MBA Polymers adds new line in UK for recycled PP from car bumpers

UK-based plastic recycler MBA Polymers has added a new line specifically for the recycling of car bumpers sourced from end-of-life (ELV) vehicles, said Material Recycling.

The line, located in Cambridgeshire, UK, will produce high impact automotive-grade recycled polypropylene (PP) derived from feedstock material provided by British vehicle recycler EMR, according to MBA. “By expanding the recycling of car bumpers, MBA Polymers UK will significantly reduce the more than 900,000 tons of plastic from cars which currently go to landfill or incineration in the UK and EU each year,” it said.

MBA Polymers claim the move will help car manufacturers meet proposed amendments to the ELV directive in the EU and UK, which have proposed that at least 25% plastics in automotive manufacturing should be derived from post-consumer plastics.

Automotive grades of recycled PP have seen some resistance to decreases in pricing in the European market across 2024, with the more specified qualities of the material lending itself strongly to niche technical applications of consumption.

Platts, part of S&P Global Commodity Insights, last quoted prices for automotive grade black R-PP pellets at EUR1,200 per metric ton by a recycler in May. Despite this, the material continues to see limited cost competitiveness to virgin PP, clipping a foundational derivative basis for recycled consumption and limiting the broader commodification of R-PP in the continent. Additionally, consumers have expressed concern surrounding the variable quality of recycled polymers, which limits consistent buyer appetite for the material from a variety of derivative sectors.

Recycled PP black pellet prices have averaged EUR846.53 per metric ton DDP NWE across the second quarter of 2024 to date, up 9% on the quarter and down 6% from the prior-year period, according to Platts data.

According to the ScanPlast, supplies of polypropylene to the Russian market in January of this year amounted to 143,250 tonnes (calculated using the formula production + import - export and excluding exports to Belarus and Kazakhstan) against 138,190 tonnes a year earlier.

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Portugal's Bondalti is considering a Eur329 million cash acquisition of Spain's largest chlor alkali and PVC producer Ercros, which would allow the Portuguese chlorine manufacturer to compete in chlor-alkali and polymers segments, the companies said in separate statements.

"Ercros' board of directors meets to discuss the offer. Meanwhile, we are not making any statement," Argine Ortega Perez, Ercros' shareholder office legal advisor told S&P Global Commodity Insights March 6.

"The acquisition has not yet been approved but yes, it is true that this public offer has been sent to the Spanish authorities. The local authorities need to give their approval and then the decision will be with the final shareholders. Not sure how long it will take for the authorities to give the OK or the validity of the offer...," an Ercros company source said.

This deal would allow the merged company to more effectively compete in the chlor-alkali and polymers segments which have faced challenges of volatile energy costs and weak demand, with chlorine, caustic soda and PVC prices persisting at historic lows through most of 2023.

Ercros produces a total of 127,000 mt/year of chlorine and caustic soda at its Vilaseca I plant. The company also produces around 175,000 mt/year of vinyl chloride monomer at this site, which goes into its PVC plant nearby. It exports more than 50% of its products and produces more than 1 million mt/year across150 products in its portfolio across its three business lines -- chlorine derivatives, intermediate chemicals division and pharmaceuticals.

"The partnership with Ercros allows the creation of a group with the scale and financial strength required to meet the challenges facing the European chemical industry. We believe this is a very attractive offer for existing shareholders; as well as for the company itself, which will benefit from the expertise and financial strength of an industry partner such as Bondalti. This will strengthen the company's growth strategy and competitiveness in the markets, enabling it to gain scale and join forces with a first-class team of professionals such as Ercros," Joao de Mello, Bondalti's chairman said in the March 5 statement.

In an increasingly global market, size and specialization is becoming more and more important, Bondalti said in the statement. There has also been talk of rationalization or acquisitions within the ethylene derivatives markets in Europe, and in particular in the over-supplied chlorine and PVC segments, in order to mitigate against volatile naphtha-based ethylene costs which are at a feedstock disadvantage over US and Middle Eastern ethane-based producers.

