Grupa Azoty Polyolefins requests EUR55m in support funds amid PDH/PP plant delays

MRC -- Grupa Azoty Polyolefins, the special-purpose vehicle overseeing Poland’s delayed $1.8bn world-scale propane dehydrogenation (PDH) and polypropylene (PP) plant, has so far requested support loan tranches amounting to €55m, parent company Grupa Azoty Police said.

Azoty Police made the announcement after it and the group parent company, state-controlled Grupa Azoty, received the latest request for a tranche, of €10m.

Grupa Azoty Polyolefins, said Azoty Police, was faced by insufficient funding to complete the PDH/PP project because general contractor Hyundai Engineering has been delayed in finishing the production complex.

Grupa Azoty announced in late November that commercial operation of the installation that it started up in June had been delayed until the first half of 2024.

In a note to the market on the installation, billed as Europe’s first new PP plant to open in 15 years, Azoty said: “The updated investment schedule provides for an installation integrity test to be carried out in the first quarter of 2024 and the commencement of commercial operation of the plant in the first half of 2024.”

After the delay was announced, one PP buyer told ICIS: “Yes, we have been informed by Azoty [representative], some months ago, about their delay and the new start up scheduling. We do not expect any impact, because the situation was well known. Maybe such delay will [postpone] the pressure on other EU PP suppliers, especially in a moment when the PP demand in EU is quite low.”

Another buyer said: “My feeling is that it’s better [to] not produce than produce and lose money. I don’t expect issues for this delay.”

The plant, in Police, in the far northwest of Poland by the sea-linked river Oder, has capacity to producer 429,000 tonnes/year of polymer-grade propylene (PGP) and 437,000 tonnes/year of PP.

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Nouryon is now certified to the International Sustainability and Carbon Certification standard ISCC PLUS for the production of green monochloroacetic acid (MCA) at its site in Delfzijl, the Netherlands, said the company.

The Company is a leading global supplier of MCA and the first and only producer of green MCA that is derived from sustainably sourced raw materials1.

“We are pleased to be the first supplier to offer green MCA as a building block for our customers that contributes to their sustainability goals,” said Joppe Smit, Senior Vice President of Natural Resources and Intermediates at Nouryon. “Today’s announcement underscores our efforts to deliver solutions that contribute to a more sustainable future.”

MCA is used in the manufacture of carboxymethyl cellulose (CMC), agrochemicals, surfactants and other functional chemical building blocks that are essential to building and construction, crop protection, food additives, personal care products, cleaning goods, and pharmaceuticals. Nouryon’s green MCA is a sustainable alternative offering a significant reduction in product carbon footprint while delivering the same quality and performance.

As a manufacturer of speciality chemicals, Nouryon works to ensure that its products meet or exceed industry benchmarks for sustainability without sacrificing performance. Nouryon supports customer needs around the world through several regional sites, including the Netherlands, India, China, Japan, and the USA.

We remind, Nouryon announced a long-term agreement with NRG Energy, Inc. brand Direct Energy to support 100% of the electricity needs from renewable sources for the Company’s manufacturing sites in La Porte, Fort Worth, and Houston, through the purchase of renewable energy certificates (RECs) derived from wind farms throughout Texas, US, helping to reduce carbon emissions. The delivery term will begin the end of December 2024.

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Azelis, a leading global innovation service provider in the specialty chemicals and food ingredients industry, announces that it has signed an agreement to acquire Localpack S.A., a specialty chemical distributor active in both the life sciences and industrial chemicals segments in Colombia, said the company.

The acquisition represents a strategic expansion of the Group’s footprint, consistent with its growth objectives in the region.

Localpack is one of the leading specialty chemical distributors in the domestic market. The company employs a staff of 27 people, and operates an application laboratory close to Medellin, serving customers across Colombia. Localpack’s long-standing relationships with global and regional principals, and the technical product expertise that it has built over the years, expand Azelis’ lateral value chain across Latin America. This expansion will allow Azelis to serve customers better and accelerate its growth in the region.

The transaction follows several key initiatives in Latin America by Azelis in recent years, including the establishment of a regional innovation center (RIC) in Mexico in 2022, the acquisition of ROCSA S.A. in Colombia in 2022, and Vogler Ingredients Ltda. in Brazil earlier this year. The addition of Localpack’s portfolio of products and capabilities marks another significant milestone in Azelis’ growth strategy in the region.

We remind, Azelis, a leading innovation service provider in the specialty chemicals and food ingredients industry, is pleased to announce that it has opened a new laboratory dedicated to Lubricants & Metal Working Fluids (L&MWF) in the north of Milan, Italy. The facility has been transferred to benefit from more space and from the potential to further scale its capabilities in 2024 and, thus, better serve the EMEA region as a whole. The laboratory is fully operational and serves as a valuable resource for Azelis' teams, customers, and principals.

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Borealis is proud to announce that mtm plastics in Niedergebra, Germany, has been awarded the International Sustainability and Carbon Certification (ISCC PLUS). mtm is a member of the Borealis Group, and this move marks another step in the EverMinds journey to accelerate action in plastics circularity, said the company.

Each year, mtm processes around 60 metric kilotons of used plastic packaging from post-consumer sources to produce high quality polyolefin recyclates, including polypropylene (PP) and high-density polyethylene (HDPE) for manufacturing injection moulding products. With this certification, mtm now stands as one of very few ISCC PLUS certified mechanical recycling suppliers in Germany.

ISCC PLUS is a global certification that covers the entire supply chain based on mass balance accounting, from raw material to final product, guaranteeing compliance with highest environmental and social standards. By establishing a chain of custody, it ensures traceability for both recyclate-based and renewable-based materials. It also verifies that the mass balance accounting follows predefined and transparent rules.

The latest ISCC PLUS certification at mtm plastics complements Borealis’ existing ISCC PLUS certifications for its recycling operations, including at Ecoplast in Austria and Renasci in Belgium. This achievement offers Borealis’ customers further confidence in the sustainability credentials of its circular materials.

We remind, Borealis announces that it has signed an agreement for the acquisition of Integra Plastics AD, a Bulgarian advanced mechanical recycling player. Closing of this transaction is subject to customary regulatory approvals.

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Finland's Neste said it will have a major turnaround at its Porvoo refinery for about nine weeks between April and June next year, said Hydrocarbonprocessing.

"The major turnaround is an investment in securing safety, availability and competitiveness of the refinery," Neste said in a statement.

During the scheduled time, the Porvoo refinery will be shut for regulatory inspections, maintenance works and selected asset improvement initiatives, Neste said.

"The turnaround will contribute to Neste's ambition to make the Porvoo refinery the most sustainable refinery in Europe by 2030 and to reach carbon neutral production by 2035," said Sami Wasstrom, head of turnarounds at Neste Oil Products.

We remind, Neste has partnered with Coleman Oil Company, a leading provider of fuels, biofuels, lubricants, and related products, to enable cities and businesses to have easier access to Neste MY Renewable Diesel in the state of Washington in the U.S.

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