2014 PUdaily Newsbits: Middle East & Africa · 2014 PUdaily Newsbits: Middle East ... world-class...
Transcript of 2014 PUdaily Newsbits: Middle East & Africa · 2014 PUdaily Newsbits: Middle East ... world-class...
Addivant Expands Saudi Arabian Facility【Mar. 20】
AkzoNobel Starts up Powder Coatings Facility in Dubai【Nov. 04】
Arabian Petrochemical Selects KBR for Services on Butadiene Plant 【Nov. 10】
Baalbaki Group Event Celebrates Distribution Exclusivity【Dec. 04】
BMS Opens Coatings, Adhesives and Specialties Lab. in Dubai【Mar. 12】
Bayer Pearl Builds up New System House in Dubai 【May 13】
Bayer Pearl Establishes New Headquarters in Dubai Investments Park 【Jun. 27】
Belgium's Ravago Acquires Turkish Polyurethanes Producer 【Mar. 12】
Dow Corning Opens Dubai Office 【Mar. 19】
Endress+Hauser Establishes Two New Sales Centers in UAE and Algeria【Jan. 02】
H.B. Fuller Company Agrees to Acquire Continental Products Limited 【Dec. 24】
ICL and Albemarle Partner to Set up Polymeric FR Joint Venture【Sept. 02】
ICL IP Starts Chemical Processing for Polymeric FR at Israel Plant【Nov. 25】
Joint Venture of SW and RSH Expands Coatings Services in ME【May 19】
Novomer Names Quimidroga Distributor of Polyols in Iberia and Turkey【Jul. 23】
SABIC Awards FEED Contract for Polyurethane Plant 【Mar. 20】
Sabic and Shell Cancel Sadaf JV Expansion 【Oct. 24】
Saudi Minister Slates State’s Sadara Stake for Sale 【Jan. 15】
Sadara Chemical Chooses Metso Valves for Saudi Chemicals Complex 【Jan. 21】
USD 19.3 Billion Sadara Plant 75% Complete Till Early Dec.
Sadara Complex to Increase Dow MDI Market Share【Mar. 25】
PetroRabigh Carried out 40 Days Maintenance at Propylene Oxide Plant【Apr. 25】
Saudi Arabia's PetroRabigh Swings to Q2 Profit on Higher Prices 【Jul. 18】
Saudi Aramco and Sumitomo Chemical to Integrate $8.5bn Project to PetroRabigh
【Aug. 05】
Saudi Aramco Plans $100 Bln Downstream Investments in Ten Years 【May 21】
Sipchem and Sahara Petrochemical Put $5.7bn Merger Plan on Hold 【Jun. 09】
Sipchem Opens New Saudi Cable Insulation Polymers Plant 【Mar. 05】
SUSTAINABILITY GIVES OPPORTUNITIES AND CHALLENGES FOR CHEMICALS
FIRMS IN THE MIDDLE EAST 【Mar. 18】 Note: click the title to jump into the content
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Addivant Expands Saudi Arabian Facility 【Mar. 20】
Addivant has announced the
completion of the first phase of capacity
expansions at Gulf Stabilizers Industries
(GSI), the company’s joint venture in Al
Jubaïl, Saudi Arabia.
Once completed, the production capacity of hindered phenolic
antioxidants, ANOX® 20 and ANOX® PP18 and phosphite antioxidant
ALKANOX® 240 will double to 10,500 metric tons.
GSI's Board of Directors also announced that plans are underway to
expand production capacity of the ANOX® NDB® product line to 24,000
metric tons per annum to meet growing customer demand for a range of
new, higher performing products.
GSI is a joint venture between Addivant and Zamil ChemPlast, one of
Saudi Arabia's leading industrial manufacturing companies.
ANOX® NDB® enables multiple polymer additives to be incorporated in
non-dusting physical forms. These forms are proven to increase
productivity, reduce production costs, advance final product quality, and
improve workplace health and safety. Using ANOX® NDB® also eliminates
the administrative and logistics costs of purchasing individual raw
materials.
AkzoNobel Starts up Powder Coatings Facility in Dubai 【Nov. 04】
AkzoNobel has started operations at its new
powder coatings plant in Dubai. The facility will
significantly increase capacity for the company's
Interpon and Resicoat products. The site is
AkzoNobel's sixth manufacturing plant in the
Middle East and its 30th producing powder
coatings around the world.
"This investment will further boost
AkzoNobel's position in the Middle East and
strengthen our ability to serve the fast-growing
regional powder coatings market," said Conrad
Keijzer, AkzoNobel's Executive Committee
member responsible for Performance Coatings.
The plant will target growing regional demand
for decorative powder coatings - particularly from
the architectural sector - as well as functional
products used in the oil and gas and construction
markets.
Commenting on the start of operations, Peter
Tomlinson, managing director of AkzoNobel Middle
East, said: "The new plant in Dubai underlines our
commitment to the Middle East, where our aim is
to continue to outgrow our competitors."
AkzoNobel has been bolstering its operations
in the region in recent years with a series of
strategic investments. In
2013, the company
acquired a 50 percent
stake and management
control in Sadolin Paints
Oman, a manufacturer of
decorative paints and performance coatings.
