Bangkok Polyethylene shuts LDPE plant in Thailand

MOSCOW (MRC) -- Bangkok Polyethylene, a PTT Global Chemical (PTTGC) subsidiary, has undertaken a planned shutdown at its low density polyethylene (LDPE) plant, as per Apic-online.

A Polymerupdate source in Thailand informed that the company has taken off-stream its LDPE plant on September 5, 2018. The planned shutdown is expected to remain in force for around two weeks. The plant is expected to resume operations on September 16-17, 2018.

Located at Map Ta Phut in Thailand, the plant has a production capacity of 300,000 mt/year.

As MRC informed previously, PTT started commercial operations at its new 400,000 mt/year metallocene C6 linear low density polyethylene plant at Map Ta Phut, Thailand, in the first quarter of 2018.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- Trecora Resources, a leading provider of high purity specialty hydrocarbons and waxes, today announced that Patrick D. Quarles has been appointed as an independent director to the Board of Directors of the Company, effective September 1, 2018, as per the company's press release.

Mr. Quarles will serve as a member of both the Audit and Nominating and Governance Committees and is assuming the Board seat vacated by John R. (Dick) Townsend when Townsend was appointed Executive Vice President, Chief Manufacturing Officer of the Company in May.

Mr. Quarles brings over 25 years of experience in the petrochemical industry elevating the performance of multiple business units including sales, business management, manufacturing, supply chain and finance through development of world class teams, strategic clarity, analytical rigor, prudent cost control and commercial acumen. Most recently Mr. Quarles served as Executive Vice President and President, Acetyl Chain and Global Supply Management at Celeanese Corporation, a $6.1 billion global technology, specialty materials company. Prior to that he spent 25 years with LyondellBasell Industries and predecessor companies in roles of increasing responsibility including serving as Senior Vice President, Intermediates and Derivatives for his last six years with the company.

Mr. Quarles holds a bachelor's degree in Mechanical Engineering from Clemson University and an MBA from Northwestern University, Kellogg School of Management.

TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high purity hydrocarbons and other petrochemical manufacturing. TREC also owns and operates a leading manufacturer of specialty polyethylene waxes and provider of custom processing services located in the heart of the Petrochemical complex in Pasadena, Texas. In addition, the Company is the original developer and a 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
MRC

MOSCOW (MRC) -- Seven refineries in eastern Louisiana plan to continue normal operations while keeping a careful eye on Tropical Storm Gordon, whose forecast path moved eastward on Tuesday with landfall in Mississippi, reported Reuters with reference to sources familiar with plant operations.

Being west of the storm, the refineries should be on the side of Gordon producing the least rain and wind, though all of the plants have prepared for high wind and possible flooding.

At PBF Energy’s 190,000 bpd Chalmette, Louisiana, refinery, which is 72 miles (116 km) west of Biloxi, Mississippi, where Gordon is forecast to make landfall, scaffolding erected for planned maintenance has been removed until the storm ends, sources familiar with plant operations said.

No change in operations were planned at the Chalmette refinery, the sources said.

A PBF spokesman declined to discuss operations at the plant.

The Valero Energy Corp 125,000 bpd plant in Meraux, Louisiana, also plans to keep running as usual overnight and into Wednesday.

"Business as usual," said a source familiar with plant operations at the Meraux refinery.

A Valero spokeswoman did not reply to a request for comment about operations at Meraux.

Royal Dutch Shell Plc’s refineries in Convent and Norco, Louisiana, are prepared for high wind and rain, a company spokesman said.

Operations at the 502,500 bpd Exxon Mobil Corp refinery in Baton Rouge, Louisiana, were normal on Tuesday, said Exxon spokeswoman Sarah Nordin.

The company has activated its storm preparedness plan for the refinery and adjoining chemical plant, Nordin said.

Production is expected to continue normally overnight and into Wednesday at the Baton Rouge complex, said sources familiar with plant operations.

Phillips 66’s 247,000 bpd refinery in Alliance, Louisiana, was operating normally on Tuesday, a company spokesman said.

A spokesman for Marathon Petroleum Corp declined to discuss operations at the company’s at the company’s 556,000 bpd Garyville, Louisiana, refinery.

Gulf Coast market sources said they expected the Marathon refinery to keep operating.
MRC

MOSCOW (MRC) -- Moody's Investors Service has upgraded the issuer rating of Wanhua Chemical Group Co., Ltd. to Baa2 from Baa3, said the agency.

