LyondellBasell selects Emerson to modernize automation technology at olefins production plants

Global software and technology leader Emerson has been selected by multinational chemical company LyondellBasell to modernize control systems and software at its Wesseling complex in Germany, said the company.

The implementation of advanced automation technology will help to enhance operation of an ethylene cracker and butadiene production plant. Emerson digital tools and project engineering services will help to ensure a smooth transition during the planned plant shutdown in 2024.

The Wesseling site is LyondellBasell‘s largest manufacturing facility in Europe. As part of a global modernization program, LyondellBasell is standardizing its control system technology. Emerson was selected for the project after demonstrating that it could implement all hardware and software upgrades during the two-week turnaround period.

Emerson’s DeltaV™ distributed control system and DeltaV Live software will be deployed to operate the ethylene cracker safely and efficiently, with the company’s AMS Device Manager software supporting the start-up process and ongoing management of field instrumentation. The advanced automation solutions will significantly reduce engineering time for implementing control strategies aimed at improving efficiency. DeltaV Live software will provide modern user interfaces that simplify management of the plant, enable operators to identify issues earlier and maximize worker productivity.

Virtual DeltaV systems will be used throughout the project to support development, testing and training. An operator training solution using Emerson’s MIMIC™ process simulation software will help operators to familiarize themselves with the new control system prior to start-up, minimizing the risk of potential issues and optimize operator efficiency. Emerson on-site engineers will provide start-up support and consult on the implementation of modern control strategies.

We remind, LyondellBasell announced it has acquired mechanical recycling assets containing rigid plastics recycling processing lines from PreZero, a global recycling leader and waste management service provider, said the company.
The transaction includes leasing the processing facility in Jurupa Valley, Calif., which has a production capacity of approximately 50 million pounds per year for recycled materials.

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Linde plc announced its Board of Directors has declared a 9% increase in the company's quarterly dividend to $1.39 per share. This marks the 31st consecutive year of quarterly dividend increases on the company’s stock, said the company.

The dividend is payable on March 28, 2024 to shareholders of record on March 14, 2024.

We remind, Linde plc reported 4Q 2023 results. Europe, Middle East & Africa (EMEA) sales of $2100 M were up 4% versus prior year. Compared with 4Q 2022, underlying sales grew 2%, driven by 6% higher pricing partially offset by 4% lower volumes. Operating profit of $615 M was 29.3% of sales, 420 basis points above prior year and 350 basis points higher when excluding the effects of cost pass-through.

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Source One Plastics, a joint venture between 23 Oaks Investments and LyondellBasell, has successfully started up its plastic waste sorting and recycling facility in Eicklingen, Germany, said the company.

The new unit processes difficult to recycle post-consumer plastic waste such as mixed plastic packaging and flexible polyolefins materials that would otherwise be sent mostly to incineration. The annual expected processing capacity of 70.000 metric tons equals the amount of plastic waste produced by approximately 1,5 million German citizens per year.

The new plant will use an innovative dry processing method to reduce energy consumption by up to thirty percent compared to conventional plastic recycling technologies. The system is designed to minimize the occurrence of fine plastic dust and its release into the environment. The plant is powered by locally generated renewable energy. The plastic waste processed in Eicklingen will provide a material part of the feedstock for the first commercial-scale catalytic advanced recycling plant that LyondellBasell will build at its Wesseling, Germany, site.

“We celebrate today the opening of our joint venture Source One Plastics facility with valued partners, employees and local stakeholders,” says Yvonne van der Laan, LyondellBasell Executive Vice President, Circular and Low Carbon Solutions. “This marks another important milestone in our strategy to transform recycled material into high-quality polymer. This state-of-the-art advanced sorting facility will turn post-consumer mixed plastic waste into feedstock for our integrated hub in Cologne area. There, we will use cutting-edge technologies to close the loop of plastic materials and create sustainable solutions for society .”

The Source One Plastics joint venture will provide a broad portfolio of services to procure, sort, and pre-treat waste plastic to deliver feedstock suitable for advanced recycling. Through advanced recycling, LyondellBasell is producing high-quality polymers for a range of applications.

As a strategic solution provider for the sustainable use of plastics, 23 Oaks unites global experience and comprehensive knowledge in all areas of the circular economy. "We combine this expertise with a strong operational approach," says Kai Hoyer, owner of 23 Oaks Investments. "With the Source One Plastics plant, we are today inaugurating another ecologically and economically attractive solution for upcycling post-consumer plastic waste. We are proud to see our idea of a better circular economy in action. With the help of AI technology, our system will detect and sort material composites with product-specific accuracy. We have thus laid the foundations for true closed loops, the supreme discipline of the circular economy."

We remind, LyondellBasell announced it has acquired mechanical recycling assets containing rigid plastics recycling processing lines from PreZero, a global recycling leader and waste management service provider. The transaction includes leasing the processing facility in Jurupa Valley, Calif., which has a production capacity of approximately 50 million pounds per year for recycled materials.

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SIBUR, Russia's largest producer of polymers and rubbers, summarised the company's key operational results for 2023 at the Ruplastica international trade fair, which was held in Moscow on 23–26 January 2024, said the company.

In 2023, SIBUR ramped up the sales of its key products, with the share of supplies to the Russian market rising to 75%. Since 2021, SIBUR has been consistently increasing its sales in the domestic market, which is the Company's priority, by reducing export sales and continues to stimulate further growth in local polymer processing and reducing imports of finished polymer products.

