SABIC Europe
SABIC ACQUIRES DSM's POLYOLEFINS @@@Capacity
SABIC Europe starts production of bio - ETBE in the Netherlands
SABIC Europe Cracker Project in Geleen on hold
SABIC Europe signs contract to build new HDPE plant in Gelsenkirchen
SABIC Europe announces plans to streamline its aromatics operations
Start date nears at 200m SABIC plant at Wilton
SABIC Announces Restructuring Plans for its European Operations
@
http://www.sabic-europe.com/europe/_en/index.pl
SABIC Europe is a 100
percent affiliate of SABIC, the largest petrochemical player in
the Middle East and the number 4 global player in polyolefins
worldwide, producing more than 5 million tons of polyethylene and
polypropylene per year.
In Europe SABIC is
a major polymer producer. The European SABIC business also
harbors the sales organization for all SABIC products
manufactured elsewhere in the world. SABIC sales in Europe amount
to almost 6 million tons of polymers, base chemicals and
intermediates.
The European head
office is located in Sittard (The Netherlands) and integrated
world-scale production facilities are based in Geleen (The
Netherlands) and Gelsenkirchen (Germany) with a total yearly production of
4.0 million tons of petrochemicals. In Europe, apart from
polyethylenes and polypropylenes, SABIC also produces chemical
products like benzene, acetylene and MBTE.
Geleen is also the
hometown of a state-of-the-art R&D center and a highly
qualified Technical Marketing team for expert technical support.
Sales offices operate from The Netherlands, the United Kingdom,
France, Germany, Italy, Spain, Denmark, Poland, Czech Republic
and Turkey.
The European branch
forms part of SABIC, the largest Middle East petrochemicals
player and the number 4 player in polyolefins worldwide,
producing more than 5 million tons of polyethylene and
polypropylene per year. Apart from this SABIC is also active in
chemicals, fertilizers and metals.
Located in Geleen (The Netherlands), SABIC Europe operates two steam crackers capable of producing over 1,250,000 tonnes of ethylene and approximately 675,000 tonnes of propylene each year. It also operates advanced downstream plants for acetylene, MTBE, butadiene, benzene, gasoline components, styrene, C9 resinfeed, cracked distillate and carbon black feedstocks. |
Polyethylenes
SABIC markets over
2 million tons of HDPE, LDPE and LLDPE in Europe. The product
range is fit to serve all major PE markets, with extrusion, blow
moulding, injection moulding and extrusion coating as the main
processing techniques. Applications are flexible packaging, such
as stretch film, shrink film, food packaging, carrier bags and
photo-coating, and rigid applications such as bottles & cans,
pipes, sheets, crates & boxes and dustbins. Around 1.3
million tons of the total volume marketed is produced in Europe.
Polypropylenes
SABIC markets 1.2
million tons of polypropylene as well as a wide range of
compounds based on this polymer. Most of these materials are
produced in our European production facilities. The product range
is fit to serve all major PP markets with injection moulding and
extrusion as most important processing techniques. Applications
are flexible and rigid packaging, fibers, housewares &
appliances, caps & closures, automotive parts (e.g. bumper
systems) and pipes.
Melamine,
polyvinylchloride, polyester and polystyrene
Melamine,
polyvinylchloride, polyester and polystyrene products are
manufactured by SABIC affiliates in Saudi Arabia: National
Plastics Company (Ibn Hayyan), Arabian Petrochemical Company
(Petrokemya), Arabian Industrial Fibers Company (Ibn Rushd) and
Saudi Arabian Fertilizer Company (SAFCO).
These polymers are
used in applications such as components in paints, adhesives and
powders (melamine), wall covering, laminated fabrics, cell foam
and pipes (PVC), fibers, yarns and bottles for drinks (polyester)
and building & roof insulation, packaging for household
appliances and containers (polystyrene).
SABICfs polyolefins position in Europe
(production in Europe in kt)
Chemical
Engineering News @@@December 7, 2005
Aiming For Number One
http://pubs.acs.org/cen/news/83/i50/8350SABIC.html
Since Saudi
Basic Industries Corp. (SABIC) acquired DSM's petrochemical
operations in mid-2002, it has been busy coming to grips with
this European-based petrochemical business. Now, its European
management team has laid out how it intends to build its business
in the region.
