EUROPE

Higher Rhine eases BASF feedstock supply

Rainfall in the last few days has led to an improvement on the river Rhine’s water levels, with some barges now able to fully load, according to a spokesperson for the German federal waterways authority (BAFG) on 5 December. A spokesperson for German chemicals major BASF says this improvement has allowed a certain stabilisation of raw materials supply to its Ludwigshafen complex. Rhine water levels rose on Tuesday to 122cm.

SABIC inks MoU on Europe recycled feedstock

Saudi Arabian petrochemicals major SABIC has signed a memorandum of understanding (MoU) with UK-based PLASTIC ENERGY for the supply of recycled feedstock to support SABIC’s petrochemical operations in Europe, it said on 4 December. Under the MoU, the companies plan to build a commercial plant in the Netherlands to refine and upgrade a chemical feedstock known as TACOIL.

Germany chems prepare for ‘less optimistic’ 2019

Germany’s chemicals industry’s outlook for 2019 is “less optimistic” due to looming global trade conflicts, a slowdown in the country’s economy and Brexit unknowns, trade group VCI said on 4 December. Germany is the largest chemical-producing country in Europe. In 2018, the sector’s total sales surpassed the €200bn mark for the first time. “The signs are quite clear: The upswing in Germany is nearing its end.”

Evonik to expand US sodium methylate plant

Evonik is planning “a significant capacity expansion” of its US sodium methylate facility in Mobile, Alabama, the German chemicals company said in a statement late on 4 December. On completion, the Mobile plant will be capable of producing up to 90,000 tonnes/year of the product. Details about the plant’s current capacity, investment sums or expected timelines for the start-up of the expanded capacity were not disclosed.

CFO of Finnish paint maker Tikkurila resigns

Tikkurila’s chief financial officer (CFO) Jukka Havia has resigned but will continue in his current role until the end of April 2019, the Finnish paint producer said in a filing late on 4 December. Tikkurila will immediately begin the recruitment process for a new CFO, it added. Havia became CFO in 2010 and also served as interim CEO after the departure of Erkki Jarvinen in September 2017.

Germany car sales fall, production falls 22%

New car registrations and car production in Germany fell sharply year on year in November, according to government and industry data published on 4 December. Registrations were 272,674, down 9.9% from November 2017, but up 7.9% sequentially from October, federal vehicle authority Kraftfahrt Bundesamt (KBA) said. For the first 11 months, registrations were up 0.4% to nearly 3.2m.

Oxea appoints new COO and acting CEO

Oxea has appointed Oliver Borgmeier as chief operating officer (COO) and acting CEO, as of 1 January 2019, the Germany headquartered oxo-alcohols firm said on 5 December. Borgmeier, who was most recently Oxea’s executive vice president of global operations, replaces outgoing CEO Salim Al Huthaili, who is moving to become CEO of Duqm Refinery and Petrochemical Industries Company but will also remain with Oxea as part of its Board.

Bioplastics output expected to grow by 25%

The global market for bioplastics is predicted to grow by 25% over the next five years, as demand for sustainable products by consumers and brands increases, according to trade group European Bioplastics on 5 December. Output of bioplastics is expected to grow from 2.1m tonnes in 2018 to 2.6m tonnes in 2023, with innovative biopolymers such as polylactic acid (PLA) and polyhydroxyalkanoates (PHAs) driving the growth, European Bioplastics said.

ECHA demands more info on nanomaterials

The European Commission has adopted a revision of the REACH requirements for nanomaterials that clarifies information companies placing substances in nanoform on the market need to provide in their registration dossiers, the European Chemicals Agency (ECHA) said this week. According to ECHA, the new requirements will enable companies and authorities to systematically assess the hazardous properties of nanomaterials, how they are used safely, and what risks they may pose to health and the environment.

AMERICAS

Indorama Louisiana cracker in start-up

Indorama is in advanced stages of start-up for a previously idled cracker in Lake Charles, Louisiana, a representative said. Indorama had acquired the non-operational cracker in late 2015 from Occidental Chemical (OxyChem). The cracker, which could process ethane and propane feedstocks to produce 370,000 tonnes/year of ethylene and 30,000 tonnes/year of propylene, had been idled in 2001. Indorama expanded the cracker capacity to produce 420,000 tonnes/year of ethylene and 20,000 tonnes/year of propylene. As start-up operations progress, production could begin within two weeks, the representative said.

