Novares to start manufacturing in Russia

MOSCOW (MRC) -- Novares has opened its first site in Russia, in Togliatti, home to the AvtoVAZ factory that produces Lada cars, said the company.

It is the 13th new manufacturing site that Novares has inaugurated in the past seven years, as well as extending 23 existing factories, as part of its international expansion strategy to be close to its customers.

The company has rented a 1,860 m2 site situated in the industrial park of AvtoVAZ, which is part of the Renault-Nissan Alliance. The factory will begin producing engine parts in May 2020, then Novares will rent a further 2,600m2 at the start of 2021 and expand production to include making and assembling roof bars.

The site will employ 130 workers by 2021 and is anticipated to achieve a EUR13 mln turnover by 2025.

The factory is one of three, following Mioveni in Romania and Kenitra in Morocco, that Novares has set up to better accompany the Renault-Nissan Alliance as it increases its production around the world.

"Opening this factory in Russia is part of our long-standing growth strategy, which includes being close to our customers wherever they are in the world. It is our first step into the Russian market, and the site will enable us to better evaluate and develop our offer in the country as a whole," said Pierre Boulet, CEO of Novares.

As MRC informed earlier, Russia's output of chemical products dropped by 3.2% in November 2019 month on month.
However, production of basic chemicals increased by 3.6% in the first eleven months of 2019, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, the largest increase in production volumes on an annualized basis accounted for mineral fertilizers and polymers in primary form. Last month, 255,000 tonnes of ethylene were produced versus 210,000 tonnes in October; by November, Russian producers had completed all their scheduled works. Thus, 2,721,000 tonnes of this olefin were produced in January-November 2019, up by 0.3% year on year.
MRC

Sinochem Unit gets USD1.65 Billion Investment from State Firms

MOSCOW (MRC) -- Sinochem Energy, a unit of China’s Sinochem Group, has agreed to sell a 20% stake to five state-owned firms for 11.56 billion yuan (USD1.65 billion), reported Kemicalinfo with reference to Xinhua news agency.

The financial investment arms of Agricultural Bank of China and Industrial Bank of China (ICBC), and Citic Securities Investment Co were the strategic investors, the official news agency said late on Friday.

Except for its struggling upstream business that includes overseas oil and gas production, Sinochem Energy operates the group’s oil and petroleum products trading, refining, storage and logistics, as well as distribution and retail businesses.

China National Chemical Corp, or ChemChina, has also approached Chinese state-backed investors for up to USD10 billion in funding as part of a reorganization of its agrichemicals business ahead of a public float.

The fundraising efforts and eventual stock market listing are designed to cut ChemChina’s debts ahead of a long-awaited mega-merger with state-owned peer Sinochem.

Frank Ning Gao Ning, the chairman of both companies, has encouraged individual business units to tap capital markets ahead of any tie-up, which has been in the works since 2016.

As MRC informed before, in late 2015, Sinochem received approval from the Fujian Provincial Development and Reform Commission for a refinery expansion and petrochemicals project in Quanzhou, the China Chemical Fiber Group reporte. The USD 6.8-billion project will expand the refinery by 25 % to 300,000 b/d from the current 240,000 b/d capacity. The company will also add a 1-million-t/y ethylene cracker, an 800,000-t/y paraxylene unit, a 400,000-t/y polyethylene plant, an aromatics extraction unit with 300,000 t/y of capacity, and secondary units. A schedule for the project was not given.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Sinochem Group engages in energy, agriculture, chemicals, real estate, and finance service businesses in China and internationally. It is involved in the exploration and production, refining and trading, warehousing and logistics, and distribution and retailing of oil and gas. The company also produces and distributes fertilizers, such as nitrogen, phosphate, potash, and other fertilizers.
MRC

Vertellus acquires supplier Bercen Chemicals

MOSCOW (MRC) -- Vertellus (Indianapolis, Ind) announced it has acquired Bercen Chemicals, a leading U.S. supplier of alkyl succinic anhydrides and additives used in the fuel, lubricant, and paper industries, said Chemengonline.

"This acquisition expands the range of products Vertellus is able to offer to the North American market” said Jim Elliott, General Manager of Vertellus’ Anhydrides & Specialties business. "The acquisition also provides us with a strong foundation to better serve the global fuel and lubricant additives market."

This acquisition complements Vertellus’ current capabilities and the combined business is better positioned to service global customers. Bercen’s gulf coast location with rail access supports the growing fuel and lube additive market in North America. Pilot facilities will also support the scale-up of new technology, with blending capabilities in Singapore providing a platform to support the growing Asian market.

MA is mostly used in the manufacture of unsaturated polyesters resins (UPRs) used in the production of boat hulls, bathroom fixtures, automobiles, tanks and pipes. Other outlets include 1,4- butanediol (BDO), tetrahydrofuran (THF) and gamma-butyrolactone (GBL).

