- Email: [email protected]
Air products to sell polyvinyl alcohol business
October 2000
Filtration Industry Analyst
I.UL”I”
EUROPEAN CHEMICAL INDUSTRY EXPERIENCES STRONG GROWTH The European Chemical Industry Council (Cefic) has released figures which show that the chemical industry in Europe will grow at 4.5% in 2000, outpacing the 3.5% growth in 1999. Cefic’s ‘economic outlook survey’ suggests that positive prospects for world trade and economic activity, and the dynamic recovery of most Asian economies are the main drivers behind the growth. It says that the industry is set to outperform the general economy in Europe, which has a forecast growth of 2.8%. The chemical industry in Europe contributes substantially as an exporter and to the internal economy, claims Cefic. World chemicals production in 1999 was estimated at 81280 billion (&820 billion), of which about 33% was produced in Western Europe. Cefic’s forecasts are supported by business surveys that indicate that both domestic and foreign order books for chemicals are above normal, while inventories are below average. Confidence within the industry has risen since the last quarter of 1999, and Cetic also says that consumer confidence is “relatively favourable, reflecting a new positive attitude towards major purchases”.
CELANESE OPENS PLANT IN SINGAPORE German company Celanese AG has officially inaugurated its acetic acid plant in Singapore. The facility, which is rated at 500 000 metric tonnes per
plex on Jurong Island, an industrial park in the South of Singapore. The facility also houses a 1 170 000 metric tonnes per year vinyl acetate monomer plant, opened during July 1997, and a 100 000 metric tonnes year acetate ester unit which started production at the beginning of 2000. The new plant, which took two years to build, uses the same patented acid optimisation methanol carbonylation technology implemented by the company’s unit which is based in Clear Lake, Texas, USA. Celanese says that the new plant will significantly expand its presence in Asia. The region accounted for 15% of company consolidated and unconsolidated sales during 1999.
CARGILL DOW RECEIVES DOE RESEARCH FUND In the USA, Cargill Dow says that it has been awarded more than US$2 million by the US Department of Energy (DOE) for continued research and development of its fermentation process use of makes which resources that are renewable on a yearly basis. The funding was awarded as part of two competitive tinancial assistance programmes run by the DOE in support of President Clinton’s executive order to triple the use of biobased products and bio-energy in the USA by 2010. Cargill Dow says that the results of this project will help fuel the continued advancement of its NatureWorks PLA, as well as help set the stage for other bio-based products. By focusing on the fermentation process, companies can use annually renewable resources, such as corn, wheat, or sugar beets, to create a variety of end-use products.
,,“II.Y
I
yL.
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pany’s first product offering. It comprises a family of polymers derived entirely from annually renewable resources, with applications in the tibres 1 and packaging markets.
RUSSIA’S GAZPROM BUYS STAKE IN BORSODCHEM According to the Hungarian news agency MTI, one of the world’s largest companies, has Gazprom, Russia’s bought almost 25% of the shares of Hungary’s second biggest petrochemical company, BorsodChem Rt. Gazprom bought 24.58% of the shares of the Hungarian company through an Irish offshore company called Milford Holdings, which previously owned only 0.66% of BorsodChem’s shares. The purchase price was not disclosed. With the move, Gazprom also acquired a major say in Hungary’s largest chemicals company Tiszai Vegyi Kombinat Rt, because BorsodChem owns 29.9% of its shares.
AIR PRODUCTS TO SELL POLYVINYL ALCOHOL BUSINESS US-based Air Products and Chemicals Inc has announced that it has signed a letter of intent to sell its polyvinyl alcohol business to Celanese AG of Kronberg, Germany, for US%326 million. The deal, which is expected to close this month, is subject to government approvals and, according to Air Products, is in line with goal of optimising its business portfolio. Air Products says that while it has developed a strong position in polyvinyl alcohol in the USA, and worldwide, the business’s competitive landscape and periodic raw material cost pressures, such as those
October 2000
Filtration Industry Analyst
from vinyl acetate monomer, have hampered its ability to develop a global leadership position as well as deliver consistent, acceptable levels of return relative to the rest of the businesses in its Chemicals Group. Polyvinyl alcohol is used in a variety of applications including, adhesives, safety glass, textile processing, paper and building products.