SK Capital hires new managing director

SK Capital Partners, a private investment firm focused on the specialty material, chemical and pharmaceutical sectors, is expanding its senior leadership team with the addition of Mario Toukan as a managing director. Toukan has over 20 years of mergers and acquisitions experience focused on the chemicals sector, most recently serving as the Global Head of Chemicals and Materials at KeyBanc Capital Markets.

INEOS completes acquisition of Flint Hills

INEOS Enterprises has completed the acquisition of the chemical intermediates business of Flint Hills Resources, known as Flint Hills Resources Joliet, the European chemical major confirmed. Financial details of the transaction, which was announced on 26 September, were not disclosed. The acquisition sees the business, workforce and production facilities transferring to INEOS Enterprises and renamed as INEOS Joliet.

PPG acquires refinish firm SEM

PPG has completed its acquisition of SEM Products, the US-based coatings producer announced. US-based SEM manufactures repair and refinish products used primarily for automotive and other transportation applications. It is headquartered in Rock Hill, South Carolina. PPG announced the planned acquisition in October. Financial terms were not disclosed.

PET producers appeal ITC’s no-injury decision

Three producers of polyethylene terephthalate (PET) resin have filed an appeal to a recent finding that the US industry is not materially injured by imports from Brazil, Indonesia, Korea, Pakistan and Taiwan, the representing attorney firm announced. DAK Americas, Indorama Ventures USA and Nan Ya Plastics Corp, America, have requested a court review of the US International Trade Commission’s (ITC) October negative final determination in the antidumping investigation on PET resin imports from the five regions.

US manufacturing expands in Nov

Manufacturing activity expanded in November, and the overall economy grew for the 115th consecutive month, the Institute of Supply Management (ISM) said on Thursday. ISM’s purchasing managers’ index (PMI) for November was 59.3%, an increase of 1.6 percentage points from October. PMI readings of above 50.0% indicate growth in manufacturing. Of the 18 manufacturing industries, 13 reported growth in November, including plastics and rubber products, as well as chemical products. A chemical products source said they were seeing several concerning areas of slowdown, and signs of decreasing business activity such as the truck market loosening.

Ethanol, grain groups laud Ontario E15

US ethanol and grains lobby groups are praising new biofuel regulations put forth by the government of Ontario, which include requiring gasoline to be blended with 15% ethanol (E15). The Province of Ontario’s Environment Plan, which could go in effect as early as 2025, indicates an escalation of biofuel volumes blended into conventional gasoline. The province’s current mix of E5 is expected to increase to E10 by 2020. According to Canadian government statistics, net sales of gasoline stood at approximately 16.7m litres in 2017, making it the province with the highest level of gasoline consumption.

Crestwood no longer pursuing New York NGL

Crestwood Equity Partners is no longer pursuing a propane underground storage project in New York state, the company said. For years, the company had been pursuing the Finger Lakes NGL Storage Facility at Watkins Glen, New York, according to a report by the US Department of Energy (DOE). The report was about the feasibility of developing an ethane hub on the East Coast. As originally proposed, the Finger Lakes project would have been able to store 2.1m bbl of propane and butane, the DOE said.

ASIA

China optimistic of reaching deal with US

China is optimistic about hammering out a deal with the US within 90 days, to resolve the trade war between the two economic giants. “The economic and trade teams of the two sides will actively promote the consultation based on a clear timetable and road map in 90 days,” the Chinese Ministry of Commerce (MOC) said in a statement issued on 5 December.

KRAIBURG set to start up new TPE line in Malaysia

KRAIBURG TPE is set to begin operations this month at a new thermoplastic elastomers (TPE) production line at its plant in Kuala Lumpur, Malaysia, the Germany-based producer said. The new line will increase the company’s total TPE capacity to 60,000 tonnes/year globally. Details about the plant’s current capacity or the costs of the new production line were not disclosed. The company is also expanding offices and a warehouse in Malaysia, and it plans to extend its sales network in Vietnam.

