Dow holds groundbreaking ceremony for new high-value silicone resin plant in China

MOSCOW (MRC) -- Dow held a groundbreaking ceremony for a new high-value silicone resin plant to be located at the Company’s manufacturing site in Zhangjiagang, Jiangsu, China, as per Hydrocarbonprocessing.

The new facility will significantly expand Dow’s global high-value silicone resin capacity to meet increased demand for the creation of differentiated silicone products in key industries and emerging markets worldwide.

"This investment demonstrates Dow’s strategy to capitalize on growth and value-add opportunities. It will better position Dow to help customers grow and succeed by addressing their fast-growing needs for our differentiated silicone products," said Mauro Gregorio, business president, Consumer Solutions. "Today’s groundbreaking emphasizes our ambition to collaborate and deliver materials science innovations with customers and partners throughout the global value chain."

The new high-value silicone resin plant is part of a broader investment plan announced by Dow in September 2018 to roll out a series of low capital intensity, high return investments in its silicones franchise to accelerate innovation and support global customers’ demand in high growth markets. It will produce high-value silicone resin, an advanced material critical to the creation of differentiated silicone products in the home and personal care, pressure sensitive adhesives, antifoams, and moldable optics for lighting markets.

Dow senior leaders Jim Fitterling, chief executive officer; Mauro Gregorio; Jon Penrice, president Asia Pacific; and Yoke Loon Lim, president Greater China were joined by customers, government representatives and other Dow employees, for the groundbreaking ceremony.

"We are thrilled to be breaking ground on this latest addition to our integrated manufacturing site in Zhangjiagang," said Yoke Loon Lim. "This new facility is a testament to our commitment to our local customers and partners, and demonstrates the Company’s confidence in the China and Asia-Pacific markets."

As MRC wrote before, in June 2018, The Dow Chemical Company (Dow) announced its plan to invest in an alkoxylation facility on the US Gulf Coast. Upon completion, this new facility will support global growth in Dow’s core end-markets related to infrastructure and home and personal care, as well as additional end-markets where Dow continues to strengthen its position for the TRITON, TERGITOL, ECOSURF and CARBOWAX SENTRY brands.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

Showa Denko to acquire ILAG Group

MOSCOW (MRC) -- Showa Denko (SDK) has decided to acquire all shares in ILAG Industrielack AG, which leads the ILAG Group (ILAG), a specialty non-stick coating chemicals manufacturing company headquartered in Wangen, Switzerland, and signed a stock purchase and sale agreement with the current owners, a coalition of investors led by Helvetica Capital AG, a Swiss-based private equity firm, said Bloomberg.

Non-stick coating chemicals (NSCs) are used on consumer goods such as cookware, bakeware, and home electrical appliances, and also on industrial goods including automotive parts and other industrial equipment, for the purposes of preventing sticking of substances on their surfaces and supporting low friction and release during use. The global market for NSCs is put about \\130 billion (about USD1.2 billion) a year (SDK’s estimate for 2019).

ILAG has the fourth largest share in the consumer-goods NSC market of worldwide operating companies, and the second largest share of this segment in Europe. Thus ILAG brand has strong presence in the European market. ILAG’s products are applied not only on consumer goods but also on industrial goods including automotive parts. ILAG exports its products manufactured in Switzerland to more than 50 countries.

Moreover, ILAG has a production base in China, and consumer goods manufactured by ILAG’s customers in China are sold worldwide. On the other hand, GMM Group (GMM), a manufacturer of NSCs which SDK acquired in November 2016, has a large market share in NSC market for consumer goods in the US, and GMM’s main customers are major cookware/bakeware manufacturers based in the United States.

Therefore, SDK is confident that ILAG and GMM are highly synergetic. For example, the two companies can play complimentary roles in terms of each company’s main markets in the world. After the acquisition of ILAG, annual sales figure of SDK’s NSC business will leap up to about USD60 million (about \\6.6 billion). As a result, SDK’s NSC business will have strong presence and competitiveness in global market, especially in the field of consumer goods.

As MRC wrote before, Showa Denko (SDK) decided to establish a new production site for thermosetting bulk molding compound (BMC) in Zhuhai, Guangdong Province, China, jointly with Eternal Materials Co., Ltd., a synthetic resin manufacturer based in Taiwan. BMC is a thermosetting bulk molding compound made from unsaturated polyester resin as main component, kneaded together with glass fiber and other additives. BMC is used as headlamp reflectors and engine covers for car applications, and encapsulation material for home electrical appliances and precision parts.

Showa Denko K.K. is mainly engaged in the petrochemical business. The Petrochemical segment manufactures and sells olefin, organic chemicals and others. The Chemical Product segment supplies chemicals, industrial gases, special gas and functional drug for semiconductors, functional high molecular materials, among others.
MRC

Massive explosion at Philadelphia refinery

MOSCOW (MRC) -- Firefighters are battling a massive fire at Philadelphia Energy Solutions’ refinery in Philadelphia that has resulted in several explosions but caused no significant injuries, as per Hydrocarbonprocessing with reference to the company's Friday statement.

