Dow reports 2^nd quarter sales were $14.9 billion, up 2 percent versus the year-ago period. Gains were reported in all operating segments, led by Performance Plastics (up 4 percent) and Electronic and Functional Materials (up 5 percent). Agricultural Sciences also increased sales, rising 3 percent in the quarter and achieving a first-half sales record of $4 billion.

The Company reported adjusted sales gains in most geographic areas, with increases reported both in developed regions (up 3 percent) and in emerging regions (up 2 percent). Gains were led by Western Europe (up 6 percent) and the United States (up 5 percent).

EBITDA was $2.2 billion, up 5 percent on an adjusted basis versus the year-ago period. BITDA rose in most operating segments, led by Performance Materials (up 36 percent), as a result of ongoing productivity actions, as well as improved pricing and demand. Performance Plastics and Electronic and Functional Materials also drove EBITDA gains, up 6 percent and 19 percent respectively.

Adjusted EBITDA margin expanded more than 40 basis points to 15 percent year over year, as productivity and growth actions more than offset the impact of a greater than $350 million increase in purchased feedstock and energy costs, coupled with a $100 million impact from unplanned outages at Dow’s ethylene facilities in Plaquemine, Louisiana.

Dow Building New World-Scale Ethylene Production Facility in Texas

The Dow Chemical Company (NYSE: DOW) has begun construction of its previously announced world-scale ethylene production facility, representing a prominent milestone in delivering on its strategy to invest in its performance-based portfolio of technology-enabled businesses. This significant investment in Dow’s Texas Operations in Freeport remains on track and on-plan for start-up in the first half of 2017, and will employ up to 2,000 workers during construction.

“This world-scale ethylene facility is a foundational element in Dow’s strategy to utilize low-cost and advantaged shale gas feedstocks to enable growth in key value-add market-driven businesses,” said Andrew N. Liveris, Chairman and Chief Executive Officer. “Collectively, Dow’s U.S. Gulf Coast investments serve as an integral component of our global growth strategy, where we are leveraging our first-mover advantage to deliver significant shareholder value, enabling the Company to achieve our near-term $10 billion EBITDA goal and beyond.”

With a nameplate capacity of approximately 1500 KTA, Dow’s new ethylene production facility is part of a multi-billion dollar investment. Alongside previously announced plastics and elastomers facilities, this will support market growth and expansions of Dow’s industry leading-leading Performance Plastics franchise that includes:

•Next Generation NORDEL™ metallocene EPDM to serve the consumer durables, automotive and electrical cable markets. (Capacity: 200 KTA)

•High Melt Index Specialty Elastomers used in hot melt adhesives for high performance flexible packaging, and hygiene and medical markets. (Capacity: 320 KTA)

•ELITE™ Enhanced Polyethylene for high performance flexible packaging and hygiene & medical markets. (Capacity: 400 KTA)

•New specialty low density polyethylene for protective packaging and power transmission markets. (Capacity: 350 KTA)

“When combined with our on-purpose propylene PDH project, which is more than 30 percent complete, this ethylene production facility takes Dow yet another step closer to realizing the full financial benefit of our Gulf Coast investment effort,” said Jim Fitterling, Executive Vice President, Feedstocks, Energy and Performance Plastics. “This investment will connect cost-advantaged raw materials to many of the Company’s highest-margin downstream businesses – including Performance Plastics – businesses that also consistently deliver a high return on invested capital. Once fully operational, our Gulf Coast investments are projected to deliver an estimated $2.5 billion in EBITDA and will serve as a solid base for long-term growth while further strengthening Dow’s market competitiveness.”

In total, Dow’s comprehensive U.S. Gulf Coast investments in Texas and Louisiana will employ 5,000 workers during peak construction. The projects announced for the Freeport site represent the majority of those workers, with 4,000 required for construction of multiple feedstocks, derivatives and supporting infrastructure projects.

Dow Texas Operations in Freeport is Dow’s largest integrated manufacturing site worldwide and the largest chemical complex in North America with more than 4,200 employees and 3,800 contractors on site daily.

