OxyChem and Mexichem announce startup of JV ethylene cracker in Texas

MOSCOW (MRC) -- Ingleside Ethylene, LLC, the 50/50 JV between Occidental Chemical Corporation, a subsidiary of Occidental Petroleum Corporation, and Mexichem, S.A.B. de C.V., announced that its ethylene cracker at OxyChem’s Ingleside, Texas, complex began operations on schedule and on budget. The ethylene cracker is currently in a production stabilization phase, reported Hydrocarbonprocessing.

The cracker, which will be operated by OxyChem, has the capacity to produce 1.2 billion pounds (550,000 cubic meters) of ethylene per year and provide OxyChem with an ongoing source of ethylene for manufacturing vinyl chloride monomer (VCM), which Mexichem will use to produce polyvinyl chloride (PVC resin) and PVC piping systems. The companies have a 20-year supply agreement.

"We are pleased to announce the safe startup of the ethylene cracker at our plant in Ingleside. This is a significant milestone for both OxyChem and Mexichem, enabling us to capitalize on the advantages that shale gas development presents for the chemical industry. It also helps our companies better compete globally in our respective markets, and gives us an inherent advantage to manage the cost of ethylene," said Robert Peterson, President, OxyChem.

"This is a great example of the excellent long-term partnership that Mexichem has with OxyChem, and we are proud that the ethylene plant was constructed safely, on time and on budget. The facility’s cutting-edge technology makes it one of the most modern in the world. For Mexichem, the ethylene plant is a vital part of our global strategy to become a vertically integrated specialty chemicals company with a focus on high-end products," said Antonio Carrillo, Chief Executive Officer, Mexichem.

The project also includes a pipeline and storage facility at Markham, Texas. Total investment in the project was approximately USD1.5 billion and the facility will provide 150 permanent jobs. Construction began in the second quarter of 2014.

As MRC informed before, in December 2013, Ingleside Ethylene, LLC awarded CB&I the engineering and construction contract to build the cracker. In May 2014, the plant received necessary permits for construction to begin from the U.S. Environmental Protection Agency (EPA) and Texas Commission on Environmental Quality (TCEQ).
MRC

MOSCOW (MRC) -- ELIX Polymers is developing additional specialty grades of acrylonitrile-butadiene-styrene (ABS) optimized for 3D printing, in the wake of high interest shown in its initial offering at K 2016 in Dusseldorf last October, as per the company's press release.

"We got an improved idea of the high potential growth rates of the 3D printing market during the show," Fabian Herter, Industry Manager Automotive, says. "We think ELIX can be an important player in this exciting market. 3D printing fits well with our strategy of focusing in specialty businesses with tailor-made products and services."

ELIX is the right partner for companies involved in 3D printing, thanks to its flexibility in production and the huge bank of polymer knowledge it has acquired over the last 40 years, Fabian Herter says. He also notes that 3D printing applications are in line with the ELIX strategy of developing a more sustainable portfolio. "3D printing technology can cut costs and time in development, a more efficient use of materials is possible, and final products can be customized to make them fitter for purpose," he says.

ELIX will offer 3D printing grades that have been optimized after detailed analysis of specific customer needs. Some new grades have already been validated at filament producers, 3D printer makers and final part manufacturers who use Fused Filament Fabrication (FFF), more commonly known as FDM (Fused Deposition Modelling). This technology has a broad scope of applications, in sectors such as automotive, healthcare, aerospace, E&E, consumer products, and toys.

So far, ELIX has optimized five ABS grades for 3D printing, each of them fulfilling different customer requirements. All exhibit improved printing performance, low warpage, dimensional precision and high resolution. The portfolio includes a general purpose grade (ELIX ABS-3D GP), a grade that fulfill food contact materials regulation no. 10/2011 and biocompatibility standards (ISO 10993-1 and USP class VI) for food contact and medical applications (ELIX ABS-3D FC), a high impact grade (ELIX ABS-3D HI), a grade with improved interlayer adhesion for complex parts (ELIX ABS-3D LA), and an ABS reinforced with natural fibers that produces a wood-like appearance when used on special 3D printers (ELIX ABS-3D NF). All grades are available in natural or precolored in various shades.

ELIX intends to supervise the complete 3D printing value chain. To this end, it is already cooperating with several leading printer producers and 3D software providers. "The scope is not only to develop new formulations, but also to identify the right partners and create a database with validated filament producers," Antonio Prunera, Head of Quality Business Development says.

ELIX is offering technical support, including recommendations on correct processing set-ups: extruder screw design, drive system and spool system. The objective is to obtain the filament with the best quality properties in typical thicknesses of 1.75 mm and 2.85 mm and validate the material to meet the requirements of the final application. ELIX has defined its own demanding material tests to evaluate the final filament quality.
MRC

MOSCOW (MRC) -- During a presentation in London, BP updated the financial community on details of its strategy and, in particular, medium-term plans for the next five years, based on oil prices similar to where they are today, as per Hydrocarbonprocessing.