And the answer is clear: SABIC Europe is aiming to be one
of the top two marketers of polyolefins in Europe.
The company currently is the fourth largest seller of polyolefins
in Europe. It also occupies the same position worldwide, selling roughly 4.9 million tons
of polyolefins
per year, behind ExxonMobil at roughly 6.5 million
metric tons, Dow Chemical at about 7.5 million metric tons, and
Basell at nearly 9.0 million metric tons.
SABIC is now finalizing plans for the big project it will rely on
to fulfill its European goal: its fifth
ethylene cracker, envisaged for its site in Geleen, the
Netherlands.
That cracker and a series of new plants and expansions are part
of the company's Europe 1 project to expand Geleen and its site
in Gelsenkirchen, Germany.
Between Geleen and Gelsenkirchen, SABIC Europe has a total polyethylene
capacity of 1.48 million metric tons per year - 47% of SABIC's global
polyethylene capacity - and 1.09 million metric tons of
polypropylene,
65% of total SABIC polypropylene capacity. The feedstock at
Geleen is from the company's own naphtha crackers - crackers No.
3 and 4 are its current workhorses, supplying a total of 1.25 million
metric tons of ethylene and 675,000 metric tons of propylene. Production in Gelsenkirchen
depends upon feedstock secured under a long-term contract from
the neighboring BP cracker.
The
Europe 1 project - budgeted at nearly $1.8 billion - is set to start up in 2009, says
Frans Noteborn, chief executive officer of SABIC Europe.
The Europe 1
project will add another 400,000 metric tons of ethylene capacity to the company's European
slate. But even more important, Noteborn says, the proposed
cracker will be a gpropylene machineh that will use metathesis
technology to produce up to 620,000 metric tons of propylene. It will also make benzene and
ethyl tert-butyl ether.
Looking five years ahead, gpropylene will not be tight - it
will be very tight,h Kostering says. The industry is
predicting a global demand increase over that
time of 14 million metric tons of propylene, he points out. But current
industry plans call for only 5 million more
metric tons from new crackers and cracker expansions, and another 4 million
metric tons through propane dehydrogenation and metathesis. Projected cracker propylene
output is modest because, unlike the proposed Geleen project,
most new crackers are based on ethane and donft turn out propylene.
The company acknowledges the two other announced European
ethylene additions - Ineosf plan for an 800,000-metric-ton
facility in Wilhelmshaven, Germany, by 2008 or 2009; and BASF's
300,000-metric-ton expansion in Antwerp by 2007. But Noteborn and his
team are not worried by the competitive threat.
SABIC Europe Cracker
Project in Geleen on hold
SABIC Europe has decided to put the development of
the cracker project on the Geleen-site (the Netherlands) on hold. The
investment costs and financial risks are too high to realize a
financially sound project on the Geleen site today.
gThe
main cause for the high investment costs is the current
overstrained market situation in the global contracting and
construction market due to the many investments projects in the
oil, gas and energy market worldwide. g
explains Frans
Noteborn, CEO of SABIC Europe.
SABIC remains committed to its strategy of growth for the
important European market. To realize this strategy, all options
such as the upgrading of the current asset base and supply from
the global SABIC system to strengthen the existing portfolio will
be reviewed in the coming months.
The investment would have seen the building of a third, 520,000 mt/year cracker at Geleen, and further polymer plants at Gelsenkirchen.
2006/4/28@Global Insight Daily Analysis
Dutch Government Approves Installation of Third Cracker at SABIC Refinery
The Dutch government has cleared the way for refiner SABIC to build a third naphtha cracker at Geleen in the Netherlands, after resolving issues over fiscal regulations and emissions.
'The problems connected with the plant from the side of the government have now been resolved, and it is now up to SABIC whether to go ahead', a Ministry of Economic Affairs spokesperson told Platts.
Significance: Plans to build the 520,000-million-tpa cracker at Geleen had been held up by SABIC's concerns about carbon-dioxide emission payments before and after 2012, fiscal rulings and infrastructural issues. A decision on whether to proceed with 1.5-billion-euro (US$1.86-billion) expansion is now up to SABIC, which originally expected the cracker to start up in the first quarter of 2006. Late last year, SABIC said that the ongoing risk evaluation would last longer than expected. and approval was delayed for an unspecified period.