Nova Expanding PE Research Center

Nova Chemicals Corp. has broken ground on an expansion of its polyethylene research center in Calgary, Alberta. The expansion will increase the size of the newly named Center for Performance Applications, which previously was called the Nova Chemicals Technical Center. New testing equipment, including a semi-commercial nine-layer blown film line, also will be installed at the site.

The expansion is set to be completed in spring 2015. Nova also recently added a total of 300 million to 400 million pounds of PE capacity in Moore, Ontario, by debottlenecking a low density PE line and retrofitting a high density PE line.

In December, Nova became the first North American firm to convert ethane sourced from the Marcellus Shale Basin into ethylene feedstock. The firm also is in the process of building a major new linear LDPE plant in Joffre, Alberta. That plant is set to open in early 2016.

Nova ranks as one of North America’s largest PE makers. In 2013, the firm reported total sales of $5.3 billion, up more than 4 percent vs. 2012.

Lanxess Launches New Polyamide Plant in Belgium

Lanxess, a specialty chemicals company, has started operation at its new plant for polyamide plastics in Antwerp, Belgium.

Lanxess has invested €75m into the plant. The facility for polyamide plastics is designed for an annual capacity of around 90,000 tonnes, says the company.

The new plant for the polymerisation of high-tech plastics has been built near to the company’s caprolactam facility in Antwerp. Caprolactam is an intermediate for plastics manufacturing and with the inauguration of the polyamide plant, Lanxess states that it will be able to increase its captive use of caprolactam.

All plastics manufactured by Lanxess at Antwerp will be processed within its global network of compounding facilities into the final Durethan-brand products.

Lanxess highlights that the automotive industry is a key customer of its High Performance Materials (HPM) business unit. Materials from the company help to build much lighter plastic parts that can replace metal ones in motor vehicles and thus contribute to reducing fuel consumption and emissions.

BASF Opens Concrete Admixture Production Facility in Nairobi, Kenya

BASF recently inaugurated its new production plant for concrete admixtures in Nairobi. The production site will allow BASF to better meet the increasing demand for construction chemicals of customers in Eastern Africa. There, BASF produces standard and custom-made performance admixtures from the MasterRheobuild® and the MasterGlenium® product line.

“We are now able to rapidly supply our customers with admixtures for all cement and aggregate types, whether their construction projects are located in the urban areas of Eastern Africa or in more remote sites,” said Dick Purchase, head of BASF’s Regional Business Unit Construction Chemicals Middle East, West Asia, CIS and Africa. BASF’s admixtures enable to produce concrete with higher strength, and to increase its workability retention. This is of special importance in urban areas such as Nairobi, Kenya, or Kampala, Uganda, where transportation of concrete to the construction site may take longer due to high traffic.

Kenya is a particularly strong growing market for construction chemicals in Eastern Africa. “Growth in emerging markets is an integral component of BASF’s ‘We create chemistry’ strategy,” said Laurent Tainturier, Senior Vice President CIS, Middle East and Africa at BASF. “In line with this, BASF’s Africa strategy aims to double sales on the continent by the year 2020. The new production facility will strengthen the product portfolio in the region, and will meet the demands for multi-story buildings, long-lasting infrastructural constructions and more energy efficiency in construction techniques,” he said. Cement is expensive and scarce in Eastern Africa. With BASF products, it can be partially replaced in the concrete mix designs. Solutions from BASF also help to comply with energy efficiency certifications for buildings such as LEED (Leadership in Energy and Environmental Design by U.S. Green Building Council).

The new production site in Nairobi is a further step to strengthen the global network of the Master Builders Solutions® brand. The solutions offered by the brand will also strongly benefit contractors from other regions doing construction projects in Eastern Africa, as they may already know the product portfolio and technologies.

The production plant is located in the Mlolongo area of Greater Nairobi. It has good access to the road network and the Mombasa Port to receive raw materials, deliver to customers in Nairobi and Kenya and to export to neighboring countries such as South Sudan, Uganda, Rwanda and Tanzania. BASF has been actively selling construction chemicals to the Eastern African market for more than 25 years. Other production sites in Africa are located in Westonaria, South Africa; Algiers, Algeria; Sadat City, Egypt and Casablanca, Morocco.

