Itochu Corp inks deal for monthly purchase of polyethylene with IranianPGPIC

MOSCOW (MRC) -- Japan’s Itochu Corporation signed a deal to purchase 11,000 tons of polyethylene (PE) per month from the Persian Gulf Petrochemical Industries Company (PGPIC), as per Plastemart.

The deal comes after the two sides signed a preliminary deal in December 2016, based on which Itochu agreed to lend EUR320 mln (USD341 mln) to PGPIC for infrastructure development, IRNA reported. An official added that PE shipments will begin "within the next few months."

As MRC informed previously, in early 2016, Italy-based Maire Tecnimont, a leading engineering company, signed an agreement worth EUR1 billion (USD1.11 billion) with PGPIC to construct refineries and petrochemical plants in Iran. Maire Tecnimont will help Iran build an acrylonitrile butadiene styrene (ABS) and rubber plant in the industrial city of Asaluyeh. The ABS product has a variety of applications including in the automotive industry.
MRC

MOSCOW (MRC) -- Japanese chemical maker Tosoh Corp said on Thursday it will invest about USD88 MM to upgrade its 527,000-tpy naphtha cracker in Yokkaichi, central Japan, by 2020, said Reuters.

The move, which will include the installation of a new large-scale furnace to boost efficiency and cut costs, will allow the facility to make the same amount of ethylene from smaller volumes of feedstock naphtha, a company spokesman said.

It marks the first large-scale investment on the cracker since 1998. Japanese naphtha cracker operators have been trying to adjust to shrinking domestic demand market by closing some crackers and cutting costs.

Idemitsu Kosan said in November it would expand the processing of propane at its naphtha cracker to take advantage of cheap liquefied petroleum gas (LPG) prices.

Tosoh plans to keep its naphtha import volumes at current levels. It will generate savings by expanding its gas turbine facilities and using the cracker's excess naphtha feedstock for in-house power generation, the spokesman said.

Tosoh has 14 existing furnaces that process naphtha.

The new large-scale furnace will replace two ageing small furnaces that will be held in reserve, while the remaining furnaces will be renovated to improve efficiency, he said.

Some of the work will likely be carried out during the cracker's large scale maintenance shutdowns in spring 2018 and spring 2020, he said.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals announced that its Healthcare Packaging manufacturing facility in Dongguan, Guangdong Province, China, recently obtained ISO 15378:2011 certification for production of desiccant packets for healthcare applications, said the company on its web-site.

"Expanding our ISO 15378 certification to our global sites is of paramount importance, as it demonstrates our focus on patient safety and current Good Manufacturing Practices." said Frederic Gaire, Head of Quality, Clariant Healthcare Packaging. "Given the high level of respect this ISO certification has in the pharmaceutical and nutraceutical industries, customers can be confident of Clariant’s commitment to quality on a global basis."

ISO 15378:2011 specifies requirements for current Good Manufacturing Practices (cGMP) and a quality management system (QMS) for manufacturers of primary packaging materials for pharmaceuticals. Organizations certified under the standard must demonstrate their ability to consistently meet customer requirements, including compliance with the specific regulations and standards that apply to packaging materials used in pharmaceutical applications. The ISO documents state: "the realization of GMP principles in production and control of primary packaging materials within organizations is of great importance for the safety of a patient using the medicinal product because of their direct product contact."

Clariant produces its desiccant packet brands Sorb-it (silica gel) and Tri-Sorb® (molecular sieve) at numerous facilities globally, including in Dongguan, providing customers a wide array of options and Business Continuity Planning (BCP). The Dongguan site produces a full portfolio of desiccant packets both for regional Asia-Pacific healthcare markets and for export to the Americas and Europe. Packets are available in DuPont Tyvek® and as Continu-Strip that feature a hole in every seal to optimize the desiccant insertion process. Sizes available range from 0.25g to 10g.

Dongguan follows Clariant’s other sites that already maintain ISO 15378:2011 certification: Romorantin, France; Belen, NM, USA; and Changshu, China. The network of production sites will soon include a fifth facility in Cuddalore, India, where Clariant is constructing a new plant. Also integral for BCP, the new plant in Cuddalore will supply the large and growing Indian market and once online will quickly begin the process of ISO 15378 certification.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has increased list and off-list selling prices for vinyl acetate monomer (VAM) in Asia in view of recent market conditions, said the producer on its site.

The price increases were effective 19 April 2017 or as contracts otherwise allow, as were as follows:

- CNY300/tonne - for East China;
- CNY350/tonne - for South China
- USD100/tonne - for Asia outside China.

As MRC informed before, Celanese Corporation last raised list and off-list VAM prices on 22 March 2017. The price increase was CNY200/tonne - for China and USD60/tonne - for Asia outside China.

And on 7 March 2017, Celanese increased its VAM prices for the Asian region, as stated below:

- CNY200/tonne - for China;
- USD100/tonne - for Asia outside China.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications.Based in Dallas, Celanese employs approximately 7,300 employees worldwide and had 2016 net sales of USD5.4 billion.
MRC

MOSCOW (MRC) -- Austrian oil and gas group OMV said on Thursday a six-week turnaround at its Schwechat refinery will shave off USD87 MM from its second-quarter adjusted operating profit, reported Reuters.

OMV confirmed better-than-expected preliminary first-quarter clean current cost of supplies (CCS) earnings before interest and tax, which excludes special items and inventory gains or losses, at EUR805 million.

As MRC informed earlier, Austrian oil and gas group OMV will pay EUR110 million (USD116.7 million) for a planned turnaround at the petrochemical units of its Schwechat refinery which started in the middle of April. The turnaround and investment will also be used to help the integration of OMV's operations and those of plastic maker Borealis at Schwechat, said OMV, which owns 36% of Borealis.

OMV is an international, integrated oil and gas company, headquartered in Vienna. It is active in the upstream and downstream businesses. OMV is producing and marketing oil & gas, innovative energy and high-end petrochemical solutions.
MRC