Bankruptcy Protection

Proposal

The U.S. Environmental Protection Agency (EPA) is proposing to update its Air Quality Index (AQI) to reflect the latest standards for fine particle pollution. The proposal would also set a “significant harm” level, which states use in developing emergency episode plans. Under the proposed changes, the AQI would reach “code orange” – unhealthy for sensitive groups – when particle pollution levels reach 35.5 micrograms/cubic meter of air. The changes would also mean air quality reaches the “unhealthy” category at a lower particle pollution level. These proposed changes likely would not have a noticeable impact on daily air quality forecasts as states have already been voluntarily following this guideline.

Job Cuts

Cytec Industries Inc. announced plans to cut 600 jobs, mostly in its specialty chemicals product lines, as the company builds its other segments and adjusts to the global economic downturn. In addition, the company has lowered its fiscal 2008 profit estimate.

Cost-Reduction Measures

Texas Petrochemicals, Inc. continues to see weak demand across its C4 and Performance Product businesses, especially in its largest market, butadiene. As a result, the company has temporarily idled various production units at both its Houston and Port Neches, Texas facilities. In addition, the company has released a number of its contractor workforce.

Plant Closure

Sunoco, Inc. will permanently close its polypropylene manufacturing facility in Bayport, Texas no later than April 30, 2009. The facility has the capacity to produce approximately 400 million pounds of polypropylene/year. The company said that the plant is no longer financially viable. The company’s La Porte, Texas; Marcus Hook, Pennsylvania; and Neal, West Virginia polypropylene facilities will assume a portion of the unit’s production.

Biofuels Start Up

Enerkem Inc. has started up its first commercial-scale clean-conditioned synthesis gas plant in Westbury, Quebec. The premium syngas island serves as the chemical production platform from which the methanol and ethanol production modules will be added progressively in the coming months. Once these gas-to-liquid modules are bolted to the syngas island, Enerkem will become the first producer of liquid fuels and green chemicals to commercially use renewable, non-food, negative-cost feedstock.

A chemical plant that provoked vehement protests from Xiamen, China residents worried over potential health hazards will now be built in a less populated area. According to China’s Environment Ministry, the $2 billion paraxylene complex will be built in Zhangzhou. The project is being undertaken by Tenglong Aromatic PX Co. and its sister company Xianglu Petrochemical Co. The project had been suspended for months after government advisers joined residents in lobbying the government not to locate the plant in Xiamen.