AkzoNobel is active in 15 countries in the Middle
East, where the company employs more than 800
people.
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Arabian Petrochemical Selects KBR for Services on Butadiene Plant, Saudi Arabia 【Nov. 10】
Arabian Petrochemical Petrokemya has
selected KBR to provide front-end engineering
design services for a proposed expansion project
at its butadiene extraction facility in Al Jubail,
Saudi Arabia.
Under the contract, KBR will manage the
debottlenecking and expansion activities for the
project.
KBR president and CEO Stuart Bradie said:
"This contract award for the Petrokemya butadiene
debottleneck project demonstrates KBR's
world-class petrochemical execution and delivery
capabilities within the Kingdom of Saudi Arabia."
Built in 1993, the butadiene extraction facility
produces 123,000t annually.
Petrokemya, a wholly-owned subsidiary of
Saudi Basic Industries (SABIC), is planning to
expand production at the plant to cater to the
increasing demand in the downstream
petrochemical market.
The Petrokemya complex currently produces
about 5.15 million tons of petrochemicals,
including olefins, PVC/VCM, polystyrene and
polyethylene, as well as featuring utilities and
steam generation capabilities.
Financial terms of the contract have not been
disclosed.
KBR said it has included the expected revenue
from the contract in the third quarter of this year's
backlog of unfilled orders under its Hydrocarbons
business segment.
Earlier this week, KBR signed a deal to licence
CT-ACETICA technology from Japanese
engineering and construction firm Chiyoda.
Last week, the company's joint venture (JV)
with Rekayasa Industri, JGC and JGC Indonesia,
the RJK JV, was selected by BP to supply FEED
services on a third liquefaction train at its Tangguh
LNG Project in West Papua province, Indonesia.
Baalbaki Group Event Celebrates Distribution Exclusivity 【Dec. 04】
Hamriyah, United Arab Emirates — Middle Eastern polyurethane systems
and raw material supplier, the Baalbaki Group, held a spray foam seminar in
October.
Held at the company’s production facility, it welcomed around 65 guests
and representatives from Baalbaki Group and the Chinese equipment
producer JHPK.
The event was also held to
mark the consolidation of a
promising cooperation between
Baalbaki Group and JHPK while
launching a series of
water-based spray PU products.
During the day it was
announced that the Baalbaki Group is the sole agent for JHPK in the GCC (the
Gulf Cooperation Council), Levant & Africa.
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BMS Opens Coatings, Adhesives and Specialties Lab. in Dubai 【Mar. 12】
ayer MaterialScience has
inaugurated its new coatings,
adhesives and specialties
laboratory at DuBiotech premises in Dubai, United
Arab Emirates. This application and development
lab will offer local customized technical support to
the industry across the Middle East and Africa.
DuBiotech is the major life science cluster in the
Middle East.
Focusing on key application areas like
construction, automotive, industrial, plastic, wood
and furniture coatings it will also lead to the
development of polyurethane coatings for diverse
high performance applications including sealants
for construction joints as well as airport tarmacs
and solvent free coatings for pipe applications. It is
also planned that the Laboratory will provide tailor
made solutions to the manufacturers of adhesives
and sealants for the transportation, construction,
furniture, packaging and shoe industries.
The lab will work in close cooperation with
Bayer’s global competence network having its
established laboratories and technical centers in
India, China, Japan, Russia, Brazil, USA, Spain and
Germany. DuBiotech, offering international standard
services and facilities, hosts the state-of-the-art laboratory that is equipped with advanced testing and
application equipment, meeting global standards and guidelines.
Marwan Abdulaziz Janahi, Executive Director of DuBiotech, said: "A report found that the coatings
market in the countries of the Gulf Cooperation Council is expected to grow by six percent annually over
the next five years. With this newly established laboratory, Bayer is well placed to make the most of this
opportunity.”
Bayer Pearl Builds up New System House in Dubai 【May 13】
Bayer Pearl, a polyurethane systems house
joint venture between Bayer MaterialScience AG
and Pearl Insulation Materials Industries LLC
established in 2007, plans a significant investment
including new technology and production.
Following the decision to relocate the regional
offices and production facilities to Dubai
Investment Park, Bayer Pearl has now engaged
Amana Contracting and Steel Buildings to build the
new state-of-the-art facility at the Investment
Park. The new facility is expected to be completed
in 2015.
The new site will feature research,
development, and application laboratories as well
as advanced manufacturing technologies and a
demonstration centre displaying the broad range
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of high-tech materials. Various high-tech
Polyurethane solutions will be showcased that
allow communities to cope with challenges such as
increasingly scarce natural resources, rising
mobility and growing urbanization.
Such trends can be met with polyurethane
foam, for instance to insulate buildings and
refrigeration systems, or for components that
make cars lighter, more fuel efficient and more
comfortable.
The ground breaking for the project is planned
in June 2014. "The Middle East is one of the fastest
growing economies in the world, and Dubai serves
as the ideal base for Bayer Pearl to further
strengthen our presence in the region. The new
site at Dubai Investments Park (DIP) will host
offices and operations of Bayer Pearl. DIP is
strategically located close to Jebel Ali Port and the
new Dubai World Central airport. Furthermore, the
new site allows us to expand our competence in
developing new applications and manufacturing
processes for our materials in close collaboration
with our customers" said Thorsten Eschmeier, CEO
of Bayer Pearl.
