Chemical Update

BASF has made progress in its plans to build a world-scale methane-to-propylene complex on the U.S. Gulf Coast. The company has selected Freeport, Texas, as the potential site. It will use Air Liquide’s proprietary Lurgi MegaMethanol and Methanol-to-Propylene (MTP) technologies. BASF has contracted Air Liquide to provide basic engineering services for this gas-to-propylene complex.

The plant is planned to have an annual production capacity of approximately 475,000 metric tons of propylene. This project would be BASF’s largest single-plant investment to date and is subject to final approval in 2016 by the BASF Board of Executive Directors.

The Freeport site was founded in 1958 as the first BASF manufacturing facility outside of Europe. With more than 800 full-time employees, the Freeport site is one of two BASF Verbund sites in North America and uses propylene in its manufacturing processes. The on-purpose production of propylene to supply the company’s North American operations would allow BASF to take advantage of low gas prices resulting from U.S. shale gas production. The investment would further strengthen BASF’s backward integration into propylene and grow its propylene-based downstream activities, leading to a stronger market position in North America.

Prayon to Build Food Grade Sodium Hexametaphosphate (SHMP) Plant in Georgia

Prayon will build a manufacturing unit of Food Grade Sodium Hexametaphosphate (SHMP) that will double its production capacity and strengthen its position in the food sector.

Preliminary studies have been completed and the decision made to build the plant on the Group's US site in Augusta, Georgia, supplementing the current SHMP production unit in Roches de Condrieu, France. The final phase of engineering studies are under way.

Projected capacity of the new SHMP unit is 10,000 tons/year. The project is part of Prayon's growth strategy in the food sector and will support the strategic development in emerging markets such as Latin America and Asia. It will enable the Group to meet growing customer demand for processed food applications as well as ever increasing internal needs for the manufacture of core products such as Carfosel^TM (for meat and seafood applications) and Kasomel^TM (for cheese).

With more than a century of industrial experience, the Belgium-based Prayon Group is a world leader in phosphate chemistry. Prayon manufactures and markets an extensive range of purified phosphoric acids, phosphate salts and fluorine products from our sites throughout the world. The Prayon products are chiefly used as primary materials in the manufacture of end products. They are used in food (including baked goods, meat, processed cheese, fish and seafood, cereals, fruit and vegetables), drinks, pharmaceutical products (including toothpaste, oral hygiene products and excipients) and a range of industrial applications (for paper, ceramics, glass, metal, etc.).

Yara and BASF to Build Ammonia Plant in Freeport, Texas

Yara International and BASF Group have agreed to build a world-scale ammonia plant at BASF’s site in Freeport, Texas. The plant will use hydrogen as raw material, reducing capital expenditures (capex), maintenance and carbon dioxide emissions significantly.

“I am very pleased to announce this highly value creating project together with BASF. The use of hydrogen as raw material reduces capex, maintenance and carbon dioxide emissions significantly. This project will further strengthen Yara’s position in the global ammonia market and increase our footprint in the United States. I would like to thank BASF for putting trust in Yara and we look forward to a long and good relationship,” said Torgeir Kvidal, President and CEO of Yara International.

“Through the joint investment with Yara, we can take advantage of world-scale production economics and the attractive raw material costs in the United States. We will thus strengthen our Freeport Verbund and the competitiveness of our polyamide 6 value chain in the region. We look forward to a successful partnership with Yara,” said Wayne T. Smith, member of the Board of Executive Directors of BASF SE, responsible for the Chemicals segment.

The ammonia plant will be owned 68 percent by Yara and 32 percent by BASF and located on BASF’s site in Freeport. The plant will have a capacity of about 750,000 metric tons per year. Each party will off-take ammonia from the plant in accordance with its equity share. Total capital investment for the plant is estimated at USD 600 million. Yara will in addition build an ammonia tank at the BASF terminal bringing Yara’s total investment to USD 490 million. BASF will in addition upgrade its current terminal and pipeline assets.

The hydrogen technology reduces capex and maintenance significantly compared to a traditional natural gas based ammonia plant. The technology also allows for lower carbon dioxide emissions. A long-term supply agreement for nitrogen and hydrogen has been signed with Praxair Inc., the largest industrial gases company in North America, linking the feedstock variable cost to the advantageous natural gas prices available at the U.S. Gulf Coast.

KBR, Inc., Houston, Texas, has been awarded a fixed price turnkey contract for the engineering, procurement and construction. The plant is expected to be completed by the end of 2017. Yara will manage construction of the plant while BASF will operate the plant and the export terminal.

Praxair Gulf Coast Expansion to Serve Freeport, Texas, and Supply New Yara/ BASF Ammonia Project

Praxair, Inc. (NYSE: PX) has signed a 20-year agreement to supply approximately 170 million standard cubic feet per day of hydrogen and 2,000 tons per day of nitrogen to a new 750,000 metric tons per year ammonia complex being built by a new entity formed by Yara and BASF.