At the same time Moody's has changed the outlook on the rating to stable from positive. "The upgrade reflects the improvement in Wanhua Chemical's market position, competitiveness and diversification followings its acquisition in August 2018 of its major shareholder -- which held 47.92% of Wanhua Chemical and 100% of BorsodChem Zrt. (BorsodChem) -- for RMB52 billion through the issuance of new shares," says Danny Chan, a Moody's Analyst.

Based on the combined annual capacity of 2.1 million tonnes, Wanhua Chemical is the largest producer of methylene diphenyl diisocyanata (MDI) globally, with an approximate 25% market share. Its revenue, EBITDA and assets for 2017 -- pro-forma for the acquisition -- would increase by 22%, 26% and 19% compared with the standalone figures, to RMB64.8 billion, RMB25.8 billion and RMB78.4 billion. This scale make it comparable with most peers in the Baa category.

"Wanhua Chemical's improved business fundamentals, diversification and strong financial profile will help it better weather cyclicality of its chemical products," adds Chan.

Specifically, BorsodChem's production capacity for toluene diisocyanate (TDI)/polyvinyl chloride of 250k/400 kilo-tonnes per annum (ktpa) will help reduce Wanhua Chemical's exposure to MDI prices. Although the company is a major MDI producer in central Europe, BorsodChem generates the majority of its income thought the manufacture of TDI, which accounted for 36.9% of its total gross profit in the first six months of 2018.

Over the past 18 months, BordsodChem has benefited from tight supply conditions in global TDI markets owing to capacity outages and project delays. As a results, its revenue and gross profit rose by 52% and 112% year-on-year to RMB13.1 billion and RMB6.0 billion in 2017.

"The upgrade also reflects our expectation that Wanhua Chemical will maintain its strong operating performance and continue to deleverage amid tight supply-demand conditions over the next 2-3 years," says Chan.

Wanhua Chemical's leverage and interest coverage remained largely unchanged following the restructuring, as the acquisition was effected through share issuance and thus did not result in any cash outlay.

Moody's expects Wanhua Chemical's leverage will decline to 0.8x-0.9x over the next 12-18 months from 1.3x in 2017 (or to 0.9x from 1.2x on a standalone basis), supported by sustained positive free cash flow and double-digit percentage growth in EBITDA. This level of leverage is appropriate for its rating level.
MRC

MOSCOW (MRC) -- Russia's overall production of unmixed polyvinyl chloride (PVC) rose in the first eight months of 2018 by 8% year on year to 622,500 tonnes. All producers increased their output, according to MRC's ScanPlast report.
August production of unmixed PVC grew to 70,600 tonnes from 67,200 tonnes a month earlier, Bashkir Soda Company and RusVinyl increased their output. Overall PVC production reached 622,500 tonnes in January-August 2018, compared to 577,400 tonnes a year earlier. All plants raised their production, with Bashkir Soda Company accounting for the greatest increase in the output.

The structure of PVC production by plants looked the following way over the stated period.
RusVinyl produced about 30,000 tonnes of PVC in August, compared to 27,800 tonnes a month earlier. RusVinyl's overall output of resin reached 213,500 tonnes in the first eight months of 2018, up 5% year on year.

SayanskKhimPlast shut down its production capacities for a 30-day scheduled maintenance on 15 July, thus, last month's total output of suspension polyvinyl chloride (SPVC) was only 10,300 tonnes, wheres this figure reached 13,100 tonnes in July. The Sayansk plant managed to produce over 173,100 tonnes of resin in the first eight months of 2018, compared to 159,400 tonnes a year earlier.

Baskhir Soda Company produced 22,500 tonnes of SPVC in August versus 18,400 tonnes a month earlier. The Bashkir plant's overall production of resin exceeded 173,500 tonnes in January-August 2018, up by 14% year on year. Such a great increase in the output was largely caused by the absence of a scheduled shutdown this year, whereas last year, the plant took off-stream its production capacities in mid-July.

Kaustik (Volgograd) reduced its production last month, the plant's output was 7,800 tonnes, compared to 8,000 tonnes in July. The plant's overall production of resin exceeded 62,300 tonnes over the stated period versus 61,300 tonnes a year earlier.

MRC