BASF Venture Capital Invests €1 Million in UK-Based Technology Provider SmartKem

BASF Venture Capital has invested €1 million in the technology company SmartKem, based in St. Asaph, Wales. The total investment of the financing round was €3 million. Further investors with equal terms were Octopus Investments and Entrepreneurs Fund.

SmartKem is a leader in research and development of high performance organic semiconductor inks. These inks are used in printed thin film transistors (TFTs), which drive unbreakable and fully flexible electronics, for example leading-edge flexible OLED (Organic Light Emitting Diodes) displays.

“The future belongs to flexible displays. First flexible smartphones are already in the market. Customers will benefit from a lot of useful lightweight, fully flexible and rollable electronics products based on organic TFTs. Our investment in SmartKem and our extensive Joint Development Program will take us a great step forward in bringing this future-oriented technology faster to the market,” said Dirk Nachtigal, Managing Director, BASF Venture Capital.

Steve Kelly, CEO of SmartKem, added: “Groundbreaking advances in material technology will drive the future of printed and flexible electronics. We are happy to join forces in research and development with BASF to progress smart chemistry for the new generation of flexible displays and circuits, which will address future market needs.”

Thin film transistors are part of the driver electronics in today’s displays. They have the function to switch pixels on and off. Established display technologies based on inorganic TFT materials (e.g. silicon or metal oxide systems) are processed on glass at high temperatures. When it comes to true flexibility, conventional TFT systems reach their boundaries. Organic thin film transistors are inherently much more flexible and can be processed on plastic films, since they are printable at low temperatures. Furthermore, printing TFTs has the potential to make the whole production process much more efficient, including possible cost reductions.

SmartKem is a leading supplier of high performance organic semiconductor inks for the manufacture of printed TFTs. SmartKem’s inks can be processed on flexible and lightweight plastic substrates to enable rugged and truly flexible electronics. The drawback of commercial TFTs is the need for high annealing temperatures during the production process to reach full performance. This works on glass but not effectively on plastic. SmartKem’s core offering responds to the demand for unbreakable and flexible electronics that can be produced efficiently. SmartKem has an unrivalled pipeline of new inks that are under evaluation by various industry-known partners. The business model is focused on delivering expertise in molecular design, synthesis, application engineering and technology transfer to customers. More information is available at www.smartkem.com

BASF, Huntsman and Chinese Partners Adding PU Capacity in Shanghai

BASF SE and Huntsman Corp. as well as representatives from their China-based partners celebrated the beginning of construction on a new 240,000 metric tons per year capacity MDI polyurethane plant at the Shanghai Chemical Industry Park.

Partners in the venture — Shanghai Hua Yi (Group) Co., Shanghai Chlor-Alkali Chemical and SINOPEC — expect to start production in 2017.

Martin Brudermuller, vice chairman of the board of executive directors at BASF, said: “Asia Pacific remains an important growth and investment region for BASF, with the fast growing Chinese market being a major focus.

“Polyurethanes are among the most versatile materials existing to address sustainability issues across numerous applications such as the automotive or construction industries. With the new plant, BASF can participate in this dynamic market.”

With the new plant, the MDI capacity at this site will be doubled to 480,000 metric tons per year and the partners plan to build a hydrogen chloride recycling plant for the production of chlorine, a precursor for MDI.

The project is subject to further approval of the Chinese Ministry of Commerce.

The new MDI plant is planned in Caojing, adjacent to the existing integrated isocyanates complex, providing full access to raw materials and energy.

Shanghai Lianheng Isocyanate Co. has a production capacity of 240kT/year of crude MDI. This includes manufacturing facilities for the precursors aniline and nitrobenzene built by BASF, Huntsman, Shanghai Hua Yi (Group) Company, Shanghai Chlor-Alkali Chemical Co and SINOPEC Shanghai Gaoqiao Co. Commercial production started in 2006.