To help fulfill the raw material requirements of this world-scale ammonia project located in Freeport, Texas, Praxair is investing more than $400 million to add hydrogen and nitrogen production capacity and extending its Gulf Coast pipeline systems approximately 46 miles from Texas City to the Freeport area. Praxair’s pipeline systems are supported by multiple hydrogen and air separation plants and product storage capabilities including Praxair’s innovative 2.5 billion standard cubic foot high-purity hydrogen storage cavern. The pipeline extensions are scheduled to be in operation in 2016 and the supply to the complex is expected to start in late 2017.

“This is an opportunity for Praxair to build out its presence in Freeport, Texas, one of the largest chemical complexes in the western hemisphere,” said Eduardo Menezes, executive vice president, Praxair. “Praxair’s ability to capture and process by-product hydrogen generated by multiple crackers that are being installed in the Gulf Coast and add this product to the hydrogen produced by our on-purpose steam methane reformer facilities to reliably deliver high-purity hydrogen was critical for this award. We are excited to be a part of this project and to be working alongside Yara and BASF.”

Speaking on behalf of the newly-formed entity, Yara International President and Chief Executive Officer Torgeir Kvidal said, “Praxair has been working closely with us to ensure this project becomes a reality. There have been several advantages to working with Praxair including their long history of providing supply reliability along with the infrastructure and industrial gas innovations we need to run a world-class ammonia plant with a low-carbon footprint.”

Praxair operates over 50 hydrogen production facilities and seven hydrogen pipeline systems worldwide. Refinery and chemical customers globally benefit from Praxair’s complete portfolio of large-volume industrial gases, cylinder gases and specialized technologies and services.

Praxair, Inc., a Fortune 250 company with 2014 sales of $12.3 billion, is the largest industrial gases company in North and South America and one of the largest worldwide.

GEO Opens New Polyaluminum Chloride Facility in Texas

GEO Specialty Chemicals, Inc. (GEO) has recently opened its new state of the art manufacturing facility in Deer Park, TX. Designed to produce highly active polyaluminum chloride (PAC) products, the new plant will serve Texas municipalities in need of improved, cost-effective solutions in clean water practices. The facility is operated by GEO's Water Treatment Chemicals Division.

CEO and President Kenneth A. Ghazey said, "GEO has looked forward to commissioning this plant and making this capital investment in Texas to deliver cost-effective specialty chemical products that help our customers there meet increasingly stringent regulatory standards."

The new plant is designed specifically to manufacture aluminum-based coagulants for water treatment solutions. It sits on a 108-acre site that also manufactures GEO's Glycine product line. This Deer Park facility will be the second site in GEO's portfolio to make the new highly active PAC products; the other is located in Chattanooga, TN. Currently, GEO owns and operates 16 water treatment centers throughout the southeast United States and has assisted thousands of municipal water treatment systems in North America.

"We are very experienced in customized water treatment solutions and are now able to further open up the Texas water marketplace and to serve municipalities with superior water treatment products," said Scot Lang, GEO's Senior Vice President for the Water Treatment Chemicals Division. "By building this revolutionary manufacturing process, new highly active PAC products can improve coagulation for cleaner water. I am pleased to announce the plant is fully operational."

The proven benefits of polyaluminum chloride are reducing overall water treatment costs when compared to traditional alum, ferric and PAC programs, and effectively removing the water turbidity, color, heavy metals and trace organic compounds. GEO's reputation as an industry leader in the specialized area of water treatment allows for better results in basin turbidity and top of filter values; TOC, DOC, SUVA, THM and HAA5 optimizations; coagulation to assist membrane operation and to limit fouling; and application of coagulants to minimize cost.

Solvay to Expand Peroxides Production to Serve Growing North American Markets

Solvay, the world’s largest producer of hydrogen peroxide, plans to expand its production facility in Longview, WA., to meet growing demands from pulp and paper producers in the Pacific Northwest and other industrial markets around the United States.

Solvay expects to increase its North American production capacity by about 20 percent, supported by a multi-million dollar investment in Longview. This investment will help to ensure that Solvay can continue to supply key markets that rely on Solvay to support their own growth projections.

The investment will be in two stages. Longview construction is expected to begin later in 2015 and completion of stage one is expected in late 2016. Stage two of the expansion will take place in the near future as market conditions require. Plant employment will remain stable, augmented by contract workers during the construction stages.

Solvay’s investment plans signify another substantial commitment to the Longview plant and to the region’s industrial markets including the neighboring North Pacific Paper Corporation’s (NORPAC) production facility. The expansion of Solvay’s North American peroxides capacity will also support internal demand growth for electronic grade peroxide serving the electronics market.

Paul Hogan, Solvay’s North American senior vice president for peroxides, explained, “We have seen tightening market conditions in recent years, conditions that should continue for the near future, and this investment is needed to support our customers’ significant growth. Additionally, our electronic grade hydrogen peroxide is experiencing strong growth and this investment will help secure our position in this important market segment.”

EaglePicher Breaks Ground on Lithium Ion Center of Excellence

EaglePicher Technologies, LLC, recently officially broke ground on the company's new Lithium Ion Center of Excellence.

