Arkema successfully starts up a new acrylic acid reactor in the United States

MOSCOW (MRC) -- Arkema successfully brought on stream a new 90,000-ton acrylic acid reactor at its Clear Lake, Texas site to support the growth of its North American customers in the superabsorbents, paints, adhesives and water treatment markets, said the company.

Arkema has successfully brought on stream, and on schedule, a new 90,000-ton per year acrylic acid reactor at its Clear Lake, Texas site.

Equipped with the latest production technologies, this new reactor replaces two decommissioned reactors of 45,000 tons each.

This investment of approximately USD90 million positions Clear Lake as one of the most competitive acrylic acid sites in the United States.

This new capacity will enable the Group to support the growth of its North American customers in markets such as superabsorbents, paints and coatings, adhesives, and polymers for water treatment and enhanced oil and gas recovery. This expansion consolidates Arkema’s position as the second largest producer of acrylic acid in the region.

As it was infromed earlier, Arkema is to divest its Functional Polyolefins business to South Korea’s SK Global Chemical for EUR335m. Functional Polyolefins produces ethylene copolymers and terpolymers for the food packaging, cable, electronics and coatings markets.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC

MOSCOW (MRC) -- Brazilian petrochemical company Braskem SA's director Roberto Lopes Pontes Simoes is slated to take over as board chairman, reported InvestorsHub with reference to the company's statement on Monday.

Mr. Simoes's appointment, succeeding fellow Odebrecht SA appointee Marcelo Moses de Oliveira Lyrio, would open up a seat on the board.

A shareholders' meeting to formalize the appointment & elect a new director is yet to be scheduled.

Sao Paulo-based Braskem has been trying to move on from its involvement in a sprawling corruption investigation known as Car Wash that enmeshed its owners: Brazilian construction conglomerate Odebrecht, the controlling shareholder, and Brazilian oil company Petroleo Brasileiro SA, or Petrobras.

Braskem's American depositary receipts are expected to resume trading on the New York Stock Exchange under its old ticker BAK this week.

The company's ADRs had been trading in New York over the counter since the company failed to meet a deadline to file annual financial disclosure forms with the Securities and Exchange Commission. Braskem has since filed the forms and remediated a series of material weaknesses, including in its anti-corruption compliance program and controls and so-called "tone at the top" shortcomings.

Braskem reported a profit of RD2.87 billion (USD740.2 million) for 2018, compared with RD3.92 million for 2017 and a net loss of RD729.2 million for 2016, according to securities filings.

Net revenue, meanwhile, fell to RD11.57 billion (USD2.99 billion) in 2018 from RD13.08 billion in 2017 and RD12.68 billion in 2016.

In the most recent financial forms filed with the SEC, Braskem noted the possibility of a change in control, given Odebrecht's bankruptcy filing and its attempt to sell its Braskem stake to petrochemicals giant LyondellBasell Industries NV.

As MRC informed before, Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

MOSCOW (MRC) -- Phillips 66 and labor leaders representing workers at its 285,000 barrel per day Bayway refinery in Linden, New Jersey, will resume negotiations next week, reported Reuters with reference to a source familiar with the talks.

However, union workers at the Teamsters Local 877 said they were "preparing for the worst" whether it is a strike or a lockout, and that a date to resume conversations has not yet been decided.

The two sides hit an impasse late last week after failing to agree on changes to the contract expanding the tasks and responsibilities of refinery workers, which some union members deem a safety issue.

A three-year contract was voted down by union members earlier this month, and operations have continued under a 24-hour rolling contract that has been in place since the previous contract expired.

Phillips 66 did not immediately respond to a request for comment.

The Bayway refinery is the largest in operation in the US Northeast following a fire and series of explosions in June that led to the closure of the 335,000-bpd Philadelphia Energy Solutions facility.

Refining capacity in the region has declined over the years as much of the nation’s refining output now comes out of the US Gulf Coast and Midwest.

The union represents about 500 operators at the Bayway facility, which employs around 800 people, according to the company’s website.

If an agreement is not reached, the unionized refinery workers could be subject to a lockout, leaving the company without access to certain union-trained workers who handle emergency response systems.

However, Phillips 66 said in a previous statement that they "maintain qualified emergency response personnel who are not represented by the Teamsters Local 877."

As MRC wrote before, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC

MOSCOW (MRC) -- Linde acquired a minority stake in ITM Power, a British manufacturer of polymer electrolyte membrane (PEM) electrolyzers for the electro-chemical splitting of water into hydrogen and oxygen, said the company.