AGREEMENT AUSTRALIA
IN
In Australia, BOC Gases has signed a long-term agreement with BHP to supply of oxygen, nitrogen, argon and compressed air to OneSteel Manufacturing Pty Ltd’s Whyalla Steelworks in South Australia. The agreement will see BOC invest more than A$43 million (US$2.5 million) at Whyalla, which includes relocation of its 650 tonnes per day air-separation plant and 2000 tonnes of liquid gas storage from Newcastle, New South Wales to Whyalla. The facility will also be capable of producing 250 tonnes per day of liquid oxygen, nitrogen and argon to service BOC’s customers in the South Australian market.
HANOVER COMPRESSOR COMPLETES DRESSER-RAND PURCHASE US company Hanover Compressor says that it has completed its acquisition of the Dresser Rand Co’s compression services division from Ingersoll-Rand Co for US%190 million. The acquisition will combine Dresser-Rand compressor
services division’s operations and customer-base with Hanover’s outsourced compression and gas handling operations, significantly extending Hanover’s capabilities worldwide. Hanover says that the addition of Dresser-Rand’s compression services organisation enables it to access additional customers and compression market segments
operations
KASHAGAN FIELD OFFERS FIRST PROVEN OIL RESERVES Reports in the trade and technical press reveal that Offshore Kazakhstan International Operating Co (OKIOC) has discovered ‘proven oil reserves’ at the Kashagan East 1 well, 75 km south-east of Atyrau, in the north-east Caspian Sea. The reports say that this is the first proven discovery on the Kazakhstan shelf. The Caspian Sea is widely believed to hold vast reserves of hydrocarbons, but until now has provided very little in the way of proof. The strike has produced oil at the rate of 3800 bblid and gas at 7 million ft3 per day. Oil gravity measured at the well-site ranged from 42-44 degrees API. The well was drilled in 3 m of water to a total depth of nearly 5200 m. OKIOC is conducting an exploration programme in the north-east Caspian on behalf of a consortium of nine international shareholders, including subsidiaries of ENI, BG, ExxonMobil, Inpex, BP, Phillips Petroleum, Shell, Statoil and TotalFinaElf.
WORLD’S LARGEST NITROGEN PLANT BEGINS PRODUCTION What is claimed to be the world’s largest nitrogen complex has begun pumping high-purity nitrogen through 113 km of onshore and offshore pipelines to oil platforms in the Gulf of Mexico. The nitrogen is being produced by the first of four air separation units that will operate at the complex, which is located on the Atasta peninsula, near Ciudad de1 Carmen, State of Campeche, Mexico. The four units are believed to be the largest ever built. Performance testing for the remaining three is scheduled to be completed over the next few months. The project, valued at US$l billion, has been constructed by an international consortium led by BOC Gases. The other partners are Marubeni Corp of Japan, Westcoast Energy of Canada, Linde AG of Germany and ICA Fluor Daniel S. de R.L. de C.V. of Mexico. The 15 year contract was awarded to the consortium by PEMEX Exploration y Produccion (PEP), the exploration and production arm of PEMEX, the national oil company of Mexico. The nitrogen is being injected into the Cantarell oil field.
TAMPA BAY WATERTREATMENT PLANT EXPANDS In the USA, Florida’s largest regional wholesale water utility Tampa Bay Water has recently signed an amendment to expand the Southeast’s largest designbuild-operate (DBO) water-
treatment contract by 6 million gallons a day. The company says that it is seeking additional new sources of drinking water - other than groundwater - to minimise future environmental consequences of well-field pumping, after two successive summers of record-setting peak demands by its customers. Reports published in the US media, say that the utility is in the process of implementing ‘master a US$600 million water-plan’ which will see the development of new environment-friendly supplies of highquality, low-cost drinking water. The foundation of the plan is a 60 million gallon a day surface-water treatment plant that US Filter is designing and will build and operate in a public/private partnership with Tampa Bay Water. The US$8.8 million contract amendment also provided for acceleration of the overall design and construction to make up the schedule lost because of a legal third-party challenge to the project. The project is scheduled to begin commercial operation during October of 2002.
WATER TREATMENT CYCLE SIMULATION CUTS COSTS Lyonnaise des Eaux and United Water have combined their experience and knowledge in water services, and research and development, to create a software which can simulate the entire watertreatment cycle. Called the ‘Virtual Plant’, it can help utilities meet the new treatment requirements and achieve up to 40% savings in plant development and operation costs, enhancing water quality and providing greater process reliability, say the companies.