Under the strategic guidance of Bayer
MaterialScience, one of the leading manufacturers
of polyurethane raw materials worldwide, the joint
venture is integrated into their global network of
systems houses. Bayer Pearl provides high-tech
solutions for the needs of key sectors in the Middle
East region such as the construction Insulation,
District Cooling and Automotive industries.
Bayer Pearl Establishes New Headquarters in Dubai Investments Park 【Jun. 27】
The polyurethane systems house Bayer Pearl
has broken ground for construction of its new
headquarters in the Dubai Investments Park,
which will be the site of the regional offices and
state-of-the-art production facilities. The site will
feature research, development, and application
laboratories as well as a demonstration center for
the use of high-quality materials.
The construction contract has been awarded to
Amana Constructing and Steel Buildings, and the
work is scheduled for completion next year. Bayer
Pearl was established in 2007 as a joint venture
between Bayer MaterialScience AG and Pearl
Insulation Materials Industries LLC.
"The Middle East is one of the fastest growing
economies in the world, and Dubai serves as the
ideal base for us to further strengthen our
presence in the region," said Thorsten Eschmeier,
CEO of Bayer Pearl. "Our new site makes it
possible to expand our competence in developing
new applications and improved manufacturing
processes for polyurethane products in close
collaboration with our customers." The site at
Dubai Investments Park is strategically located
close to the port of Jebel Ali and the new Dubai
World Central airport.
Global network
The joint venture is part of the global network
of polyurethane systems houses of Bayer
MaterialScience, one of the leading manufacturers
of polyurethane raw materials worldwide. Bayer
Pearl develops high-tech solutions for the
insulation of buildings and piping, and for the
automotive industry.
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Such challenges can be met with polyurethane
rigid foam, for example, which thanks to its
excellent thermal insulation properties makes an
important contribution to conservation of scarce
natural resources. Polyurethane materials also
make it possible to design cars that weigh less and
are therefore more fuel-efficient.
"We are delighted to welcome an international
company such as Bayer Pearl to enjoy the benefits
of the Dubai Investments Park, the premier
business park in the region which offers investors
everything they need to provide their enterprise
with the right environment for success," said
Khalid Bin Kalban, Managing Director and CEO of
Dubai Investments. "It is particularly pleasing to
see that Bayer’s innovative and sustainable culture
mirrors our own environmental objectives for the
DIP development."
Belgium's Ravago Acquires Turkish Polyurethanes Producer 【Mar. 12】
-based plastics supplier Ravago has further expanded its
already-strong presence in Turkey with the acquisition of Tekpol AS, a maker
of various polyurethane products.
Ravago Petrokimya, the petrochemicals branch of the Belgian group in
Turkey, which was formed in early 2014 with the merger of the three
previously separate companies, Eastchem, Enplast and Ravago Kimya, has
announced the deal worth EUR 36 million.
“Tekpol acquisition aims to strengthen our position in the local market.
Ravago has started negotiations regarding investments in polyurethane
distribution and production in the
Middle East, Russia and Gulf
countries”, Ravago Turkey CEO,
Mehmet Onur, said about the
acquisition.
One of the oldest plastics
producers of Europe, Ravago is
active with 8 companies in Turkey, employing over 800 people. Turkish
operations account for 10 percent of Ravago’s global turnover. The company
has invested EUR 70 million in Turkey during last year, both in production
operations and acquisitions.
Dow Corning Opens Dubai Office 【Mar. 19】
Dow Corning Corp. relocated its Middle East representative office to Dubai.
The firm said it is committed to bringing the benefits of its silicone
technologies, products and solutions to support companies across the Middle
East. The relocation will give customers improved access to Dow Corning and
Xiameter brands.
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“The Middle East offers great growth
opportunities for Dow Corning across many
markets,” said Leo Kolaitis, operations director for
the Middle East, Turkey and Africa. “Our local sales,
marketing and technical support will drive the
current and future growth. The new location will
enable closer collaboration with customers
whether they need innovation or proven solutions
to grow their business.”
Dow Corning is headquartered in Midland,
Mich., and is a global leader in silicones and
silicon-based technology. The firm employs nearly
11,000 across the world and said it offers more
than 7,000 products to 25,000 customers
worldwide.
Endress+Hauser Establishes Two New
Sales Centers in UAE and Algeria 【Jan. 02】
With new sales centers Endress+Hauser will
open up further important growth markets in the
Middle East and Northern Africa. In early 2014 the
Swiss Group established subsidiaries in the United
Arab Emirates and in Algeria.
For two decades Endress+Hauser has been
represented in the United Arab Emirates (UAE) by
the local representative Descon Automation
Control Systems. Two years ago Endress+Hauser
also started a successful venture with Descon’s
local partner in Abu Dhabi. To optimize customer
support on the Arabian Peninsula, the
measurement engineering specialist now
integrates Descon’s Endress+Hauser business into
its own sales organization.
