Potential Sale
BASF SE is looking at selling or shuttering half of newly acquired Ciba Holding AG’s production sites and offices in a plan that would cost 3,700 jobs at the combined company. BASF is reviewing the sale or closure of 23 of the 55 worldwide Ciba production sites and plans to arrive at a decision in the first quarter of 2010. Additionally, the company is aiming to consolidate 36 of Ciba’s 70 sales and administrative offices and research sites with existing BASF activities. If job cuts are taken, the majority would be by the end of 2010, but the reduction would not be complete until the end of 2013.
Resin Raw Material Plant
Mitsui Chemicals, Inc. is considering the construction of a resin raw material plant with China Petrochemical Corporation (Sinopec Group). The plant, to be located in China, would produce some resin raw materials, such as polycarbonate, and provide these products for producers of auto taillight chimneys and other products.
Joint Venture
Hanwha Chemical Cop. Has set up a petrochemical joint venture with Saudi International Petrochemical Co. (Sipchem). The $900 million investment by Hanwha will be used to build a petrochemical plant in Jubail, Saudi Arabia. Sipchem will own a 75 percent stake in the venture and Hanwha will hold the remaining 25 percent stake. The new plant will have an annual production capacity of 200,000 tons of ethylene-vinyl acetates and 125,000 tons of polyvinyl acetates when it starts production in 2014. Hanwha expects the new plant to help generate $800 million in sales each year.
Petrochemical Plant Blast
A blast at a Total SA petrochemicals plant in Carling, France killed two people, injured five and left others buried under rubble. There was a blast in a steam-cracking furnace that caused damage to equipment, but didn’t cause the fire. The cause of the explosion is still unknown.
Closure
Acetex Chimie, a subsidiary of Celanese Corp., has announced it has completed the consultation procedure with the workers council and has announced its formal intent to cease all manufacturing operations and associated activities of Acetex Chimie. Acetex Chimie has agreed with the workers council on a set of measures of assistance aimed at minimizing the effects of the plant’s closing on the workers, including training, outplacement and severance. All acetic acide and vinyl acetate monomer production operations at the Pardies, France site are expected to stop by December 2009.
Expansion Approved
China Petrochemical Corporation (Sinopec Group) has announced that the Chinese government has approved the feasibility study report on the expansion of the joint venture between its listed subsidiary China Petroleum and Chemical Corporation (Sinopec) and BASF in Nanjing, China. Sinopec and BASF will jointly invest $1.4 billion to expand the BASF-YPC Co. Ltd. joint venture to produce downstream specialty chemicals for the Chinese market. The investment includes the expansion of the existing steam cracker and three existing plants as well as construction of 10 new chemical plants. It is expected that the expansion will become operational by 2011.
