Evonik plans new polyamide 12 complex in Marl

MOSCOW (MRC) -- Evonik is planning to build a new production complex for the high-performance polymer polyamide 12 (PA 12), as per the company's press release.

The Group intends to increase its overall PA 12 capacity by more than 50 percent. Polyamide 12 is required in attractive growth markets such as the automotive industry, oil and gas pipelines, and in 3D printing.

After successful basic engineering, Evonik plans to invest approximately €400 million in the PA 12 complex at its largest site, Marl Chemical Park in North Rhine-Westphalia. The existing PA 12 production is to be supplemented with additional manufacturing facilities for the polymer and its precursors. The complex is expected to become operational in early 2021. The investment will make a substantial contribution to reaching Evonik’s margin goal and will generate an annual cash flow in a three-digit million euro amount over the long term. The project is to be implemented over the course of four years as part of the annual budget for growth investments.

"We are planning Evonik’s largest investment in Germany," says Christian Kullmann, Chairman of the Evonik Executive Board. “This investment is a perfect fit to our strategy of consistent focus on specialty chemicals since polyamide 12, as a high-performance polymer for specialty applications, is an important part of our strategic Growth Engine Smart Materials." Kullmann considers Germany an attractive and competitive industrial location: “Our workforce in Marl is highly qualified, and our investment will create about 150 jobs. Moreover, we can make optimal use of synergies with our existing infrastructure. That creates highly favorable conditions to sell our specialty products on a global scale."

The PA 12 market is posting annual growth rates exceeding 5 percent worldwide, significantly outpacing the global gross domestic product. In the specialty application of 3D printing, growth rates even reach double digits. "The demand for polyamide 12 is showing steady, dynamic growth," says Claus Rettig, Chairman of the Board of Management of Evonik Resource Efficiency GmbH. "The planned capacity expansion will further strengthen our leading market position for polyamide 12. For our customers worldwide, our commitment translates into long-term availability and reliability of supply for their existing and future applications."

Thanks to its outstanding properties, such as high stability paired with flexibility, high temperature resistance and low weight, the high-performance polymer is used in many demanding applications as a replacement for steel: in automotive and lightweight design as well as in oil and gas pipelines. In addition to current applications in the automotive sector, Evonik is also very well positioned for the future production of hybrid and electric vehicles. Furthermore, the material is used in the medical sector and in 3D printing.
MRC

MOSCOW (MRC) -- The Lubrizol Corporation has announced an update to its ambitious global expansion program supporting the company's Engineered Polymers thermoplastics polyurethane (TPU) business and growing global demand for its Estane TPU, Pearlthane(TM) TPU, Pearlbond(TM) TPU and other product lines, as per the company's press release.

- New capacity being added in key plants in North America, Europe and Asia
- Multi-million-dollar expansions, with a combined investment of nearly USD80 million
-New capabilities and capacity demonstrate long term commitment and dedication to technology leadership, innovation, automation and supply chain reliability

"Ongoing investments in Engineered Polymers are an integral part of Lubrizol's global growth strategy and strengthen our position in every region of the world. We see a robust market poised for growth with a rebounding global economy, infrastructure and technology investments, and increasing demand for higher performing, more sustainable materials. We are well prepared to meet the needs of this dynamic market," states Arnau Pano, Vice President and General Manager, Lubrizol Engineered Materials.

In North America, the company is adding new state-of-the-art production capabilities, expanded raw material storage, warehouse space and improved site logistics. With the latest investment, new capacity is expected to come onstream later this year.

In Songjiang, China, the company held a ribbon cutting ceremony earlier this month to inaugurate a new compounding line and new extrusion lines. 2018 marks the fourth major expansion in Songjiang since the plant first produced TPU in the early 2000's. Recognizing the vast potential of the Chinese market, Lubrizol was the first foreign company to invest in local TPU production. Further investment is planned in Asia in 2019.

In Europe, the company is extending production capabilities for elastomers, aliphatics and adhesives. These expansions build on the acquisition of Merquinsa in 2011, and improvements to R&D laboratories in 2016. A next major European expansion is planned for 2019.