Endress+Hauser will now operate in the
market with two offices at locations in Abu Dhabi
(around 20 employees) and in Dubai (around 30
employees). Heavy investments in oil & gas, and in
developing the public infrastructure (saltwater
desalination plants, water storage, power stations),
have opened up a strong market for high-grade
measurement engineering and automation
solutions. The new sales center is also equipped
with resources for services, engineering and
project management.
The Managing Director of Endress+Hauser’s
sales center in the UAE will be Jens Winkelmann.
The 47-year-old graduate engineer in
measurement and control engineering has over 16
years’ experience with Endress+Hauser, for the
past five years working in Dubai.
Dedicated sales center in Algeria
Endress+Hauser also has opened a new sales
center in Algeria. From
offices in Algiers, a
team of five lead by
Managing Director
Chafik Amriou will take
care of customers,
particularly in the oil &
gas industry. Endress+Hauser expects its growing
business in Algeria to gain additional momentum.
Symes, Endress+Hauser’s long-time
representative located in Annaba, will continue to
serve particular customers in the eastern region of
Algeria.
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H.B. Fuller Company Agrees to Acquire Continental Products Limited 【Dec. 24】
H.B. Fuller Company (NYSE: FUL) announced
on Dec. 23 that it has signed an agreement to
purchase Continental Products Limited, a provider
of industrial adhesives in East and Central Africa.
This business will generate approximately €2.3
million in revenue for the 2014 fiscal year. Based in
Nairobi, Kenya, Continental will be included in H.B.
Fuller's Europe, India, Middle East, Africa (EIMEA)
operating segment.
Founded in 1996, Continental works closely
with customers to develop high-quality adhesives
solutions for a wide range of industries, including
paper converting, printing and packaging, labeling,
laminating, bookbinding, automotive assembly,
footwear and construction. The addition of this
business will enable H.B. Fuller to capitalize on
access to local infrastructure in Kenya and to fully
leverage its broad-based technology portfolio
much more effectively in a strategically important
geography.
"With this acquisition, we will take a significant
step forward in our plan to grow in Africa," said
Steve Kenny, senior vice president, EIMEA, H.B.
Fuller. "H.B. Fuller has a strategic focus on growth
in emerging markets, and the Continental business
will enable us to deliver specialty adhesive
products to key customers in the East and Central
African regions. The Continental team has
developed extensive market knowledge and
exceptionally strong customer relationships, and
coupled with their local manufacturing capabilities,
H.B. Fuller will be able to further enhance
partnerships with its customers to develop and
produce new and better products for their
customers."
Continental has been H.B. Fuller's agent in the
region since 2003.
About H.B. Fuller: For over 125 years, H.B.
Fuller has been a leading global adhesives provider
focusing on perfecting adhesives, sealants and
other specialty chemical products to improve
products and lives. With fiscal 2013 net revenue of
$2.05 billion, H.B. Fuller’s commitment to
innovation brings together people, products and
processes that answer and solve some of the
world's biggest challenges. Our reliable,
responsive service creates lasting, rewarding
connections with customers in packaging, hygiene,
general assembly, electronic and assembly
materials, paper converting, woodworking,
construction, automotive and consumer
businesses. And our promise to our people
connects them with opportunities to innovate and
thrive. For more information, visit us at
www.hbfuller.com and subscribe to our blog.
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ICL and Albemarle Partner to Set up Polymeric FR Joint Venture 【Sept. 02】
Albemarle and Israel Chemicals (ICL) have partnered to set up a joint
venture (JV) to produce
polymeric flame retardants
in the Netherlands and Israel.
The Netherlands facility will
produce 2,400t of ICL's
FR-122P and Albemarle's
GreenCrest polymeric flame
retardants, which will
replace
hexabromocyclododecane (HBCD).
Expected to commence operations in the fourth quarter of this year, the
Israel plant will have an annual production capacity of 10,000t.
HBCD is a widely used flame retardant in expanded (EPS) and extruded
(XPS) polystyrene foam applications, but the compound is being banned in the
European Union, Japan and other countries.
Albemarle and ICL said in a joint statement: "The joint venture will enable
additional capacity to be brought to the market to meet the growth needed for
the EU and the rest of the world following the phase out of HBCD from these
markets."
The companies will continue to offer independent marketing, sales and
technical service across the world in order to ensure a smooth transition of EPS
and XPS producers to the polymeric flame retardant.
Albemarle fire safety solutions vice president Troy De Soto said: "The joint
venture will allow Albemarle to continue providing its GreenCrest branded
product to customers while joining forces with a proven manufacturing partner
in ICL.
"The combined experience and know-how related to bromine and bromine
derivatives of Albemarle and ICL will ensure a reliable, high-quality alternative
offering to HBCD in the EPS / XPS segment."
ICL industrial products flame retardants vice president Ilan Elkan said:
"We are delighted to partner with Albemarle in increasing the availability of
our polymeric flame retardant offerings to the EPS and XPS industries.
"These polymeric flame retardants meet the highest regulatory demands
while better enabling the industry's transition from HBCD within the timeframe
established by EU regulators."
ICL IP Starts Chemical Processing for Polymeric FR at Israel Plant 【Nov. 25】
ICL Industrial Products (ICL IP) has commenced chemical processing at its
manufacturing plant in Israel for the production of FR-122P polymeric flame
retardants.