March 22, 2006 SABIC
Europe
SABIC Europe starts production of bio - ETBE in the Netherlands
SABIC Europe announced today the start of production of bio -
ETBE [ethyl-tertiary butyl ether] at its Geleen site in the
Netherlands. First commercial deliveries to customers are
expected at the beginning of April. This investment in Geleen
enables SABIC to enter the bio-fuel market and is in support of
the EUfs implementation of the European
Bio-Fuels Directive within its member states. This plant is the
first of its kind in the Netherlands.
SABICfs ETBE production plant in Geleen,
with an annual capacity of 140kt, converts bio-ethanol and
iso-butylene into ETBE which is recognised as a valuable
high octane gasoline blending component. ETBE in gasoline
contributes to a better air quality by reducing emissions of,
amongst others, carbon monoxide and volatile organic compounds.
July 31, 2006 SABIC
Europe
SABIC Europe signs
contract to build new HDPE plant in Gelsenkirchen
SABIC signed today
a contract with the German contractor, Uhde, for the construction
of a new bimodal HDPE (high density polyethylene) plant at its
production site in Gelsenkirchen, Germany.
The new 250 kt/y plant will come on stream in Q4 2008
and will replace the current 100 kt/y PE
plant in Gelsenkirchen. The investment in the new
project, including the infrastructural improvements at the site,
is around Euro 200 million.
gI am pleased
that after more than two years of dedicated work, we have decided
to start with the construction of the plant,h
says Abdullah
Bazid, Managing Director Chemicals & Intermediates. gThe investment in the
Gelsenkirchen site is a positive signal for the site to become
even more competitive as against other petrochemical sites in
Europe. We will be able to enhance our cost position in Europe
and satisfy our customers.h
This investment is
in line with SABICfs growth strategy in Europe. Koos
van Haasteren, Managing Director Polymers says: gThis project will further
strengthen SABICfs leading position in the fast
growing market for the bimodal pipe business.h
Gelsenkirchen site
The Gelsenkirchen
production site - formerly Vestolen HulsΜqοΠ- was acquired in 1997. (* DSM acquired Vestolen in November 1997)
The site has since
undergone continuous modernization and expansion. After
completion of the new plant more than Euro 500 million has been
invested in the Gelsenkirchen facilities. The production has gone
up from 250 to 1100 kilo tons per year since 1998.
gA lot of effort
has been successfully made in the past years to optimize the
site. This investment will further strengthen Gelsenkirchenfs competitiveness,h
says Jan van den
Berg, Managing Director at Gelsenkirchen. gThe investment of Euro 200 million
will further secure the future of the site and will be a positive
contribution to the regional economy of Nord-Rhein Westfalen.h
SABIC opens new high density polyethylene plant in Germany
SABIC's new High Density Polyethylene (HDPE) bi-modal slurry plant the LD6 in Gelsenkirchen, Germany is up and running and meets the high expectations. The first produced SABIC Vestolen A pipe grades are commercially available from now.
The SABIC Vestolen A family is well-known for its high quality; offering properties such as easy processability as well as excellent pipe performance with regards to reliability and safety. With the LD6 SABIC is ready for the future HDPE market: The LD6 secures future product supply, enables high-end product innovations and ensures a more environmental friendly production process.SABIC's LD6 is equipped with a leading production technology that secures a reliable and high quality product supply. The new plant will cover a production of 250kt per annum.
Vestolen
Huls AG inherited the polymer sector from the firms that succeeded I.G. Farbenindustrie AG - Bayer AG, BASF AG and Hoechst AG dye works. They were created from the demerger of I.G. Farben after 1945.
Via the mining company Hibernia AG, which held 25% of the shares in Huls, the company acquired the highly productive Ziegler patents which made possible non-pressurized, oil-based manufacture of polyethelene. In order to manufacture and market VESTOLEN, Hibernia AG and Huls AG entered into a joint venture, VESTOLEN GmbH, in the mid-1950s.
VESTOLEN GmbH was dissolved when Huls became the Chemicals Division of VEBA in 1979. Production and marketing were combined in one Huls business unit. In the course of a portfolio consolidation, the VESTOLEN product range was hived off again and in 1993 it was launched as the newly-founded VESTOLEN GmbH, which today belongs to SABIC (Saudi Arabian Basic Industries Corporation).