"The union of Bondalti and Ercros will create an industrial company that will have the necessary size to compete in today's complex market, investing in continuous innovation and sustainability, anticipating the challenges facing the European chemical industry to respond to the growing demand for greener products and to be an active part of the energy transition," the statement added.

Spanish government approves chlorine, PVC producer Ercros takeover by Bondalti. Acquisition still needs approval by Spain’s National Securities Market Commission; takeover would allow Bondalti to compete in chlor-alkali market.

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The Thailand Board of Investment (BOI) has approved a proposed 200,000 metric tons per year bioethylene project being developed by Braskem Siam Co. Ltd., a joint venture between Braskem SA (Sao Paulo) and SCG Chemicals Public Company Ltd. (SCGC; Bangkok), said the company.

According to BOI, the estimated cost of the project, which would be located at the Map Ta Phut Industrial Estate in Rayong Province, is 19.3 billion baht (USD526 million).

Braskem and SCGC, which announced the project in August 2023, have not made a final investment decision (FID).

The future production will use EtE EverGreen technology, which was developed by Braskem and Lummus Technology.

Bioethylene is produced by dehydration of ethanol. Braskem processes bio-based ethylene, like other olefins, and sells the resulting polyethylene (PE) under its I'm Green brand.

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Braskem SA (Sao Paulo) and Solvi Essencis Ambiental SA (Sao Paulo) have agreed to combine their industrial waste management assets in GRI - Gestao de Residuos Industriais SA (GRI; Sao Paulo), a Solvi subsidiary. Braskem will contribute its stake in Cetrel SA in exchange for 49.9% of GRI’s capital stock and about 284 million Brazilian reais (USD53 million) in cash. Solvi will hold the remaining 50.1%, said.

“This strategic collaboration aims to strengthen Cetrel, a leader in industrial environmental solutions (for water and effluents treatment, as well as environmental consulting), and transform GRI into a platform for national growth in the sector, ensuring operational excellence and environmental sustainability,” Braskem said in a market notice issued on June 13.

It was previously reported that Braskem has entered into a joint venture (JV) with polyethylene producer Thai Polyethylene Company (TPE) to build another bio-based ethylene plant in Thailand. The joint venture will be called Braskem Siam. A final investment decision (FID) on the project is expected in the fourth quarter of 2024.

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Kazakhstan's KazMunayGas (KMG) and Congo's National Oil Company (SNPC) have agreed to look at a cooperation agreement in the oil and gas industry, the KMG press office said, said Interfax.

The decision follows discussions held in Astana on June 1 between KMG's Chairman of the Board, Askhat Khasenov, and Francoise Joly, the Congolese President's representative for international affairs, alongside SNPC Managing Director Maixent Raoul Ominga.

"The meeting focused on exploring opportunities for collaboration in various areas of the oil and gas sector, including trade in oil and petroleum products, development of human capital and other areas," KMG said.

Khasenov highlighted KMG's ongoing efforts to expand its resource base, enhance production efficiency, and develop capabilities in oil refining and petrochemicals. He also mentioned Kazakhstan's recent reforms aimed at attracting investments in exploration and petrochemicals.

SNPC emphasized Congo's status as Africa's third-largest player in oil and gas, following Nigeria and Angola, and highlighted partnerships with Total Energies, Chevron, and Eni, to attract additional investments for energy projects.

Established in April 1998 and fully owned by the Congolese state under the Ministry of Hydrocarbons, SNPC plays a pivotal role in developing and managing Congo's hydrocarbon resources. KMG operates as Kazakhstan's national entity overseeing hydrocarbon exploration, production, processing, and transportation, thereby representing the state's interests in the oil and gas sector.

We remind, Chairman of the Board of KazMunayGas (KMG) Askhat Khasenov and President of the Refining Technology Division of the American company W.R. Grace Louis Sirihal discussed the prospects for the production of catalytic cracking catalysts in Kazakhstan.

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