Indorama Alpek, S.A.B. de C.V., and Far Eastern JV receives FTC approval to acquire M&G PTA-PET facility

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced that its joint venture has received all regulatory clearance required from the United States Federal Trade Commission (“FTC”) for the proposed joint asset purchase of M&G USA Corp. and its affiliated debtors, said the company.

On 21 March 2018, Indorama Ventures, Alpek, S.A.B. de C.V., and Far Eastern Investment (Holding) Ltd., entered into a joint venture agreement to acquire M&G’s Corpus Christi plant through Corpus Christi Polymers LLC. The acquisition also includes certain M&G intellectual property, and a desalination/boiler plant.

The Corpus Christi plant will have nominal capacity of 1.1 million and 1.3 million metric tons per year of PET and PTA, respectively. The three JV parties will each receive one-third of the capacity of PTA and PET produced. Each of the partners will procure raw materials independently, while also independently selling and distributing their corresponding PTA and PET. The plant is the largest in North America with state of art technology and is a vertically integrated PTA-PET production facility.

Mr. Aloke Lohia, Group CEO of Indorama Ventures commented, “The FTC’s regulatory clearance represents an important milestone and a giant step towards serving the growing market needs of Recyclable PET for many years to come. With the approvals in place, we look forward to assist and fast track the construction and create hundreds of jobs to workers with this project.”

DuPont extends its polymerisation capacity in Germany

MOSCOW (MRC) -- DuPont Transportation & Advanced Polymers (T&AP), a business unit of the DowDuPont Specialty Products Division, has announced its intention to extend the high temperature nylon (Zytel HTN PPA) polymerisation capacity at its Uentrop facility in Hamm, Germany, as per GV.

Details on the current and future capacity of the plant were not disclosed.

According to the company, adding capacity to the Uentrop line opened in 2016 is a further step in its long-term investment strategy to enhance its polymerisation and compounding capabilities. In 2015, the nylon businesses announced a 10 % capacity increase for Zytel HTN polymer at the Richmond, VA, USA, site. In 2017, DuPont T&AP also increased compounding capacity for its high-temperature nylon grades at its Mechelen site in Belgium.

"With manufacturing assets in all regions including world-scale production and compounding sites for its speciality nylons, DuPont T&AP is a reliable global supplier with a strong and balanced regional footprint," said Thomas Philipon, Global Product Line Manager, DuPont Zytel HTN. "In Europe, our Uentrop site - which celebrated its 50th anniversary in 2018 - stands as a flagship example of the business’ commitment to high-quality and consistent product supply for our Zytel HTN PPA products."

Zytel HTN PPA grades retain good stiffness, strength and mechanical properties despite exposure to high temperatures, chemicals and moisture, making them ideal for various demanding applications in automotive components and systems, connectors and bushings. In consumer electronics, Zytel HTN high-performance polyamides enable designers to create lighter and thinner products when used in the design of cell phones, tablets and other hand-held devices, said the company.

As MRC reported earlier, rising demand for DuPont’s Tyvek nonwoven materials has prompted DuPont Safety and Construction, a business unit of DowDuPont Inc., to invest more than USD400 million to expand capacity for the materials at its facility in Luxembourg. The expansion will include the addition of a new building and third operating line at the site. The new capacity will come on stream in 2021.

Russian domestic PVC prices to increase in January

MOSCOW (MRC) -- Negotiations over January shipments of suspension polyvinyl chloride (SPVC) began in the Russian market in the early week. Expectedly producers announced an increase of prices for supplies to the domestic market, according to ICIS-MRC Price Report.

Most likely SPVC prices in the Russian market reached their minimum in December and will grow next year under the pressure of several factors.

January, like the year before, will be the first month of price increases next year. Russian producers intend to achieve a price increase of Rb1,500 - 2,000/tonne, which is partly due to the increase in the VAT rate.