@
Capacity@@@@@@SABIC ACQUIRES DSM's POLYOLEFINS
DSM HYDROCARBONS B.V.
The heart of DSMfs European polyolefins business
lies in the ethylene crackers that feed the polyethylene,
polypropylene, and EP elastomers plants as well as other
production facilities.
Two steam crackers with a combined ethylene capacity of ca. 2.8 billion pounds are situated in Geleen and operated by DSM Hydrocarbons.
Located in Geleen (The Netherlands), SABIC Europe operates two steam crackers capable of producing over 1,250,000 tonnes of ethylene and approximately 675,000 tonnes of propylene each year. It also operates advanced downstream plants for acetylene, MTBE, butadiene, benzene, gasoline components, styrene, C9 resinfeed, cracked distillate and carbon black feedstocks.
The Europe 1 project will add another 400,000 metric tons of ethylene capacity to the company's European slate. But even more important, Noteborn says, the proposed cracker will be a gpropylene machineh that will use metathesis technology to produce up to 620,000 metric tons of propylene. It will also make benzene and ethyl tert-butyl ether. ¨ on hold
Two other steam crackers, owned by Ruhr Oel, or ROG, a 50/50 joint venture between Veba Oel GmbH and Petroleos de Venezuela SA, supply ethylene and propylene to the polyethylene and polypropylene plants in Gelsenkirchen. The Gelsenkirchen crackers are connected to the Geleen site by the ARG ethylene pipeline.
Due to BP's acquisition of Veba Oel, Ruhr Oel is now operated jointly by Deutsche BP and the Venezuelan oil company PdVSA
As a large supplier of olefins in north-west Europe BP Refining & Petrochemicals has the operatorship of the petrochemicals plants in Gelsenkirchen and Münchsmünster, which are operated jointly by Deutsche BP and its partner, the Venezuelan oil company PdVSA. Supplies come predominantly from the oil-refining facilities of Ruhr Oel.
There are further petrochemicals plants at Erdoel-Raffinerie-Emsland (ERE) in Lingen, a 100% shareholding of Deutsche BP.
The total annual capacity of the petrochemicals plants amounts to 4.9 million tonnes. BP RP is the biggest supplier of ethylene in the merchant market. It is also market leader in sales of cyclohexane. In its core business of olefins BP RP will expand its market position by means of stategic expansion and increases in capacities.
DSM POLYETHYLENE
DSM Polyethylenes presently has a total capacity approaching 3.4
billion pounds, divided as follows:
(1) LDPE - 1,342 million pounds,
(2) HDPE - 1,100 million pounds, and
(3) LLDPE - 924 million pounds.
Included in the LLDPE numbers are the pounds of EXACT(R) octene-1
based plastomers produced by Dex-Plastomers
V.O.F, the
50/50 joint venture with ExxonMobil.
Dex-Plastomers V.O.F
A 50 / 50 joint venture between DSM and ExxonMobil Chemical. Established in 1996. Two product families, Exact® Plastomers and Stamylex® octene linear polyethylenes. 120 kTpa solution PE capacity. DSM's Compact® solution polymerisation process, which has a proven history of manufacturing high performance octene copolymers. ExxonMobil Chemical's Exxpol® metallocene catalyst technology, allowing the production of Exact plastomers.
The Gelsenkirchen production site - formerly Vestolen - was acquired in 1997.
(* Towards the end of 1997, the Dutch company DSM bought Vestolen, the polyolefins business of Veba, Germany, giving DSM an additional 150,000 t pa HDPE and 200,000 t pa PP.)
The site has since undergone continuous modernization and expansion. After completion of the new plant more than Euro 500 million has been invested in the Gelsenkirchen facilities. The production has gone up from 250 to 1100 kilo tons per year since 1998.
The new bimodal HDPE 250 kt/y plant will come on stream in Q4 2008 and will replace the current 100 kt/y HDPE plant in Gelsenkirchen. The investment in the new project, including the infrastructural improvements at the site, is around Euro 200 million.