The company said that samples collected from the full-scale production
process at its pilot plant comply with product specifications and will now be
sent to customers for evaluation.
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"The FR-122P flame retardant will replace ICL IP's HBCD flame retardant
product, which is currently used in EPS / XPS insulation foams." Filtration and
drying activities are underway at the facility.
ICL IP recently opened the Israel facility and is increasing plant activity to
commence commercial production of FR-122P.
The plant, which is expected to produce 10,000t of flame retardants each
year, complements the company's existing facility in the Netherlands.
The FR-122P flame retardant will replace ICL IP's HBCD flame retardant
product, which is currently used in EPS / XPS insulation foams.
HBCD will be phased-out of the market by August 2015, according to
European Union regulations.
The FR-122P development forms part of a licensing agreement between
Bromine Compounds, a unit of ICL IP, and Dow Global Technologies.
Earlier, ICL formed a joint venture with Albemarle to produce FR-122P and
Albemarle's GreenCrest polymeric flame retardant at its manufacturing plants
in the Netherlands and Israel.
ICL IP, an operating segment of ICL, manufactures various industrial
chemicals based on bromine, magnesia, chlorine and salts, and supplies
one-third of the world's elemental bromine. The company has a workforce of
2,500 worldwide.
Joint Venture of SW and RSH Expands Coatings Services in ME【May 19】
Sherwin-Williams has established a new
business in Saudi Arabia, expanding its services in
the Middle East. The joint venture, between
Sherwin-Williams and Saudi Arabia-based Red Sea
Housing Services Co., has launched Premier Paints
Co., which will serve customers in the busy
architectural, energy and construction sectors in
the region.
Premier Paints Co., which has unveiled its new
headquarters and manufacturing plant in Jeddah,
will support the distribution and sales of
Sherwin-Williams’ architectural and protective
coatings systems, including specialist products for
the structural steel and oil and gas industries.
(l-r: Chris Connor, chairman and CEO of
Sherwin-Williams, with His Excellency Amr
Abdullah Al Dabbagh, chairman of Red Sea
Housing Services Company, and His Excellency Dr.
Tawfiq Al Rabiah, Saudi Arabia’s minister of
commerce and industry)
Officially opened by His Excellency Dr. Tawfiq
Al Rabiah, Saudi Arabia’s Minister of Commerce
and Industry, the facility is supported by a dedicated technical team offering advice across the portfolio of
products and services.
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Sherwin-Williams’ Protective and Marine
Coatings EMEA division is based in Bolton, UK, and
is part of the global Sherwin-Williams Co. It serves
sectors including civil construction, marine, energy,
fire protection and mining.
Red Sea Housing Co. provides diverse housing and logistics solutions, including permanent and
temporary housing complexes for employees of businesses operating in the oil and gas and mining sectors.
With a presence in more than 60 countries, it operates manufacturing facilities in the United Arab Emirates,
Africa and Saudi Arabia.
Novomer Names Quimidroga Distributor of Polyols in Iberia and Turkey 【Jul. 23】
Novomer Inc., a sustainable materials
company pioneering a family of high-performance
polymers and other chemicals from renewable
feedstocks such as carbon dioxide (CO2), has
named Barcelona-based Quimidroga s.a., a
leading distributor of specialty products, industrial
chemicals, and plastics, as an authorized
distributor of Converge® polypropylene carbonate
(PPC) polyols in Spain, Portugal, and Turkey.
Quimidroga will distribute commercial
quantities of Novomer’s new 1000 and 2000
molecular weight Converge® PPC polyols for use in
polyurethane formulations targeted at adhesive,
coatings, sealants, elastomers, and rigid and
flexible foams. The distribution agreement
represents Novomer’s commercial entry into
Quimidroga’s markets.
Quimidroga has a broad product portfolio
serving the polyurethane industry and is well
established in the Iberian Peninsula, according to
Shepard. Quimidroga will provide all support
services including technical marketing, account
management, application development, customer
service, warehousing, and logistics.
Converge® polyols are based on the
co-polymerization of carbon dioxide (CO2) and
epoxides and the resulting products contain more
than 40% by weight CO2. The use of waste CO2 as
a significant raw material yields a product with an
extremely low carbon footprint. In addition, since
waste CO2 is significantly lower in cost than
conventional petroleum-based raw materials,
Converge® polyol manufacturing costs are
favorable compared to conventional polyols when
produced at full commercial scale.
In terms of performance, Novomer's
Converge® polyols have a unique polycarbonate
backbone which increases the strength and
durability of polyurethane products. Incorporating
these new polyols into existing formulations yields
foams with higher tensile and tear strength, and
increased load bearing capacity; adhesives and
coatings with improved adhesion, cohesive
strength, and weatherability; and elastomers with
greater tensile and flexural strength.
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SABIC Awards FEED Contract for Polyurethane Plant 【Mar. 20】
Saudi Basic Industries Corporation (SABIC) and Dutch Shell Group
awarded a contract for a jointly-owned polyurethane plant to be constructed at
the Saudi Arabia Petrochemical Company (Sadaf) complex in Jubail.