Filtration Industry Analyst
I.UL”I”
EUROPEAN CHEMICAL INDUSTRY EXPERIENCES STRONG GROWTH The European Chemical Industry Council (Cefic) has released figures which show that the chemical industry in Europe will grow at 4.5% in 2000, outpacing the 3.5% growth in 1999. Cefic’s ‘economic outlook survey’ suggests that positive prospects for world trade and economic activity, and the dynamic recovery of most Asian economies are the main drivers behind the growth. It says that the industry is set to outperform the general economy in Europe, which has a forecast growth of 2.8%. The chemical industry in Europe contributes substantially as an exporter and to the internal economy, claims Cefic. World chemicals production in 1999 was estimated at 81280 billion (&820 billion), of which about 33% was produced in Western Europe. Cefic’s forecasts are supported by business surveys that indicate that both domestic and foreign order books for chemicals are above normal, while inventories are below average. Confidence within the industry has risen since the last quarter of 1999, and Cetic also says that consumer confidence is “relatively favourable, reflecting a new positive attitude towards major purchases”.
CELANESE OPENS PLANT IN SINGAPORE German company Celanese AG has officially inaugurated its acetic acid plant in Singapore. The facility, which is rated at 500 000 metric tonnes per
plex on Jurong Island, an industrial park in the South of Singapore. The facility also houses a 1 170 000 metric tonnes per year vinyl acetate monomer plant, opened during July 1997, and a 100 000 metric tonnes year acetate ester unit which started production at the beginning of 2000. The new plant, which took two years to build, uses the same patented acid optimisation methanol carbonylation technology implemented by the company’s unit which is based in Clear Lake, Texas, USA. Celanese says that the new plant will significantly expand its presence in Asia. The region accounted for 15% of company consolidated and unconsolidated sales during 1999.
CARGILL DOW RECEIVES DOE RESEARCH FUND In the USA, Cargill Dow says that it has been awarded more than US$2 million by the US Department of Energy (DOE) for continued research and development of its fermentation process use of makes which resources that are renewable on a yearly basis. The funding was awarded as part of two competitive tinancial assistance programmes run by the DOE in support of President Clinton’s executive order to triple the use of biobased products and bio-energy in the USA by 2010. Cargill Dow says that the results of this project will help fuel the continued advancement of its NatureWorks PLA, as well as help set the stage for other bio-based products. By focusing on the fermentation process, companies can use annually renewable resources, such as corn, wheat, or sugar beets, to create a variety of end-use products.
,,“II.Y
I
yL.
-.,
.---
--__-
pany’s first product offering. It comprises a family of polymers derived entirely from annually renewable resources, with applications in the tibres 1 and packaging markets.
RUSSIA’S GAZPROM BUYS STAKE IN BORSODCHEM According to the Hungarian news agency MTI, one of the world’s largest companies, has Gazprom, Russia’s bought almost 25% of the shares of Hungary’s second biggest petrochemical company, BorsodChem Rt. Gazprom bought 24.58% of the shares of the Hungarian company through an Irish offshore company called Milford Holdings, which previously owned only 0.66% of BorsodChem’s shares. The purchase price was not disclosed. With the move, Gazprom also acquired a major say in Hungary’s largest chemicals company Tiszai Vegyi Kombinat Rt, because BorsodChem owns 29.9% of its shares.
AIR PRODUCTS TO SELL POLYVINYL ALCOHOL BUSINESS US-based Air Products and Chemicals Inc has announced that it has signed a letter of intent to sell its polyvinyl alcohol business to Celanese AG of Kronberg, Germany, for US%326 million. The deal, which is expected to close this month, is subject to government approvals and, according to Air Products, is in line with goal of optimising its business portfolio. Air Products says that while it has developed a strong position in polyvinyl alcohol in the USA, and worldwide, the business’s competitive landscape and periodic raw material cost pressures, such as those
October 2000
Filtration Industry Analyst
from vinyl acetate monomer, have hampered its ability to develop a global leadership position as well as deliver consistent, acceptable levels of return relative to the rest of the businesses in its Chemicals Group. Polyvinyl alcohol is used in a variety of applications including, adhesives, safety glass, textile processing, paper and building products.
