Hanwha TotalEnergies boosts styrene production utilization at Daesan facility

Hanwha TotalEnergies Petrochemical, a significant player in the South Korean petrochemical industry, has taken measures to increase the utilization of styrene production at its Daesan facility in Sosan, South Korea, said Chemanalyst.

This adjustment in production strategy comes in response to a technical breakdown that affected operations. The utilization of the production capacity, set at 400 thousand tons of styrene per year, has experienced a slight increase and is expected to maintain this level in the short term.

Previously, it was reported that Hanwha TotalEnergies Petrochemical, a major manufacturer of petrochemical products in South Korea, resumed styrene production at the Daesan complex in June 2023. This followed a period of scheduled repairs, during which the production, with a combined capacity of 650 thousand tons of styrene per year across both lines, had been temporarily halted on April 24.

Styrene, a key raw material in the production of polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS), plays a crucial role in the plastics industry. The Daesan facility's resumed production aligns with Hanwha TotalEnergies Petrochemical's commitment to meeting market demands for these essential materials.

Hanwha Total Petrochemical, established in 2003 and headquartered in Seoul, South Korea, operates as a joint venture between Hanwha Corporation and Total S.A., each holding a 50% stake in the partnership. The company is engaged in the manufacturing of various petrochemical products, including polyethylene, polypropylene (PP), PP compounds, ethylene, propylene, benzene, and butadiene.

significant milestone in the company's history occurred at the end of November 2014 when the Samsung Group, the largest South Korean conglomerate, announced the sale of a controlling stake in its four petrochemical and defense divisions for USD 1.72 billion. This stake was subsequently acquired by the Korean industrial conglomerate Hanwha Group. In light of this acquisition, Samsung Total Petrochemicals underwent a name change on May 1, 2015, becoming Hanwha Total Petrochemical.

The strategic decision to enhance the utilization of styrene production at the Daesan facility underscores Hanwha TotalEnergies Petrochemical's commitment to operational efficiency and adaptability in addressing technical challenges. The short-term outlook for sustained production at the elevated capacity reflects the company's agility in managing disruptions and ensuring a stable supply to meet market demands.

Hanwha TotalEnergies Petrochemical's move to increase the utilization of styrene production at its Daesan facility represents a strategic response to a technical breakdown. This decision aligns with the company's broader commitment to maintaining a robust presence in the petrochemical industry and meeting the evolving needs of the market for essential materials like styrene. As operations resume at an optimized capacity, Hanwha TotalEnergies Petrochemical remains positioned as a key player in the South Korean petrochemical landscape.

We remind, in January, Hanwha Solutions implemented a 10% reduction in the utilization of caustic soda production at its facility in Yeosu, South Korea. The decision was driven by commercial considerations, although the duration of this reduced production load has not been disclosed. The facility boasts a production capacity of 873 thousand tons of caustic soda annually.

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Saudi Basic Industries Corp. (SABIC) denied plans to bid bid to acquire a stake in the Brazilian petrochemical company Braskem, said Argaam.

The company clarified in a statement today, Feb. 21, shared with Argaam, that media reports based on Brazilian newspaper Valor about the deal are incorrect.

SABIC emphasized its commitment to transparency regarding investment opportunities and the importance of using official channels for accurate information.

Brazil's Valor newspaper reported today that SABIC aims to acquire a stake in Braskem.

We remind, Saudi Basic Industries Corp. (SABIC), a prominent entity listed on the Saudi stock exchange, is gearing up to make a bid to acquire a stake in Braskem, a leading petrochemical company headquartered in Brazil. It is worth noting that SABIC is predominantly owned by Saudi Aramco, holding a significant 70% stake in its ownership. Contrary to previous speculations, SABIC plans to pursue an independent bid for the stake in Braskem and will not engage in a partnership with the Abu Dhabi National Oil Co. (ADNOC) from the United Arab Emirates (UAE) for this endeavor. Reports indicate that ADNOC has already initiated the due diligence process in connection with this potential transaction.

