SOCAR refinery to undergo modernization

SOCAR’s Heydar Aliyev oil refinery is undergoing modernization and reconstruction process to increase the refining capacity, provide the country with high-quality Euro-5 fuel, minimize environmental impact, ensure Azerikimya’s stable feedstock supply and raise export capacity of oil products, said Hydrocarbonprocessing.

As part of the project, the refinery implements operational excellence and sustainability program to determine its performance for 2022 in accordance with the maintenance while developing the comprehensive action plan.

As a result, from April 4, 2022, the refinery was shut down for maintenance. The overhaul of the refinery in 2022 is carried out after a long (more than a year) break and is completely different from previous maintenance work for its scales and complexity. More than 2,000 workers from SOCAR and outside organizations will be involved in the maintenance work.

SOCAR has taken necessary measures in order to ensure uninterrupted supply of the country with relevant motor fuels during this period. Thus, some facilities of the former Azerneftyag oil refinery, which is part of the Heydar Aliyev oil refinery now, will continue to operate and produce a certain amount of kerosene, diesel and gasoline.

In addition, the refinery will meet the country's demand in diesel and kerosene fuels due to the reserves formed at the refinery. The formation of the relevant fuel reserves started in February and is still ongoing. In this regard, the refinery will be able to meet domestic demand fully during the maintenance work.

Earlier it was reported that in April 2021, SOCAR Polymer introduced two new grades of polypropylene block copolymer, the first in the company's portfolio that use Milliken Chemical's Hyperform HPN additive for polypropylene (PP). Over the past year, the two companies have been jointly developing these materials. SOCAR, located in Azerbaijan, offers them to customers in Russia, Turkey and other countries of the Commonwealth of Independent States.

SOCAR Polymer was established in 2013 and operates two polymer production facilities with all the necessary infrastructure: a polypropylene production workshop with a capacity of 184,000 tons per year using Spheripol technology (LyondellBasell license) and a HDPE production workshop with a design capacity of 120,000 tons per year using technology Innovene S (INEOS license). After the first export of products in October 2018, SOCAR Polymer continues to expand the geography of its sales, supplying goods to the markets of Russia, Turkey, Ukraine, Belarus, Lithuania, Poland, Uzbekistan, China, Turkmenistan, Georgia, Austria and Romania.
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LyondellBasell has agreed to sell its Australian polymer business, LyondellBasell Australia (LBA), to Viva Energy, said Chemengonline.

BA’s operations include polymer manufacturing and distribution at Viva’s Geelong refinery near Melbourne.

LBA's Geelong plant is Australia’s only producer of polypropylene (PP). The refinery provides the propylene feedstock for PP.

“This acquisition is another step in the development of our Geelong Energy Hub and the further diversification of our commercial and industrial businesses,” Scott Wyatt, CEO of Viva Energy, said in announcing the deal this week.

The deal's financial terms or the expected completion timeline were not disclosed.

As MRC wrote earlier, in July, 2021, Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas shipments of PP random copolymers decreased significantly.

As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company's products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and decarbonization. In 2022, LyondellBasell was named as one of FORTUNE Magazine's "World's Most Admired Companies" for the fifth consecutive year.
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Huhtamaki has decided to initiate the process to divest its operations in Russia. This follows an earlier decision to stop all investments in Russia at the outbreak of the invasion of Ukraine, according to GlobeNewswire.

Huhtamaki considers that the current evolution of the situation and the long-term outlook in Russia will prevent the realization of its growth strategy and long-term ambitions in the country. Huhtamaki will continue to prioritize investments that capture the significant growth opportunities in the rest of the world, in line with its global ambitions and 2030 Strategy.

The safety and wellbeing of all our colleagues remain of paramount importance. Huhtamaki has four manufacturing units in Russia, employing approximately 700 people and has successfully supported global and local customers over the last 30 years. The net sales in Russia represent approximately 3% of the Group’s total net sales.

Huhtamaki will explore the market for potential buyers and will maintain its operations during this transitional period, subject to supply chain availability, to meet its contractual and regulatory obligations and to safeguard employees and customers.

As MRC informed before, in August 2021, Huhtamaki (Finland) signed an agreement to acquire Turkey's Elif Holding A.S., a major supplier of environmentally friendly flexible packaging, for EUR412 mn (USD483 mn). The acquisition was in line with the Finnish packaging manufacturer's growth strategy to 2030 in terms of geographic reach, technological capabilities and product mix. This allows Huhtamaki to expand its flexible packaging production capacity in Turkey, which the company considers to be one of the countries with the greatest growth in the future.

