shanghai starting up. Some users already use or have [alternate sources of] nylon-6,6 resin approved, and feel reasonably comfortable in their supply situation."

As MRC informed earlier, in April 2016, Invista started up a new 215,000-t/y hexamethylene diamine (HMD) facility at the Shanghai Chemical Industry Park in China.

Invista is one of the world's largest integrated producers of polymers and fibers, primarily for nylon, spandex and polyester applications. With a business presence in over 20 countries, Invista's global businesses deliver exceptional value for their customers through technology innovations, market insights and a powerful portfolio of global trademarks.

Taiyo Vinyl plans maintenance at Chiba PVC plant

MOSCOW (MRC) -- Taiyo Vinyl,one of Japan's largest manufacturers of polyvinyl chloride (PVC), is likely to shut its PVC plant for a maintenance turnaround, reported Apic-online.

A Polymerupdate source in Japan informed that the plant is planned to be shut in mid-August 2016. The plant is expected remain shut for around four weeks until mid-September 2016.

Located in Chiba in Japan, the PVC plant has a production capacity of 90,000 mt/year.

As MRC informed earlier, in mid-April 2016, Taiyo Vinyl restarted its PVC plant following a maintenance turnaround. The plant was taken offstream in early March 2016. Located in Yokkaichi in Japan, the PVC plant has a production capacity of 310,000 mt/year.

Taiyo Vinyl Corporation, a subsidiary of Tosoh Group, is one of Japan's largest manufacturers of polyvinyl chloride (PVC). The plant in Chiba is one of the company's key assests, which supplies 50% of its products to the domestic market. The company also produces PVC at the plants in Yokkaichi and Osaka with the annual capacity of 310,000 and 150,000 tonnes, respectively.

Prices of European PE continued to go down for CIS markets

MOSCOW (MRC) -- The July contract price of ethylene in Europe was agreed by EUR10/tonne higher than in June. However, European polyethylene (PE) producers further reduced their export prices of polymer for the CIS countries, according to ICIS-MRC Price report.

Negotiations over export prices of European PE began on Monday, many market participants reported a further decrease in export prices by European producers (the third month in a row), despite an increase in ethylene prices. In July, in some cases, the price fall was EUR50-70/tonne.

Deals for July shipments of high density polyethylene (HDPE) were done in the range of EUR1,070-1,170/tonne, FCA, whereas June deals were done in the range of EUR1,120-1,220/tonne FCA. Negotiations over pipe grade black PE 100 were held in the range of EUR1,280-1,320/tonne FCA.

Deals over July shipments of low density polyethylene (LDPE) were discussed in the range of EUR1,180-1,250/tonne FCA, whereas a month earlier, deals for this PE grade were negotiated in the range of EUR1,230-1,300/tonne FCA. At the same time, some companies said they managed to buy small quantities of LDPE at EUR1,100-1,160/tonne FCA in the second half of June.

Arkema opens new Bostik manufacturing capacities in Sweden

MOSCOW (MRC) -- Bostik, the specialty adhesives business line of Arkema, has developed its cementitious product manufacturing capacities, based on its world-class Polymer Modified Binder (PMB) technology, with the opening of a new plant in Helsingborg, Sweden, as per Arkema's press release.

As a leading global adhesive specialist for construction, consumer and industrial markets, Bostik is extending its presence to serve growing market demand in Northern Europe and the Baltic region.

The facility enlarges the firm’s manufacturing footprint in Europe and will produce a variety of cement-based construction products including tile adhesives, mortars and flooring products, including the firm’s renowned Bostik 1055 Fiber Maxi floor screed.

In the presence of Thierry Le Henaff, Chairman and CEO of Arkema, at the official plant inauguration on 6 July, Bostik’s Senior Vice President of EMEA, Roland Albers, said, "We are delighted to expand our manufacturing presence in Europe and enhance our ability to serve construction customers in these high growth markets. International expansion in both established and emerging regions remains one of the central elements of our growth strategy and we will continue to invest in new facilities to ensure we effectively meet customer needs."

The plant boasts state-of-the-art production equipment and will use the latest manufacturing techniques to ensure the highest levels of safety, quality and efficiency. It offers high levels of production flexibility and will enable the firm to deliver in a variety of formats delivered direct to construction sites as well as through distributors including builders merchants and DIY outlets.

Bostik has been active in Sweden since 1911. This new facility represents the latest milestone in its international development following recent plant openings in the USA, Mexico, Philippines and Malaysia.

As MRC informed previously, Arkema finalized the acquisition of Bostik, the world's No. 3 in adhesives, on 2 February 2015.

Bostik develops high-performance and high-value-added bonding and sealing products for the nonwoven, industrial, construction, and consumer markets. Bostik employs about 4,900 people across 48 production facilities - 18 in Europe, 10 - in North America, 8 - in Asia, 6 - in Australia and New Zealand, 2 - in Africa, and 4 - in South America.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.