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Motiva Enterprises plans to restart the large coker at its 626,000 bpd Port Arthur, Texas, refinery within the next two weeks, said Hydrocarbonprocessing.

The 110,000-bpd DCU-2 coker was scheduled to restart by Feb. 15 from a planned overhaul that began on Jan. 8, according to the sources. The restart was delayed for needed repairs to valves and coke drums after the overhaul finished.

A Motiva spokesperson was not immediately available to discuss refinery operations.

Motiva could begin the coker restart as early as this weekend and complete the restart within a week, but the company is prepared to take up to two weeks to return the unit to full production, the sources said.

DCU-2 is the larger of two cokers at the Motiva refinery converting residual crude oil from distillation units into either motor fuel feedstocks or petroleum coke, which can be used as a coal substitute.

We remind, Motiva Enterprises is scheduled to shut the large CDU and large coker at its 626,000 bpd Port Arthur, Texas (U.S.). Motiva will shut the 350,000 bpd VPS-5 CDU and the 110,000-bpd DCU-2 coker for planned overhauls of the units expected to take 45 days to complete, said the three sources.

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Spain's Cepsa and Apical Group's Bio-Oils unit began building what will be Southern Europe's largest biofuels plant able to produce 500,000 metric tons of renewable diesel and SAF per year, said Hydrocarbonprocessing.

The oil and gas company, which is seeking to shift to lower carbon energy, and vegetable oil processor Apical said they will invest 1.2 billion euros ($1.30 billion) in the plant that will start operating in 2026. Initially, they planned to spend 1 billion euros. A Cepsa spokesperson said the extra money would fund infrastructure work at the nearby port of Huelva.

In all Cepsa, owned by Abu Dhabi fund Mubadala and the Carlyle Group CG.O, is investing up to 8 billion euros to shift to low carbon energy. The construction of the plant marks "the first major milestone" of the company's strategy, Chief Executive Maarten Wetselaar said.

Located in the southern Spanish region of Andalusia, the plant will use organic waste, such as used cooking oils, and contribute to the oil company's goal of producing 2.5 million tons of biofuels, of which 800,000 tons will be SAF, by the end of the decade.

Biofuels are seen as essential in decarbonising transportation, such as aviation, which is hard to electrify.

We remind, Cepsa and Air Europa have sealed an alliance whereby the energy company will supply 14.4 tons of SAF to the airline for one year to cover the first monthly Madrid-Havana flight. This is the first time that two companies in Spain have established a regular supply of this sustainable fuel for a specific air route. During the period of collaboration between Cepsa and Air Europa, the emission of around 50 tons of CO2 will be avoided, equivalent to planting 575 trees.

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Lanxess has successfully completed and put into operation the expansion of its Rhenodiv production line in Jhagadia, Gujarat on February 1, 2024, said the company.

With this new facility, the company’s Rhein Chemie business unit has significantly increased its production capabilities and will be able to meet the growing demand of the Indian Sub-continent and the Asian tire and rubber goods markets.

The new production line features state-of-the-art equipment and technology, allowing Lanxess to produce high-quality technology tire release agents more efficiently. The company has another such facility in Argentina as well.

The production of high-performance tires and molded elastomer products rely on the use of effective release agents. Process safety and low scrap rates are key for the efficient production of tires and molded elastomer articles. Rhenodiv release agents are strictly water-based, solvent-free and free of volatile organic compounds (VOCs) and therefore, environmentally friendly.

Commenting on the development, Matthias Zachert, CEO & Chairman of the Board of Management of Lanxess, said, “India is an important region for us and this strategic milestone reflects our commitment towards meeting the growing demands of our valued customers in the region. The new facility not only amplifies our production capacity but also showcases our faith in the immense potential of the Indian market."

We remind, LANXESS has launched a more sustainable solution for its plasticizer Mesamoll, said Specialchem. The phthalate-free, well-gelling and exceptionally saponification-resistant plasticizer can be applied to a wide range of polymers, such as PVC, PUR and rubber.

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