Inovyn mothball two of four lines at Newton Aycliffe
PVC producer Inovyn has mothballed two of four production lines at its Newton Aycliffe site in Durham, England. A company source said that the two largest lines at the site are still operating.
The plant can produce 280,000 t/yr of suspension PVC (s-PVC). Market sources confirmed the closure to Argus. The PVC market in Europe is currently affected by low demand with weak construction figures in a lengthy market. The Aycliffe site manufactures dry blend, rigid, flexible and medical grades of PVC. The site is not fully integrated and imports vinyl chloride monomer (VCM) from another Inovyn site in Rafnes, Norway. The smaller lines impacted mainly produce non-standard s-PVC grades.
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Methanex to acquire OCI’s methanol business for $2bn
Methanex to acquire OCI’s methanol business for $2bn
Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US August ethylene contract settles higher
US August ethylene contract settles higher
Houston, 4 September (Argus) — The US August ethylene contract price settled at 33¢/lb, the highest recorded settlement since November 2022. The contract price rose by 0.75¢/lb from the prior month, or 2.33pc, which marks a fifth consecutive monthly increase. An uptick in the contract price was supported by higher US spot ethylene prices. Maintenance at Enterprise Products Partners' (EPC) cavern in Mont Belvieu, Texas, coupled with lower inventories in the second quarter, placed upward pressure on spot prices this summer. US spot EPC ethylene averaged higher month-over-month. The August spot average for front-month ethylene increased to 30¢/lb from 26.59¢/lb in July. On 3 September, Argus assessed US spot EPC ethylene at 30.31¢/lb. The US ethylene contract price is a 50/50 formula accounting for ethylene spot prices and ethane feedstock costs. The average of spot ethane prices was lower in August at 13.95¢/USG, down from 15.43¢/USG in July. Prompt month EPC ethane traded higher in September alongside natural gas. By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Bridgestone, BB&G, Versalis partner on tire recycling
Bridgestone, BB&G, Versalis partner on tire recycling
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Construction spending slips in July, PVC softens
Construction spending slips in July, PVC softens
Houston, 3 September (Argus) — Total US construction spending declined in July, driven by a decrease in private investment, according to the latest data from the US Census Bureau. Polyvinyl chloride (PVC) demand softened through July and into August after growing through the first half of the year. Market participants have said the housing market in particular has not supported strong growth in PVC demand through the summer, even as public spending on infrastructure has blunted some of the weakness in the wider market. US contract prices rose by 1¢/lb in July to 61.5¢/lb, despite producers initially having sought a 2¢/lb increase. This was largely due to production disruptions from Hurricane Beryl in mid-July combined with rising feedstock costs for ethylene. PVC demand has eroded slightly more in August while production has recovered. Total spending fell to the lowest seasonally adjusted annual rate since March. Total private construction spending decreased in July while public spending increased. The 0.4pc loss in private residential spending undid the gains made in June. Total manufacturing spending ticked up month to month, while private commercial extended its decline. Highway and street construction extended declines, but remained up year over year. Public water and sewage spending ticked upwards on a monthly and yearly basis. By Aaron May and Cole Sullivan US construction spending $mn 24-Jul 24-Jun +/-% 23-Jul +/-% Total Spending 2,162,683.0 2,168,990.0 -0.3 2,027,412.0 6.7 Total Private 1,678,713.0 1,685,471.0 -0.4 1,579,640.0 6.3 Private Residential 941,559.0 945,269.0 -0.4 874,187.0 7.7 Private Manufacturing 236,074.0 236,106.0 0.0 196,357.0 20.2 Private Commercial 119,359.0 119,784.0 -0.4 140,100.0 -14.8 Total Public 483,971.0 483,519.0 0.1 447,772.0 8.1 Public Water/Sewage 75,109.0 74,350.0 1.0 66,105.0 13.6 Public Highway/Road 140,929.0 142,030.0 -0.8 135,957.0 3.7 US Census Bureau Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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