SayanskKhimPlast resumed PVC production

SayanskKhimPlast resumed PVC production

MOSCOW (MRC) -- SayanskKhimPlast (Irkutsk region) has resumed its polyvinyl chloride (PVC) production after the scheduled turnaround, according to ICIS-MRC Price Report.

According to a representative of the enterprise, the production of polyvinyl chloride was resumed after scheduled maintenance works which began 12 July. The outage was short and lasted 10 days. PVC production capacity at the plant will be 350,000 tonnes/year.

It is also worth noting that the Bashkir Soda Company (BSK) intends to resume PVC production in the beginning of this week after a planned shutdown for repairs. The shutdown began on 10 July, the plant's capacity is 240,000 tonnes per year.

According to MRC ScanPlast , SayanskKhimPlast reduced its capacity utilisation last month and produced 23,400 tonnes of suspension PVC (SPVC), compared to 26,500 tonnes in May. The Sayansk plant managed to produce 156,900 tonnes of PVC in the fist six months of 2021, compared to 164,3000 tonnes a year earlier.

JSC SayanskKhimPlast (Irkutsk region), established in 1998, is a complex of large-capacity chlororganic production facilities connected in a single production cycle. SayanskKhimPlast produces PVC, caustic soda and bleach. After commissioning of RusVinyl's PVC production (Nizhny Novgorod region), SayanskKhimPlast became Russia's second largest PVC producer.
MRC

Epsilyte raises August EPS prices on higher feedstock costs

Epsilyte raises August EPS prices on higher feedstock costs

MOSCOW (MRC) -- Epsilyte (The Woodlands, Texas), a leading North American producer of expandable polystyrene (EPS), has announced an increase in its prices for all EPS grades for August shipments on higher feedstock costs, said the company.

Thus, the price of the company's EPS grades will go up by 5 cents/pound (cts/lb) or USD110/tonne, effective 1 August, 2021 or as contracts allow.

Rising feedstock costs, along with current EPS supply and demand dynamics, necessitate this adjustment.

As MRC reported earlier, Epsilyte cut its July EPS prices in the region by 9 cts/lb or USD198/tonne.

EPS is a rigid form of polystyrene (PS) used in insulation foams for the construction industry as well as for packaging.

According to ICIS-MRC Price report, prices of Russian EPS remained steady last week. Prices of spot quantities of Russian material were at Rb175,000-180,000/tonne CPT Moscow, including VAT. EPS producers have not announced next month's price adjustments yet.

Epsilyte is owned by private equity firm Balmoral Funds (Los Angeles, California). Epsilyte is one of North America’s leading producers of expandable polystyrene resin. The company is focused on solving customer needs for efficient, high-R value EPS. This includes reducing energy usage in buildings, ensuring safe and healthy food through innovative packaging technology, and participating in infrastructure investment both in the United States and abroad.
MRC

BP and Johnson Matthey license technology to biofuels producer Fulcrum BioEnergy

BP and Johnson Matthey license technology to biofuels producer Fulcrum BioEnergy

MOSCOW (MRC) -- BP and Johnson Matthey partnered with Cardiff University and the University of Manchester in a ?9m project that aims to convert CO2, waste and sustainable biomass into clean and sustainable fuels and products, said the company.

A partnership featuring two leading British universities, Cardiff University and The University of Manchester, together with bp and Johnson Matthey, has been launched to explore transforming carbon dioxide, waste products and sustainable biomass into fuels and products that can be used across the energy and transportation sectors. The project is one of eight business-led Prosperity Partnerships announced today in support of the government’s ambitious new Innovation Strategy.

Cardiff University, an internationally leading center for catalysis research, is leading the project, and The University of Manchester will provide expertise in materials science, characterization methods and catalysis. They are joined by bp, which is transitioning from an international oil company to an integrated energy company, and Johnson Matthey, a global leader in sustainable technologies. The partnership will devote the next five years to exploring new catalyst technology to help the world get to net zero.

Catalysts are involved in helping to manufacture an estimated 80% of materials required in modern life, so are integral in manufacturing processes. As a result, up to 35% of the world’s GDP relies on catalysis1. To reach net zero, it will be critical to develop new sustainable catalysts and processes, which will be the main objective for the partnership to explore.

Professor Duncan Wass, Director of the Cardiff Catalysis Institute, said: “The catalysts we use today have been honed over decades to work with specific, fossil fuel resources. As we move to a low carbon, more sustainable, net zero future, we need catalysts that will convert biomass, waste and carbon dioxide into valuable products such as fuels and lubricants. Working in this partnership, we will bring together a wide range of catalysis expertise to uncover new science and contribute towards achieving net zero - perhaps the most pressing objective for us all."

Dr. Kirsty Salmon, bp vice-president for advanced bio and physical sciences for low carbon energy, said: “We are excited to be working with our longstanding partners Johnson Matthey, Cardiff Catalysis Institute and The University of Manchester in this Prosperity Partnership. It is a great team, which builds on our successful bp International Center of Advanced Materials (bp-ICAM) partnership, and I am looking forward to seeing them work across scientific disciplines to innovate new low carbon technologies to help the world get to net zero."

Dr. Elizabeth Rowsell, Corporate R&D Director, Johnson Matthey, added: “We are delighted to be part of the EPSRC-funded Prosperity Partnership which will help to deliver sustainable materials leading to increased circularity in industrial processes. This project will be critical in developing the next generation of enabling catalyst technologies that will be needed in a Net Zero world, so it is entirely aligned with the net zero commitments of both industrial partners."