Engineering firm KBR won the front-end engineering and design (FEED)
contract for the complex and the project’s budget is expected to be $3 billion
(SR11.3 billion).
Currently planned units will provide the plant with the capacity to
produce toluene diisocyanate, methylene diphenyl diisocyanate, polyol, and
polyurethane.
Sabic and Shell Cancel Sadaf JV Expansion 【Oct. 24】
Saudi Basic Industries Corp and Royal Dutch Shell have cancelled plans to
expand an existing petrochemical joint venture in Saudi Arabia following
feasibility studies.
The two partners in the joint project, known as SADAF joint venture in
Jubail, on the Gulf coast of Saudi Arabia, first announced plans to explore an
expansion of their petrochemical plant in 2012.
'Shell and Sabic have agreed not to pursue this investment further but
have agreed to continue to have constructive discussions to explore other
opportunities for expansion,” a
Shell spokesman said in a
statement on Thursday.
"The results of the (feasibility)
studies were not encouraging to
carry out the project,” according to
a Sabic statement.
The expansion was due to add polyols, propylene oxide and styrene
monomer.
Saudi Minister Slates State Sadara Stake for Sale 【Jan. 15】
The Saudi Arabian government is considering selling part of its stake in the
Sadara joint venture with Dow Chemical, according to an unconfirmed press
report.
The report in Arab, News quoted Petroleum and Natural Resources
Minister Ali Al-Naimi as saying: “We will sell part of Sadara and Satorp [a
refinery] to citizens in the future at cost rate.” The minister was visiting Al
Jubail on 10 January 2014.
When it is commissioned, Sadara will be a world-scale integrated chemical
complex in the Jubail Industrial City II with capacity for isocyanates and
polyols when it is commissioned, according to the JV’s website.
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2014 PUdaily Newsbits: Middle East & Africa
Sadara Chemical Chooses Metso Valves for Saudi Chemicals Complex 【Jan. 21】
Technology and services supplier Metso has
received contracts from Sadara Chemical for
supply of its valves for Sadara's chemicals complex
in Saudi Arabia.
As part of the contracts, Metso will supply
Neles and Jamesbury valves to Sadara's fully
integrated chemicals complex currently under
construction in Al Jubail.
Metso will deliver automated control and
on-off valves, emergency shut-down valves, as
well as ball and butterfly valves equipped with
Neles ND9000 intelligent valve controllers.
The valves are up to two metres in diameter,
and will control process flow in several process
areas in the complex.
According to Metso, Neles metal seat and
Jamesbury soft seat technologies provide
dependable valve performance enabling reliable,
safe and efficient plant operations in petrochemical
industry applications.
The Sadara complex will manufacture more
than three million tons of high value specialty
chemical products and performance plastics per
year.
These will be used in transportation,
construction, packaging and containers, consumer
goods, adhesives and sealants, coatings, oil and
gas, and electrical and electronics industries.
Sadara Chemical is a joint venture between
Saudi Arabian Oil Company and The Dow Chemical
Company.
USD 19.3 Billion Sadara Plant 75% Complete Till Early Dec. “Sadara probably is the
planet’s most complex
engineering undertaking —
not just now, but at any time.
Whether its scale, complexity,
advanced technology or
economic and commercial
impact, it is in a league of its
own,” A. Al Falih said.
Saudi Aramco's president and CEO Khalid A. Al Falih
said in mid-Oct. that the $19 billion Sadara being built
alongside US-based Dow Chemicals was now more than 70%
complete, added by Ziad Al Labban, CEO of Sadara
Chemical Company (Sadara) at end Nov. that the project
has reached 75% completion and is proceeding on plan and
on schedule with best-in-class performance in safety.”
Al Falih at the CEO summit in Oct. described Sadara as
"probably the planet’s most complex engineering
undertaking — not just now, but at any time. Whether its
scale, complexity, advanced technology or economic and
commercial impact, it is in a league of its own.”
Al Falih said that the project has come a long way within
the past 12 months as one year ago it was just 30%
complete. “The next 30% is what people will remember:
how we finish, when we finish, and what the result is of the
facilities we finish.”
The project was initially launched in September 2011
construction started in two months with the bulk of the
funding being agreed over the past 18 months. Now, Sadara
Logo of Sadara
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2014 PUdaily Newsbits: Middle East & Africa
is on track to deliver its first
products in the second half of
2015, with the complex in full
operation in 2016.
Chairman and CEO Andrew
Liveris said at the summit that it
already had commitment from
customers to take up 100% of
the plant's planned capacity.
Sadara is 70% owned by Saudi Aramo and 30% by Dow
Chemicals.
“We are right now rounding the corner and entering the
home stretch, and while our objective is closer than it was,
our steps forward are even more critical, requiring greater
determination and a higher level of cooperation among all
our partners,” Al Falih said. “If we can achieve that, we will
establish an industrial landmark that will contribute to
prosperity for generations to come.”
“Our industry is watching as we construct the most
incredible industrial complex of our time,” he said. “Once in
a career, once in a lifetime, you have the opportunity to do
something truly special,” Liveris said. “I will always
remember that I was involved in this special something —
that we, together, built Sadara into a force for human
progress.”