Braskem Adding UHMWPE Capacity in Texas

Brazilian plastics giant Braskem SA will spend $34 million to build a plant making ultra-high molecular weight polyethylene (UHMWPE) at its site in La Porte, Texas.

Construction on the plant will begin in the third quarter of 2014, with completion expected in the first half of 2016. São Paulo-based Braskem currently only makes UHMWPE in Brazil. The firm sells the material under the UTEC brand name.

“We believe our investment reinforces Braskem’s dedication to the plastics industry and to our strategic markets and clients,” Braskem America CEO Fernando Musa said in a June 27 news release.

He added that the new plant “is the next logical step for our UTEC business, as we have been providing UTEC to clients in the United States and Europe for over 10 years.”

UTEC-brand UHMWPE offers high abrasion resistance and impact strength, Braskem officials said. The material is eight times lighter than steel and lasts 10 times longer than high density PE, they added. Industries that use UTEC include construction, agriculture and automotive.

The new plant will create an unspecified number of new jobs and also will make use of the 100-member work force Braskem already has in La Porte, a company spokeswoman said. An annual production capacity number for the new plant was unavailable.

Braskem already operates about 860 million pounds of annual polypropylene resin capacity in La Porte. The firm ranks as North America’s largest PP maker, with a total of five plants in Texas, Pennsylvania and West Virginia.

The announcement adds to a busy growth schedule for Braskem. In October, the firm confirmed it was adding about 260 million pounds of annual linear low density PE production capacity in Brazil. That same month, Braskem announced the formation of an ABS joint venture with Styrolution GmbH and the building of a new plant making ABS and related resins in Brazil.

Braskem also is majority partner in the Ethylene XXI joint venture which is expected to open a major complex making PE and ethylene feedstock in Coatzacolacos, Mexico, in July 2015. Grupo Idea SA de CV of Mexico City is Braskem’s partner in the project.

China’s Wison Selects UOP’s Methanol-To-Olefins Technology

China’s Wison (Nanjing) Clean Energy, a licensee of UOP, has produced over 360 million pounds of light olefins at a plant in Nanjing, China, using UOP’s methanol-to-olefins (MTO) process technology.

According to UOP, a Honeywell company, the plant has been operating since September 2013 and is the first commercial-scale facility to use the UOP/Hydro MTO process technology.

Honeywell UOP Process Technology and Equipment business unit senior vice president and general manager Pete Piotrowski said the technology allows countries and regions that are rich in coal or natural gas to convert those resources into high yields of valuable petrochemicals cost-effectively.

"Our technology offers the lowest operating cost, quick and efficient start-up, and operational reliability," Piotrowski added.

Designed by Wison Engineering, the Wison facility is using the Advanced MTO process of UOP, which combines the UOP/Hydro MTO process and the Total/UOP Olefin Cracking process to increase yields and feedstock efficiency.

Methanol can be derived from low-cost raw materials such as coal or natural gas, and the process converts it into ethylene and propylene.

Providing high yields with low operating costs, the MTO process offers flexibility in the ratio of propylene to ethylene produced enabling operators to adjust plant operations to address market demands.

The Wison plant produces 300,000mt of ethylene and propylene annually.

The Total-UOP OCP process technology was developed jointly by UOP and Total Petrochemicals.

MERGERS/ ACQUISITIONS

Ineos Buys Out JV Partner BASF for Full Control of Styrolution

Petrochemicals group Ineos agreed to buy BASF's 50 percent stake in Styrolution for 1.1 billion euros ($1.5 billion) to take full control of the maker of styrenic plastics, BASF said recently.

As part of a joint-venture agreement struck in October 2011, Ineos had the right to buy BASF's 50 percent in Styrolution, a maker of plastics used in car front grills, food packaging and Playmobil toys, from February this year onwards.

Styrolution will continue to operate as an independent company until the completion of the deal, which is expected in the fourth quarter.

