Solvay to form joint venture with Sadara to build hydrogen peroxide plant in Saudi Arabia

 Solvay announced that it has the intention to create a 50/50 joint venture with Sadara Chemical Company (itself a planned joint venture of Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow)) for the construction and operation of a Hydrogen Peroxide Plant in Jubail industrial City, Kingdom of Saudi Arabia. Scheduled to be operational in the second half of 2015, this new plant is intended to supply Hydrogen Peroxide (HP) as a raw material for the manufacture of propylene oxide (PO) by Sadara at its world-scale, fully integrated chemicals complex. Propylene oxide is used to produce propylene glycol, polyurethanes and glycol ethers. Solvay will use its proprietary, high-yield hydrogen peroxide technology for the world-scale plant.

Dow and Saudi Aramco announced the planned formation of Sadara on July 25, 2011.  Building on Saudi Aramco's project management and execution expertise, and utilizing many of Dow's industry leading technologies, the Sadara chemicals complex, comprising 26 manufacturing units, will be one of the world's largest integrated chemical facilities, and the largest ever built in one single phase. The complex will possess flexible cracking capabilities and will produce over 3 million metric tons of high value-added chemical products and performance plastics, capitalizing on rapidly growing markets in energy, transportation, infrastructure and consumer products. Jubail Industrial City is the largest industrial complex of its kind in the world. It is located in the Eastern Province of the Kingdom of Saudi Arabia, approximately 100 kilometers northwest of Dammam.

The proposed hydrogen peroxide megaplant in Saudi Arabia will be Solvay's third. The Solvay Group operates today a 230 kt/y megaplant in Antwerp, Belgium, and is currently commissioning a 330 kt/y megaplant in Map Ta Phut, Thailand. The new planned HP plant in Jubail Industrial City will further strengthen Solvay's leadership in this field. By using the advanced hydrogen peroxide to propylene oxide (HPPO) technology, it is possible to reduce both the capital intensity and the environmental footprint of PO production compared to conventional production technologies.

Dow and Ube Form Joint Venture to Manufacture Electrolytes for Lithium-Ion Batteries

The Dow Chemical Company and Ube Industries, Ltd. announced an agreement to form a joint venture to manufacture and market formulated electrolytes for lithium-ion batteries (LIBs) in energy storage applications. The 50-50 joint venture, named Advanced Electrolyte Technologies LLC, is expected to be finalized later this year, pending regulatory approval.

“The growing demand for alternative energy production and energy storage systems places technologies such as advanced batteries for electric/hybrid vehicles and power generation at the very center of the global mega-trends,” said Heinz Haller, Dow executive vice president and chief commercial officer, “Partnering with an electrolyte industry leader like Ube gives Dow the ability to provide cell manufacturers with a robust offering of material technology that meets demanding battery performance requirements.”

The new joint venture will also allow Ube to strengthen its global supply network and improve cost competitiveness for its electrolyte technology outside of Japan. This will enable Ube to take advantage of other rapidly growing geographical segments with its world class formulated electrolyte technologies.

The joint venture’s first manufacturing facility is expected to be built at Dow’s Michigan Operations’ site in Midland for startup in 2012.

 

Rhodia and SIBUR sign letter of intent for joint venture in surfactants in Russia and CIS

 Rhodia and SIBUR have signed a letter of intent to create a joint venture in specialty surfactants. This strategic alliance would be focused on creating a leader in the CIS market where specialty surfactants are used particularly in home & personal care, and oil & gas industries, with the surfactants sector growing at more than 6% per year.

Rhodia will provide its expertise in surfactant technologies, its knowledge of formulations and market applications and its customer network, including global key accounts with a strong presence in this region.

SIBUR will contribute its raw materials, production and logistics capabilities.  With its longstanding experience of the Russian petrochemicals market, SIBUR will also support the development of the surfactants business in oil and gas markets in Russia and the CIS.

It is expected that the new 50:50 joint venture will site a local production in Russia at Dzerzhinsk, near SIBUR’s petrochemicals operations, 400km east of Moscow, and is expected to be operational in 2013.

“This strategic partnership is a key step in our development in the dynamic surfactants market in the CIS and Eastern Europe,” commented Christophe Clemente, Rhodia Novecare’s Vice President Europe.  “This alliance will reinforce our leading position worldwide in specialty surfactants and is fully aligned with our growth strategy. It demonstrates our commitment to become the preferred partner of our customers as they expand in fast growing countries,” added Emmanuel Butstraen, President of Rhodia Novecare.

“SIBUR and Rhodia have strong complementary activities and expertise. The association with a worldwide leader in specialty surfactants will allow us to provide value added products to meet the fast growing demand for more sophisticated and complex solutions”, commented Sergey Merzlyakov, Vice-President - Head of the Plastics and Organic Synthesis business unit of SIBUR. “Collaboration with Rhodia is in line with our strategy of expanding into carefully chosen specialty chemicals business segments”, concluded Dmitry Konov, CEO of SIBUR.

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INEOS and BASF sign joint venture contract for Styrolution

BASF SE and INEOS Industries Holdings Limited have made an important step towards the establishment of the joint venture company Styrolution. On May 27, 2011 the companies signed a joint venture contract, which regulates the formation of the joint venture company Styrolution. The establishment of the joint venture is subject to approval by the appropriate antitrust authorities.

BASF and INEOS plan to combine their global business activities in styrene monomers (SM), polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene-butadiene block copolymers (SBC) and other styrene-based copolymers (SAN, AMSAN, ASA, MABS) as well as copolymer blends into the new joint venture called Styrolution. The business with expandable polystyrene is not part of the transaction. BASF and INEOS will retain their respective businesses.

The company headquarters will be located in Frankfurt/Main, Germany. In the joint venture 50% of the shares will be owned by BASF and 50% by INEOS. BASF will receive cash consideration following the completion of the transaction.

Dr. Martin Brudermüller, Vice Chairman of the Board of Executive Directors of BASF SE and responsible for the Plastics segment said: “The signing of the joint venture contract is an important milestone. With the signing we have built a strong foundation to establish Syrolution, the leading global company for styrenics, before the end of the year, subject to regulatory approval. Styrolution will deliver to its customers around the globe even better service, a fast and secure supply as well as excellent product quality.”

“The Joint Venture agreement paves the way for a globally competitive business that will provide significant benefit to its customers,” said Jim Ratcliffe, Chairman, INEOS Capital. “Styrolution will be capable of meeting the long-term needs of a rapidly changing market as it competes effectively with large-scale producers from Asia and the Middle East.”

BASF intends to contribute its SM, PS, ABS, SBC and styrene-based copolymers businesses in the joint venture. This includes production plants located in Germany (Ludwigshafen, Schwarzheide), Belgium (Antwerp), Korea (Ulsan), India (Dahej) and Mexico (Altamira). BASF employs approximately 1,460 people in its styrenics business and generated sales of about €3.9 billion in 2010.

INEOS intends to contribute ABS production plants at sites in Germany (Cologne), Spain (Tarragona), India (Vadodara) and Thailand (Map Ta Phut) to the joint venture. In addition INEOS will contribute its SM and PS businesses to the joint venture, which includes INEOS and INEOS Styrenics sites in Canada (Sarnia), the United States (Indian Orchard, Joliet, Decatur, Texas City, Bayport), Germany (Marl), France (Wingles) and Sweden (Trelleborg). INEOS employs approximately 2,200 people in its styrenics activities and generated sales of about €2.8 billion in 2010.

BASF and INEOS will continue to operate as strictly independent companies until the completion of the deal, which is anticipated in 2011, subject to the approval by the appropriate antitrust authorities.