We remind that in December 2019, Huhtamaki completed the acquisition of the majority of the business of Everest Flexibles (Pty) Limited a privately-owned flexible packaging manufacturer in South Africa. The annual net sales of the acquired business is approximately EUR 40 million and it employs altogether approximately 460 people. The business was acquired for an enterprise value of EUR 58 million.

Huhtamaki is a global specialist in packaging for food and drink. With our network of 80 manufacturing units and additional 24 sales only offices in altogether 35 countries, we’re well placed to support our customers’ growth wherever they operate. With 100 years of history and a strong Nordic heritage the company operates in 38 countries and 114 operating locations around the world. The compay's 2021 net sales totaled EUR 3.6 billion. Huhtamaki Group is headquartered in Espoo, Finland.
MRC

Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all PULSE polycarbonate (PC)/ acrylonitrile-butadiene-styrene (ABS) and for all MAGNUM ABS automotive market products in Europe, according to the company's press release.

Effective April 1, 2022, or as existing contract terms allow, the contract and spot prices for the products stated above rose as follows:

- PULSE PC/ABS resins - by EUR230 per metric ton;
- MAGNUM ABS resins - by EUR200 per metric ton.

Note: Utility surcharges are not included in the above price changes and are in addition to these amounts.

As MRC reported earlier, Trinseo last raised its prices for all PULSE PC/ABS grades and MAGNUM ABS products in Europe on January 1, 2022, by EUR200 per metric ton.

According to ICIS-MRC Price report, in Russia, Plastik, Uzlovaya raised April prices of its material for various buyers. Thus, lots of 20 tonnes of uncoloured ABS were sold by the plant at Rb408,000-410,000/tonne FCA Uzlovaya, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately $4.8 billion in net sales in 2021 and has 26 manufacturing sites and one recycling facility around the world and approximately 3,400 employees.
MRC

Kraton Corporation announces a significant investment in its alpha methyl styrene (AMS) resins facility in Niort, France. Kraton expects the investment will result in a 15% production increase at the Niort manufacturing facility by 2023, said Hydrocarbonprocessing.

In addition to the capacity increase, Kraton anticipates the investment will lead to a 70% reduction in solvent consumption, creating a favorable impact on the product life cycle by the end of 2022.

Kraton's AMS resins, also known as pure monomer resins, are sold in high-end applications such as tread enhancement additives for premium tires and as high-performance tackifying resins in fast-growing adhesive markets. Kraton's SYLVATRAXX tread enhancement additives improve the overall performance of tire treads in terms of wet grip, low rolling resistance and durability, thus enabling safer driving, better fuel efficiency and range. Due to increasingly stringent car emission standards across the globe, these high-performance additives have seen substantial demand growth.

"The rise in electric vehicles (EV) also contributes to this growth, as the increased EV weight and higher torque bring new challenges in tire performance," said Torsten Schmidt, Vice President of Commercial, Kraton Pine Chemicals. "Our SYLVATRAXX products continue to gain popularity across the entire tire value chain as they enable our customers to meet these new requirements."

As per MRC, Kraton Corporation announced its CirKular+ performance enhancement series C2000 and C3000 have been approved as fully compatible with recycling of polypropylene (PP) containers in Europe according to RecyClass. Pellets containing 5 wt.% of either CirKular+ C2000 or C3000 resin blended in an injection molding PP grade matrix were tested according to the Association of Plastic Recyclers (APR) critical guidance for PP rigid containers.

As MRC wrote before, in April, 2021, The American company Kraton announced that the US Environmental Protection Agency (EPA) has granted an emergency exemption for the use of its new sulfonated polymer, which rapidly inactivates the coronavirus. The Environmental Protection Agency has issued an emergency permit for the use of the polymer in the states of the United States, Georgia, Utah and Minnesota for specific applications to protect against the COVID-19 virus.

Kraton Performance Polymers, Inc., comprised of the functional division of Kraton Polymers LLC and its subsidiaries, is the world's leading manufacturer of specialty polymers and styrene block copolymers (SBCs). The company's manufacturing base consists of five factories, including a central plant in Belpre, Ohio, as well as factories in Germany, France, Brazil and a joint manufacturing venture in Japan.

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