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China's Wanhua starts up polyolefin elastomer unit

  • : Petrochemicals
  • 24/07/12

Chinese producer Wanhua Chemical has started up its new 200,000 t/yr polyolefin elastomer (POE) unit on 29 June, with its first batch of POE loaded and dispatched on 10 July.

This is China's second POE unit after Hainan Beiouyi's 30,000 t/yr unit, which started operations in December 2023. The POE produced by domestic producers uses ethylene and 1-butene as feedstock, as the mass production of feedstock 1-octene has not yet been achieved in China.

Wanhua Chemical has started building the second phase of the POE project, with a production capacity of 400,000 t/yr, at Penglai, Shandong province. It is expected to start operations by the end of 2025, bringing the company's total POE capacity to 600,000 t/yr.

Wanhua Chemical is a state-owned company in Shandong, with businesses covering polyurethane, petrochemicals and fine chemicals, among others. Wanhua Chemical owns and operates a 450,000 t/yr high-density/linear low-density polyethylene (HD/LLDPE) unit, a 350,000 t/yr HDPE unit, and a 300,000 t/yr polypropylene unit.

China's new POE production capacitiest/yr
CompanyLocationCapacity (t/yr)Start-up date
Wanhua ChemicalYantai Shandong200,00029-Jun-24
Wanhua ChemicalYantai Shandong400,000End 2025
Lianyungang Petrochemical (Zhejiang Satellite)Lianyungang Jiangsu100,0002025
Sinopec Maoming PetrochemicalMaoming Guangdong50,0002025
Shandong Jingbo PetrochemicalBinzhou Shandong100,0002025

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24/09/10

SEC fines Keurig $1.5mn for recyclability claims

SEC fines Keurig $1.5mn for recyclability claims

Houston, 10 September (Argus) — The US Securities and Exchange Commission has fined Keurig Dr Pepper $1.5mn for inaccurately claiming that its plastic coffee pods were recyclable in two of its annual financial reports. In its 2019 and 2020 annual reports, Keurig Dr Pepper claimed that it had verified that K-Cup pods could be recycled through testing. According to the SEC, Keurig did not disclose to investors that two of the largest recycling companies in the US said that they would not accept K-Cup pod waste, and believed that curbside recycling of the pods was unfeasible. The small size of coffee pods makes them difficult to sort at many older material recovery facilities (MRFs), which can prevent recycling. The SEC argued that Keurig therefore violated Section 13 of the Securities Exchange Act of 1934. Keurig agreed to a cease-and-desist order from the SEC and to pay a civil penalty of $1.5mn, without admitting or denying the SEC's findings. "Public companies must ensure that the reports they file with the SEC are complete and accurate," Boston Regional Associate Director of the SEC John Dugan said. In 2022, Keurig Dr Pepper settled a $10mn lawsuit with a California resident after the plaintiff alleged that marketing about the recyclability of its signature K-Cups was false or misleading. The plaintiff said that the pods were "inevitably" contaminated by foil and food waste, and that municipal recycling facilities could not effectively recycle the pods. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Methanex to acquire OCI’s methanol business for $2bn


24/09/09
24/09/09

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


24/09/04
24/09/04

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


24/09/03
24/09/03

Bridgestone, BB&G, Versalis partner on tire recycling

Houston, 3 September (Argus) — Tire manufacturer Bridgestone has signed a joint agreement with BB&G and Versalis to develop a closed-loop tire supply chain. The companies agreed to collaborate on research and technical solutions to scale end-of-life tire (ELT) recycling for the production of new tires. In doing so, they aim to advance pyrolysis technology and market circular polymers for tires. This is part of a push to improve sustainability within the synthetic rubber sector. Technology firm BB&G transforms ELTs into renewable raw products using a thermal conversion process of pyrolysis. It inaugurated a commercial tire pyrolysis oil (TPO) unit, located in Fatima, Portugal, in July 2024. Chemical company Versalis will incorporate BB&G's pyrolysis oil over the next few months into expanding its range of products — including elastomers and polymers — derived from chemical recycling and bio-based feedstocks. With that, Bridgestone in Europe, the Middle East and Africa (EMEA) looks to employ these circular elastomers into manufacturing new tires. The first batch of tires is anticipated in early 2025. "At Bridgestone, we have set a goal of working with 100pc sustainable materials by 2050, and recycling and reusing products is an important part of this," said Bridgestone's EMEA president Laurent Dartoux, which also supports initiatives "on co-creating new and environmentally responsible ways to maximize the complete lifecycle of our tires." By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Construction spending slips in July, PVC softens


24/09/03
24/09/03

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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