GEO Specialty Chemicals and BASF to acquire the Bisomer monomer business

(BASF) -- GEO Specialty Chemicals, Inc. has entered into an agreement with BASF to acquire the Bisomer monomer business (hydroxy methacrylates, multifunctional methacrylates (MFM) and specialty adducts) and conventional contact lens business of Cognis UK. The transaction includes a manufacturing facility in Hythe, England that produces hydroxy methacrylates, multifunctional methacrylates (MFM) and specialty adducts, polyalkylene glycols (PAG) and PAG-based lubricants. As a part of the transaction, approximately 140 employees are expected to transfer to the new owner, GEO Specialty Chemicals UK Limited.

BASF and GEO have agreed not to announce the terms of the transaction. The divestiture is subject to approval by the EU Commission. Closing of the transaction is expected in the third quarter of 2011.

GEO Specialty Chemicals, Inc., a privately owned company founded in 1993, is a producer of specialty chemicals, targeting niche markets. The Company has three divisions, which include Water Treatment, Paints & Coatings and Construction & Industrial, and operates eighteen manufacturing facilities.


SABIC to help customers achieve sustainability goals

(SABIC) -- At Chinaplas 2011,the Innovative Plastics strategic business unit of SABIC today announced a new milestone in its expanding sustainability efforts to provide customers with a diverse portfolio of high-performance, environmentally responsible materials. Further evidencing its commitment to validating its ecological claims, the company is now one of the first to receive Environmental Claims Validation (ECV) from Underwriters Laboratories Environment (ULE), a wholly owned subsidiary of Underwriters Laboratories. Certification was given to Innovative Plastics' new Noryl RN0401 resin - which contains at least 20 percent post-consumer recycled (PCR) content - after successfully completed the demanding ULE validation process. This achievement represents another major step in Innovative Plastics' pioneering efforts to support its customers' sustainability programs with environmentally sound advanced materials solutions.


LDPE prices in the Russian market to decrease

(ICIS-MRC) -- After cheapening in the external markets, LDPE prices have been falling in the Russian market as well, according to ICIS-MRC Price Report.

2010 was quite successful for polymers market after crisis 2008. Overall consumption of polyethylene in Russia grew more than by 30% compared to 2009 and exceeded 1.7 mln tons. Demand for LDPE increased by 29% and made 565 KT. Although hopes of many market players for 2011 didn't come true.

This year demand for LDPE in Russia keeps on growing but not that quickly as in 2010. Russian producers reduced LDPE output by 4%, at the same time export supplies got down by 12%. Excessive offer resulted in competitiveness among producers in the domestic market.

Nearly 1-month shutdown for maintenance of LDPE production at Kazanorgsyntez didn't allow to reduce excessive offer.

In the beginning of the last week the price for LDPE from Tomskneftehim was reduced by
1.500 RUB/t. At the end of the week contract prices for polyethylene from Kazan were reduced, on average, by 500 - 1.000 RUB/t, depending on the grade. The price for 158 LDPE was within the range 63.000 - 64.500 RUB/t, including VAT, FCA Moscow. In June, some Russian producers plan to increase LDPE exports to balance the market offer and demand.

Under the pressure of low demand from the late March till now, quotations for LDPE in Asia fell more than by USD 150/mt. In the European market spot prices fell on average by EUR 50-70/mt.


Indorama Ventures to build PET expansion project

(ICIS) -- Thailand-based Indorama Ventures will build a 220 KTa polyethylene terephthalate (PET) expansion project at its site in Wloclawek, Poland, the company told ICIS on Monday. The project will raise PET capacity at the site, formerly owned by Poland-based SK Eurochem, to 360 KTa Indorama Ventures said. The project is expected to be completed in 2013, it added. The investment cost was not disclosed. The company had been considering two locations for the project: either in Wloclawek or in Rotterdam, the Netherlands. It originally announced plans in April to add 220 KTa of PET capacity in Europe by 2013 but did not disclose further details.

Indorama Ventures intends to source purified terephthalic acid (PTA) feedstock from PKN Orlen's new PTA plant, also in Wloclawek, which was officially opened last week.


Lukoil to develop the project in Uzbekistan

(Lukoil) -- Lukoil intends to raise USD 500 mln to finance on a limited resource basis the development of Khausak-Shady-Kandym project in Uzbekistan. The lenders consortium is expected to include international financial organizations, the Asian Development Bank (ADB) and the Islamic Development Bank (IDB) and commercial banks. The commercial part of the facility structure is expected to include risk insurance to be provided by ADB and the Multilateral Investment Guarantee Agency (MIGA).

The banks are now seeking internal approval for the transaction. However, the transaction is still subject to the government approval from the Republic of Uzbekistan. It is expected that financing will be closed in Q3 2011.

The loan proceeds will be used to finance the investment program of the Kandym field development and production enhancement at the Khauzak-Shady field.