The fire began early Friday morning in a butane vat at the 335,000 barrel-per-day refinery, according to the Philadelphia Fire Department’s twitter feed and a company statement. Video footage shows a later explosion that sent a massive fireball into the sky, engulfing the refinery and the surrounding area in smoke.

Aerial video of the scene aired on local television showed the complex engulfed in flames and significant damage.

"Refinery emergency response crews and the Philadelphia Fire Department are attempting to bring the fire under control. We are in the process of accounting for all personnel. There were no significant injuries," a company spokeswoman said.

The refinery is the largest and oldest on the U.S. East Coast; there has been a plant on the site since 1870.

A veteran refinery worker who was at the plant when the fire broke out said, "It was the worst I’ve ever experienced,” he said. “It looked like a nuclear bomb went off. I thought we were all going to die."

The worker, who declined to be named because he is not authorized to speak to the media, said there were two separate explosions.

One explosion occurred at an 30,000 bpd alkylation unit that uses hydrofluoric acid, one of the deadliest chemicals in the refining business, a source familiar with plant operations said.

Police closed roadways surrounding the refining complex, the company spokeswoman added, and the city’s fire department briefly ordered residents to shelter in place out of precaution.

About 120 firefighters responded to the three-alarm fire, Philadelphia’s deputy fire commissioner, Craig Murphy, said in a media briefing. He said one employee who was working in the area of the butane vat complained of chest pains but did not need treatment. Butane is a liquid petroleum gas used as fuel and in production of petrochemicals.

News of the explosion caused gasoline futures traded on NYMEX to spike 4.8 percent.

The incident comes as the refiner is struggling financially, slashing worker benefits and scaling back capital projects to save cash. If the damage is significant, there will be questions as to whether the company has enough money to rebuild.

A fire broke out on June 10 at the same refinery, which according to a source familiar with operations affected a 50,000-barrels-per-day catalytic cracking unit.
MRC

Clariant Masterbatches establishes regional packaging center in Thailand

MOSCOW (MRC) -- Clariant Masterbatches is ramping up its support for packaging industry customers in Asia Pacific by creating a Regional Packaging Center (RPC) in it’s Phanthong manufacturing facility in Thailand, as per the compnany's press release.

The RPC is part of a Clariant program to provide a higher level of service to the packaging industry in the region. The Center is home to formulation, process and analytical experts who also have in-depth knowledge of market trends and customer needs. They have access to state-of-the-art analytical equipment, a wide array of processing machines, and Clariant’s regional network of application-development laboratories in Singapore, Malaysia, Vietnam, Indonesia, India, New Zealand & Australia. The Center is operational now, and upgrades and equipment additions will continue be added through Q1 of 2020.

"With the RPC, we want to engage deeper with customers in a co-creation process to develop breakthrough concepts and solutions in masterbatch products and processes tailored to their aesthetic and functional needs," explains Chris Hansen, Head of Clariant Masterbatches Asia Pacific. "We are doing this in partnership with other suppliers, leading institutes and universities so that Clariant can provide comprehensive solutions to packaging convertors and brand owners."

Clariant has an extremely broad range of color and additive masterbatches, and it’s expertise extends across the dozens of polymers used in today’s - and tomorrow’s - packaging. Clariant masterbatches are already used in bottles, microwaveable trays, biodegradable food containers, multi-layer laminate, active packaging, durable industrial drums, tear-resistant shrink wrap and many other and innovative plastic packagings in or on the way to the market.

The RPC also houses a wide array of state-of-the-art analytical equipment used for determining the chemical, mechanical, environmental stress cracking, anti-static and coefficient of friction properties of packaging materials. Production-scale processing machines include mono- and multilayer blown film, blow molding, cast film and injection-molding lines. This equipment makes it possible to produce end-use application samples that allow customers to easily evaluate color and functionality enhancements delivered by Clariant products.

As MRC informed before, in June 2016, Clariant inaugurated its new production plant for water-based pigment preparations in Mexico. The new plant located in Santa Clara doubles Clariant’s Mexico annual production capacity for water-based pigment preparations and enhances its ability to serve customers across North and Latin America.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC

Chandra Asri to start maintenance at its naphtha cracker

MOSCOW (MRC) -- PT Chandra Asri Petrochemical Tbk. (CAP) is in plans maintenance at its naphtha cracker in Cilegon, according to Apic-online.

A Polymerupdate source in Indonesia informed that the company is likely to commence maintenance at its plant in early-August 2019 and it is expected to remain in for a period of around 6-7 weeks.

Located at Cilegon in Indonesia, the naphtha cracker has an ethylene production capacity of 860,000 mt/year.

As MRC informed before, in June 2018, W. R. Grace & Co., the leading independent supplier of polyolefin catalyst technology and polypropylene (PP) process technology, granted a license which allows CAP to expand its existing UNIPOL PP plant. The world-scale capacity UNIPOL PP facility, located in Ciwandan, Indonesia, will be expanded to 590 KTA of polypropylene.

CAP is the largest integrated petrochemical company in Indonesia and operates the country’s only world-scale size Naphtha Cracker. The CAP plant is strategically located in Banten province, providing convenient access to key customers.
MRC