As per MRC, BP acquired US shale assets from BHP Billiton for USD10.5 billion in the largest deal since the 1999 acquisition of Atlantic Richfield oil company. British oil and gas company BP bought US shale assets owned by mining company BHP Billiton.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

Axalta to acquire UK-based U-POL Holdings for USD590 mln

Axalta to acquire UK-based U-POL Holdings for USD590 mln

MOSCOW (MRC) -- Axalta Coating Systems announced that it has entered into definitive agreements to acquire U-POL Holdings Limited (U-POL) from Graphite Capital Management LLP and other holders for GBP428 million (approx. USD590 million), according to Kemicalinfo.

Founded in 1948 and based in the United Kingdom, U-POL is a leading manufacturer of repair and refinish products used primarily for automotive refinish and aftermarket protective applications. The business produces a wide range of high-quality automotive refinishing products and accessories including fillers, coatings, aerosols, adhesives, and paint related products as well as other automotive aftermarket protective coatings.

Axalta will accelerate growth of U-POL’s products by expanding market access through Axalta’s existing sales and distribution channels while leveraging U-POL’s distribution channels to extend the reach of its Refinish Coatings portfolio to new customers.

“Axalta is the world leader in the premium refinish coatings segment. U-POL’s expertise in refinish accessories and protective coatings is highly complementary to Axalta’s business and expands our addressable market into the important and growing mainstream and economy-based refinish segment as well as the consumer do-it-yourself (DIY) aftermarket,” said Robert Bryant, Axalta’s Chief Executive Officer.

U-POL expects net sales of approximately USD145 million and adjusted EBITDA of approximately USD38 million for fiscal year 2021. The total consideration of approximately USD590 million reflects a full year 2021E adjusted EBITDA multiple of approximately 12.5x, including run rate operating synergies and efficiencies. Axalta expects the acquisition to be immediately accretive to adjusted EBITDA margin, excluding transaction-related costs associated with the acquisition. Axalta plans to finance the transaction from cash on hand.

The transaction is expected to close in the second half of 2021, subject to clearance under applicable antitrust laws and other customary closing requirements.

As MRC reported earlier, Wanhua Chemical, a global leader in the production and marketing of polyurethanes, petrochemicals and fine chemicals, has recently received the inaugural “Excellence Award” from Axalta. The Excellence Award is given to suppliers, who exhibit progressively exceptional overall quality, service, technology and total capacity performance for three consecutive years or longer. The Excellence Award winner also demonstrates an exceptional commitment to helping Axalta achieve its strategic initiatives.

We remind that in January, 2020 Wanhua Chemical Group disclosed plans for a second ethylene cracker project at its Yantai, China, site with local government officials. The project will include a 1.2-million metric tons/year (MMt/y) ethylene unit; pyrolysis gasoline hydrogenation; aromatics extraction; and production facilities for butadiene, high density polyethylene (HDPE), low density polyethylene (LDPE), polyethylene (PE) plastomers and elastomers, polypropylene (PP), and other derivatives. Timing and other details were not disclosed. The second ethylene project will use naphtha and C4s as feedstock.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

PDVSA imports condensate crude oil to boost oil blending operations

PDVSA imports condensate crude oil to boost oil blending operations

MOSCOW (MRC) -- Venezuela's state-run PDVSA began discharging 620,000 barrels of imported condensate crude oil at the nation's largest oil port last week in an effort to boost blending operations, reported Reuters with reference to two company documents, sources and vessel tracking data.

Venezuela had not imported condensate since September, when it received a 2.1 million-barrel cargo from Iran, a political and commercial ally of President Nicolas Maduro that since 2020 has also supplied the South American nation with fuel.

PDVSA this year doubled down on efforts to boost blending and upgrading of crudes from the OPEC member country's largest producing region, the Orinoco belt, in order to revive exports and resolve a deficit of oil for domestic refining.

The condensate cargo arrived in Venezuelan waters last Wednesday on the Panama-flagged vessel Rene, owned and operated by Fujairah-based firm Issa Shipping Fze, according to two PDVSA documents seen by Reuters, three shipping sources with knowledge of the import and monitoring service TankerTrackers.com.

The documents do not disclose the provider of the cargo, but they list Sri Lanka as its origin.

Reuters could not independently verify Rene's most recent port of departure as the tanker has had its transponder off for long periods of time this year. Refinitiv Eikon vessel tracking data showed it on its way to the Atlantic Ocean at the end of June.

PDVSA, Venezuela's oil ministry and Issa Shipping did not reply to requests for comment.

The state company earlier last week instructed operators at the Jose port to withdraw another vessel that was loading oil there to discharge the Rene, two of the sources said. The condensate plans to be received by PDVSA's upgrading unit, in charge of handling imported and domestic diluents. The Rene is also scheduled to later load Venezuelan heavy crude to be exported, according to one of the documents.

As MRC informed before, in June 2021, Venezuela's political opposition has replaced members of the boards overseeing Citgo Petroleum Corp as factions in the movement led by Juan Guaido try to gain greater influence over Houston-based oil refiner. Citgo split from Venezuelan state-run oil company PDVSA in 2019 after the US imposed sanctions intended to oust Venezuela's President Nicolas Maduro. Then congress chief Juan Guaido appointed new boards and won US court recognition of their authority over the refining subsidiary.

We remind that in September 2020, Citgo Petroleum Corp said it did not plan to idle its 418,000 barrel-per-day (bpd) Lake Charles, Louisiana, refinery damaged by Hurricane Laura. Rumors have circulated since Laura’s passage over the Lake Charles area on Aug. 27 that Citgo was considering shutting the refinery for an indefinite period because of the extent of the damage and continuing low demand for motor fuels in the COVID-19 pandemic.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC