Agrium Shelves Gasification Plans

Agrium says that it has decided not to build a gasification facility to supply coal-based syngas

to its 325,000-ton/year nitrogen fertilizer plant at Kenai, AK and that the Kenai plant will be

mothballed “shortly.” Agrium says that it had been evaluating the feasibility of building a gas-

ification plant to supply Kenai since 2005 but has determined that “current economics are not

sufficient” to proceed. Agrium’s Kenai nitrogen facility was closed last year due to a shortage

of natural gas supply. Agrium says it will still pursue other gasification projects, including the

use of bitumen upgrading to produce syngas in Alberta. Agrium also has a deal with Faustina

Hydrogen Products, under which Agrium will purchase 40% of the approximately 1. 3 million

tons/year of anhydrous ammonia produced at Faustina’s planned gasification plant at St. James

Parish, LA. That plant will be operated by Eastman Chemical, and is due to start up in 2011

(CW, Aug. 1/8, 2007, p. 9).

Kronos Income Slides

Kronos Worldwide (Dallas) reported

fourth-quarter 2007 net income of

$1.6million, compared with income

of $41.3 million in the same year-ago

period. Sales rose 4%, to $310.4 million.

The company’s titanium dioxide (TiO)

2

business reported profits down 71%, to

$11.3 million. Kronos cites lower average

selling prices, higher maintenance costs,

and the negative effects of fluctuations in

currency exchange rates. TiO sales vol-

2

umes increased 2% on higher volumes

in the U.S. and export markets. However,

TiO production volumes dropped 6%.

2

New Bill Introduced to Make U.S. Plant Security Rules Permanent

Representative Albert Wynn (D., MD) has introduced legislation that would make perma-

nent the Department of Homeland Security’s (DHS) rules on chemical site security. The bill,

unlike the one passed last week by the House’s homeland security committee, does not include

a provision requiring chemical facilities to consider use of inherently safer technology (IST)

(CW, March 10, p. 6). “Unlike the impractical and partisan legislation approved last week, we

are pleased that this bill places greater emphasis on appropriate security measures and less on

carrying out the agenda of environmentalists,” says Socma president and CEO Joe Acker. “This

legislation would eliminate sunset provisions to the existing standards and, importantly, does

not include the highly impractical and controversial IST provisions,” Acker says.

Eastman Boosts Copolyester Capacity in Tennessee

Eastman Chemical says it will boost capacity for its Tritan brand copolyesters at Kingsport, TN.

The project includes a new manufacturing plant and conversion of certain existing operations,

Eastman says. The company did not disclose capacity figures; it says the expansion will add

“significant” production capacity. The expansion is due for completion in late 2009. Eastman

says it expects global demand for copolyesters to grow 6%-8%/year. The company launched

the Tritan product line late last year. The product has higher heat resistance, improved design

flexibility, and can be more easily processed than other copolyesters, Eastman says. End uses

include housewares, appliances, and extruded-sheet applications. Meanwhile, the company says

that a previously announced plan to open a specialty copolyester plant at Columbia, SC is on

track to start up in the first half of this year (CW, May 16, 2007, p. 8).

Polymer Group Loss Narrows

Polymer Group (Charlotte, NC) reported

a net loss of $21.8 million for its fiscal

fourth-quarter ended December 29, 2007,

compared to a loss of $18.9 million in the

same year-ago period. The company cites

“rapid and significant” increases in raw

material costs. “However, the underlying

business initiatives were in place, vol-

ume in the disposable markets remained

steady, and the general fundamentals

of our business and capacity for growth

remain strong,” says Veronica Hagen , Polymer Group’s CEO. Fourth-quarter

sales were about flat at $265.4 million.

DuPont Executive Adds International Role

DuPont says that Ellen Kullman, executive v.p., will assume overall responsibility for the com-

pany’s efforts to drive growth in international markets. Kullman has also been given direct

responsibility for the company’s performance materials, and electronic and communication

technologies businesses. The growth opportunities for these two businesses are directly linked

to international markets, especially in emerging economies, DuPont says.

ConocoPhillips Boosts Energy Spend

ConocoPhillips says it will invest $400 mil-

lion this year to develop technology for

non-conventional and renewable resource

energy sources. These include coal gasifi-

cation, carbon capture and sequestration,

and cellulosic ethanol conversion. The

company says it will also build a technol-

ogy center and corporate learning center

on land recently purchased at Louisville,

Westlake Founder Dies at 8

Ting Tsung “T. T.” Chao, founder and former chairman of both Westlake

Chemical (Houston) and Titan Chemical (Kuala Lumpur, Malaysia),

died on March 7 at the age of 86. Chao is credited with building Tawain’s

first polyvinyl chloride plant in 1954, and ten years later founded China

General Plastics Group (Taiwan), which included China General Plastics

Corp., Taita Chemical Co., and Asia Polymers Corp. Chao turned his

attention to the U.S. market in 1986 and set up Westlake via the acquisi-

tion of an idled polyethylene plant at Lake Charles, LA. He expanded

Westlake via a series of acquisitions and grassroots investment. Chao

Chao: Asian petchem founded Titan Chemicals in 1989, the first petchem company in Malaysia

industry pioneer. and the largest polyolefins producer in Southeast Asia in terms of capacity.

Chao retired from his chairman positions at Westlake and Titan in 2004 and 2006, respectively.

References:

http://www.chemweek.com

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