LG Chem to focus on high-value petrochemicals

MOSCOW (MRC) -- LG Chem said Sunday (28 Aug 2016) it will focus on high-value petrochemicals in the basic materials business to respond to rising oversupply concerns, reported GV.

The move came amid expectations the nation’s petrochemical industry, which is in an instant boom on the back of a price drop in raw materials, will face fiercer competition as product output is expanding in North America and China despite a global economic slowdown.

"It is important to prepare for an uncertain future earlier than anybody else even when we are thriving,” said Son Ok-dong, president of LG Chem’s Basic Materials Business. “We will do our utmost to build a solid business foundation that can generate results no matter what difficulties."

The nation’s top chemical business pledged to increase the sales of high-value petrochemical products: metallocene polyolefin; highly-functional acrylonitrile, butadiene and styrene; engineering plastic (EP); super-absorbent polymers; and eco-friendly synthetic rubber - to KRW 7 trillion by 2020, up from the current KRW 3 trillion level. To this end, it will invest KRW 400 billion by 2018 to boost production capability of synthetic resins called elastomers. The company also said it will seek to acquire businesses with promising tech companies to strengthen competitiveness in the EP sector.

LG Chem said it will also boost price competitiveness of existing products such as ethylene and propylene. In particular, the company said it is considering expanding production of ethylene to stably supply high-value petrochemicals. It currently is capable of producing 2.2 million tons of ethylene a year.

As MRC informed before, LG Chem Ltd., Korea's leading chemicals and battery maker, said its net profits soared 9.3 percent in the second quarter 2016 from a year earlier thanks to improved petrochemical margins amid low oil prices. Net income came in at 386 billion won (USD338 million) on a consolidated basis in the April-June period, compared with a profit of 353 billion won a year earlier, the company said in a regulatory filing. Operating income advanced 9.3 percent on-year to reach 616 billion won, while sales gained 2.8 percent on-year to 5.27 trillion won.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- Indorama Ventures Public Company Limited ("IVL") would like to inform the merger of two of its indirect subsidiaries in Germany, said 4-traders.

PHP Overseas Investments GmbH, a non-operating entity has merged into PHP Fibers GmbH, an operating Fibers business entity. The new merged entity will be known as PHP Fibers GmbH. There is no impact on the business operation of the Company.

As MRC informed earlier, Indorama Ventures’ majority-owned Lake Charles, Louisiana gas cracker received an air permit from US authorities, signifying an important step forward in maintaining the plant’s startup schedule. The air permit, which is the main environmental permit required by the company to proceed with the refurbishment of the cracker, allows the project to commence repair and construction activities a month ahead of the original target date.

Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC

MOSCOW (MRC) -- Mallard Creek Polymers, Inc. (MCP) has appointed Azelis Canada Inc., an Azelis Americas company; as their distributor of synthetic emulsion polymers across Eastern Canada effective September 1st, 2016, said Coatingsworld.

The MCP line of synthetic emulsion polymers will be marketed and supported through the C.A.S.E division (Coatings, Adhesives, Sealants, and Elastomers) of Azelis Canada, expanding the current product offering of specialty water-based resin technology to these industry segments as well as other applications in the Construction, Specialty Textiles, Printing and Packaging markets.

The business aligns well with Azelis Canada’s product portfolio and builds on their capabilities and solutions that are currently provided to manufacturers across Canada. The additional product line includes the Rovene, BarrierPro, Tykote, and Tylac brands of carboxylated and non-carboxylated styrene butadiene latex, acrylics, nitriles, and vinyl acetate copolymer latexes. MCP has a long standing business model as a technology driven company focused on customer needs.

Azelis Canada with it’s over 70 year history servicing the Canadian manufacturing market is excited about representing the new line of products and creating lasting value for our clients and suppliers as we grow stronger together.

As MRC informed earlier, Azelis has been 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. Azelis currently has operations in Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Singapore, Thailand and Vietnam.