Exhibit 3 lists
polyethylene and polypropylene plant locations and production
technologies for DSM. The Vestolen acquisition in 1997 brought DSM 3 HDPE lines each
having a capacity of 110 million pounds per year. Since then DSM
has expanded one of the lines by 50% to produce HDPEs with
bimodal MWDs for use in pipe and sheet applications.
Geleen has 3 tubular reactors with a total capacity of 1,100
million pounds of LDPE within excess the largest line, which was
installed in 1993, having a capacity of 440 million pounds. DSM
produces a small amount of ultrahigh-molecular-weight
polyethylene, UHMWPE, used primarily to produce its DyneemaiR) fibers. Dyneema is produced by
DSM High Performance Fibers.
DSM POLYPROPYLENE
Total annual polypropylene production capacity is in excess of
2.4 billion pounds. DSM expanded its polypropylene capacity as
well in 1997 when it picked up the Vestolen assets. Vestolen was
a relatively small player in polypropylene that focused on niche
applications such as film and fibers. The Vestolen polypropylene
assets comprised a 220 million pound UNIPOL plant and 2 slurry
lines, each having a capacity of 110 million pounds per year. The
UNIPOL plant is slated for expansion to 330 million pounds per
year. DSM has added a 517-million-pound plant at Geleen and a 750-million
pound plant at Gelsenkirchen, using BP Amocofs (horizontal) gas-phase process
technology (Innovene PP) to produce polypropylene homopolymers
and random copolymers. A third Innovene PP plant with a capacity
of 660 million pounds is slated for construction at Geleen.
DSM
Hydrocarbons Americas, Inc.
is a sales office whose primary business focus is on the sales
and procurement of products for DSM Hydrocarbons in The
Netherlands.
DSM Hydrocarbons Americas' geographical focus is the USA, Canada, Mexico, Venezuela and Colombia. For the Latin American market DSM Hydrocarbons Americas also sells caprolactam, cyclohexanone and specialty chemicals.
Exhibit 3
DSM - PE & PP Capacities, Western Europe, 2001¨2005
@ | @ | Process Tech./Type | @@@Capacity | |
(MM Lbs) | @ηg | |||
Ethylene | Geleen | @ | @ | @ 1,250 |
HDPE |
Geleen, |
Slurry |
|
350 |
LDPE |
Geleen |
Tubular, autoclave |
1,342 |
610 |
LLDPE |
Geleen |
Unipol, gas |
660 |
300 |
Compact, solution@* |
264 |
120 |
||
Total |
(924) |
(420) |
||
Polyethylenes |
3,366 |
1,530 |
||
Polypropylene |
Geleen |
Innovene, gas |
517 |
235 |
Mitsubishi-Yuka, slurry |
704 |
320 |
||
Gelsenkirchen |
Innovene, gas |
750 |
340 |
|
Huls, slurry** |
220 |
100 |
||
Unipol, gas** |
220 |
100 |
||
Total |
2,411 |
1,095 |
||
DSM, TOTAL |
5,777 |
2,625 |
*@
Dex-Plastomers
V.O.F
** former
Vestolen GmbH
***
@By
1st January 2004 SABIC Europe closed two out-dated polyethylene
slurry lines in Gelsenkirchen (120 tpy). Production has been
transferred to a modern gas phase plant on the same site and
plants in Saudi Arabia, resulting in substantial cost savings.
@50+50+50
¨50+50+75
¨60+60+100
¨0+0+100¨i250+0j
@
SABIC, planning 3rd PP plant in Europe
A Teeside, Wilton chemical company, which earlier this year said it may invest £200m locally in a new plant, has applied for planning permission for the project.
A spokesman for SABIC said while no decision had yet been made on whether the investment would come to Wilton, the move would help speed up development if the region is successful.
Paul Booth, president of SABIC UK Petrochemicals, revealed earlier this year that the company was hoping to secure construction of a new polypropylene plant at Wilton.
He said Teesside was one of two locations the company was looking at for a third European polypropylene plant. SABIC has now applied to Redcar and Cleveland Council for planning permission to build a new plant.
I_ΜGeleenHκΙG`AHDPEALDPEALLDPEAPPvgA
hCcΜGelsenkirchenHκΙHDPEΖPPvgπΰΒB
G`\ΝΝ125gAodΝ148gAPPΝ109.5gB
The company is currently building a £200m polyethylene plant at Wilton.