Sadara Complex to Increase Dow MDI Market Share【Mar. 25】
Dow has recently presented a report on current developments at the huge
Sadara facility, currently under construction in the port of Jubail, Saudi Arabia.
The plant is the largest integrated petrochemical site to be constructed at one
time.
114,000 t of steel, 700,000 m3 of concrete, 2,500 km of pipework, and
5,400 km of cable will be used in construction. The project is reported to be on
time, on budget, and with a Best in Class safety record, which is an incredible
achievement considering the project has mobilized 44,000 workers. The
utilities and cracker are reported to be 68 % complete and the isocyanates
plants are 48 % complete. The first plant will be ready to operate mid-2015
with full production expected during 2016.
When completed, the site will employ 3,862 staff, many of whom are
currently being trained at Saudi Aramco and Dow sites across the world. The
site will have 26 process
plants producing 3 million t
of products annually and
generating annual sales
revenues of USD 6 – 8
billion.
Sadara will be a game changer, according to Dow, as it is a fully integrated
site with basic materials going directly to a PlasChem Park for formulation and
compounding into higher value products. This also creates captive demand
through a secure and reliable supply chain.
Dow has estimated that its share of the global MDI market will increase in
Western Europe from 15 % to 16 %, in Middle East and Africa from 12 % to
15 %, in Eastern Europe from 27 % to 30 %, in Northern Asia from 4 % to 6 %
and in Southeast Asia from 11 % to 12 % once Sadara is operational.
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2014 PUdaily Newsbits: Middle East & Africa
PetroRabigh Carried out 40 Days Maintenance at Propylene Oxide Plant【Apr. 25】
PUdaily, Shanghai-Saudi Arabia PetroRabigh has shut down its propylene oxide facilities on Apr. 14 for 40 days scheduled maintenance, confirmed by wide
sources in China and it resumed production on May 16. The facilities have a nameplate capacity of 200 kt per year in Rabigh, Saudi Arabia.
Saudi Arabia's PetroRabigh Swings to Q2 Profit on Higher Prices 【Jul. 18】
Rabigh Refining and Petrochemical Co, PetroRabigh posted a
second-quarter net profit of Saudi riyal (SR) 172m ($46m), reversing a loss of
SR236.7m in the same period of 2013, boosted by higher prices and sales
volumes of its petrochemical products, the Saudi Arabia-based producer said
on Thursday.
The company posted a gross profit of
SR446.4m in the second quarter, reversing the
SR6.5m loss in the same period a year earlier, it said in a filing to the Saudi
stock exchange, Tadawul.
Petro Rabigh also reported an operational profit SR192.4m in April-June
this year, versus the SR210.9m loss in the same period of 2013, it added.
For the first six months of this year, the company swung to a net profit of
SR585m, versus the SR894.8m loss in the previous corresponding period.
to Integrate $8.5bn Project to PetroRabigh 【Aug. 05】 Saudi Aramco and Sumitomo Chemical
Saudi Aramco and Sumitomo Chemical have
agreed to integrate their proposed SAR32bn ($8.5bn) project, Rabigh II, into
their existing joint-venture (JV), Rabigh Refining and Petrochemical
(PetroRabigh).
The Rabigh II project is currently under construction and is an expansion
of PetroRabigh's existing petrochemical facility.
The latest decision is based on a due diligence study conducted by Petro
Rabigh for a comprehensive assessment.
The proposed plans require founding shareholders to secure project
finance loan approvals, ensure that the project will comply with all
government regulations and secure required permits.
The ownership transfer process is expected to be completed in the fourth
quarter of this year.
Located on Saudi Arabia's Red Sea coast, the project received a go-ahead
from the companies in 2012.
The Rabigh II project will use around 30 million standard cubic feet per day
of ethane and three million tons per year of naphtha as feedstock.
It will produce ethylene propylene rubber, thermoplastic polyolefin,
methyl methacrylate monomer, polymethyl methacrylate, low-density
polyethylene / ethylene vinyl acetate, para-xylene / benzene, cumene and
phenol / aceton, among others.
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Petro Rabigh converts ethane gas to 1.3 million tons of ethylene each year
to produce easy processing polyethylene, linear low-density polyethylene,
high-density polyethylene and mono ethylene glycol.
Inviting Banks to Back JV Plant Expansion【Sept. 15】
Saudi Arabia's PetroRabigh's founding
shareholders have formally invited banks to
provide financing for the 32 billion riyal (US$8.5
bln) expansion of its petrochemicals complex in
the kingdom. No figures for how much cash would
be raised by PetroRabigh.
The requests for proposals were issued by the
parent firms to local and international banks, with
financing of the expansion to be split between
conventional loans and sharia-compliant facilities,
the bourse filing said.
The new facility, known as Rabigh II, is to be
built as an expansion of PetroRabigh's existing
petrochemical plant, increasing output and
introducing higher-margin products like ethylene
propylene rubber, thermoplastic polyolefin, methyl
methacrylate monomer and polymethyl
methacrylate among other products.
Saudi Aramco Plans $100 Bln Downstream Investments in Ten Years 【May 21】
Saudi Aramco has said its downstream
investments are expected to be more than $100
billion in the coming years, citing a surge in
demand for oil products.