Sasol and Ineos Form Joint Venture to Build HDPE Plant

Sasol Ltd. and Ineos Group on July 24 announced plans to form a joint venture that would build a plant in southwest Louisiana with annual capacity of just over 1 billion pounds of bimodal high density PE. The final investment decision will be made in the first half of 2014, with physical start-up of the plant expected by the end of 2015.

“Together, we will develop a world-scale HDPE plant which will allow us to monetize ethylene and supply a high-quality product,” said Andre de Ruyter, Sasol senior group executive, in the release.

The plant will use Innovene S process technology licensed from Ineos. Officials said plans are for the plant to make a limited number of grades, for high efficiency.

The JV “demonstrates Ineos’ continued commitment to the HDPE market, and to growing end-use applications that benefit from bimodal technology, Ineos Olefins & Polymers USA CEO Dennis Seith said in the release.

No specific site is named in the release, but Sasol late last year confirmed plans to build an ethane cracker producing PE feedstock ethylene in Lake Charles, La.

Ineos — based in Lyndhurst, England — already operates almost 1.3 billion pounds of PE capacity in La Porte, Texas. The cracker and plant will be the first North American petrochemicals investment for Sasol, which is based in Johannesburg, South Africa.

The Sasol/Ineos JV is one of at least eight producers with plans to add PE capacity in North America in the near future. Those projects could add at least 11 billion pounds of capacity to a market that currently has just under 45 billion pounds of annual capacity — meaning North American PE capacity could grow 25 percent or more.

DuPont to Sell Copper Fungicide Business Assets to Mitsui

DuPont Crop Protection (DuPont) recently announced an agreement with Mitsui & Co., Ltd. (Mitsui) for DuPont to sell its global Kocide® and ManKocide® copper fungicide business assets to Mitsui. The sale is expected to close in the fourth quarter 2014, subject to approvals from applicable regulatory authorities. Financial terms of the agreement were not disclosed.

As part of the transaction Mitsui will acquire DuPont Crop Protection’s global copper fungicide trademarks (including the DuPont™ Kocide® and ManKocide® brands); product registrations; registration data; manufacturing know-how (including process patents); certain third-party contracts; and DuPont’s Houston, Texas copper fungicide production facility.

“This agreement is another step in the execution of our DuPont Crop Protection business growth strategy,” said Rik Miller, president, DuPont Crop Protection. “The agreement further enhances our focus on innovative new offerings that drive profitable growth both today and over the long term.”

Under the agreement, DuPont will continue to sell Kocide® and ManKocide® branded products within Asia Pacific exclusively for a period of up to five years under a supply and distribution agreement, and also will continue to supply DuPont’s current copper fungicide mixture partner needs globally.

Kocide® copper fungicides remain important fungal and bacterial disease management tools and are registered for use in more than 75 countries globally and in all major regions of the world. The most important crops for copper fungicides are grapes, citrus, olives, vegetables and fruits.

Albemarle to Acquire Specialty Chemical Rival in $6.2 Billion Deal

The specialty chemical maker Albemarle said that it had agreed to acquire its rival Rockwood Holdings in a cash-and-stock deal worth about $6.2 billion.

The deal would combine two of the world’s largest specialty chemical companies, producing four main types of chemicals: lithium, catalysts, bromine and surface treatment chemicals.

Luther C. Kissam, Albemarle’s president and chief executive will be president and chief executive of the combined company.

Albemarle, based in Baton Rouge, La., will pay $50.65 in cash and 0.4803 of an Albemarle share for each share of Rockwood Holdings. The transaction values Rockwood at $85.53 a share.

After the transaction, Albemarle shareholders will own about 70 percent of the combined company.

Rockwood, based in Princeton, N.J., posted net revenue of $354.5 million in the first quarter. Its products are used in metal processing and by the aerospace and European luxury automotive industries.

Albermarle expects to realize about $100 million in annual cost savings by 2015. The deal is subject to shareholder and regulatory approval, and it is expected to close in the first quarter of 2015.

Albemarle employs about 3,900 people and sells its products in more than 100 countries. The company posted net revenue of $656 million in the first quarter.

McIlvaine Company

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