Let the show begin
Major changes should occur in the European polyolefins industry this year. BASF's (Ludwigshafen) polypropylene (PP) deal with ICI is expected to be followed by that of Hoechst (Frankfurt) and Petrofina (Brussels). The two are engaged in feasibility studies for a possible joint venture in PP and are expected to make a decision in the second quarter of this year. Shell and Himont are on track to complete their feasibility study in the first quarter for a polyolefins joint venture. And Huels and PCD are still in talks. But two new possible deals, a polyolefins merger between Nests (Helsinki) and Statoil (Stavanger) and an alliance in PP involving Appryl, the Elf Atochem (51%)/BP Chemicals (49%) joint venture, and Solvay have been denied. The Hoechst/Fina venture would initially encompass only the two companies European plants - Hoechst's 550,000-m.t./year and Fina's 180,000 m.t./year. In addition, Fina would either build or acquire another PP plant. In the second stage, the partners could bring in their overseas plants. Fina has plants in the US, and Hoechst has a combined 100,000 m.t./year in south Africa and Australia. Neste's board member Jukka Viinanen says the only talks between Nests and Statoil center on renegotiations of ethylene supply contract at Stenungsund, Sweden. Nests wants a more flexible deal on quantity and price. It needs 400,000 m.t./year of ethylene for its downstream plants. Viinanen adds that he is worried about the European petrochemical industry and producers need to do everything to improve margins through pricing policies and obtaining a balance between supply and demand. On the possibility of a future link with Statoil he comments, One can never say never. It would take time. We don't feel in a very vulnerable position right now.
- OSTI ID:
- 6734090
- Journal Information:
- Chemical Week; (United States), Journal Name: Chemical Week; (United States) Vol. 152:3; ISSN CHWKA9; ISSN 0009-272X
- Country of Publication:
- United States
- Language:
- English
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