DSM boosts material production capacity in China to serve EV market

MOSCOW (MRC) -- Material supplier DSM Engineering Materials has announced plans to expand its high-performance materials production capacity at its Jiangyin plant in Jiangsu Province, China, said Canplastics.

Work on an additional compounding line began in February 2022, DSM officials said in a Feb. 24 news release, with completion expected in 2023. The new line will help DSM meet growing demand for high-performance polymers used in a range of end applications – particularly for electric vehicles (EVs) and in electrics and electronics – and will help drive the shift to a low-carbon, circular economy.

"In recent years, rising living standards and increasingly ambitious environmental policies have driven demand for sustainable high-performance materials in China,” the news release said. “The new state-of-the-art compounding line will help meet this demand for high-performance specialty materials such as Akulon PA6/PA66, Arnite PET/PBT, Arnitel thermoplastic copolyester, EcoPaXX PA410, ForTii PA 4T/PPA, and Stanyl PA 46."

In addition to increasing production capacity for materials enabling sustainable solutions, the expansion project will deliver no increase in greenhouse gas (GHG) emissions upon start-up and will be powered by 100 per cent renewable electricity, DSM said. “This aligns with [our] sustainability commitments…which include halving global GHG emissions and launching bio- and/or recycled-based alternatives for [our] whole portfolio by 2030,” the company said.

The Jiangyin site already uses sustainable manufacturing, the news release said, including using self-generated solar power and sourced renewable electricity.

We remind, DSM Engineering Materials, a division of Dutch chemical maker DSM, has partnered with Ford Motor Co. and cable component maker HellermannTyton for an award-winning new auto part made from recycled ocean plastic.

Also, Royal DSM has started a review of strategic options for its materials businesses, including the possibility of selling them.

DSM Engineering Materials is a business group of Royal DSM.
MRC

MOSCOW (MRC) -- North American weekly chemical railcar traffic rose 11.6% year on year, led by the US where loadings rose 22.1% from depressed levels during last year’s US Gulf Coast winter storm, according to data for the week ended 26 February from the Association of American Railroads (AAR).

For the first eight weeks of 2022 ended 26 February, North American chemical railcar traffic was up 4.0% year on year to 372,286 railcar loadings.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

We remind, the Association of American Railroads (AAR) today reported U.S. rail traffic for the week ending February 19, 2022. For this week, total U.S. weekly rail traffic was 497,822 carloads and intermodal units, up 31.7 percent compared with the same week last year. Total carloads for the week ending February 19 were 237,256 carloads, up 38.2 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 260,566 containers and trailers, up 26.3 percent compared to 2021.
MRC

1. Covestro Q4 net income declined

MOSCOW (MRC) -- Covestro's fourth-quarter net income fell by 3.2% but the full year 2021 income surged manifold over the previous year to EUR1.62bn on the back of strong global demand for its products, said the company. "The group benefited from strong global demand and buoyant earnings in the year as a whole. Core volumes sold increased by 10% year on year, mainly due to additional volumes from the Resins & Functional Materials (RFM) business acquired from DSM," it said in a statement.

MRC

MOSCOW (MRC) -- PT Chandra Asri Petrochemical Tbk (Chandra Asri), Indonesia's largest integrated petrochemical company, launched Asrene C6 Metallocene LLDPE to make films with higher tenacity and sealing strength such as multi-layer printed packaging and heavy-duty, said the company.

This packaging is usually used for applications such as cooking oil standing pouch, stretch film (plastic wrap), and rice bags. Using Metallocene in the production process resulting packaging product leak-proof, tear-resistant and shatterproof. This product has also obtained approval from the Food and Drug Supervisory Agency (BPOM) and Halal certificates from the Indonesian Ulema Council (MUI) and therefore it is safe and quality guaranteed.

Chandra Asri took the initiative to produce C6 Metallocene LLDPE resin in a response to high demand and the absence of domestic production. Previously, domestic demand for C6 Metallocene LLDPE was met only by imports. The current 50 kilo tons per year production capacity of Asrene C6 Metallocene is expected to help ease the import burden.

General Manager of Polymer Technical Service and Product Development, Chandra Asri, Supriyanto said, “With the presence of Asrene C6 Metallocene, we offer a solution to improve the strength of packaging material. This resin is also one of Chandra Asri's efforts in diversifying the LLDPE products in order to meet consumer needs."

Chandra Asri continues to contribute to the effort of the Government of Indonesia to meet domestic demand for petrochemical products as well as to reduce dependency on imports. One of the efforts made by Chandra Asri is to build a second world-scale petrochemical complex in Indonesia (CAP2 project). This second complex will be fully integrated with Chandra Asri's existing plant in Cilegon and will consist of Naptha Craker, Butadiene, High-Density Polyethylene (HDPE), Polypropylene (PP), Aromatic (Benzene, Toulene, and Mixed Xylenes), and Low-Density Polyethylene (LDPE) which will also be the first LDPE plant in Indonesia.

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.

Chandra Asri Petrochemical is Indonesia’s largest integrated petrochemical company producing olefins and polyolefins. With a history of over 29 years and over 2000 dedicated staff, the company incorporates state-of-the-art technologies and supporting facilities located strategically in the country’s petrochemical hub, Cilegon and Serang. As a Growth Partner, Chandra Asri is committed on creating high-value jobs, expanding the domestic petrochemical value chain, and serving the needs of the vibrant and growing Indonesian market.
MRC

MOSCOW (MRC) -- The 31 Member Countries of the Governing Board of the International Energy Agency agreed to release 60 million barrels of oil from their emergency reserves to send a unified and strong message to global oil markets that there will be no shortfall in supplies as a result of Russia’s invasion of Ukraine, said the organization.

Today’s Extraordinary Governing Board meeting, held at the Ministerial level, was chaired by US Secretary of Energy Jennifer Granholm in her capacity as Chair of this year’s IEA Ministerial Meeting.

Ministers expressed solidarity with the people of Ukraine and their democratically elected government in the face of Russia’s appalling and unprovoked violation of Ukraine’s sovereignty and territorial integrity.

The IEA Ministers noted with concern the energy security impacts of the egregious actions by Russia, and voiced support for sanctions imposed by the international community in response.

The Ministers noted that Russia’s invasion comes against a backdrop of already tight global oil markets, heightened price volatility, commercial inventories that are at their lowest level since 2014, and a limited ability of producers to provide additional supply in the short term.

IEA members hold emergency stockpiles of 1.5 billion barrels. The announcement of an initial release of 60 million barrels, or 4% of those stockpiles, is equivalent to 2 million barrels a day for 30 days. The coordinated drawdown is the fourth in the history of the IEA, which was created in 1974. Previous collective actions were taken in 2011, 2005 and 1991.

Russia plays an outsized role on global energy markets. It is the world’s third largest oil producer and the largest exporter. Its exports of about 5 million barrels a day of crude oil represent roughly 12% of global trade – and its approximately 2.85 million barrels a day of petroleum products represent around 15% of global refined product trade. Around 60% of Russia’s oil exports go to Europe and another 20% to China.

The Governing Board also encouraged each member country to do its utmost to support Ukraine in the supply of oil products, recommending that governments and consumers maintain and intensify conservation efforts.

Ministers also discussed Europe’s significant reliance on Russian natural gas and the need to reduce this by looking to other suppliers, including via LNG, and to continue to pursue a well-managed acceleration of clean energy transitions. On Thursday, the IEA Secretariat will release a 10-Point Plan for how European countries can reduce their reliance on Russian gas supplies by next winter.

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