Demand for PVC from the domestic market remains at a good level as for the current time of the year. Some converters even purchased additional volumes of PVC in December. Stocks inventories at Russian producers are insignificant due to export. In particular, since October, under the pressure of the seasonal factor, Russian producers began to actively increase export sales in order to balance the domestic market in the face of declining demand.

November export sales of SPVC reached a record level over the past few years and amounted to about a third of the total monthly production volume. About 30,500 tonnes were shipped to foreign markets in November (excluding deliveries to the countries of the Customs Union) versus 16,700 tonnes in October. Total PVC exports from the country were about 135,5200 tonnes in the first eleven months of this year, up 62% year on year.

There is no import alternative for the Russian consumer even taking into account the January price increase for SPVC. Key PVC suppliers in past years - manufacturers from China significantly reduced export prices in December, in some cases, prices for container shipments of acetylene PVC reached $785/tonne, DAP Moscow. But even such low export prices of Chinese PVC did not allow competing with Russian PVC.

Some Russian producers sdaid the growth of the January contract prices of SPVC was a result of the increase in the VAT rate from 2019 by 2%. The current weakening of rouble against the dollar also affected the situation.

Overall, January deals for K64/67 PVC were negotiated in the range of Rb71 500 - 75 000/tonne CPT Moscow, including VAT, for lots of less than 500 tonnes. Deals for K70 PVC were discussed on average up by Rb1,500-2,000/tonne.

Nghi Son oil refinery offers its first jet fuel cargo -sources

MOSCOW (MRC) -- Vietnam’s Nghi Son oil refinery has offered its first jet fuel cargo, weeks after it officially began commercial production, two sources at the refinery told Reuters.

The export cargo is ready for loading from Jan. 1 to Jan. 10, the first source said, declining to be identified as he was not authorized to speak with media.

“The export volume and price are still subject to negotiations with potential buyers,” the source added. A third source at the refinery told Reuters in November that the facility was seeking government permission to export its first batch of 30,000 tonnes of jet fuel.

“Exporting the first batch will help us secure an ISO certificate for the product,” the first source said, adding that the refinery would sell jet fuel in the domestic market after that under a deal signed with Vietnam Oil and Gas group, or PetroVietnam.

The 200,000-barrels-per-day Nghi Son refinery, located 260 km (160 miles) south of Hanoi, began commercial production on Nov. 14 after months of tests.

The USD9 billion refinery is 35.1 percent owned by Japan’s Idemitsu Kosan Co, 35.1 percent by Kuwait Petroleum, 25.1 percent by PetroVietnam and 4.7 percent by Mitsui Chemicals Inc.

Gurit closes PVC production site divestment

MOSCOW (MRC) – Gurit announces the successful closing of the divestment of all shares in the Company`s PVC production site in Qingdao, China,said the company.

Gurit has decided to focus the core materials manufacturing in the Asia-Pacific region on SAN, PET and balsa wood at its existing production facility in Tianjin, China. Following this decision, Gurit has disclosed the signing of an agreement to sell all shares in Gurit’s PVC production company in Qingdao, China to Zhengyu Sunshine Industrial Co. Ltd. for an undisclosed purchase price on August 3rd, 2018.

Gurit announces the successful closing of this transaction with the buyer. The financial results of this divestment will be disclosed as part of the annual report 2018 of Gurit.

The companies of Gurit Holding AG, Wattwil/Switzerland, are specialized on the development and manufacture of advanced composite materials, related technologies and select finished parts and components. The comprehensive product range comprises fibre reinforced prepregs, structural core products, gel coats, adhesives, resins and consumables. Gurit supplies global growth markets with composite materials on the one hand and composite tooling equipment, core material wind turbine blade kits, structural engineering and select finished parts on the other. The global Group has production sites and offices in Switzerland, Denmark, Germany, Hungary, Italy, Poland, Spain, the U.K., Turkey, Canada, the U.S.A., Ecuador, New Zealand, India and China.