Denka to invest around USD35 million to reduce gas emissions

MOSCOW (MRC) -- Denka Company Limited announces that as part of its initiatives to reduce greenhouse gas emissions based on its ESG management policy, it has decided to invest approximately 3.7 billion yen in the installation of high-efficiency gas turbine power generation facilities for private power generation at its Chiba Plant (Ichihara-shi, Chiba), its core petrochemical production plant, said the company.

Through the introduction of facilities such as these, Denka will facilitate the reduction of greenhouse gas (CO2) emissions by at least 12,000 tons annually and accelerate its efforts to realize a sustainable society.

The Paris Agreement,1 which was adopted as an initiative establishing an international framework, set out the target of keeping the average global temperature rise to 2 °C or less over pre-Industrial Revolution levels. As a result, the implementation of measures to reduce greenhouse gas emissions became an issue the world needed to address as soon as possible. Denka, taking the Paris Agreement into consideration, established medium- to long-term targets for the reduction of greenhouse gas emissions in an effort to ensure its responsibilities as a chemical product manufacturer are fulfilled.

The introduction of the high-efficiency gas turbine power generator is expected to not only achieve a reduction equal to approximately 2% of Denka’s total reductions and approximately 5% of the energy-origin emission reductions
set forth in the medium-term targets but also improve the intensity of useable energy, thereby contributing to the boosting of the Chiba Plant’s cost competitiveness.

In addition, with the high-efficiency gas turbine power generator expected to achieve a sufficient reduction of emissions and also save energy, the project has been chosen by the Ministry of Economy, Trade and Industry (METI) as being eligible for subsidies, based on METI’s program aimed at supporting entities facilitating the rationalization of energy use, following the energy saving project with the introduction of gas turbine power generator promoted by Ome Plant which was also chosen in 2018.

Denka will increase the amount of clean energy it uses to reduce greenhouse gas emissions on a long-term basis. With this in mind, it is in the process of constructing additional hydroelectric power stations in two locations, in addition to the Denka-owned hydroelectric power stations operating in 15 locations (including five locations owned by Kurobegawa Electric Power Company, a joint venture established with Hokuriku Electric Power Company). When the power stations Denka hopes to establish in two locations begin operations, Denka expects that it will additionally reduce CO2 emissions by approximately 35,000 tons every year.

In line with its SDGs compass, Denka will continue to implement a range of initiatives preserving and protecting the
environment going forward, and contribute to the creation of a sustainable society by promoting environmentally-conscious corporate activities globally.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
MRC

Arkema opens industrial adhesives plant in Japan

MOSCOW (MRC) -- Arkema announces the start-up of a new world-scale industrial adhesives plant in Japan. Those new capacities will enable Bostik to serve its Japanese customers in the continuously growing markets of diapers, hygiene, packaging, labelling, transportation and electronics, said the company.

This investment is in line with Bostik’s growth and geographical expansion strategy. Bostik, the Adhesive Solutions segment of Arkema, continues the development of its industrial adhesives business and announces the start-up of a new plant in Nara, Japan, within the Bostik-Nitta JV, 80% owned by the Group.

This new facility includes several production lines dedicated, on the one hand, to adhesives for the non-woven industry (diapers and hygiene) and, on the other hand, to the industrial markets of packaging, labelling, transportation and electronics. It will enable Bostik to support the strong growth of its customers in the disposable hygiene sector in Japan and to expand the manufacturing of certain industrial adhesives ranges in Asia.

This investment represents a new step in the geographical strengthening of Bostik, remaining close to its customers, and confirms its commitment to developing innovative and sustainable products at the highest level of quality and performance.

According to MRC's ScanPlast report, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

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

TPPI to resume aromatics production after year-long break

MOSCOW (MRC) -- Indonesia's TPPI to resume aromatics production after year-long break, said Chemweek.

TPPI plans to resume paraxylene 550,000 tonnes/year, benzene 360,000 tonnes/year production by end-September.

According to market sources, benzene, p-xylene margins already under pressure in region due to ample supply.

As it was written earlier, Indonesia's Trans Pacific Petrochemical Indotama (TPPI) in June 2019 switched production setting at its Tuban unit to gasoline mode, instead of aromatics. The paraxylene (PX) line, with a capacity of 550,000 tonnes/year, was previously restarted in end of the third quarter 2018, following strong production margins. The decision to switch away from aromatics production is likely largely a result of declining margins.

PX is a feedstock for the production of purified terephthalic acid (PTA). PTA is used to produce polyethylene terephthalate (PET), which, in its turn, is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 367,720 tonnes in the first six months of 2020, up by 19% year on year. Russian companies processed 62,910 tonnes in June.
MRC

COVID-19 - News digest as of 18.09.2020

1.European Parliament urges EU to prioritize production of APIs and medicines

MOSCOW (MRC) -- The European Parliament says that the EU should become more self-sufficient in medicines and medical equipment so that affordable treatments are available at any time, said Chemweek. It calls for priority to be given to boosting domestic production of essential and strategic medicines because currently 40% of medicines marketed in the EU originate in non-EU countries and 60-80% of its active pharmaceutical ingredient (API) supplies are produced in China and India. The COVID-19 health crisis has emphasized the need to return API production to Europe and the EU Parliament has welcomed the EU health program EU4Health, which it says has the potential to ensure safe medicines in Europe can be made available, accessible, and affordable. Meanwhile, members of the European Parliament have asked the European Commission to examine ways to restore pharmaceutical manufacturing in Europe, as part of the EU4Health strategy.


MRC

Sinochem to start up new HDPE, PP plants in China

MOSCOW (MRC) -- Sinochem Quanzhou Petrochemical is planning to bring its newly constructed high density polyethylene (HDPE) and polypropylene (PP) plants online by 20 September and 30 September respectively, reported CommoPlast with reference to market sources.

The company has also scheduled to bring the 1 million tons/year ethylene cracker on stream on 15 September 2020.

Sinochem has been performing trial operations at the downstream units since August.

Besides the cracker, the petrochemical complex houses a 350,000 tons/year PP line and 450,000 tons/year HDPE line. Meanwhile, the 200,000 tons/year low density polyethylene (LDPE) line would only come online by the first quarter of 2021.

As MRC informed before, in January 2020, Sinochem Energy, a unit of China’s Sinochem Group, agreed to sell a 20% stake to five state-owned firms for 11.56 billion yuan (USD1.65 billion).

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

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