In 2023, polymer consumption in Russia showed a record growth of 10% to 4.4 mt. Four percent of this growth is attributable to joint programmes between SIBUR and customers, such as import substitution of polymers, expansion of processing capacities, and substitution of conventional solutions with those based on polymers. In 2023, SIBUR completed 330 programmes with more than 270 partners, which is equivalent to 176 kt of products.

Off the back of growing demand from Russian processors, in 2023 SIBUR's domestic sales of polypropylene and polyethylene increased by 11% year-on-year, while sales of BOPP films, elastomers, plastics and organic synthesis products grew by 16%, 8%, and 11%, respectively. As the main raw material for polymers and elastomers is LPG, SIBUR's facilities have quadrupled its consumption over the last five years to more than 70% of the fractionation volume, which translated into lower exports of this product.

In 2023, transport showed the most impressive growth in polymer consumption. Since early 2022, SIBUR has developed new grades of polypropylene, polyethylene, ABS, polycarbonate, and rubbers for the transport industry with a potential of more than 90 ktpa. Polymer products are widely used in compounds, batteries, fuel tanks, vibration and noise insulation, and many other car parts to reduce vehicle weight and make it eco-friendlier.

Consumer goods producers also increased their demand for polymers by 7% due to the growth in the country's output of footwear, household appliances, and toys.

The construction industry's demand for polymers exceeded 1.6 mtpa. Since 2022, SIBUR has introduced over 15 new grades to substitute conventional solutions and imports of more than 100 kt of products. The use of polymer materials with their increased energy efficiency and durability in the construction industry and housing and utilities sector eliminates losses and offers additional benefits, including by reducing GHG emissions.

2023 also saw an increase in polymer consumption by agriculture and healthcare, up 1.5% and 6%, respectively.

Due to its industry-specific approach to customers, SIBUR is well aware of the needs and specifics of key polymer consuming sectors, is capable of bringing new solutions to the market faster and supporting their wider application.

We remind, SIBUR began construction of a research and technology scaling center in Kazan, which will provide for a full cycle of creating new synthetic materials for key sectors of the Russian economy, the company's press service said in a statement. The key areas of operation for SIBUR's R&D center will be the development and scaling of new polyolefin and heterogeneous catalysts, synthesis and piloting of new products for the development of the company's existing chains and creation of fundamentally new materials, process modeling and engineering, development of new technologies, implementation of projects aimed at decarbonization, a closed cycle economy and digital initiatives.

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Prices of 2 Ethyl hexanol (2-EH) are anticipated to increase globally as OQ Chemical, a leading oxo-alcohol manufacturer announces price hikes for the for the product in the global market with effective from March 1, 2024, said the company.

On February 15, 2024, OQ Chemicals announced prices hikes of EUR 100/MT for the European market and 110/MT in the prices of 2-EH for the North American, and Asian market respectively.

In terms of supply, prices of feedstock Propylene (Chemical Grade) are further anticipated to show an increment in the global market which is anticipated to increase production costs of 2-EH. The present challenges in the supply chain system were recorded to have been persistent which continued to increase transportation costs.

On the demand side, demand of 2-EH from the downstream plasticizer and paint industry from the construction and automotive sector was recorded to be healthy in North American and Asian markets. Across the US market, commercial building and housebuilding segments mainly provided support for the 2-EH market as mortgage rates were recorded to have increased with current mortgage rates being recorded at 6.77% and 6.12% for a 30-year and 15-year fixed term contract, respectively. In terms of the commercial building segment, major hotel players were recorded to have observed an increment in the number of projects and renovations therefore further pressuring the demand for 2-EH. Moreover, despite the automotive sector continuing to witness a slowdown, residential housebuilding sector continued to improve on the back of perennial shortage of secondhand homes in the US market as evidenced by an increment in the number of outlays, and an anticipated high demand for housing in the spring months.

In the European market, prices of 2-EH continued to be driven increasing production costs of feedstock Propylene which continued to show an increment of 1.3% during the first half of February 2024, mainly due to crisis at the Red Sea which delayed imports of the feedstock from the exporting US market. In terms of demand, demand for 2-EH continued to remain subdued as the construction sector continued to remain in retrenchment during February 2024, with project cancellations and declining permits. All three segments of the construction sector continued to remain subdued with significant contractions being witnessed in the housebuilding, commercial building, and civil engineering activities. This consequently continued to have a detrimental impact on the downstream plasticizer industry.

Across the Asian market, the market situation of 2-EH was also driven by high freight charges which led to expensive imports of the product and a moderate demand from the downstream plasticizer industry as demand returns due to upcoming Chinese Lunar New Year which is expected to witness an increment in the renovation activities.

We remind, Mexico's Orbia has decided to put a pause on the expansion plans for its polyvinyl chloride (PVC) production capacity due to a challenging market situation that adversely impacted its profits in 2023. The company's polymer division, which includes PVC, faced a substantial setback in the fourth quarter of the previous year, reporting a 54% year-on-year decline in earnings before interest, taxes, depreciation, and amortization (EBITDA), amounting to USD47 million. Additionally, sales within this division experienced a 21% year-on-year decrease, reaching USD577 million.

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