SABIC Europe announces plans to streamline its aromatics operations
SABIC Europe today announced plans to re-structure its Aromatics operations based on Teesside, UK following a wide-ranging review of the long-term viability of the business.
The plans involve closure of the Aromatics 2 unit at the SABIC UK Petrochemicals North Tees Site near Seal Sands and the Paraxylene plant at the Wilton Site near Redcar. The plans also include an upgrade of the remaining Aromatics 1 plant at North Tees.
"On Teesside, SABIC UK Petrochemicals remains fully committed to its Olefins Cracker operations at Wilton and Cyclohexane production at North Tees. The current construction of the new world scale Low Density Polyethylene (LDPE) plant and a possible upgrading of the Aromatics 1 plant are important factors in helping to underpin this." concludes Hughes. In addition, SABIC Europe continues to operate its ongoing Aromatics business in the Netherlands.
Start date nears at 200m SABIC plant at Wilton
A NEW multi-million-pound chemical plant on Teesside could come
on stream within weeks.
The 200m Low Density
Polyethylene (LDPE)
facility is being developed by SABIC at Wilton.
Today the company said it hoped to bring the plant on stream
during September.
The facility will create around 120 permanent jobs and help
underpin the future of the companyfs Cracker facility at Wilton.
A spokesman said: gThe LDPE is nearing completion.
gCommissioning
is well advanced and we hope to be able to bring the plant on
stream during September.h
When the new LDPE
plant reaches full production of well in excess of 400,000 tonnes per
annum, it
will make it the biggest plant of its type in the world.
The spokesman added: gWe hope to be running at full
capacity during 2010.
gWe
hope the plant will provide a boost for Sabic and the industry in
general.h
Plans for the 200m plant were originally
announced in 2004 when industrial giant Huntsman said it wanted to build
the worldfs largest
polyethylene plant at the Wilton International site.
In
2006 Huntsman signed a 372m deal with
SABIC for the sale of a major part of its Teesside operations.
The sale comprised Huntsmanfs petrochemicals assets at Wilton
- the cracker and paraxylene plants and the 200m polyethylene plant, and the
aromatics complex at North Tees.
The new plant reached a major milestone on June 22 when ethylene
feedstock was introduced to the complex for the first time.
SABIC Announces Restructuring Plans for its
European Operations
SABIC today announced a restructuring program in Europe designed to strengthen
its European businesses for the competitive challenges ahead, whilst maintaining
the highest environmental, health and safety standards.
Following a full review of its European business, SABIC will restructure its
European assets and organizational footprint. The planned restructuring includes
the shutdown of certain assets and a net reduction of approximately 1,050
positions, while there will also be continued investments in plant improvements,
new technologies and innovation. SABIC has initiated consultations with the
relevant Works Councils and trade unions regarding the planned restructuring.
Strategic Overview
gOur strategy in Europe is to be the preferred leader in chemicals by delivering
eChemistry that mattersf™ demonstrating excellent performance in environment,
health and safety, cost competitiveness, customer value and sustainable profit
levelsh, said Koos van Haasteren, Vice President SABIC in Europe. gFurthermore,
we have stronger ambitions in terms of revenue, market position and innovation.
Once the restructuring process has been completed, I am confident that SABIC
will be in an even stronger position to meet customer needs, support its
employees and contribute to the communities and environments within which we
operate.h Van Haasteren continued, gWe remain committed to building a company
that provides our employees the opportunity to grow and develop.h.
Challenging Market Context
The European market is facing structural changes that are likely to set a new
course for future competitive challenges. Our industry continues to face slow
growth, as consumersf spending on houses, cars and appliances and investments in
infrastructure projects are down. These developments have led to structurally
reduced demand and squeezed margins. At the same time, competition has
intensified from other regions, especially from the United States, which has the
advantage of shale gas development, and Asia, which has increased local
production capacity and consumption.
Organizational changes
All of SABICfs European assets have been reviewed and as a result SABIC plans to
close certain assets and reorganize the supply of products from these affected
assets through other plants.
The planned organization has been redesigned to be more focused and efficient at
delivering to customersf needs at the highest environmental, health and safety
standards. It is expected that a reduction of
approximately 1,050 positions will take place across Europe, including
1/3 contracting staff and 2/3 SABIC employees.
