Expansions: Evonik ups organic dispersions capacity; Chandra Asri/Aramco feedstock tie-up for petchem plant in Indonesia

Germany’s Evonik Industries is expanding its capacities for organic dispersions for heat sealing applications in Darmstadt (Germany). The significant plant expansion is scheduled for completion by second half of 2021.

Organic dispersions for heat sealing applications, which Evonik markets under the brand name Degalan, are ideally suited for formulating high-quality heat seal lacquers and ensure secure sealing in combination with smooth peeling properties for food and beverage packaging. The organic dispersions provide direct adhesion to aluminium and PET lidding materials for environmentally friendly packaging solutions, like mono material packaging with recyclability property.

“This capacity expansion is a clear commitment to proving the flexible packaging industry with best in class liquid coating technology – especially by offering new solutions with direct adhesion to multiple substrates. Furthermore, we strengthen our position in the market by developing new products meeting customers or regional specific requirements, “says Roberto Vila-Keller, head of Business Line Coating & Adhesive Resins.

“After thorough investigation, we concluded that Darmstadt is the right location for this plant expansion project. The investment will contribute to make even better use of existing facilities. In addition, well-trained employees with their local process know-how and many years of specific experience in the construction, operation and maintenance of the existing technology are another decisive advantage for us,” says Dr. Peter Neugebauer, Business Director Specialty Acrylics, Coating & Adhesive Resins.

Meanwhile, elsewhere, Indonesian petrochemical producer Chandra Asri has signed an initial deal with Saudi Arabia's state-controlled Aramco Trading (ATC) to explore potential feedstock supplies for its planned Chandra Asri Perkasa (CAP2) petrochemical complex.

Chandra Asri and ATC expect the agreement to lead to a long-term partnership to ensure constant feedstock supplies to the cracker complex at Cilegon in west Java.

CAP2 comprises a 1.1 million-tonne/year naphtha cracker capable of producing up to 1.1 million tonnes/year of ethylene and 600,000 tonnes/year of propylene. The complex will also house a 300,000 tonnes/year LDPE plant, a 450,000 tonnes/year HDPE plant and a 450,000 tonnes/year PP plant. Its start-up is planned for 2025-26, according to Chandra Asri. It currently operates a 900,000 tonnes/year naphtha cracker, a 736,000 tonnes/year PE plant and a 590,000 tonnes/year PP plant at Cilegon.

Chandra Asri has also selected Thai Oil, the downstream arm of Thailand's state-controlled PTT, as its new strategic investor. Thai Oil is expected to help fund CAP2 with Chandra Asri's major shareholders, Indonesia's Barito Pacific and Thailand's Siam Cement Group. Thai Oil has agreed to acquire a stake of up to 15% in Chandra Asri.

(PRA)

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