AGREEMENT AUSTRALIA
IN
In Australia, BOC Gases has signed a long-term agreement with BHP to supply of oxygen, nitrogen, argon and compressed air to OneSteel Manufacturing Pty Ltd’s Whyalla Steelworks in South Australia. The agreement will see BOC invest more than A$43 million (US$2.5 million) at Whyalla, which includes relocation of its 650 tonnes per day air-separation plant and 2000 tonnes of liquid gas storage from Newcastle, New South Wales to Whyalla. The facility will also be capable of producing 250 tonnes per day of liquid oxygen, nitrogen and argon to service BOC’s customers in the South Australian market.
HANOVER COMPRESSOR COMPLETES DRESSER-RAND PURCHASE US company Hanover Compressor says that it has completed its acquisition of the Dresser Rand Co’s compression services division from Ingersoll-Rand Co for US%190 million. The acquisition will combine Dresser-Rand compressor
services division’s operations and customer-base with Hanover’s outsourced compression and gas handling operations, significantly extending Hanover’s capabilities worldwide. Hanover says that the addition of Dresser-Rand’s compression services organisation enables it to access additional customers and compression market segments
operations
KASHAGAN FIELD OFFERS FIRST PROVEN OIL RESERVES Reports in the trade and technical press reveal that Offshore Kazakhstan International Operating Co (OKIOC) has discovered ‘proven oil reserves’ at the Kashagan East 1 well, 75 km south-east of Atyrau, in the north-east Caspian Sea. The reports say that this is the first proven discovery on the Kazakhstan shelf. The Caspian Sea is widely believed to hold vast reserves of hydrocarbons, but until now has provided very little in the way of proof. The strike has produced oil at the rate of 3800 bblid and gas at 7 million ft3 per day. Oil gravity measured at the well-site ranged from 42-44 degrees API. The well was drilled in 3 m of water to a total depth of nearly 5200 m. OKIOC is conducting an exploration programme in the north-east Caspian on behalf of a consortium of nine international shareholders, including subsidiaries of ENI, BG, ExxonMobil, Inpex, BP, Phillips Petroleum, Shell, Statoil and TotalFinaElf.
WORLD’S LARGEST NITROGEN PLANT BEGINS PRODUCTION What is claimed to be the world’s largest nitrogen complex has begun pumping high-purity nitrogen through 113 km of onshore and offshore pipelines to oil platforms in the Gulf of Mexico. The nitrogen is being produced by the first of four air separation units that will operate at the complex, which is located on the Atasta peninsula, near Ciudad de1 Carmen, State of Campeche, Mexico. The four units are believed to be the largest ever built. Performance testing for the remaining three is scheduled to be completed over the next few months. The project, valued at US$l billion, has been constructed by an international consortium led by BOC Gases. The other partners are Marubeni Corp of Japan, Westcoast Energy of Canada, Linde AG of Germany and ICA Fluor Daniel S. de R.L. de C.V. of Mexico. The 15 year contract was awarded to the consortium by PEMEX Exploration y Produccion (PEP), the exploration and production arm of PEMEX, the national oil company of Mexico. The nitrogen is being injected into the Cantarell oil field.
TAMPA BAY WATERTREATMENT PLANT EXPANDS In the USA, Florida’s largest regional wholesale water utility Tampa Bay Water has recently signed an amendment to expand the Southeast’s largest designbuild-operate (DBO) water-
treatment contract by 6 million gallons a day. The company says that it is seeking additional new sources of drinking water - other than groundwater - to minimise future environmental consequences of well-field pumping, after two successive summers of record-setting peak demands by its customers. Reports published in the US media, say that the utility is in the process of implementing ‘master a US$600 million water-plan’ which will see the development of new environment-friendly supplies of highquality, low-cost drinking water. The foundation of the plan is a 60 million gallon a day surface-water treatment plant that US Filter is designing and will build and operate in a public/private partnership with Tampa Bay Water. The US$8.8 million contract amendment also provided for acceleration of the overall design and construction to make up the schedule lost because of a legal third-party challenge to the project. The project is scheduled to begin commercial operation during October of 2002.
WATER TREATMENT CYCLE SIMULATION CUTS COSTS Lyonnaise des Eaux and United Water have combined their experience and knowledge in water services, and research and development, to create a software which can simulate the entire watertreatment cycle. Called the ‘Virtual Plant’, it can help utilities meet the new treatment requirements and achieve up to 40% savings in plant development and operation costs, enhancing water quality and providing greater process reliability, say the companies.