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California passes total retail polyethylene bag ban

  • : Petrochemicals
  • 24/08/30

California lawmakers have passed a complete ban on polyethylene (PE) retail plastic bags, closing a legal loophole that previously allowed thick reusable PE bags made of 40pc recycled plastic.

Both the California Senate and Assembly approved the measure, which goes to governor Gavin Newsom (D) for a signature. If he does sign it, the bill would go into effect on 1 January 2026.

Flexible plastics reclaimers and a newly formed advocacy group called the Responsible Recycling Alliance (RRA) opposed the bill, citing a higher carbon footprint for paper and reusable bags.

A 2014 California law allowed for reusable PE bags in retail stores if they had at least 40pc post-consumer recycled resin. This helped create significant demand for post-consumer recycled flexible PE resin.

But the 40pc rule received scrutiny after reports showed that the thicker bags were unrecyclable, despite their labeling. CalRecycle reported that the volume of merchandise bags discardedgrew to 231,000 metric tonnes by 2022, a 47pc increase from 2014, when the original plastic bag ban was passed.

"It's time for us to get rid of these plastic bags and continue to move forward with a more pollution-free environment," senator Catherine Blakespear (D) said following passage of the bill in the state Assembly.

The RRA, the group founded by reclaimers Merlin Plastics, PreZero and EFS Plastics, had argued unsuccessfully that the bags should instead be included in California's extended producer responsibility program.

Woven polypropylene (PP) bags were not affected by California's latest bag ban. But a study by market research company The Freedonia Group funded by the American Recyclable Bag Alliance showed that banning PE bags and enforcing reusable PP bags caused virgin plastics usage for bags to rise by 300pc after the ban's passage in 2022.


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25/03/17

Turkey's Koksan builds $710mn PET plant in China

Turkey's Koksan builds $710mn PET plant in China

Shanghai, 17 March (Argus) — Turkish producer Koksan has started building a $710mn PET project at Yangkou Port in Nantong city, Jiangsu province in March. The project involves a 1mn t/yr PET resin unit, consisting of 800,000 t/yr PET and 200,000 t/yr recycled PET (rPET). Two 200,000 t/yr PET resin production lines will be built in the first phase. By establishing the project at Yangkou Port, the company can fully utilise raw materials such as PTA from Chinese chemicals firm Tongkun's integrated polyester project at Yangkou Port to produce PET sheets. This not only gives Tongkun's PTA project an outlet but also provides cost-effective raw materials for Koksan's project. The project can also leverage the existing inland river port and bulk cargo terminal to source raw materials from Chinese companies such as Sinopec, Sanfangxiang, and Yadong. The Nantong Municipal Government estimates that the Koksan project is expected to achieve annual sales of $2.1bn and generate $52mn in annual tax revenue upon completion. Koksan already planned to invest in China in mid-2024 and it ultimately decided to invest in Nantong's Rudong county, after conducting site evaluations in Dalian city's Changxing Island, Fujian province's Gulei town, and Guangdong province's Huizhou city. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Plastics Europe urges de-escalation in trade tensions


25/03/14
25/03/14

Plastics Europe urges de-escalation in trade tensions

London, 14 March (Argus) — Industry association Plastics Europe has urged a de-escalation in ongoing trade tensions between the EU and the US, following the inclusion of polyethylene (PE) among products proposed by the European Commission for retaliatory tariffs. "The imposition of tariffs, particularly on industrial goods such as plastics, will disrupt supply chains, raise costs for businesses, and negatively impact consumers on both sides of the Atlantic," said Plastics Europe's managing director, Virginia Janssens, on 13 March. "We urge both the EU and U.S. to prioritise diplomatic solutions to avoid escalating trade tensions further." The European Commission on 12 March begun consultations on imposing countermeasures to US tariffs of 25pc on EU and other imports of steel, aluminium and related products. Other products include high-density polyethylene (HDPE), low-density PE (LDPE) and linear LDPE (LLDPE), according to a European Commission document listing the products proposed for retaliatory tariffs. The European Commission did not publish the specific level of proposed tariffs, noting that a formal legal proposal will follow consultation with industry and member states. But a senior EU official noted that "25pc might be a good number". The retaliatory tariffs, if approved by EU member states, will be implemented from 13 April. The US is a key global supplier of PE, with exports totalling around 14.2mn t in 2024. PE exports from the US to the EU in 2024 stood at 2.1mn t, forming around 15pc of the export share. The EU is a net importer of HDPE and LLDPE. This week's developments caught many market participants by surprise. There was no immediate impact on prices as many participants opted for a wait-and-see approach. The European PE market has been grappling with an uncertain demand outlook given weak underlying economic conditions. An imposition of import tariffs could help support domestic European PE production, but there are widespread concerns of these resulting in higher prices for consumer goods and adversely affecting future demand prospects. And higher costs of inputs could further hurt competitiveness of European finished goods in the global markets. Plastics Europe called for "collaborative efforts to resolve this dispute in a manner that protects industry, jobs, and consumers in both the U.S. and Europe." By Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Dow to share European polyurethanes plan in April


25/03/13
25/03/13

Dow to share European polyurethanes plan in April

London, 13 March (Argus) — US chemicals firm Dow will provide some details about its plans for its European business next month, chief financial officer Jeff Tate said today. The company announced a strategic review of its European polyurethane assets in October, which is due to be completed by mid-2025. The firm will share some decisions in its first-quarter earnings call scheduled for 24 April and more decisions will be shared at the second-quarter earnings call in July, Tate said, promising "incremental updates". Dow's sales volumes in Europe are 20pc lower than pre-Covid, Tate said. But energy costs have risen. "We feel it's prudent to take action around our footprint in Europe. Because we don't see that recovering any time soon," Tate said. The focus will be on Dow's more commoditised products, "particularly those which are more energy intensive", Tate said. That means polyurethanes in particular, and also siloxanes, he said. Olefins and plastics and packaging are not directly under consideration, Tate said, aside from one-off decisions such as the idling of one of its three crackers at Terneuzen in the Netgerlands through delayed maintenance. Prolonged weak consumer demand, geopolitical uncertainty and its effect on energy costs, and a high level of regulation have all affected Europe's global competitiveness in the petrochemicals sector, Tate said. Dow's strategic review is part of a wider pattern in the European petrochemicals industry. LyondellBassell announced a similar review in May 2024 and although it has not yet formally announced any resulting decisions, unions last week agreed a plan for the closure of the Lyondell-operated Maasvlakte POSM unit by 1 October. By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s MGC to fund US biomass-based plastic start-up


25/03/13
25/03/13

Japan’s MGC to fund US biomass-based plastic start-up

Tokyo, 13 March (Argus) — Japanese petrochemical producer Mitsubishi Gas Chemical (MGC) announced on 12 March that it decided to invest an undisclosed value in a US biomass-based plastics start-up ReSource Chemical. ReSource Chemical is developing technology to generate furandicarboxylic acid (FDCA), which is a raw monomer used to produce plastic polyethylenefuranoate (PEF), from wooden biomass-based lignocellulose. PEF is expected to replace polyethylene-terephthalate (PET) once a reasonable production method is established, as PEF is likely to have stronger heat-resilience and durability as well as lower gas-transmission rate and moisture permeability than PET. US venture capital funds Khosla Ventures, Fathom Fund and Chevron Technology Ventures and other individual investors also plan to finance ReSource Chemical with MGC. ReSource Chemical will raise $15mn in total. The funds will be used to build a pilot plant to manufacture FDCA. MGC aims to procure furoic acid, which is an intermediate product in ReSource Chemical's FDCA production process. MGC said furoic acid is not currently in use, but the firm will explore potential usage of this biomass-based feedstock in future. Japanese companies have attempted to develop biomass-based plastics for decarbonisation. Domestic trading house Mitsui plans to explore producing 400,000 t/yr bio-PET in the southeastern region of the US, targeting to start output during 2025-2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

OMV receives EU funding for pyrolysis oil project


25/03/12
25/03/12

OMV receives EU funding for pyrolysis oil project

London, 12 March (Argus) — Austrian refiner OMV will get €81.6mn ($89mn) worth of funding from the EU to construct a pyrolysis oil plant with a capacity to process up to 200,000 t/yr of plastic waste. The plant will use OMV's 'ReOil' technology to produce recycled base chemicals from plastic waste. OMV declined to give any further details about timeframe or location for the proposed plant. OMV has operated a small pilot scale ReOil unit at its 193,700 b/d Schwechat refinery, inAustria, since 2018. It has completed a larger 16,000t/yr demonstration unit at the same site last year. The funding from the EU will come from the EU Innovation Fund and represents the largest amount of funding OMV has ever received for a standalone project. The final investment decision by OMV for the site, is subject to final approval. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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