The 100,000-plus square-foot facility will be built adjacent to their current Lithium Ion facility at the Crossroads Industrial Park in Joplin, Missouri and will expand the EaglePicher cell and battery portfolio. This new state-of-the-art facility will provide large-scale production of lithium-ion batteries for mission critical applications. The new facility will support their growing applications for the aerospace, defense, and medical industries.

"This new facility furthers our role as a key supplier in the Lithium Ion market, allowing us to provide the critical battery power needed for applications where failure is not an option," said Randy Moore, President of EaglePicher Technologies. "We are looking forward to scaling up our capabilities for high-output manufacturing."

As a leading specialty battery manufacturer with a renowned legacy of supplying batteries for mission critical applications, EaglePicher is poised to significantly increase its manufacturing of Lithium Ion materials and products. The Lithium Ion Center of Excellence will provide a reliable, high-volume supply of critical items identified as essential for national defense, alleviating concerns regarding market volatility and uncertainty within the current international market. EaglePicher anticipates this new facility will be completed near the end of 2015 and will create 171 jobs for the area over the next several years.

"EaglePicher is excited by this expansion because it brings innovative solutions to the market and growth opportunities to the company and the community," said Ron Nowlin, VP & General Manager of Aerospace Systems. "This facility will significantly increase our product portfolio and volume production capability for Lithium Ion batteries."

Airgas to Build New Air Separation Unit (ASU) in Tuscaloosa, AL

Airgas, Inc. ARG, -0.20% one of the nation’s leading suppliers of industrial, medical, and specialty gases, and related products, recently announced that it has signed a long-term agreement to build an air separation unit (ASU) to supply tonnage oxygen, nitrogen and argon via pipeline to Nucor Steel Tuscaloosa, Inc., a subsidiary of Nucor Corporation, at its steel manufacturing plant in Tuscaloosa, Alabama.

“We’re excited about our new partnership with Nucor and look forward to serving its gas needs in Tuscaloosa with our new, state-of-the-art atmospheric gas production facility,” said Airgas President and Chief Executive Officer Michael L. Molinini.

Airgas’ new large-scale ASU will be constructed adjacent to the existing Nucor facility and is expected to be on-stream in the spring of 2017. The ASU will also produce oxygen, nitrogen, and argon to support the region’s merchant bulk gas market.

Airgas currently owns and operates 16 ASUs and is the fifth-largest producer of atmospheric gases in the U.S. The Company’s full range of gas supply modes – from cylinders and dewars to microbulk, bulk, and on-site – enables its customers to optimize their production processes through the gas supply mode that most effectively and efficiently meets their needs.

“The new plant will be operated by Airgas Merchant Gases, which manages Airgas’ network of ASUs, sourcing options for all major gases, and bulk gas distribution logistics,” said Thomas S. Thoman, Airgas Division President – Gases Production. “Our investment in new production capabilities in Tuscaloosa will provide supply security to Nucor and strengthen our gas supply chain to ensure long-term reliability for our packaged and merchant gas customers throughout the region.”

In addition to gases, Airgas is a leading supplier of a wide range of hardgoods, including welding equipment and related products, safety products, and tools and supplies for construction and maintenance, repair, and operations (MRO).

Linde starts up new air separation unit in Texas

Linde North America has completed installation of its air separation unit (ASU) and associated supporting facilities in La Porte, Texas. The ASU produces oxygen, nitrogen and argon and is part the $250 million Linde North America is investing at the site that also includes a new gasification train and ancillary equipment and facilities.

“With the new plants, Linde has a fully, integrated presence in the Houston area that covers air gases and synthesis gas products production and supply to our customers,” said Pat Murphy, president of Linde Americas “These additional capabilities allow Linde to better serve growth opportunities for the energy, chemicals and manufacturing industries that have been enhanced by the shale gas revolution.”

The ASU will produce gaseous oxygen and nitrogen for the existing gasification units as well as a new gasifier under construction at the site. “The new gasification unit will be on stream this year, creating the world’s largest gas-based partial oxidation complex for the production of syngas products for petrochemicals.” Murphy said.

The new gasifier will convert natural gas into syngas and constituent products such as carbon monoxide, hydrogen and carbon dioxide which are also used to produce methanol, downstream chemicals and cleaner transportation fuels. The syngas products will be shipped by pipeline to a key customer. Linde also owns and operates three additional large, partial oxidation facilities that manufacture syngas products using Linde’s world-leading technologies and know-how.

Liquid oxygen, nitrogen and argon produced at the plant is being shipped by truck to serve the rapidly growing merchant market in and around the Houston Ship Channel. The liquid argon is also being shipped by rail to serve customers in Northern California and the Pacific Northwest – and points in between.

The La Porte investment is part of an overall Linde expansion plan that includes a new ASU in Lewisville, Arkansas, a nitrogen liquefier in Delta, Ohio, an expansion of ultra-high purity nitrogen and oxygen in Hillsboro, Oregon, upgrades of ASUs in Trail, BC, Canada, and Braddock, Pennsylvania, as well as a new specialty gases plant in Hammond, Indiana.

