Air Liquide signs three long-term contracts with BASF in Antwerp

MOSCOW (MRC) -- Air Liquide has signed three new long-term contracts, which include the construction and operation of a new nitrogen removal unit (NRU), in the Antwerp Basin with German chemical company BASF, said the company.

Leveraging on five existing onsite production plants in the Antwerp basin, the contracts also include a 15-year agreement for the renewal of Air Liquide’s air gas supply to existing installations and provide additional oxygen to a new ethylene oxide plant to be built by BASF.

In addition, Air Liquide will purchase part of the methane fraction generated during the BASF production process and valorise it as a feedstock in its hydrogen production plants at the site contributing to circular economy and reducing CO2 emissions by up to 15,000 tonnes per year on the Antwerp site.

The French industrial gas giant will build the NRU to supply BASF with high purity gas to enable a more efficient production of MDI, an important chemical component that is used in house insulation, helping save energy in buildings and other applications.

The new NRU is scheduled to be operational by mid-2021.

Francois Jackow, Executive Vice-President and a member of the Executive Committee supervising activities in Europe, said, “The signature of these new contracts demonstrates Air Liquide’s extensive capabilities to develop innovative and sustainable solutions and to create value for its customers over the long term."

"It also reflects our commitment to support our customers meet the challenge of the energy transition in line with our Climate Objectives."

As MRC wrote earlier, BASF, the world's petrochemical major, has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

Ethylene and propylene are feedstocks for producing 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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of around EUR63 billion in 2018.
MRC

MOSCOW (MRC) -- South Korea's Hyundai Motor and Kia Motors will suspend car production indefinitely at all its local plants, reported S&P Global with reference to the company's statement Friday, due to a lack of auto parts from its China-based suppliers.

The shortage resulted from a prolonged shutdown of Chinese plants due to the coronavirus outbreak, it said.
Hyundai Motor operates seven plants in South Korea -- five in Ulsan, and one each in Asan and Jeonju. The Ulsan and Asan plants will suspend production Friday while Jeonju will stop production on Monday.

On the other hand, Kia Motors plans to suspend production at its eight local plants on Monday -- three each in both Hwaseong and Gwangju, and two in Gwangmyeong.

Hyundai Motor and its sister company, Kia Motors, had cut production last week after China-based South Korean suppliers stopped production since January 24 at the start of the Lunar New Year holidays.

The Chinese government told manufacturers to stop operations until February 9 to keep the virus from spreading farther.

"The expected date of operation resumption is depending on the supply of components," Hyundai Motor said.

It is the first time that Hyundai Motor has shut its plants since 1997 during the Asian financial crisis.

To offset the shortfall, Hyundai Motor said it will increase supplies from domestic and Southeast Asian suppliers.

In 2019, Hyundai Motor produced 1.79 million vehicles while Kia Motors made 1.45 million vehicles, up 2.2% and down 1.3%, respectively, from 2018.

Other local carmakers, such as GM Korea, SsangYong Motor and Renault Samsung Motors Corp., have either suspended or are considering cutting production.

SsangYong Motor suspended production at its Pyeongtaek plant from February 4 to February 12, citing the supply shortage.

As MRC wrote before, Russian dealers of Hyundai sold 178,809 cars in 2019, which corresponds to the level a year earlier. As a result, Hyundai ranked fourth in sales among all automakers in Russia, and the brand’s market share was 10.2% versus 9.9% a year earlier, according to AEB.

In September 2010 Hyundai Motor Company launched a plant in St. Petersburg (Hyundai Motor Manufacturing Rus). Currently, the factory produces Hyundai Solaris and Kia Rio models. The Hyundai plant accounts for the bulk of cars produced in St. Petersburg. Hyundai Motor's Russian plant operates on a full production cycle. Creating a car begins with stamping body panels from steel coils. The welding process is fully automated. All paintwork both outside and inside the body is applied by robots.

Polypropylene (PP) is one of the main feedstock materials for the production of interior parts of the car.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- Fujian Meide Petrochemical, a wholly owned subsidiary of China Flexible Packing Group, shut down one of its polypropylene (PP) unit last week, reported S&P Global.

Located in Fujian province, this PP unit's annual production capacity is 500,000/mt.

Many downstream PP plants in China were heard to have reduced their operating rates or shut down as they were not able to transport their products to the customers due to the closure of major roads in eastern China.

As MRC informed previously, Fujian Meide Petrochemical delayed the startup of its newly built propane dehydronation (PDH) plant in Jiangyin, southeastern Fujian province, to the second half of February. The new PDH with the capacity of 660,000 mt/year was originally scheduled to start up in the first half of February, 2020. High cost of feedstock propane was the cause of the delay.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- North Huajin Chemical Industry has taken off-stream its No. 2 polypropylene (PP) unit because of the pressure from inventories of material in the market, according to Apic-online.

This unit was shut on 8 February 2020. The restart date has not been specified yet.

Earlier, a Polymerupdate source in China informed that the company resumed operations at the plant on January 4, 2020, following an unplanned maintenance. The plant was shut on December 22, 2019.

Located in Liaoning province of China, the unit has a production capacity of 50,000 mt/year.

As MRC wrote before, North Huajin Chemical shut its PP unit in Liaoning on September 20, 2019. Further details on duration of shutdown was not available. Located in Liaoning province, China, the plant has a production capacity of 50,000 mt/year.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

North Huajin Chemical Industries Group Corporation develops, manufactures, and markets fertilizers, synthesis resins, ethylene, methanol, and dimethyl in China. The company also manufactures PVC plastic windows and doors, functional membranes, PVC-U section materials, and laminated plastic woven bags. Its fertilizer products include urea and slow release urea for use in agriculture, husbandry, and fishery markets. North Huajin Chemical Industries Group Corporation was founded in 2002 and is based in Panjin, China.
MRC

MOSCOW (MRC) -- Zhejiang Shaoxing Sanyuan Petrochemical took off-stream one of its polypropylene (PP) plants in China last week because of logistical issues, reported S&P Global.

Located in Zhejiang Province, this plant's annual production capacity is 300,000/mt yr.

The company also operates another PP plant at the same site with a capacity of 200,000/mt yr and a propane dehydrogenation (PDH) unit with a capacity of 450,000/mt yr.

Many downstream PP plants in China were heard to have reduced their operating rates or shut down as they were not able to transport their products to the customers due to the closure of major roads in eastern China due to coronavirus.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC