ADI Chemical Market Resources conducted a series of digital conversations last year to kick off the re-launch of FlexPO+, our firm's flagship conference on polymers and plastics.
As we expect global chemicals demand to grow in the long-term coupled with emphasis on a circular economy, we discuss feedstock options for the chemical industry with Dhaval Shah, GM, Corp Tech & Innovation, SABIC and Bob Bauman, President, Polymer Consulting. Learn more here >>
Key Chemical Industry Drivers
GDP growth across major economies has recovered and some economic indicators are showing signs of modest recovery
Global GDP growth contracted by 4.2% in 2020
Auto sales have gained momentum across major economies and Purchasing Manager’s Index fared well in March across most economies except in Brazil and India where it dipped compared to February
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Select Industry News Highlights
BASF pledges to deepen cuts to its carbon emissions
BASF has targeted to lower its carbon dioxide emissions 25% by 2030 compared to 2018 levels and cut them to zero by 2050. The company estimates that their decarbonization policy will require investments of $1.2 billion by 2025 and $3.5 billion more by 2030 to achieve its targets. The company aims to increase their dependence on electricity and grow their share of renewable electricity in its routine operations.
Danimer to invest $700 million in a new PHA plant in Georgia
Danimer makes bio-based polymer polyhydroxyalkanoate (PHA) by feeding canola or soybean oil to bacteria. The firm opened its first 9,000 tpy plant in Kentucky in March last year. Citing high demand for their polymer with companies such as Mars Wrigley and Bacardi, they plan to expand the capacity of the plant in Kentucky to 30,000 tpy by 2022. Additionally, they will invest $700 million in a new 114,000 tpy PHA plant in Georgia, expected to come online in phases by 2023 and 2024.
Celanese Corporation is planning to expand capacity across the world
Celanese announced plans to expand capacity of some of its specialty materials and compounds across the world. In Europe, they will add 37,500 tpy of ultra-high-molecular-weight polyethylene (UHMWPE). Celanese is also planning a 16,500 tpy UHMWPE expansion at its facility in the United States, expected to come online in 2022. In addition, they are also expanding nylon compounding capacity in China by 7,500 tpy by second quarter of 2022.
Auto supplier Lear Corporation acquires injection molding specialist M&N Plastics
Global automotive technology company, Lear Corporation, acquired privately owned injection molding specialist, M&N Plastics. They also manufacture engineered plastics for automotive electrical distribution applications. The acquisition will thus add to Lear’s capabilities to engineer and manufacture parts for electrical distribution such as high-voltage wire harnesses and power electronics.
SABIC, BASF, and Linde to jointly develop electric furnaces for ethylene crackers
SABIC, BASF, and Linde are planning to build a multi-megawatt demonstration plant using electric furnaces for ethylene crackers at BASF’s site in Germany. Electric furnaces are being researched as a solution to decarbonize the petrochemical sector. The companies are applying for grants from the European Union Innovation Fund and the German government for the project.
SABIC and SIRC to jointly establish a chemical recycling facility in Saudi Arabia
SABIC signed a memorandum of understanding with Saudi Investment Recycling Company (SIRC) to jointly develop a chemical recycling facility to enable the use of recycled plastic feedstock in Saudi Arabia. A feasibility study on a plant to convert mixed waste plastic into pyrolysis oil will also be conducted.
Advanced Global Investment moves ahead with plan expand polypropylene capacity
Advanced Global Investment (APC), a subsidiary of Saudi Arabia-based Advanced Petrochemical awarded South Korea-based Samsung Engineering a $653 million deal to build a propane dehydrogenation (PDH) plant in Saudi Arabia. The plant will have a capacity of 843,000 tpy of capacity. The $500 million engineering, procurement, and construction (EPC) contract for the PDH plant and two 400,000 tpy polypropylene plants has been awarded to Italy-based Maire Tecnimont. The facility is expected to start up in 2024.
India’s Haldia Petrochemicals (HPL) approved to acquire the bankrupt Nagarjuna Oil
Private-sector refinery Nagarjuna Oil had been planning to set up a 120,000 bpd refinery in Tamil Nadu since 2010 but was met with multiple delays. HPL agreed with the Tamil Nadu government in 2019 to invest around $7 billion to convert the abandoned refinery into an unspecified chemicals complex.
The Sinopec-SK Wuhan Petrochemical joint venture to start-up their Wuhan petrochemical plant
The joint venture between Sinopec and SK Wuhan Petrochemical will start production at its new facility in Wuhan in the second half of 2021. The facility is designed to produce about 3 million tons of petrochemical products per year including ethylene, polyethylene, and polypropylene.
What we are reading
Dow's Global Digitalization Director, Billy B. Bardin, discusses the role of digitalization in chemicals. ADI Chemical Market Resources has helped several clients with research and consulting on progress of digitalization in the chemical industry and we recently blogged about the topic.
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