LyondellBasell to Expand Production Capacity of Tri-ethylene Glycol in Texas Plant

LyondellBasell (NYSE: LYB) announced recently plans to expand Tri-ethylene Glycol (TEG) production capacity at the company's existing ethylene oxide and ethylene glycol plant in Pasadena, Texas.

The additional capacity of 50 million pounds per year would more than double the company's current production capacity. Engineering is already underway on the new unit, which is anticipated to be operational in late 2016. It is expected to be one of the world's largest on-purpose TEG production units, meaning the TEG is produced by design and not as a by-product of another manufacturing process.

"The long-term demand for Tri-ethylene Glycol in oil-field, construction and automotive markets in North America, along with the company's feedstock integration to ethylene and ethylene oxide, makes this project a logical extension of our high-value glycol derivative businesses," said Pat Quarles, LyondellBasell executive vice president of Intermediates and Derivatives, Supply Chain and Procurement.

TEG is a colorless, odorless glycol that is used to dehydrate natural gas and as an additive in hydraulic and brake fluids, among other uses. The company's Bayport Underwood plant in Pasadena produces ethylene oxide, ethylene glycol, glycol ethers and other products. Glycol ethers are used to manufacture brake fluid, dyes, paint, solvents, commercial cleaners and waxes, detergents and cosmetic bases. Ethylene glycols are used as intermediate chemicals to produce polyester (PET) fibers, films and bottles.

ASIA

Chiye Organic Silicon Material (Shanghai) Invests US1.6 Million on Production Plant

Chiye Organic Silicon Material (Shanghai) Co., Ltd, a leading manufacturer and supplier of organic silicon, announced recently that it has launched the investment up to 1.6 million US dollars on a new plant of 3-Isocyanatepropyltriethoxysilane, which is expected to complete and start to work in June 2015. The new plant would be able to supply 500 tons of 3-Isocyanatepropyltriethoxysilane annually to serve the customers in adhesive industry as well as coatings and sealant. It would greatly ease the tight supply of this material in China.

Mr. Chen, the chief operator of Chiye Organic Silicon addressed the importance of technique innovation and he said: "Based on the advanced equipment, the new plant could deal with the hazardous waste sufficiently." He also believed the new technique could gain greater acceptance of global leading customers. We are confident in our new plant to increase penetration and capture more market share in Europe and America.

Located in Shanghai Pilot Free Trade Zone, Chiye Organic Silicon Material (Shanghai) Co., Ltd is one of the leading manufacturers and suppliers of organic silicon and silicon oil. This also includes Amino Silane, Epoxy Silane, Acryl Silane, Vinyl Silane, Phenyl Silane, Chloro Silane and Alkyl Silane, chemical formula as well as their application solutions, which are widely used in the fields of Building Materials, Glass Fiber, Plastic, Rubber, Coating, Electronics, Cable and Resin etc. The company distributes products both within China and internationally under the trademark CY, with a product range of more than 40 categories.

Shin-Etsu to Expand Silicone Production in Thailand; Plans US Technical Center

Aiming to expand its silicones business, one of the company’s main business pillars, Shin-Etsu Chemical Co., Ltd., Tokyo, will greatly expand and strengthen the production capacity of its manufacturing plants in Thailand. At the same time, Shin-Etsu decided to establish a new Technical Center in the State of New Jersey in the United States.

Shin-Etsu Chemical will increase the Thailand silicone monomer plant’s production capacity by 50% – from the present annual production of 70,000 ton to 105,000 tons. At the same time, Shin-Etsu will increase its silicone polymer production capacity by about 40% – from 54,000 tons to 74,000 tons. Construction of this expansion project is scheduled to be completed in 2017, and the investment amount is estimated to be about ¥20 billion.

Shin-Etsu Chemical began global production of silicone monomer by establishing Asia Silicones Monomer Ltd. (ASM) in Thailand as a joint-venture company with General Electric Company (GE) in 2001. In 2013, Shin-Etsu acquired the total shares held by GE, making ASM a wholly owned Shin-Etsu Group company. At the same time, using the raw material of silicone monomer supplied by ASM, Shin-Etsu Silicones (Thailand), is manufacturing silicone polymer, an end-product, at a manufacturing facility located on land adjacent to the ASM plant.

In the United States, Shin-Etsu will establish a new Technical Center in New Jersey. The company has current silicone polymer production plants in Texas and Ohio. The aim of establishing this new technical center is to help the company speedily meet the demand for silicone products coming from U.S. customers and work on the development of new products and applications. In cooperation with the Silicone-Electronics Materials Research Center in Annaka City, Gunma Prefecture in Japan, the new Technical Center will work on expanding Shin-Etsu’s silicones business in the U.S. by intensively researching the needs of customers.

Silicone is a highly functional material and is used in wide range of application fields in such industries as electric, electronics, automobile, housing, and cosmetics and toiletries. Shin-Etsu Chemical has expanded its silicone business by developing and supplying products that meet the wide-ranging requirements of its customers. As a result, it has achieved the growth of its silicones business, reaching a market share of over 50% in Japan. Globally, Shin-Etsu has been carrying out the expansion of its silicones business by setting up production bases in Asia, the United States and Europe.

Technip Awarded Contract for Qingdao 500 KTA Ethylbenzene Styrene Monomer Plant

Technip was awarded a contract by Qingdao Soda Ash Industrial New Material & Technology Company to provide the technology, engineering, selected critical equipment and technical services for a 500 kilo-ton/yr ethylbenzene styrene monomer (EBSM) plant to be located in Dongjiakou Port Industrial Zone Park, Qingdao City, Shandong Province, People’s Republic of China. The plant’s products will be used for manufacturing a broad range of plastics.

Technip’s operating center in Boston, Massachusetts, USA, will execute the project.

The technology for the plant will be provided through an agreement with Badger Licensing LLC, a joint venture of Technip and ExxonMobil Chemical Company.

Styrene monomer, with a worldwide capacity of over 30 million metric tons per annum, is a precursor to the production of a variety of polymer derivatives, including polystyrene (PS), acrylonitrile butadiene styrene (ABS), and styrene butadiene rubber (SBR).

AkzoNobel Performance Coatings Adds Capacity in Indonesia

AkzoNobel Performance Coatings has announced plans to invest €2.5 million to expand its plant in Cikarang, Indonesia.

The investment will add capacity to help meet growing demand for the company’s International brand products, which are supplied by the Protective Coatings and Marine Coatings businesses. The project is expected to be completed by April 2015.

"The local market has been expanding over the last three years," explained Mauricio Bannwart, Managing Director of AkzoNobel's Protective Coatings business. "Further growth is now anticipated as Indonesia seeks to improve its position in the petrochemical and power sectors, while an improvement in marine new build is also anticipated."

News of the expansion comes after AkzoNobel recently invested a total of €5 million to add capacity for both its Marine Coatings and Protective Coatings businesses in Singapore and Sunshine, Australia.

Commenting on the new projects, Conrad Keijzer, the company's Executive Committee member responsible for Performance Coatings, said: "Our business in Asia has experienced double-digit annual growth during the last five years. These expansions will ensure that we are well positioned to meet customer demand going forward. By focusing our investment at key sites we are achieving economies of scale, allowing us to continuously improve our operational productivity."

Fluor Awarded Engineering Contract for New Chinese Polysilicon Plant

Fluor Corporation (NYSE: FLR) was awarded a contract by Shaanxi Non-Ferrous Tian Hong REC Silicon Materials Co., Ltd., (TianREC) to provide detailed design services and technical support for its new polysilicon plant to be located in Yulin, Shaanxi Province, China. Fluor will book the contract for an undisclosed value in the first quarter of 2015.

“This project award reconfirms Fluor’s global leadership in the engineering, procurement and construction of polysilicon and silane gas processing plants and our ongoing positive capital project experience and relationship with REC Silicon,” said Ken Choudhary, president of Fluor’s Energy & Chemicals business in the Asia Pacific region. “We look forward to supporting TianREC on this world-class, state-of-the-art facility.”

The new plant, which will have an anticipated total investment of more than $1 billion, will use REC Silicon's next generation fluidized bed reactor technology. It is expected to have a capacity to produce 18,000 metric tons of granular polysilicon, an additional 1,000 metric tons of Siemens polysilicon and 500 metric tons of silane gas loading.

The award of the detailed design and technical support contract follows Fluor’s successful completion of the front-end engineering and design package project, and it builds upon the successful completion of several previous projects for REC Silicon.

Fluor’s Shanghai office will execute the project with support from Fluor’s offices in Aliso Viejo, Calif. and New Delhi. The Shanghai office has successfully completed other recent polysilicon projects in China.

TianREC is a joint venture between Shaanxi Non-Ferrous Tian Hong New Energy Co., Ltd., and REC Silicon Inc.

EUEA

Kuraray Boosts Production Capacity for Ethylene Vinyl Alcohol in Belgium

Kuraray Co. (Tokyo, Japan; www.kuraray.co.jp/en) will boost the ethylene vinyl alcohol copolymer (EVOH resin) production capacity of EVAL Europe N.V., a wholly owned Kuraray subsidiary located in Antwerp, Belgium. The capacity increase will add 11,000 metric tons per year (m.t./yr) of production capability. The expanded facilities are expected to start operations at the end of 2016, and the capital investment was approximately ¥8.0 billion.

The company’s EVAL products have gas-barrier properties, and the applications have expanded to include stain-proof wallpaper, under-floor heating and vacuum insulation panels for refrigerators. Previously, the increase in EVAL demand has been centered primarily in industrialized nations, such as Japan and the U.S., as well as those in Europe. However, demand is now also rising in emerging nations.

Styrolution Opens SBC Pilot Plant

Styrolution, Frankfurt am Main, Germany, recently launched a pilot styrene-butadiene copolymer (SBC) plant in Antwerp, Belgium. The new plant will produce all of Styrolution's SBC grades and includes capabilities for the processing of other polymer types.

An identical but scaled-down version of the larger production SBC plant (65 kt) in Antwerp, the pilot plant will be used to conduct R&D experiments, empowering customers to more easily and efficiently produce sufficient amounts of materials for in-house analysis and product testing. Additionally, the pilot plant will support daily commercial plant operations and will help to enhance specialty styrenics, such as Styrolux and Styroflex.

PPG Plans Capacity Expansion for Precipitated Silica at Netherlands Site

PPG Industries, Inc. (Pittsburgh, Pa.; www.ppg.com) announced that it is increasing precipitated silica production capacity at its Delfzijl, Netherlands, manufacturing location by more than 15,000 metric tons per year (m.t./yr), due in part to growing global demand for Agilon performance silica products.

The expansion is expected to come online in 2016 and will help PPG meet growing demand for its silica products, including large-scale Agilon volumes tied to a new multiyear, global supply agreement with a multinational tire manufacturer.

Agilon performance silica is a high-value technology platform of chemically-modified precipitated silica that can improve the performance of products in which it is used. It can also drive manufacturing efficiencies by reducing capital, improving throughput and reducing volatile organic compound (VOC) emissions.

Solvay Building Hydrogen Peroxide Grade Production Plant in Netherlands

Solvay is planning to expand hydrogen peroxide grade production capabilities in the Netherlands with a new manufacturing and filling facility. Planned to be built at Solvay's peroxide production site in Linne-Herten, the new plant will produce the hydrogen peroxide grades for the pharmaceutical industry. The project will allow Solvay to meet the increased demand for its INTEROX PH grades and INTEROX SG grades.

Work on the plant is expected to be complete in July 2015.

A. Schulman to Establish Masterbatch Production Plant in Turkey

A. Schulman, Inc. (Nasdaq: SHLM), a leading international supplier of high-performance plastic compounds, powders and resins, recently announced plans to establish a new Masterbatch production plant in Turkey. This new facility will produce, when fully operational, approximately 40 million pounds of the Company's premium additive, white, and breathable masterbatches for food and industrial packaging customers in Turkey and other fast-growing countries in the Middle East and North Africa.

The Company plans to lease existing industrial facilities in the greater Istanbul area, which it will convert into a state-of-the-art production plant at a cost projected to be in the €5 million to €7 million range. This new facility is expected to be in production by the end of fiscal 2016.

"By establishing this production plant in Turkey, we simultaneously achieve several strategic priorities," said Heinrich Lingnau, vice president and general manager – Europe/Middle East/Africa (EMEA). "First, through this timely investment, we will be ideally positioned to participate more fully in the accelerating growth occurring throughout Turkey and other countries in the Middle East and North Africa. Likewise, it creates a strategic platform from which we can increase our share in this fast growing market. Furthermore, since we are currently serving our customers in Turkey from plants in Northern Europe, this new facility will allow us to improve service times and utilize capacity in Northern Europe in a more efficient manner."

"We are very excited to establish a strong, local presence in Turkey, which is fast-becoming the premier gateway for commerce between East and West," said Frank Roederer, business director masterbatch solutions, EMEA at A. Schulman. "We believe the highly skilled labor force in the Istanbul area, as well as the underlying cultural fit we find in Turkey, will provide us with a strong competitive advantage over the long term."

Technip Awarded Substantial Contract for New Fertilizer Unit in Slovak Republic

Technip was awarded by Duslo a.s. a substantial (€250 to €500 million) contract on lumpsum turnkey basis to develop the engineering, procurement and construction (EPC) of a new ammonia production unit in the existing fertilizer complex located in Sal’a, Slovak Republic.

Based on Haldor Topsoe last generation technology, the new unit will have a capacity of 1,600 tons per day of ammonia. It will incorporate the most advanced engineering and technological solutions for minimum energy consumption and reduction of pollutants emissions. Haldor Topsoe is a world leader in catalysis and surface science.

Technip’s operating center in Rome, Italy, will execute the contract, scheduled to be starting up at the beginning of 2018.

Marco Villa, Technip Region B President, commented: “This award reinforces the long-lasting relationship between Technip and Haldor Topsoe, the global market leader in ammonia technology and catalysts, and confirms Technip’s leading position in the fertilizer sector. In line with the European energy saving and greenhouse gas reduction policies, this new fertilizer unit will be executed with the highest standards in terms of technology, efficiency and environmental protection”. Technip Region B is composed of Italy, Greece, Eastern Europe/Russia, South America and Canada and Middle East Onshore-Offshore.

Air Liquide to Build, Own and Operate World’s Largest Oxygen Production Unit for Sasol in South Africa

Air Liquide and Sasol, an international integrated energy and chemicals company, have signed a long-term agreement for the supply of large quantities of industrial gases to Sasol’s Secunda site (around 140 km East of Johannesburg). Air Liquide will invest around € 200 million for the construction of the largest Air Separation Unit (ASU) ever built, with total capacity of 5,000 tonnes of oxygen per day (equivalent to 5,800 tonnes per day at sea level), a milestone in the history of industrial gas production.

Air Liquide and Sasol have a long partnership history as the Group has already provided several ASUs on this site over the last 40 years. This contract represents an important step forward in this partnership as it is the first time that Sasol will outsource its oxygen needs to a specialist of industrial gas production at its Secunda site. The oxygen provided by Air Liquide will be used by Sasol for the production of synthetic fuels.

Air Liquide will design, build, own and operate this new ASU, bringing Sasol its world class expertise in oxygen supply. The Air Liquide Engineering and Construction teams will bring their state-of-the-art technologies for this very large ASU, thereby providing benchmark efficiencies, reliability and safety while increasing production capacities.

The new ASU expected to be commissioned by December 2017 will also add for Air Liquide a new source of oxygen and argon to supply the growing industrial gas market in South Africa.

Grupa Azoty Announces Historical $450m Investment in New PDH Plant in Poland

Grupa Azoty (ATT:WSE), the Warsaw-listed leading chemical company in Central and Eastern Europe, has announced recently its decision to invest PLN 1.7bn (USD 0.45bn, GBP 0.3bn) in a propane dehydrogenation plant near its already existing facilities in Police, north-western Poland. The investment is the largest in the Company's history.

The new plant, due to be launched in 2019, will be among the largest of its kind in the world, and the largest in the European Union.

In the first year after the completion the plant is expected to elevate the revenues of Grupa Azoty Police, a subsidiary of Grupa Azoty, by approximately PLN 2bn. The capacity of the plant is estimated at 400,000 tonnes. Approximately 40% of it will be used for internal group purposes, which the remaining 60% being destined for export, mostly to Germany.

Grupa Azoty SA is Poland's largest chemical company and the European Union's second-largest EU producer of nitrogen and multi-component fertilizers, while such products of Grupa Azoty as melamine, caprolactam, polyamide, OXO alcohols, and titanium dioxide also enjoy a strong position in the chemical sector and find application in different other industries.

MERGERS/ ACQUISITIONS

Solvay to Acquire Alkoxylation Plant in the Netherlands

Solvay S.A. (Brussels, Belgium; www.solvay.com) has agreed with Emery Oleochemicals and ERCA Group to buy their jointly-owned new alkoxylation facility, ERCA Emery Surfactant B.V., in the Moerdijk integrated industrial park in the Netherlands.

As an on-pipe facility, commissioned in 2014, it will benefit from competitive and secure supply of the key raw material ethylene oxide (EO) via pipeline from the industrial park, which is located between the key regional transport and logistics hubs of Rotterdam and Antwerp, Belgium.

The acquisition comes ahead of the startup of two other large-scale on-pipe alkoxylation units that Solvay’s Novecare Global Business Unit (GBU) is building in Singapore and in the United States, due in the third quarter. It is Novecare’s latest investment toexpand its surfactant footprint, complementing the alkoxylation site in Italy and the new surfactant plant in Germany.

“The acquisition of this state-of-the-art facility on a strategically located industrial site will bolster our long-term competitive position in Europe,” said Emmanuel Butstraen, president of Solvay’s Novecare. “This on-pipe unit complements Solvay’s regional footprint and secures our customers access to develop and grow their businesses in dynamic markets around the world.”

Alkoxylates, used as emulsifiers, detergents and wetting agents, form the chemical foundation for a wide range of Solvay Novecare’s specialty surfactants used in its agrochemicals, coatings, home & personal care, industrial and oil & gas markets.

The agreement is due to close by mid-April, pending customary approvals. Novecare expects to fully integrate the unit into its industrial network by the fourth quarter with production continuing throughout the process.

A. Schulman to Acquire Citadel

- Almost doubles U.S. revenue, balancing global geographic footprint

- Provides new growth platform with industry-leading, high-margin specialty thermoset composites business

- Moves product portfolio further into high-value-added specialty markets with enhanced services and products to customers

- The transaction will be accretive in Company's Fiscal 2016

A. Schulman, Inc. (Nasdaq-GS: SHLM), a leading international supplier of high-performance plastic compounds, powders and resins, announced recently that it has executed a definitive agreement to acquire all of the issued and outstanding capital stock of privately held Citadel Plastics Holdings, Inc., a portfolio company of private equity firms HGGC and Charlesbank Capital Partners, for $800 million. Based in West Chicago, IL, Citadel is a leading North American specialty engineered plastics company that produces thermoset composites and thermoplastic compounds for specialty product applications spanning multiple industries including transportation, industrial & construction, consumer, electrical, energy and healthcare & safety. In 2014, Citadel had approximately $525 million of pro-forma revenue (giving effect to their recent acquisition) and pro-forma earnings before interest, taxes, depreciation, and amortization of approximately $75 million.

The deal, which is subject to standard closing conditions, is expected to close in the third quarter of the Company's fiscal 2015. Due to the timing of the deal in relationship with A. Schulman's fiscal year end of August 31, it is not expected to be accretive in the Company's fiscal 2015, but is expected to be accretive in the first 12 months of ownership. The Company anticipates achieving approximately $25 million in synergies within 18 months of closing, driven primarily by sourcing activities and plant efficiency actions.

"Today's announcement marks a significant strategic milestone as we continue to transform the Company beyond plastic compounding into a premier specialty plastics organization," said Bernard Rzepka, president and chief executive officer of A. Schulman. "In early 2014, we communicated our Expanded Vision which defined target areas to drive growth for A. Schulman beyond our traditional space. Citadel provides us a unique opportunity to enhance our future growth paths for A. Schulman.