Ashland completes HEC expansion in Nanjing

US-based Ashland has completed a project that increases its hydroxyethylcellulose (HEC) capacity in Nanjing, China, by nearly 30%. Capacity and project costs were not disclosed. HEC is used in coatings, personal care, oil and gas, construction and pharmaceuticals. “This capacity expansion enables us to support our customers’ growing demand for Natrosol HEC,” said Chris Brown, vice president and general manager, Ashland Coatings. Ashland has HEC manufacturing sites in China, the Netherlands and the US.

Total, Corbion start up JV PLA plant in Thailand

Total Corbion PLA has started up its 75,000 tonne/year poly lactic acid (PLA) bioplastics plant in Rayong, Thailand, the 50/50 joint venture between Total and Corbion said. The new plant means global production of PLA bioplastics has increased by almost 50% to stand at 240,000 tonnes/year. PLA is one of the first renewable, biodegradable polymers able to compete with existing polymers. “The start-up of this state-of-the-art plant establishes Total Corbion PLA as a world-scale PLA bioplastic producer, ideally located to serve growing markets from Asia Pacific to Europe and the Americas” said Stephane Dion, CEO of the company.

Finland’s Kemira forms joint venture in China

Kemira has formed a joint venture in China which will mainly produce alkyl ketene dimer (AKD) wax and its key raw material fatty acid chloride (FACL), the Finland-based firm said. The joint venture firm, Kemira TC Wanfeng Chemicals Yanzhou, was formed with Shandong Tiancheng Wanfeng Chemical Technology. Kemira holds an 80% stake in the joint venture, valued at around €55m, while Shandong Tiancheng Wanfeng Chemical Technology holds the remainder. The JV will also produce polyaluminum chloride (PAC) which is a coagulant for water treatment. Production is slated for the second half of 2019.

Hanwha Total to invest $500m to expand complex

Hanwha Total Petrochemical will invest nearly $500m to further expand its integrated refining and petrochemical complex in Daesan, South Korea, including the building of a new polypropylene (PP) plant, Total said. The expansion will see the complex’s PP capacity grow by close to 60% to 1.1m tonnes/year by end-2020, while ethylene capacity will increase by 10% to 1.5m tonnes/year. “This polypropylene project complements our offering of high value-added polymers to the fast-growing Asian market,” said Bernard Pinatel, president for refining & chemicals at Total.

ChemChina says gas leakage caused blast

A gas leakage from Hebei Shenghua Chemical’s plant in China caused the fatal blast that killed 23 people and injured 22 others on 28 November, its parent firm China National Chemical Corp (ChemChina) said. Flammable vinyl chloride was spilled from Shenghua Chemical’s tank and spread to roads outside of the plant and then caught fire. The blaze then caused chain blasts on trucks and buildings. Hebei Shenghua Chemical’s main products are polyvinyl chloride (PVC) resin and caustic soda.

MIDDLE EAST & AFRICA

SABIC extends methanol joint venture with JSMC

SABIC has extended its Saudi Arabia-based methanol joint venture – known as Arrazi – with the Japan Saudi Arabia Methanol Company (JSMC) for 20 years, and has increased its share of the JV from 50% to 75% in the process. As part of the agreement between the two companies, SABIC will buy 50% of JSMC’s current 50% share in Arrazi for $150m, to make SABIC and JSMC’s shareholding 75% and 25%, respectively.

Qatar to withdraw from OPEC in Jan 2019

Qatar will withdraw from OPEC in January 2019, its energy minister Saad Sherida al-Kaabi announced on Monday. The decision by Qatar to withdraw from the producers’ organisation is part of a revised strategy to enhance its role internationally, al-Kaabi said. The minister said Qatar plans to increase liquefied natural gas (LNG) exports from 77m tonnes per year to 110m tonnes per year. Qatar is the largest producer and exporter of LNG in the world one of the smaller crude producers both in OPEC and the Middle East region. According to the International Energy Agency (IEA), Qatar’s production in October totaled 610,000 bbl/day.