Page 167 - CW E-Magazine (19-11-2024)

News from Abroad News from Abroad

INDUSTRY DOWNCYCLE The plant is expected to produce 40,000
Thailand’s SCG halts operations at Vietnam petro- metric tons of chlorine annually, with
the ability to scale up to 50,000 metric
chemical complex tons as demand grows. This represents
a substantial increase from the previous
plant’s capacity of around 27,000 tons
Siam Cement Group (SCG), Thai- per year.
land’s largest cement maker and indus-
trial conglomerate, has suspended ope- In addition to boosting production,
rations at its Long Son Petrochemicals the new facility enables Adama to uti-
(LSP) complex in Vietnam in order to lise the hydrogen generated as bypro-
cope with high production costs and duct to fuel its air emission treatment
the impact of a downturn in the global system, replacing fossil fuels and re-
petrochemical market. ducing its carbon footprint. Moreover,
the new facility supports strategic in-
The suspension, slated to last for at frastructures companies in Israel, such
least six months, began in mid-October, as the electricity and water companies,
only roughly two weeks after LSP by supplying chlorine and its byproducts, Adama is in early-stage assessment would enable the company to generate
commenced commercial operations on including caustic soda and sodium of integrating a solar fi eld near the plant “green chlorine,” further aligning with
September 30, with a production capa- hypochlorite. to power its operations. This initiative its environmental goals.
city of 74,000 tonnes.
CHALLENGING MARKET
“We have to adjust our business in The petrochemical complex uses increases to $400 per tonne, we will
response to challenges in the petro- naphtha, which is a product of fossil consider resuming operations at LSP.” Viridor closing down mechanical recycling site
chemical industry,” said Mr. Thammasak fuels, as a key raw material to produce The suspension does not mean SCG
Sethaudom, President and CEO of SCG. high density polyethylene (HDPE), Chemicals will stop investing in this at Avonmouth, UK
but the prices of naphtha are expen- petrochemical complex, he added.
Global demand for chemical pro- sive. Viridor, the UK-based recycling, re- mechanical recycling operations. This
ducts is slowing and the chemicals’ SCG Chemicals plans to upgrade newable energy and waste management has been exacerbated by broader market
spread is low. Chemical spread refers “The spread between naphtha and LSP, enabling it to use ethane as a raw company owned by private equity fi rm, conditions; the global virgin polymer
to the difference between the prices of HDPE prices is $300 per tonne because material because it is cheaper than KKR, has announced that, following market is suffering from overcapacity
chemical products and their costs, re- of a slowdown in the global petro- naphtha. Mr. Sakchai said the com- a detailed strategic review of its UK due to signifi cant growth in production
sembling a profi t margin. A resumption chemical market,” said Mr. Sakchai pany will spend $700-mn on the new mechanical recycling site at Avonmouth, in lower-cost markets outside Europe,
of operations will mainly depend on the Patiparnpreechavud, CEO and Presi- investment, especially to build an it has decided to propose the closure of leading to signifi cantly reduced demand
spread, according to SCG. dent of SCG Chemicals. “If the spread ethane storage facility. the site. A separate review of the site at and prices for recycled plastics. At the
Rochester is ongoing, the company said. same time, imported recycled plastics
FUNGICIDE RAW MATERIAL cycling rates are below where they from low-cost countries has increasingly
Viridor said its UK mechanical were projected to be in 2020. Policies fl owed into Europe displacing domestic
Adama opens new chloralkali facility in Isreal recycling operations have been “nega- announced and planned under the previ- supply. The combination of these pres-
tively impacted by persistently and ous Government to increase UK recyc- sures has resulted in the decision to close
Adama, the Israel-based agrichemi- lars” and incorporates advanced tech- ing energy consumption and ensuring increasingly challenging market con- ling, as set out in the 2018 Resources the site, Viridor said.
cals fi rm and a Syngenta group com- nology to boost capacity while reduc- a safer, more sustainable process,” ex- ditions, and the absence of planned and Waste Strategy, have been repea-
pany, has opened a new chloralkali faci- ing environmental impact, the company plained Mr. Hadran Olami, Adama’s legislation to increase rates of plastic tedly delayed and have not, to date, Viridor said it is continuing to invest
lity in Isreal. This plant will supply informed in a press note. Head of Global Manufacturing. recycling in the UK”. been implemented, the company stated. in polymer recycling through its Quan-
essential components for the company’s tafuel subsidiary which came through
fungicide active ingredients, Captan “This new facility strengthens The chloralkali plant utilises mem- Despite sustained investment from The signifi cant delay in implement- an acquisition in 2023. “The focus now
and Folpet. Adama’s independence and reliability brane cell technology, replacing the Viridor over the last four years to deve- ing these policies, combined with re- is on creating an effi cient business that
in chlorine production while providing company’s mercury-based system. This lop its mechanical recycling capability, duced demand for recycled plastic and can play a key role in developing viable
The facility, which has been under a major capacity boost. The advanced transition not only eliminates the risks including building and commissioning packaging products from the consumer chemical recycling infrastructure and
construction since 2021, represents an technology allows us to produce chlo- associated with mercury, but also signi- the Avonmouth polymers recycling goods sector, have had a material impact through Quantafuel’s joint-venture
investment of “tens of millions of dol- rine up to 40% more effi ciently, reduc- fi cantly improves energy effi ciency. facility and expanding production, re- on the fi nancial viability of Viridor’s UK Resource Denmark,” it added.

166 Chemical Weekly November 19, 2024 Chemical Weekly November 19, 2024 167

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