These changes will enable SABIC to continue to deliver Chemistry that matters to
its customers and all its stakeholders.
----
Rubberworld
The company said it had started consultations with the relevant works councils and trades unions on the planned restructuring.
A company source said
two smaller polypropylene lines in Gelsenkirchen, Germany, including PP 2.3 and
PP 2.4, would be closed, while another line would be consolidated. SABIC
operates two gas-phase PP plants at Gelsenkirchen, with a capacity to produce
200,000 metric tons/year and 330,000 mt/year of PP resins, respectively. The
first plant uses Unipol PP technology, while the second uses Amoco technology.
At Bergen op Zoom, the Netherlands, SABIC will close a small asset operated by
SABIC Innovative Plastics, the company source said. The asset is used to
manufacture the raw material for one of SABIC's brands, Noryl.
This raw material is used to make polyphenylene ether (PPO) resins, which are
used as an additive or building block in a variety of thermoplastics used in the
insulation, cable and automotive sectors, among others. The production of this
raw material will be moved to the U.S., where the company intends to expand its
capacity, the source said. The source did not give the capacity of this unit or
the expansion plans in the U.S.
"All of SABIC's European assets have been reviewed and as a result SABIC
plans to close certain assets and reorganize the supply of products from these
affected assets through other plants," the company statement said. It attributed
the restructuring to the structural changes in Europe. The source did not give
details of the use of the PP resins coming from these two lines.
@ | §n | »@ | \Νiηgj | ||
2001 | 2005 | ||||
G` | Geleen | iQnρj | @1,250 | @@¨ | |
PE @@ | HDPE | Geleen | slurry | @@350 | @@¨ |
Gelsenkirchen | slurry@* | @@150 | @@100 | ||
LDPE | Geleen | Tubular, autoclave | @@610 | @@¨ | |
LLDPE | Geleen | Unipol, gas | @@300 | @@¨ | |
Compact, solution@** | @@120 | @@¨ | |||
v | @1,530 | @1,480 | |||
PP | Geleen | Innovene, gas | @@235 | @@¨ | |
Mitsubishi-Yuka, slurry | @@320 | @@¨ | |||
Gelsenkirchen | Innovene, gas | @@340 | @@¨ | ||
Huls, slurry@* | @@100 | @@¨ | |||
Unipol, gas@* | @@100 | @@¨ | |||
v | @1,095 | @@¨ | |||
|ItBv | @2,625 | @2,575 |
@ | @ |
@
-----
ICIS
The company said two
older polypropylene (PP) lines in Gelsenkirchen have been earmarked for
closure, while a polyphenylene ether (PPO) asset in
Bergen op Zoom (of
SABIC Innovative Plastics) will be shut down.
SABIC said business from the PPO asset would be transferred to its site in
Selkirk, NY (of
SABIC Innovative Plastics).
Business from the two units in Gelsenkirchen will be transferred to another PP
facility at the same site, the company added.
SABIC also confirmed jobs will be cut in Raamsdonkveer, Geleen, Bergen op Zoom
and Sittard in the Netherlands, Teesside in the UK, Cartagena, Spain and in
Gelsenkirchen.
The restructuring programme is expected to be completed by the end of 2014,
however SABIC will start implementing the changes as soon as possible.
gWe have started the consultation process with the respective works councils and
employee representatives this week. The timing of the outcome of this
consultation process may differ per location but we are hoping to provide
clarity as from mid-July,h SABIC said.
Around two thirds of the planned job cuts across Europe will involve SABIC
employees. The remainder of the cuts will come from contracting staff. SABIC
said the job cuts will take place across all business units, operations and
staff functions. Information about cuts at a departmental or individual level
are subject to the consultation process, it added.
The company did not disclose the cost of the restructuring.
On Thursday, SABIC announced a planned restructuring programme designed to
strengthen its European businesses. The company said at the time the planned
organisation has been redesigned gto be more focused and efficient at delivering
to customersf needs at the highest environmental, health and safety standards.h
SABIC added that lower consumer spending in the European market has led to
slower growth, which has gstructurally reduced demand and squeezed marginsh,
while competition has intensified from other regions, especially from the US and
Asia.
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