Group chief executive Bob Dudley and his management team are setting out plans to 2021, demonstrating how BP plans to deliver growth throughout its businesses over the next five years.

Over the next five years, BP expects both of its major operating segments to deliver material growth in operating cash flows while the Group maintains its existing financial frame. In the Upstream, growth is expected to come from a continuing series of major higher-margin project start-ups, while the Downstream expects to deliver strong marketing-led growth, both underpinned by BP’s continued focus on safe and reliable operations, increasing efficiency, simplification and modernization.

BP intends to maintain its existing financial frame throughout the five years to 2021, with organic capital expenditure kept within a range of USD15-17 billion a year and the target band for gearing remaining at 20-30%.

BP’s Downstream segment has delivered USD3 billion sustainable reductions in cash costs since 2014 – halving the refining margin needed for the segment to deliver a pre-tax return of 15%.

In its refining and petrochemicals manufacturing businesses, BP expects the Downstream to deliver further performance improvements by continuing to focus on efficiency and operational performance, improving both competitiveness and resilience to the price and margin environment. Underlying earnings from the manufacturing businesses in 2021 are expected to be USD2.5 billion higher than in 2014.

BP also expects earnings growth from its Downstream marketing businesses, with underlying earnings in 2021 more than USD3 billion higher than in 2014. In lubricants, growth is expected to come from increasing the sales mix of premium lubricants, exposure to growth markets and BP and Castrol’s differentiated offers, brands and technologies. In BP’s fuels marketing activities, particularly retail, growth is expected to come through premium fuels, differentiated convenience partnerships – such as the recent agreement with Woolworths in Australia - and access to growth markets.

Combined with the ongoing focus on simplification and efficiency throughout the segment, BP believes this growth will enable the Downstream to deliver USD9-10 billion of pre-tax free cash flow by 2021, with returns of around 20% in 2021.
MRC

MOSCOW (MRC) -- Fitch Ratings has affirmed PJSC Kazanorgsintez's (KOS) IDR at 'B' and revised the Outlook to Positive from Stable, as per Cbonds.

Fitch has also affirmed KOS's Short-Term IDR at 'B'.

The Outlook reflects our expectations that KOS will maintain funds from operations net adjusted leverage (leverage) at a conservative level of below 2x (2015: -0.1x) as seen since 2014. The weaker rouble and broadly stable EU polyethylene pricing have boosted KOS's EBITDA margins to 38%-40% in 2015-2016E from 20%-22% prior to 2014. Coupled with the absence of significant capex or dividend outflows, this has allowed KOS to cut debt and improve liquidity.

The Outlook could be revised back to Stable if KOS's post-2017 investment strategy results in a more leveraged credit profile with expansion capex materially exceeding our current estimate of RUB50bn.

Kazanorgsintez (TAIF) is one of Russia's largest chemical companies. The plant produces more than 40% of all Russian polyethylene (PE) and also produces PE pipes. The company is Russia's largest producer of pipe grade high density polyethylene (HDPE). The plant"s annual HDPE production capacity is 540,000 tonnes and its annual LDPE capacity is 225,000 tonnes.
MRC

MOSCOW (MRC) -- Arkema has posted a 12.5% year-on-year growth in earnings (EBITDA) at a record high of EUR1.19bn for the full fiscal year 2016, as per Plasticsnewseurope.

The results were driven by the integration and development of Bostik and the performance of Technical Polymers business units, said the French speciality chemicals company.

Major internal projects, said Arkema, represented around three-quarters of the EBITDA growth over the year. Additionally, lower prices for some raw materials and “operational excellence” also contributed to this achievement.

Volumes were up by 3.2% driven by what the company described as innovation and Asia, although sales fell 1.9% to EUR7.5bn. In high performance materials segment, sales were up 1.9% to EUR3.42bn compared to 2015. Volumes grew 2.6% driven by "innovation in Technical Polymers, in particular in lighter materials and new energies," said Arkema.

Geographical expansion of Bostik also contributed positively while oil & gas activities softened.

Higher volumes offset the 1.4% price effects of different product mix from last year and change in prices of certain raw materials, according to the Colombes-based company.

Earnings for the segment grew 12.6% at EUR570m supported by developments in the Technical Polymers and Speciality Adhesives businesses.

Looking forward, in 2017, the company expects moderate global growth, mixed dynamics in different regions, and volatility in energy prices, raw materials and currencies. The group also announced that it will increase its selling prices to reflect higher raw materials.
MRC