The transaction, which was completed on October 22, provides Linde with a strategic investment in a world leading manufacturer of integrated hydrogen energy solutions.

In addition to its investment, Linde will form a joint venture with ITM Power to implement projects based on ITM Power's technology. By bringing together ITM Power's expertise in PEM electrolysis and Linde's leading engineering procurement and construction experience, the joint venture will target large-scale industrial users, particularly in the metals and glass, electronics, refinery, chemistry and steel industries. In addition to opening new commercial opportunities, the joint venture is expected to create capacity to deliver a higher volume of projects, shorten lead times, improve execution and reduce costs.

"This investment reflects Linde's ongoing focus to deliver sustainable solutions while helping to make our customers more successful", said Dr Christian Bruch, Executive Vice President and CEO Linde Engineering. "The joint venture is an excellent opportunity to combine Linde's world-class engineering capabilities with ITM Power's electrolysis technology."

"The investment from Linde cements the relationship between us and provides ITM Power with a world-leading partner that brings deep expertise in engineering, procurement and construction plus a global customer base", said Dr Graham Cooley, CEO, ITM Power.

As MRC Gazprom announced at the St Petersburg International Gas Forum that it signed into a joint venture contract and an equity investment deal with German firm Linde AG. The joint venture will be responsible for
the planning and construction of industrial facilities for the processing and liquefaction of natural gas in Russia. Gazprom will be responsible in pilot testing before the commissioning of LNG plants.

PJSC Gazprom and PJSC Sibur Holding signed two roadmaps for cooperation for implementing major investment projects in gas processing and gas chemistry. Signed on 3 Oct 2019, the documents follow a coordination
agreement between the companies signed in Sep 2019. LPG and additional volumes of ethane fraction from the Amur gas processing plant to Sibur's future Amur gas chemical complex. Gazprom's Amur plant will include six processing
trains, two of which are scheduled for start-up in 2021. In addition to natural gas, the plant will produce ethane, propane, butane, pentane-hexane fraction, and helium. Sibur separately is developing the Amur complex
construction project, which will be technically affiliated with the Amur plant. The increase in feedstock supplies will allow Sibur to expand design capacities of the Amur complex from 1.5 M tonnes/y of polyethylene to about
2.3 M tonnes/y of polyethylene and 400,000 tonnes/y of polypropylene.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Linde is a leading industrial gases and engineering company with 2018 pro forma sales of USD 28 billion (EUR 24 billion). The company employs approximately 80,000 people globally and serves customers in more than 100 countries worldwide. Linde delivers innovative and sustainable solutions to its customers and creates long-term value for all stakeholders. The company is making our world more productive by providing products, technologies and services that help customers improve their economic and environmental performance in a connected world.
MRC

MOSCOW (MRC) -- Greif, a global leader in industrial packaging products and services, is delighted to announce its investment in a second intermediate bulk container (IBC) production plant in Russia, said the company.

Strategically located on Vorsino Industrial Park in Kaluga, adjacent to Greif’s steel drum production plant, the new hi-tech, food-grade IBC facility covers an area of 5,500 square meters and will allow Greif to double production capacity of IBCs in Russia.

Konstantin Savinov, Director of Operations EMEA Eastern Europe, said: “The opening of a new IBC facility in Russia underlines Greif’s ongoing commitment to the market. Continued investment from local government and multinational corporations, as well as its proximity to several of Greif’s key customers makes Kaluga an attractive region.

"The investment will allow us to better serve our existing customers by offering more flexibility, reduced lead times and lower transportation costs as well as the ability to dispatch combined batches of steel drums and IBCs. It will also mean we have the capacity to secure new contracts, particularly in the food industry, as well as coatings, petrochemicals and specialty chemicals."

Greif opened its first IBC facility in Russia in Kazan in 2007. The company also operates seven steel drum production facilities, the most recent of which was opened on Vorsino Industrial Park in July 2018.

As it was informed earlier, in March 2019, Greif Inc finished its earlier announced acquisition of Caraustar Industries Inc. Greif said that it will be able to reach at least USD45 M in performance improvements and cost synergies within the next 36 months through the incorporation of the previous Caraustar operations into Greif's existing business.

Greif is a global leader in industrial packaging products and services strategically positioned with nearly 300 operating locations situated across over 40 countries.
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