As MRC informed earlier, Russia's output of chemical products dropped by 3.2% in November 2019 month on month.
However, production of basic chemicals increased by 3.6% in the first eleven months of 2019, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, the largest increase in production volumes on an annualized basis accounted for mineral fertilizers and polymers in primary form. Last month, 255,000 tonnes of ethylene were produced versus 210,000 tonnes in October; by November, Russian producers had completed all their scheduled works. Thus, 2,721,000 tonnes of this olefin were produced in January-November 2019, up by 0.3% year on year.

Founded in 1958, Bercen (a division of Cranston Print Works) has provided customers with high quality chemical solutions for more than 60 years. Based in Denham Springs, Louisiana, Bercen supplies maleic anhydride derivatives for paper sizing and other industrial applications.

Vertellus is a leading provider of specialty chemicals for the agriculture, nutrition, pharmaceutical, fine chemicals, medical, personal care, plastics, coatings and other industrial markets.
MRC

Air Liquide signs new long-term contract to supply hydrogen to Shell refinery

MOSCOW (MRC) -- Air Liquide Philippines and Pilipinas Shell have recently signed a long-term contract for a supply of Hydrogen to Shell’s Tabangao refinery in Batangas, Philippines, according to Hydrocarbonprocessing.

The new venture will secure for the Tabangao refinery a continuous supply of Hydrogen for its processing needs.

Air Liquide will invest EUR30 million in the construction of a state-of-the-art Hydrogen Manufacturing Unit (HMU) that will be built on the Tabangao refinery in Batangas. The HMU, owned and operated by Air Liquide, will be fitted with a CO2 recovery unit that mitigates direct carbon emission levels by capturing and liquifying the CO2 for other uses. This new large scale project is in line with Air Liquide’s Climate Objectives and commitment to supporting key customers and strategic partners with more sustainable solutions.

"This gas supply contract reflects the long-term partnership and the mutual trust between Air Liquide and Shell. We are confident in our ability to create value for our key customers in the Philippines and deliver superior performance that considers both business interests and environmental sustainability," Francois Abrial, member of the Air Liquide Group’s Executive Committee supervising Asia Pacific said.

As MRC informed previously, in July 2019, Air Liquide signed a long-term agreement with Gulf Coast Growth Ventures (GCGV), a 50/50 joint venture between ExxonMobil and SABIC, to supply oxygen and nitrogen from its industrial gas pipeline network to GCGV’s planned ethane cracker facility located near Corpus Christi, in Texas.

We also remind that Shell Singapore restarted its naphtha cracker in Bukom Island in early December 2019, following a two months maintenance shutdown since the beginning of October 2019. Thus, this cracker was taken off-stream for the turnaround on 1 October 2019. The cracker is able to produce 960,000 tons/year of ethylene and 550,000 tons/year of propylene.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

Arkema to close deal for divestment of functional polyolefins business to SK Global Chemical in Q2 2020

MOSCOW (MRC) -- Arkema has recently announced the proposed divestment of its Functional Polyolefins business to SK Global Chemical, a subsidiary of SK, the major South Korean corporation. The proposed disposal, which is subject to an information and consultation process involving Arkema’s employee representative bodies and to the approval of the relevant antitrust authorities, is expected to be finalized in second quarter 2020, reported Chemical Engineering.

With this project, Arkema continues its shift towards specialty chemicals and advanced materials.

Part of the PMMA Business Unit (Industrial Specialties division), the Functional Polyolefins activity represents sales of some EUR250 million. It comprises ethylene copolymers and terpolymers for the food packaging, cable, electronics and coatings markets, and leverages well-known brands: Evatane, Lotryl, Lotader, Orevac.

This activity employs around one hundred people in France and has an international sales network of around thirty people.

A subsidiary of South-Korean group SK, SK Global Chemical reported sales of USD11.9 billion in 2018, and operates around ten production sites around the world.

Offering a highly complementary fit with SK Global Chemical’s existing portfolio of activities, Arkema’s Functional Polyolefins would enable the company to consolidate its position in the packaging market and enter new industrial markets such as cable manufacturing.

The transfer of the business from Arkema France to SK Global Chemical would lead to the creation of a French subsidiary of the South-Korean group. The offer received is based on an enterprise value of EUR335 million.

This project, part of the program to divest non-strategic activities initiated in 2015, contributes to Arkema’s objective to increase the share of specialties in its portfolio, in line with its ambition for these businesses to exceed 80% of Group sales by 2023.

As MRC informed earlier, in October 2019, 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.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Arkema is a global manufacturer in specialty chemicals and advanced materials, with 3 business segments - High Performance Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The Group reports annual sales of EUR8.8 billion. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.
MRC