Azelis Chemicals is a leading European distributor of speciality and commodity chemicals, with a comprehensive portfolio of innovative products for high-tech solutions. The company source high quality products from leading global manufacturers, supporting customers in diverse markets including chemical producers and pharmaceuticals, I&I/household and cleaning, lubricants/metal working fluids, paper, agrochemicals, textile and leather, water treatment, building, wood preservation, agriculture & horticulture, electronics and salts.
MRC

MOSCOW (MRC) -- Jacobs Engineering Group Inc. announced it acquired the patent rights for BAYQIK quasi-isothermal sulfuric acid converter technology and other related technology from Bayer AG, said Jacobs on its site.

Under the terms of the agreement, the technology transfer includes all relevant Bayer technical, commercial and market information. In addition, Bayer is providing transitional services to help ensure a seamless transfer of the BAYQIK business. Terms of the transaction will not be disclosed.

BAYQIK technology enables more efficient conversion of process gas with high SO2 concentrations. Bayer developed, piloted and commercialized the technology over the past 10 years. A full-scale installation based on the technology has operated successfully for seven years.

Commenting on the announcement, Jacobs President Petroleum and Chemicals Gary Mandel said the acquisition complements Jacobs’ existing sulfuric acid technology portfolio, enabling the company to provide state-of-the-art technology to both the low strength and high strength SO2 market segments.

"This acquisition is an exciting development for our Chemetics process technology solutions business and our process industry clients," said Mandel. "BAYQIK is proven to be a superior and more flexible option for processing high strength SO2 gas, a growing requirement for clients in the non-ferrous metallurgical acid plant market.

"We’re thrilled to add this robust technology to our sulfuric acid technology portfolio and offer this capability to clients by leveraging the global reach of Jacobs’ network."

As MRC informed earlier, Jacobs Engineering Group Inc. was selected by ExxonMobil to perform engineering, procurement and construction management (EPCM) services for its Crude Flexibility Engineering and Construction Project at the ExxonMobil Refinery in Beaumont, Texas.

Jacobs is one of the world’s largest and most diverse providers of full-spectrum technical, professional and construction services for industrial, commercial and government organizations globally. The company employs 50,000 people and operates in more than 30 countries around the world.
MRC

MOSCOW (MRC) -- Phillips 66 cut production by roughly 5% at its 238 Mbpd refinery in Linden, New Jersey, amid weak refining margins, according to a source familiar with the plant's operations, said Hydrocarbonprocessing.

Phillips 66 joins Monroe Energy's 185 Mbpd refinery in Trainer, Pennsylvania, in making economic run cuts on the East Coast. Monroe Energy, a subsidiary of Delta Air Lines, continues to run the refinery at roughly 150 Mbpd following run cuts that began in July.

The US gasoline crack spread, an indicator of how much refiners make from converting a barrel of oil into a barrel of gasoline, remains at its lowest level in the past five years. The US diesel crack spread also remains at five-year lows.

US and global refining margins have been hurt by historically high gasoline and diesel inventories. Refining executives and analysts across the globe are predicting refiners are going to be forced to scale back production to reduce inventories, balance the market and boost margins.

East Coast refineries see some of the weakest margins due in part to their supply constraints, and experts predict they would be among the first to cut runs.

Philadelphia Energy Solutions, the largest East Coast refinery, is currently running at full capacity, a source told Reuters Tuesday. It was not immediately known whether PBF Energy made cuts at either of its East Coast refineries, one in Delaware City, Delaware and the other in Paulsboro, New Jersey.

PBF plans on shutting down the 55 Mbpd gasoline-making unit at its Paulsboro refinery in mid-September for up to eight weeks of planned work.

As MRC informed earlier, Phillips 66 decided to delay a planned maintenance on a sulfur recovery unit (SRU) that was scheduled for Friday at its 146,000 barrel-per-day Borger, Texas, refinery.

Phillips 66 is an American multinational energy company headquartered in Westchase, Houston, Texas. It debuted as an independent energy company when ConocoPhillips spun off its downstream assets and midstream assets. Phillips 66 began trading on the New York Stock Exchange on May 1, 2012, under the ticker PSX. The company is engaged in producing natural gas liquids (NGL) and petrochemicals.
MRC