Covestro planning another expansion of Shanghai polycarbonate capacity

MOSCOW (MRC) -- Covestro is again planning to significantly increase polycarbonate (PC) production capacity at its site in Shanghai, China, through a debottleneck of its existing production lines, as per GV.

The company will expand polycarbonate production capacity to 600,000 t/y in order to satisfy growing demand in the region. The additional capacity is scheduled to be available starting in 2019.

Last year, Covestro started up two world-scale production lines for polycarbonate resins at the Shanghai site. The new lines doubled production capacity there to 400,000 t/y.

As MRC wrote previously, Covestro is moving forward with a repurposing of its production operations in Brunsbuttel, Germany. The Board of Management officially approved an expansion of production capacity for the foam component MDI (feedstock for polyurethane) at the site in July 2016. An existing, idled plant for the precursor TDI will be converted for production of MDI. The plans call for roughly doubling production capacity at the site to a total of approximately 400,000 metric tpa of MDI. Commissioning of the new plant complex is scheduled for late 2018.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
MRC

MOSCOW (MRC) — Royal Dutch Shell plc, through its subsidiary Shell International Exploration and Production B.V., and SBI BioEnergy Inc. have reached an agreement granting Shell exclusive development and licensing rights for SBI's biofuel technology, said Marketwatch.

Edmonton-based SBI has a patented process that can convert a wide range of waste oils, greases and sustainable vegetable oils into lower carbon drop-ins for diesel, jet fuel and gasoline. Under the agreement, Shell and SBI will work together to demonstrate the potential of the technology and, if successful, scale up for commercial application.

"We are confident that Shell is the right industry partner to commercialize our low carbon intensity renewable fuel process," said Inder Singh, SBI's Founding President & CEO. "Working with Shell means that we have a partner with proven capabilities to investigate the potential this technology has for global application and that is something that is very exciting for us."

SBI uses a continuous catalytic process that converts fat, oil or grease into renewable gasoline, diesel and jet fuel that can be dropped directly in to petroleum fuels. SBI's drop-in products do not require blending or any modifications to engines or infrastructure. Biofuels emit less CO2 than petroleum products so their addition to fuels has the potential to reduce transport emissions and help fuel suppliers to meet lower carbon or renewable fuel standards.
MRC

MOSCOW (MRC) -- Sadara Chemical Company has announced the production of commercial quantities of on-specification liquid PMDI (polymeric methylene diphenyl diisocyanate), the largest single train facility of its kind in the world, as per GV.

PMDI is one of several specialised chemical and plastics products that Sadara is producing in Saudi Arabia for the first time. The start-up of the PMDI plant comes just five months after the completion of its mechanical phase.

Commenting on the announcement, Sadara’s CEO Ziad Al-Labban said: "Starting up the PDMI plant puts Saudi Arabia firmly on the world map of major polyurethane producers. This is indeed a significant milestone for us at Sadara, especially when considering the unique nature and size of this plant and how quickly we were able to complete it."

PMDI has a wide range of applications that include the production of insulation foams, domestic and industrial appliances, automobiles, airplanes, textiles, furniture, and more.

The Sadara chemical complex in Jubail is considered the world’s first fully integrated PMDI manufacturer, combining manufacturing units that produce nitric acid, mono nitro benzene (MNB), formalin, benzene, aniline and chlorine, as well as hydrogen and carbon monoxide from an integrated on-site third-party producer. Sadara is said to be the largest chemical complex ever built in a single phase.

As MRC informed before, in late December 2016, Saudi Arabia's Sadara Basic Services, fully owned by Sadara Chemical Co , said it started the planned maintenance of a mixed-feed cracker at its parent company's petrochemical complex in Jubail. The shutdown of the facility was expected to last six weeks, with the company's three polyethylene trains also shut during the period as Sadara completes improvements to their reliability and scheduled maintenance.

Sadara Chemical is a USD20 billion petrochemical joint venture between national oil giant Saudi Aramco and Dow Chemical .
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, and a global leader in vinyl acetate ethylene (EVA) emulsions, has increased its prices of vinyl acetate-based emulsions sold in Asia (outside of China), said the producer on its site.

Effective June 21, 2017, or as contracts otherwise allow, prices rose by USD80/tonne.

As MRC wrote before, earlier this month, Celanese Corporation announced that it would increase the price for emulsions sold in Europe. Effective July 1, 2017, or as contracts otherwise allow, the following price increases will apply:

- EVA - EUR75/tonne;
- VAM Homopolymers (PVAC) - EUR75/tonne;
- VAM Copolymers - EUR75/tonne;
- Pure Acrylics - EUR180/tonne.

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) — The Lithuanian unit of state-run Polish refiner PKN, Orlen Lietuva, and Lithuanian railways firm Lietuvos Gelezinkeliai will on Wednesday sign an agreement in Vilnius ending a long dispute over PKN's costs for fuel transportation in Lithuania, Puls Biznesu daily said quoting unnamed sources, said Hydrocarbonprocessing.

The paper said PKN had negotiated new transport tariffs that could bring significant savings related to fuel transportation from its refinery in Mazeikiai.

Transportation costs have weighed on Mazeikiai's results and in the past PKN has decided to write down the value of its Lithuanian refinery.

Puls Biznesu said the agreement was possible after the parliamentary election in Lithuania last October, which triggered management reshuffles in state-run firms, including the railways.

PKN's Chief Executive Wojciech Jasinski and Lithuania's new Prime Minister Saulius Skvernelis will be present at the agreement signing ceremony on Wednesday.
MRC