Arkema to increase global elastomer capacity by 25%

MOSCOW (MRC) -- Arkema is set to expand its global elastomer capacity by 25% through an investment in its site in Serquigny, France, said the company.

This investment will enable increased production of its bio-based material made from renewable castor seeds, due to come onstream in mid-2023. The bio-based material has a carbon footprint that is up to 50% lower than traditionally produced elastomers, can be fully recycled, and will lower the water consumption of the site by 25% through process optimisation.

New capacity will produce highly specialised grades of material for growing demand in a range of applications due to its lightweight properties, including sports equipment, technical textiles, consumer goods such as smart phones, and use in medical equipment. Arkema will also continue to produce elastomer products at its plant in Birdsboro, Pennsylvania, US.

As per MRC, Arkema announces the proposed divestment of its epoxides business to Cargill, a leader in agricultural products and services. With this project, Arkema is pursuing the repositioning of its portfolio on its core businesses. Arkema produces bio-based and specialty epoxides in Blooming Prairie (MN, USA), used as additives or intermediates in the manufacture of lubricants, plastic additives and a wide variety of other applications. Part of Arkema’s Hydrogen Peroxide activity, this business has limited integration with the rest of the Group’s portfolio, generates sales of around US USD40 million and employs approximately 45 people.

As per MRC, Arkema is further increasing its fluoropolymer production capacities in Changshu, China, by 35% in 2022. The increase in capacity is scheduled to come on stream before the end of 2022, the company said in a statement. Financial and overall capacity details of the expansion project were not disclosed.

Arkema is one of the world's leading chemical manufacturers headquartered in Colombes (near Paris, France). Founded in 2004 as a result of the restructuring of the French oil company Total, Arkema, with a turnover of EUR6.5 billion, has operations in 40 countries, 10 research centers around the world, and 85 plants in Europe, North America and Asia.
MRC

MOSCOW (MRC) -- Brazilian petrochemical producer Braskem SA filed with the Securities and Exchange Commission on Friday for a share offering in which the oil company Petroleo Brasileiro SA (Petrobras) and Novonor will sell their stakes in the petrochemical company, reported Reuters.

The offering consists of two installments, in Brazil and in the United States, according to the filing. Petrobras and Novonor will sell 154.9 million class A preferred shares in Braskem, which may be represented by American depositary shares, totaling around 8 billion reais (USD1.45 billion), on the basis of Friday's closing price.

Earlier this month, Petrobras announced it was expecting to sell 100% of its stake by February. The oil company has a 36.1% stake in Braskem, while Novonor, formerly known as Odebrecht, holds 38.3%.

As MRC wrote previously, in August 2021, Petrobras hired JPMorgan Chase & Co as an advisor to sell its stake in the petrochemical company Braskem SA.

We remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

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).

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- The Malaysian Biodiesel Association urged industry officials to come to terms with a steady decline of imports of palm-based biofuels in the European Union, with the country's exports this year seen at their lowest level in five years, reported Reuters.

The decline in Malaysia's biofuels shipments are a result of the EU's decarbonization agenda, MBA president U.R. Unnithan told an industry conference hosted by the Malaysian Palm Oil Board.

The European Commission in Dec said biofuel consumption in the EU is set to fall by 2031 as road transport moves away from fossil fuel, and palm oil imports will plummet due to stricter sustainability criteria.

Under the EU's renewable energy directive, palm oil-based fuels are to be phased out by 2030, since the vegetable oil has been classified by the bloc as resulting in excessive deforestation and can no longer be considered a renewable transport fuel.

The world's largest palm oil producers Indonesia and Malaysia decried the rule and have both launched separate cases with the World Trade Organization, saying the EU law is discriminatory.

Biodiesel exports from Malaysia are pegged to decline to 250,000 tons from 300,000 tons a year ago, while production is pegged to rise to 1.2 MM tons from 1 MM tons in 2021, he said, quoting data from Palm Oil Analytics.

As MRC wrote previously, in December 2021, Malaysia and China's state-owned Shanxi Construction Investment Group on Monday signed a MOU to collaborate on the production of second-generation biodiesel and biojet fuel. Shanxi Construction plans to invest in a hydrogenated vegetable oil (HVO) plant, also known as second-generation biofuel, in Malaysia's southern state of Johor, Malaysia's commodities ministry said then.

We remind that a new biojet fuel developed by energy group Eni was used for the first time in mid-October, 2021, to power Alitalia successor ITA as part of plans to cut carbon footprints. The sustainable aviation fuel (SAF), made from waste products and residues, will be produced at Eni refineries in Taranto and, early next year, in Livorno, Eni said in a statement.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

MOSCOW (MRC) -- President Abdel Fattah El- Sisi inaugurated ASORC complex project in Assuit, which plans to increase refining capacities of the refining plants along the Egyptian geographical petroleum zones, said Hydrocarbonprocessing.

This high octane complex with investments of USD450 mln, with a production capacity of 800,000 tpy constituting a powerful addition to the Ministry of Petroleum.

The project was executed in light of the cooperation between ASORC and Enppi – the engineering arm of the petroleum sector – and one of its major pillars as the main contractor of the project. Enppi’s scope of work includes basic and detailed engineering activities, procurement, E&I installation works, construction supervision, pre-commissioning, commissioning and start-up of all the project’s units. The civil and mechanical works execution was performed by PETROJET.

Furthermore, more than 18 MM manhours without lost time injuries have been achieved as a result of implementing the precautionary procedures to maintain safety and avoidance of Covid-19 pandemic.

As per MRC, the Egyptian Propylene and Polypropylene Company (EPPC), one of two propylene and polypropylene (PP) producers in Egypt, plans to resume production at the end of March at its polypropylene (PP) plant in Port Said, Egypt, following a planned preventive measures. Repair work at this enterprise with a capacity of 350 thousand tons of PP per year was started in early February of this year. The company also operates a propylene plant on the same site of similar capacity.

It was previously reported that the last time EPPC closed the PP plant in Port Said for a one-month maintenance was on 23 November, 2016.

The Egyptian Propylene & Polypropylene Company (EPPC) was founded in 2005 and is headquartered in Cairo. The petrochemical complex in Port Said (170 km from Cairo) for the production of propylene and polypropylene was put into operation in 2010.
MRC

MOSCOW (MRC) -- Evonik is investing a three-digit million-euro sum in the construction of a new production plant for bio-based and fully biodegradable rhamnolipids, as per the company's press release.

The decision to build the plant follows a breakthrough in Evonik's research and development. Rhamnolipids are biosurfactants and serve as active ingredients in shower gels and detergents. Demand for environ-mentally friendly surfactants is growing rapidly worldwide.

The investment at the Slovenska Lupca site in Slovakia strengthens Evonik's partnership with the consumer goods group Unilever, which began in 2019. At the same time the investment allows Evonik to further expand its own market position in the growth market for biosurfactants. The new plant is scheduled to come on stream in two years.

Over the past 25 years, Evonik's site in Slovakia has developed into a strategic center for biotechnology with a team of highly qualified experts.

As MRC informed earlier, in February, 2020, Dow and Evonik entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of EUR12.2 billion and an operating profit (adjusted EBITDA) of EUR1.91 billion in 2020. Evonik goes far beyond chemistry to create innovative, profitable and sustainable solutions for customers. About 33,000 employees work together for a common purpose: to improve life today and tomorrow.
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