Kraton Polymers announces european SBS price increases

April 2 (Kraton) -- Kraton Polymers LLC (together with its direct and indirect subsidiaries, "Kraton"), a leading global producer of styrenic block copolymers, continues to experience significant raw material and energy cost increases. Accordingly, Kraton announces a general price increase in Europe, Africa and the Middle East of Euro 250 /MT for Kraton SBS and OE SBS polymers and compounds across all markets and end-uses.

Subject to the terms of any applicable contracts, these price increases will take effect April 15, 2010.

MRC

April 2 (plastemart) -- UK-based INEOS is exploring the possibility of setting up a catalyst unit at the Special Economic Zone in Dahej. Senior officials from INEOS' US and UK offices have visited the site recently for setting up the project estimated to cost Rs 10 bln initially. The catalyst plant would cater to the company's clients in the East. The petrochemical plant in the SEZ will be able to source directly from the catalyst plant, specially for HDPE/LDPE swing product. Oil and Natural Gas Corporation (ONGC) is the anchor tenant for the SEZ, and is setting up a Rs 124.40 bln petrochemical complex called ONGC Petro-Additions Ltd., that has sourced its technology under licence from Ineos for its crackerand other units.

MRCMRC Reference

Ineos is a petrochemical group.
In Russia Ineos's interests are represented by Ineos Polyolefins and IneosChlorVinyls.

The share in the Russian market in 2008:
PVC - 4.5%;

polyethylene - 1.9%
(HDPE - 2.8%, LDPE - 1.2%);
polypropylene - 1.4%
(PP-random - 22.1%, PP-impact - 2.0%);
polystyrene - 0.9%.

Imports by polymers processing technologies:
profile extrusion;
pipe extrusion;
film extrusion;
injection molding.

April 1 (Bayer MaterialScience) -- Bayer MaterialScience has signed a contract with plant engineering company Uhde to build a new plant for chlorine production based on common salt. The plant, which will have an annual capacity of 20,000 metric tons and be built at Chempark Krefeld-Uerdingen in Germany, is scheduled to start operating in the first half of 2011.

It will be the first time that chlorine has been produced on an industrial scale using the innovative oxygen depolarized cathode specially developed by Bayer MaterialScience in electrolysis cells from UHDENORA. Electricity consumption will be up to 30 percent lower than in standard membrane technology, resulting in an indirect reduction of up to 10,000 metric tons of CO2 emissions each year.

Bayer MaterialScience and Uhde initiated the project in cooperation with RWTH Aachen University, Clausthal University of Technology and Dortmund University. Funding has been obtained from the BMBF (German Federal Ministry of Education and Research) under the FONA (Research for Sustainability) program. FONA supports initiatives for improved energy efficiency and higher raw material productivity. The projects receiving funding actively help counter the impact of climate change.

MRC

MRC Reference

Bayer is an international chemical and pharmaceutical concern. Founded in 1863.

The share in the Russian market in 2008:
PS - 0.7% (ABS - 7.2%).

Annual sales growth in Russia over the last 5 years:
PS - (-10%).

Polymers processing technologies:
injection molding.

In February on Russian HDPE market low level of purchase activity was observed. As a result, material supply surplus was marked almost in all the kinds of HDPE. The production of polymer has increased on 13% in present year.

Kazanorgsyntez has essentially increased its production (on 14%). At the end of March Salavatnefteorgsyntez launched HDPE production. Material production of moulded grade SNOLEN НС7260 formed about 200 T.

The demand for pipe-grade HDPE stayed low. In February import supplies into this sector formed 3,32 KT. Energization of purchase activity in this sector should be expected no earlier than at the beginning of April. At the same time some companies started to increase imports of pipe-grade material from Asia in February already. So, pipe-grade HDPE supplies from South Korea have increased on 48% in comparing with January.

MRC

More information about PE market is presented in company's Monthly reports.

April 1 (BASF) -- BASF will be raising prices for different plastics in its styrenic copolymer product range in Europe and in all regions supplied from Europe, effective April 1, 2010, or as contracts allow. The price increases amount to 200 Euro per metric ton for Terluran (ABS), 175 Euro per metric ton for Styrolux (SBC) and 150 Euro per metric ton for Luran (SAN). This measure is due to the significant rise in the cost of all relevant raw materials.

MRCMRC Reference

BASF. The share in the Russian market in 2008:
PS - 9.1% (GPPS - 5.9%, ABS - 11.4%, EPS - 10.6%).

Annual sales growth in Russia over the 5 years:
PS - 15%.

Imports by polymers processing technologies:
foaming;
injection molding.