Jian-Wei Dong, General Manager, Lubrizol Engineered Polymers, adds, "Lubrizol has been recognized as a market leader since its invention of TPU for commercial use. These staged investments demonstrate our long-term commitment to innovation and growth and strengthen our ability to serve customers worldwide. The added capabilities ensure that we deliver world class quality and more sustainable manufacturing practices. Our resources are aligned to quickly identify and respond to market trends, fast-track innovation and applications development, and help our customers be more successful in the markets they serve."

As MRC reported previously, in February 2016, speciality chemicals major Lubrizol Corporation announced the commencement of its USD50 million chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej. This was the company's first CPVC compounding plant in the country, and it claimed that it is the first such in India by any global major. The plant has a capacity to produce nearly 55,000 tonnes of compounds annually. The company has invested over USD50 million (Rs325 crore) on this facility.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol's advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers" high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth. With headquarters in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, and sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 8,300 employees worldwide. Revenues for 2016 were USD6.5 billion.
MRC

MOSCOW (MRC) -- Petrofac has been awarded a lump-sum Engineering, Procurement and Construction (EPC) contract by Bharat Petroleum Corporation Limited (BPCL) valued at approximately USD135 million, as per Hydrocarbonprocessing.

Located at BPCL’s Kochi Refinery, Kerala, India, the scope of work encompasses engineering, procurement, construction, pre-commissioning and assistance with commissioning. The 27-month contract is for the addition of a new Motor Sprit (MS) block of refining units, which will increase the current output of the facility to meet India’s BS-VI automotive fuel quality.

Sunder Kalyanam, Group Managing Director for Petrofac’s Engineering & Construction Growth business said: “Having previously executed EPC projects in India between 1997 and 2004, we are delighted to have secured this contract to deliver a new complex of units at the BPCL Kochi Refinery. This award demonstrates our organic growth ambitions in action, and attests to our strategy of a continued increase in our capabilities in India, a country which holds a special place in our service offering.

"Petrofac has thriving operational centres in Mumbai, Chennai and Delhi that provide engineering services through a multidisciplinary capability, supporting our projects globally. In addition to our core activities, we offer a comprehensive graduate training programme and are committed to social investment. We look forward to continuing to build a sustainable and long-term presence in-country through the safe and timely delivery of this project for BPCL."
MRC

MOSCOW (MRC) -- Saudi International Petrochemical Co 2310.SE (Sipchem) said it was planning to resume proposed merger talks with Sahara Petrochemical 2260.SE in a deal that could create a 14.7 billion riyals (USD3.9 bln) chemicals company, as per Reuters.

The two companies called off a planned merger in 2014, citing an inadequate regulatory framework in the kingdom for the collapse.

Sipchem said on Tuesday it was planning to resume discussions with Sahara about the proposed merger after recent changes in the regulatory framework, without elaborating.

It said that further announcements will be made on relevant developments at the appropriate time.

The proposed tie-up, which would create a firm with a market capitalization of 14.7 bln riyals at current values, comes as consolidation gains momentum in the Saudi corporate sector.

In other merger activity, Saudi British Bank (SABB) 1060.SE and Alawwal Bank 1040.SE are in talks for a proposed merger in a tie-up that would create the third-largest bank in Saudi Arabia.

Both Sipchem and Sahara Petrochemical have the Zamil Group, one of the kingdom’s most prominent family businesses, as a significant shareholder, along with the Saudi Arabian government.
MRC

MOSCOW (MRC) - The export trades of polypropylene (PP) were resumed at the State Commodity and Raw Materials Exchange of Turkmenistan after a long break. This time, 15,000 tonnes of PP were sold on 12 March, according to ICIS-MRC Price report.

Turkmen State Commodity and Raw Materials Exchange did not put for auction polypropylene produced by the Turkmenbashi Gas Processing Plant for a long time. The last auction was in early May 2017, where were sold 7,500 tonnes of polypropylene.

Export trades were resumed in early March of this year, the demand was quite high. The first trading session in the export trade took place on 7 March, the bids were for 40,000 tonnes of polypropylene with 15,000 tonnes offered.

The next round of trades was held on 9 March, and due to high demand, the winners were not defined. The final auction was held on 12 March, at a starting price of USD960/tonne FCA / FOB Turkmenbashi port; the final deals were done at the level of USD1,225/tonne FCA / FOB Turkmenbashi port.

The greatest interest in the purchases of Turkmen polypropylene was seen from Russian companies.

MRC