"Citadel enhances our thermoplastics platform and will create a more attractive and sustainable business by regionally extending our thermoplastic portfolio in areas such as flame retardants and thermoplastic blends," stated Rzepka. "Likewise, Citadel will expand our customer-centric service and product development capabilities. With significant revenue in the U.S., Citadel enhances our regional scale and efficiencies, as well as balances our current geographic footprint.

"Citadel provides a solid foundation in the composite business with a diverse set of capabilities to jumpstart our Expanded Vision initiative by adding a second growth platform to our organization with its industry-leading, added-value specialty thermoset composites business," added Rzepka.

Established in 2007, Citadel has quickly become an industry leader in multiple attractive, niche applications, including: high performance auto structural, electrical power distribution, downhole oil & gas components, and medical patient transport systems. The company has 1,200 employees and operates 21 manufacturing facilities throughout the world, including 10 thermoplastic facilities in the United States and Canada, and 11 thermoset composite plants comprising seven in North America, one in Germany, one in Brazil, and a joint venture consisting of two plants in China.

The Company intends to fund the transaction with a new capital structure that will consist primarily of long-term debt and senior unsecured notes.

Germany's Evonik to Acquire Monarch Catalyst

German specialty chemical company Evonik Industries AG, has signed an agreement to acquire 100% state of Monarch Catalyst Pvt Ltd, Dombivli (Thane, Maharashtra), in order to strengthen its global catalysts business. The transaction is expected to close during the first half year of 2015 after the required approvals have been received. The parties have agreed to keep the purchase price confidential.

Evonik is one of the leading global players in producing specialty catalysts, custom catalysts and catalysts components for the life sciences & fine chemicals, industrial & petrochemical and polyolefines market segments. This bolt-on acquisition of Monarch Catalyst with annual sales in the low double-digit million Euro range complements Evonik’s leading positions in activated base metal catalysts and precious metal catalysts. Monarch’s global oils & fats hydrogenation catalysts business is a broadening of the Evonik catalysts portfolio. Monarch Catalyst has about 300 employees.

Monarch is a family owned enterprise founded in 1973 by Dr K Muthukumar and Shantibhai Vadalia with its production site in Dombivli, near Mumbai. It is recognised as a global catalyst supplier and respected for its consciousness and efficient use of resources.

Polypore Sells Energy Storage Segment for $2.2B to Asahi Kasei, Separations Media Segment to 3M for $1B

Polypore International, Inc. (NYSE:PPO), a manufacturer of microporous membranes based in Charlotte, North Carolina, is selling both its business segments: Energy Storage and Separations Media.

Japan's Asahi Kasei Corp., a chemical manufacturer with businesses in the health care, construction materials and electronics sectors, will pay $2.2 billion to buy the energy storage business of Polypore after the Separations Media segment is sold to 3M Co. for $1 billion.

Asahi Kasei said that the combination of their lithium-ion battery separator businesses will help them develop more sophisticated technology.

Before that deal closes, Polypore International Inc. will sell its separations media segment (Membrana) to 3M, with proceeds from that deal going to Asahi Kasei. Polypore’s Separations Media business is a leading provider of microporous membranes and modules for filtration in the life sciences, industrial and specialty segments. Polypore’s Separations Media business is expected to give 3M new technology and about $210 million in annual sales.

The two deals have been approved by the boards of directors of all three companies, but Polypore shareholders still need to vote.

Overview of the Contemplated Transactions

The transaction is consistent with Asahi Kasei’s medium-term strategic management initiative, “For Tomorrow 2015,” focused on Environment & Energy, Residential Living, and Health Care.

The Energy & Environment focus is on sophisticated energy storage material solutions, especially in automotive applications, against a backdrop of increasing motorization in emerging countries and heightening worldwide demand for eco-friendly cars such as electric vehicles and hybrid electric vehicles. Further growth is expected from the increasing need for high-performance stationary energy storage systems to enable more efficient utilization of renewable energy.

Polypore is a compelling fit with Asahi Kasei’s electronic materials business, led by Asahi Kasei’s Hipore™ lithium-ion battery (“LIB”) separator with applications in energy storage for both consumer electronics and automotive applications.

Polypore has established an excellent global platform for its LIB separator business, with production plants in the U.S., South Korea, and China, and products that complement Asahi Kasei’s strategies and objectives. The combination of the LIB separator businesses of the two companies will enable the further development of more sophisticated products, which will contribute to the advancement of LIB technology and performance and lead to accelerated growth and value creation. Furthermore, the addition of Polypore’s lead-acid battery separator business, which has production plants in the U.S., Thailand, France, Germany, India, and China, will reinforce Asahi Kasei’s energy storage material businesses as a comprehensive supplier of a wide range of materials that meet diverse energy solution needs.

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. is acting as financial advisor to Asahi Kasei, and Cleary Gottlieb Steen & Hamilton LLP is acting as Asahi Kasei’s legal counsel. Bank of America Merrill Lynch acted as financial advisor to Polypore and Jones Day acted as legal advisor to Polypore.

McIlvaine Company

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