ALPLA to build EUR15 million HDPE recycling plant in Mexico

ALPLA to build EUR15 million HDPE recycling plant in Mexico

MOSCOW (MRC) -- ALPLA (Hard, Austria), a global specialist for packaging solutions and recycling, plans to build a EUR15 million, 15,000-metric tons/year facility for the production of post-consumer recycled high-density polyethylene (HDPE) in Toluca, Mexico, reported Chemweek.

The company says it will begin construction in fall, with completion slated for the second half of 2021. The recycled material will be marketed for non-food applications, primarily in Mexico and neighboring countries.

ALPLA says the new operation will help build a market for recycled HDPE in Mexico. “This is how we generate demand among collection companies and support the development of the necessary infrastructure,” says Carlos Torres, regional manager/Mexico. “In addition, we can offer our regional customers the ‘circularity’ demanded of recyclable materials.”

ALPLA entered the field of HDPE recycling in November 2019, through the acquisition of two plants in Spain. The company has been recycling post-consumer polyethylene terephthalate (PET) in Mexico since 2005, and it currently produces 15,000 metric tons/year of food-grade PET recyclate in the country.

As MRC informed previously, ALPLA Group is acquiring a facility in Western India for the production of preforms for PET bottles from the packaging company Amcor. Thus, ALPLA Group has taken over a plant for rigid plastics in India from the global packaging specialist Amcor with effect from September 28, 2020. The plant in Alandi, West India, is in the immediate vicinity of the metropolis of Pune. It manufactures preforms for the production of PET bottles for the beverage industry. Customers include Coca-Cola and the Indian dairy company Amul.

According to MRC's ScanPlast report, September estimated HDPE consumption in Russia fell to 55,790 tonnes from 119,750 tonnes a month earlier. ZapSibNeftekhim increased its export polyethylene (PE) sales. Kazanorgsintez's production capacities were also shut for a turnaround. Overall HDPE shipments to the Russian market totalled 911,650 tonnes in the first nine months of 2020, up by 6% year on year. Production grew significantly, whereas imports slumped by 27%.

ALPLA Inc. is a member of Hard, Austria-based Alpla-Werke Alwin Lehner GmbH & Co. KG, which has more than 20,000 employees at 178 manufacturing sites in 46 countries. Alpla makes bottles, closures, moulded parts and packaging systems. The company ranks No 5 among North American blow moulders, with estimated blow moulding sales in the region of USD1.1bn (EUR990m).

Braskem announced its results for Q3

MOSCOW (MRC) -- Braskem's third-quarter net loss widened on the back of an additional provision related to its former mining operation in Alagoas and the depreciation of the Brazilian real (R) against the US dollar, said the company.

The Company's recurring EBITDA was USD699 million, 126% higher than 2Q20, mainly explained by (i) the better spreads of PE in Brazil, PP in the United States and PE in Mexico and (ii) an increase in sales volume in Brazil and in the United States due to the recovery in demand for resins in the Brazilian market and PP in North America. In relation to the same period of the previous year, the Company's recurring EBITDA in US dollars was 69% higher, due to (i) the better spreads of PE and PVC in Brazil, PP in Europe and PE in Mexico and (ii) the increase in sales volume in Brazil, United States and Mexico. In Brazilian Real, the recurring EBITDA was R3,765 million, 127% and 129% higher than 2Q20 and 3Q19, respectively, due to the depreciation of the Brazilian Real against the US dollar.

Braskem incurred an additional provision of R3.56bn in the third quarter related to the geological damage caused by its former salt mining operation in the state of Alagoas in northeast Brazil.

In the third quarter, due to the recovery in demand for resins in the Brazilian market and demand for polypropylene (PP) in North America, the utilisation rate of the crackers in Brazil normalised to 87%, as well as the operation rate of the industrial units in the US.

Production at Braskem's new PP plant in the US was at 36,000 tonnes in October, close to the monthly production capacity of the plant of around 38,000 tonnes.

As MRC reported previously, Brazilian petrochemical producer Braskem's 450,000 mt/year polypropylene (PP) plant in LaPorte, Texas, along the Houston Ship Channel completed its initial commercial production, as per the company's statement as of Sept. 10. "The launch of commercial production at our new world-class PP production line in La Porte clearly affirms Braskem's position as the North American polypropylene market leader," Braskem America CEO Mark Nikolich said in a statement. With a USD750 million investment, the new PP plant's construction started in October 2017 and was completed in June, 2020.

Braskem operates five other US PP plants in Texas, Pennsylvania, and West Virginia, with a cumulative capacity of 1.57 million mt/year that the company acquired. The new plant in La Porte, Texas, is Braskem America's first PP new build.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

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).