The announcement was made by Saudi
Aramco CEO Khalid Al Falih at the ongoing Middle
East Petrotech 2014, a Middle East refining and
petrochemicals conference and exhibition, held in
Bahrain.
Al Falih said: "Globally, these investments will
exceed $100 billion over the next decade alone and
that is premised on our belief in the long-term
sustainability of oil demand.
"As a result of both global demographic growth
and rising standards of living in the developing world,
we see global demand for oil growing by a quarter
over the next 25 years."
In the coming years, Aramco expects refining
capacity of eight million to ten million barrels per day.
Aramco has been seeking to strengthen its
presence in the petrochemicals segment, and it is
currently carrying out two major projects.
In a joint-venture with Dow Chemical, the company is constructing a $20bn Sadara petrochemical
complex in Jubail, which is expected to commence operations in the second half of 2015.
Aramco is expanding the PetroRabigh petrochemical complex, which is jointly owned with Sumitomo
Chemical.
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Al Falih added: "That will take our total
chemicals participate production capacity to more
than 15 million tons per year."
Sipchem and Sahara Petrochemical Put $5.7bn Merger Plan on Hold 【Jun. 09】
Saudi International Petrochemical (Sipchem)
and Sahara Petrochemical have shelved their plans
to merge operations, which would have created a
chemical company with $5.7bn market value.
In December 2013, Sipchem and Sahara
signed a memorandum of understanding (MoU) for
the proposed share-swap merger and expected to
sign a deal in the first half of 2014.
The companies said in a statement that
although the proposed transaction is in the interest
of shareholders, it would not proceed under the
current regulatory regime and both companies will
continue to exist whilst achieving operational
integration.
At this stage, the parties have agreed to
continue their operations independently and
without liaising. However, there is a possibility of
reviving the commercial negotiations in the future.
The decision to put on hold the merger plans is
not expected to affect the operations of the two
companies, they added.
Established in 1999, Sipchem manufactures
and markets methanol, butanediol,
tetrahydrofuran, acetic acid, acetic anhydride,
vinyl acetate monomer and carbon monoxide.
The company caters to the construction,
solvents, automotive, electronics, polymer,
coatings and pharmaceutical industries.
Sahara Petrochemical is a Saudi joint stock
company engaged in the production of propylene,
polypropylene and polyethylene.
Sipchem Opens New Saudi Cable Insulation Polymers Plant 【Mar. 05】
Gulf Advanced Cables Insulation, an affiliate of Saudi International
Petrochemical (Sipchem), has commissioned a new production facility at
Sipchem's complex in Jubail Industrial City, Saudi Arabia.
The SAR230m ($61m) facility will manufacture cable insulation polymers
used to fabricate electrical cable insulation materials.
The plant, which is part of Sipchem projects' third phase development
program, is expected to help the company to meet national and international
demand for the product.
International Polymers, a Sipchem affiliate, will supply raw materials,
namely low-density polyethylene and ethylene vinyl acetate, required for the
project.
Gulf Advanced Cables Insulation, which is a joint-venture between
Sipchem and Korea-based Hanwha Chemicals, will market the products in the
Middle East and Europe.
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2014 PUdaily Newsbits: Middle East & Africa
The market for construction
chemicals is becoming ever more
complicated, particularly in the
Middle East where producers have to
contend with a new wave of
environmental codes and standards
to make sure than their products
remain on the right side of best
practice.
As a result, there is also a
growing need for more sustainable
versions of existing products, or
even a new range of chemicals that
can help buildings to run more
efficiently and improve the overall
performance of a structure.
As reported, the GCC’s
Construction Chemicals market
forecasts a compound annual growth
rate of 4.8% until 2018, driven by
demand for more high-performance
chemicals.
Zakia Bahjou, general manager
of advanced materials for Dow
Chemicals, admitted the chemicals
industry in the GCC needed to move
quickly in order to keep up with
changing regulations, particularly
surrounding energy efficiency and
sustainability.
“Construction chemicals
contribute heavily to the support of
this, and there are a number of
innovations that can significantly
help to reduce energy usage inside
and outside of a building or
structure.”
She added that she expected
new products to develop “at a rapid
pace in order to meet the demands of
the region’s construction sector and
the sustainable requirements being
continually enforced by authorities”.
This was a view shared by John
Sarkis, BASF Middle East’s general
manager.
The German chemicals group’s
sales to the construction industry
represent 5-10% of global revenues.
Construction chemicals hold a
minor share in the total chemicals
market both in the GCC region and
worldwide, but increasing innovative
products such as
environmentally-friendly adhesives
and sealants made from biopolymers
are positively affecting their growth.
The UAE and Saudi Arabia lead
the way in construction chemicals
consumption among the GCC
countries, followed by Qatar.
And with the winning of the
World Expo 2020 bid, Dubai is
expected to witness a fast pace of
construction and expansion of hotels,
airports and the railways network.
Similarly, Qatar will be hosting the
FIFA World Cup in 2022 and had
$222bn worth of projects planned or
underway by 2013.
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2014 PUdaily Newsbits: Middle East & Africa