Global extruded plastics industry to reach USD280 bln by 2022

MOSCOW (MRC) -- Extruded Plastics Market is expected to increase by USD280 bln by the end of 2022, at 4.9% CAGR, as per Plastemart with reference to Market Research Future.

The global extruded plastics market has been evaluated to be rapidly growing and is expected to grow tremendously. Benefits like low thermal conductivity and poor resistance to oxygen and moisture make this resin a suitable material to be used in packaging of food products which has increased its market globally. With numerous usage of extruded plastics, the global extruded plastics market is expected to increase in future.

Asia Pacific region is expected to maintain its dominance in the global market of extruded plastic. Emerging markets of China, Japan and India are expected to boost the Asia Pacific folic acid market. Other emerging markets are North America, Europe and Middle East countries. Asia Pacific has the largest market share of global folic acid, followed by Europe and other parts of the world. Based on type global extruded plastics market has been segmented into low density polyethylene (LDPE), high density polyethylene (HDPE), styrene, and others.

Styrene is expected to grow at the CAGR during the forecasted period. LDPE segment dominated the market in 2015 as it one of the most versatile flexible packing materials that can be formulated for several packaging applications.

As MRC informed previously, growing demand from automotive and electronics is expected to boost growth in the global plastics market, as per Transparency Market Research. However, fluctuating raw material prices and surging environmental concerns will restrain growth. Rising concerns related to the harmful effects of the manufacturing process of molded plastics on the environment will also suppress the global molded plastics market. In accordance with this, the nonbiodegradable nature of molded plastics will also suppress this market.
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Global emulsion polymers market to grow to USD43 bln at CAGR of 6% between 2015 and 2020

MOSCOW (MRC) -- The global demand for emulsion polymers was valued at USD31.5 bln in 2014, and is expected to generate revenue of USD43 bln by end of 2020, growing at a CAGR of around 6% between 2015 and 2020, as per Plastemart with reference to Zion Research.

In terms of volume, the global emulsion polymers stood at approximately 12 million tons in 2014.

One of the key driving factors for emulsion polymers is increasing awareness regarding volatile organic compounds (VOCs). Due to stringent environmental regulations, applications are more inclined toward using low VOC products. Emulsion polymers contain high volume of water and they are low VOC polymers. Another major driving factor for the global emulsion polymers market is rapidly growing in building & construction and automotive industry. Revival of global economy with rise in residential and commercial construction activity and strong demand for automotive industry is in turn driving demand for paints & coating, adhesives, etc.

Paints & coatings and adhesives are key application market for emulsion polymers. Especially, building & construction, electronics and automotive industry is expected to witness robust growth in emerging economies such as China, India, Brazil, etc. This in turn expected to fuel growth of emulsion polymers market. However, fluctuations in raw material prices and supply are expected to remain major concern for the manufacturers.

Acrylics was the leading product segment for emulsion polymer, which accounted for over 35% share of the entire market in 2104. Acrylics are the most widely used emulsion polymers in the processing of acrylic emulsion paints and coatings, adhesives, and paper and paperboard. Vinyl acetate emulsion is also expected to witness strong demand from vinyl acetate-ethylene (EVA) copolymers for adhesives and coatings applications. Moreover, in terms of volume, this is one of the fastest growing product segments. Styrene-butadiene latex is another growing segment held the second largest share in the global emulsion polymers market owing to its increasing usage in adhesives, textiles & non-woven and the paper and paperboard coatings industry.

Emulsion polymerization is used to manufacture several commercially important polymers. Many of these polymers are used as solid materials and must be isolated from the aqueous dispersion after polymerization. Emulsion polymerization is a type of radical polymerization that usually starts with an emulsion incorporating water, monomer, and surfactant. Emulsion Polymers (EP) includes different types of waterborne polymers such as acrylic emulsion, vinyl emulsion, SB latex, and others. Better thermal stability, elasticity, and improved adhesion are the important characteristics of emulsion polymers. Monomers (styrene, butyl acrylate, etc.), surfactants, stabilizers (acrylic acid), and initiators are the key raw materials used in the manufacturing of emulsion polymers.

On the basis of application, the emulsion polymer market has been classified into paints & coatings, paper & paperboard, adhesives, textiles & non-woven, others (leather, etc.). Paints and coatings was the largest application market for Emulsion polymer in 2014. Paints & Coatings followed by adhesives and paper & paperboard coatings. Adhesive is the second-largest application of emulsion polymer and it is expected to boost the demand for emulsion polymers during the forecast period. Paperboard coatings also accounted for significant share of the global emulsion polymers market in 2014.

Other applications (such as leather industry) are also expected to witness fast growth during the forecast period. Asia Pacific dominated the emulsion polymer market and accounted for the largest share of the global market in 2014. Asia Pacific is followed by Europe and North America. Asia Pacific region will continue to see above average growth in demand throughout forecast period driven by strong growth in China and India. In terms of volume, Middle East & Africa and Asia Pacific are expected to witness robust growth during the forecast period. Availability of cheap labor, favorable weather conditions, and governmental support are some of the factors driving the emulsion polymers market in these regions. The Latin America Europe and North America are also expected to experience significant growth of emulsion polymer market in the years to come.

As MRC wrote previously, the emulsion polymer market was worth USD28.24 bln and is expected to reach USD 41.63 bln by 2019, growing at a CAGR of 5.7% from 2012 to 2018, as per Transparency Market Research.
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KBR awarded revamp contract for Korean ethylene plant

MOSCOW (MRC) -- KBR, Inc. has announced it has been awarded a technology licensing and basic engineering design (LBED) revamp contract by LG Chem for its Ethylene Plant at Daesan, South Korea, reported Hydrocarbonprocessing.