ACC calls on President-elect Biden to ensure access to shale and pursue more stable trade policy

MOSCOW (MRC) -- US chemical leaders called on President-elect Biden's administration to maintain policies that ensure continued access to US shale resources as well pursue more predictable trade policy, said Chemweek.

"As always, we stand ready to constructively engage with the White House and bipartisan leaders in Congress to help drive the solutions for a future that will better serve all Americans – one that is safer, healthier, stronger, and more sustainable," ACC said in a statement.

ACC said it would work with a Biden administration and both parties in Congress to ensure robust and responsible energy and infrastructure development to keep industry and the US economy on a path to strong growth. “Maintaining the vitality of our industry and its ability to produce these life-saving materials means maintaining access to our country’s vast shale gas resources," ACC said in a statement."Thanks to these resources the chemical industry continues to drive a manufacturing renaissance yielding USD205 billion in new chemical industry projects in the United States with the potential to create hundreds of thousands of jobs and nearly USD290 billion in new economic output."

ACC noted that chemicals remain one of the US's largest exporters with USD136 billion in exports in 2019, 10% of all US goods exports. "Robust trade in raw materials and finished products helps fuel the growth of our sector here at home – but current costly tariff policy continues to cut into our industry’s competitive advantage," ACC said. "We strongly urge President-elect Biden and his administration to chart a different path for US trade policy. Reducing trading costs and promoting a more predictable trading environment can help rebuild our economy, continue to attract investment in the US and ensure that America can maintain its position as one of the world’s leading innovators."

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

ccording to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

OxyChem earnings up sequentially on pricing, chlorovinyls volume

MOSCOW (MRC) -- Occidental (Oxy; Houston, Texas) says its chemical segment, OxyChem, turned in third-quarter pre-tax income of USD178 million, down 14% year-over-year (YOY) from USD207 million, and up 65% sequentially from the second quarter’s USD108 million, according to Chemweek.

Revenue totaled USD937 million, down 13% YOY from USD1.071 billion, and up 11% sequentially from USD846 million.

Oxy attributes the sequential gain in chemical pre-tax income to improved pricing for caustic soda and polyvinyl chloride (PVC) as well as higher chlorovinyl sales volume.

OxyChem is one of the largest producers of chlorovinyls and caustic soda in the world.

As MRC reported previously, OxyChem, the chemical division of Occidental Petroleum, conducted a seven-day turnaround at its PVC plant in Pasadena, Texas, USA, in April, 2020. This plant's production capacity is 1 million mt/year.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 805,100 tonnes in January-October 2020, which corresponds to the last year's figure. At the same time, two producers managed to increase their PVC output.

Occidental Petroleum Corporation (OxyChem) is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America. Oxychem is Oxy"s Texas-based subsidiary which manufacture polyvinyl chloride (PVC) resins, chlorine and caustic soda used in plastics, pharmaceuticals and water treatment chemicals.

Adnoc, ADQ to invest USD5 billion in chemical anchor projects at Ruwais, UAE

MOSCOW (MRC) -- Abu Dhabi National Oil Co. (Adnoc) and ADQ on Tuesday announced launch of a new joint venture Taziz which will drive the development of industrial projects within the planned Ruwais Derivatives Park, said Chemweek.

It will lay foundation for new technology-led industries in Abu Dhabi and the UAE and act as a catalyst for the UAE’s economic diversification and technology-led growth. “Derivatives Park is to commence in early 2021 with initial chemical production expected in 2025. Potential investment projects selected for phase one will amount to more than USD5 billion (Dh18 billion),” Abu Dhabi Media Office tweeted.

Led by the Abu Dhabi Inc., the UAE capital is diversifying its economy with the help of state-backed entities such as Adnoc and ADQ. These entities are investing in diverse sectors in order to promote sustainable growth of the local economy.

Last month, ADQ, one of the region's largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi's diversified economy, entered into a non-binding agreement with Lulu International Holdings (LIHL), the leading hypermarket and supermarket chain in the Middle East, for an investment supporting LIHL’s expansion of operations in Egypt of up to USD1 billion.

Under the terms of the agreement, ADQ and LIHL will work to collectively develop up to 30 hypermarkets and 100 express minimarket stores as well as state-of-the-art logistics hubs, distribution and fulfilment centres to strengthen the retailer's ecommerce business across Egypt. It is estimated that this expansion will create up to 12,000 jobs, fostering economic and social growth throughout the country.

As MRC informed earlier, in early May, 2020, Abu Dhabi National Oil Company (ADNOC) began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said. And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.