Under the terms of the contract, KBR will provide license and basic engineering design services to expand the plant ethylene capacity by 230KTA to a total of 1,270KTA through the addition of two new SCORETM SC-1 proprietary furnaces and product recovery system modifications. This project is part of a larger LG Chem Daesan facility expansion that will enable the company to produce additional high value-added ethylene derivative products.

The LG Chem Daesan Ethylene Plant is a heritage KBR Licensed facility that had an original ethylene nameplate capacity of 350KTA. Through close cooperation between LG Chem and KBR, the facility has been revamped multiple times over the years allowing LG Chem to remain one of the leaders in ethylene production.

"We are delighted to continue our close cooperation with LG Chem and that KBR's cost-effective, industry leading capabilities will play a key role in LG Chem's growth strategy to maintain its market lead and secure feedstock for high value-added downstream products," said John Derbyshire, President, KBR Technology and Consulting (T&C).

Since 1990, over 21 new ethylene plants with a combined capacity of 13 million metric tons per year have been brought on-stream using KBR's cracking technologies and flexible plant designs to produce ethylene, propylene and other byproducts from a variety of feedstocks.

The contract value was not disclosed. Expected revenue was booked into backlog of unfilled orders for KBR's T&C Business Segment in Q4 2016.

As MRC informed before, in March 2016, KBR announced that its SOCAR-KBR joint venture was awarded a significant project management consultancy (PMC) contract for the Heydar Aliyev Baku oil refinery modernization project in Azerbaijan.
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Mitsui Chemicals and SKC Joint Venture Establishes PU System House in India

MOSCOW (MRC) -- Mitsui Chemicals & SKC Polyurethanes, a 50-50 joint venture of Mitsui Chemicals and SKC Co., has decided to establish a polyurethane (PU) system house in Andhra Pradesh, India, to meet the anticipated increase in PU demand, as per Apic-online.

The new manufacturing and sales company, MCNS Polyurethanes India, will produce 13,000 t/y of PU system products. Construction will begin in March 2017 and be complete in December 2017. Commercial operations are scheduled to begin in January 2018.

MCNS Polyurethanes will provide premium services, such as the adjustment of PU foam material formulations including those derived from polyol, to cater to individual customer needs.

As MRC informed previously, Mitsui Chemicals Inc., a leading Japanese producer of performance materials, petro and basic chemicals and functional polymeric materials, commenced operations at its new Korean subsidiary, Mitsui Chemicals Korea, Inc., on 1 Apr 2016. The new company is a restructuring of the Mitsui Chemicals Inc. Korean Branch which was established on 1 Oct 2014. The new company will form an optimum sales network to further expand Mitsui Chemicals operations in Korea mainly targeting materials for automotive and electrical/electronic products.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.

Saudi Aramco to invest USD7 B in Petrona RAPID oil refinery

MOSCOW (MRC) -- Malaysia's Prime Minister Najib Razak announced on Monday that Saudi Arabia's state oil company Saudi Aramco will invest USD7 billion into an oil refinery and petrochemical project in Malaysia's southern state of Johor, said Reuters.

Najib said the decision was made before noon on Monday after discussions between top executives from Saudi Aramco and Malaysia's state-owned energy company Petroliam Nasional Bhd (Petronas), the sponsor of the USD27 billion Refinery and Petrochemical Integrated Development (RAPID) project.

Najib's statement marks a dramatic reversal in RAPID's fortunes after industry sources familiar with the matter said in January that Aramco planned to drop its participation in a partnership with Petronas in the project. At the time, Petronas said it would move ahead in spite of Aramco dropping out. Najib did not give any details on the change of heart.

"This is a significant investment and more details will be announced tomorrow," Najib said at a brief news conference after hosting a state luncheon for Saudi Arabia's King Salman and his entourage. "I just want to confirm that the agreement has been reached and King Salman is satisfied that the deal will be signed tomorrow," Najib said.

Petronas and Saudi Aramco executives are scheduled to sign the agreement on Tuesday. An industry source familiar with the matter says Aramco will buy a stake in RAPID's refinery, cracker and petrochemical operations. Aramco will also supply at least 50 percent of the crude that will be processed at RAPID, with an option to increase the supply, the source said.

The Aramco funding will help move RAPID to fruition and the desire of Saudi and Malaysian leaders to maintain close links between the countries likely helped cement a deal, said Subramanya Bettadapura, an oil and gas analyst with consultants Frost & Sullivan based in Kuala Lumpur.

"This investment confirmation would help bring the RAPID project to the commissioning stage," said Subramanya. "It's the goodwill of the Saudi king himself to invest and to maintain good ties with Malaysia, boost bilateral ties."

The RAPID project, located at Pengerang in Johor, is expected to begin operations in the first quarter of 2019. RAPID will contain a 300,000-bpd oil refinery and a petrochemical complex with a production capacity of 7.7 million metric tonnes. The complex will sit alongside an existing oil storage site at Pengerang.

Last year, Petronas sought proposals for a USD7.2 billion loan for the project, with separate guarantees from the company and Aramco, Thomson Reuters IFR reported in June.

Besides the Petronas-Saudi Aramco deal to be signed on Tuesday, Malaysia and Saudi Arabia signed four other agreements dealing with bilateral trade, human resources, scientific and educational cooperation and a news-sharing agreement between the state news wires of both countries.

Malaysia is the first stop in a rare month-long tour of Asia by the Saudis seeking to build ties and draw more investments to the oil-rich gulf nation.
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