Record increase in film extrusion capacities was fixed in Russia

(MRC) -- In August, the increase in capacities of films production in Russia made 37,300 tonnes per year, which made a record over the last 2 years. The total investment amounted to $14,6 million, according to MRC Monthly DataScope: Equipment. In August, converters invested $48 million. In total, there were 35 complete lines shipped, 28 of them made equipment for PE processing.

In August, the main investments were made in equipment for production of multilayer films (19,100 tonnes per year), and stretch films (8,900 tonnes per year). MRC analysts focus attention that the investments in production of multilayer films over 8 months made $18 million, which was 3 times more year on year.

The major suppliers of the equipment for films production were Kiefel Extrusion, Windmoller & Holscher, SML Maschinengesellschaft, with their production share of about 37,000 tonnes per year from 142,000 tonnes of this year capacity growth.

In August, converters bought 5 lines of Windmoller & Holscher, 3 of which are intended for production of 5-layer film (total capacity - 5,000 tonnes per year for the company Danaflex-Nano), and 2 lines - for the production of 3-layer film (with the capacity of 3,600 tonnes per year for the company Rani Plast Kaluga).

Kiefel Extrusion extrusion line for production of 3-layer film (6,000 tonnes per year) increased the capacity of Kamsky Plant of Polymer Materials. Regent-Stretch imported SML Maschinengesellschaft equipment for stretch film production (capacity - 8,000 tonnes per year). A complete line for 3-layer film production (with capacity of 3,200 tonnes per year) is imported by Sealed Air Limited. About 90% ($13,09 million) of all August investments fell at above mentioned companies.

A detailed analysis of investment by processing technologies, sectors, finished goods, suppliers of equipment and brands of equipment is presented in MRC Monthly DataScope: Equipment.


HDPE production in Russia went up 3% over 9 months

(MRC) -- In September, due to scheduled and unscheduled turnarounds, Russian producers reduced high-density polyethylene (HDPE) output to 58,000 tonnes. Over the nine months, the total volume of HDPE production in Russia grew by 3% and made 643,400 tonnes, according to MRC ScanPlast.

In early September, Gazprom neftechem Salavat had to suspend HDPE production because of technical problems. In mid-September, Kazanorgsyntez stopped its facilities for scheduled turnaround. Nizhnekamskneftechem also limited HDPE output due to a scheduled maintenance at ethylene production. As a consequence, overall PE output by Russian producers decreased to 58,000 tonnes. In comparison, in August PE production made 74,400 tonnes.

This year Gazprom neftechem Salavat doubled HDPE output. Though, last year the company started production only in March, said MRC analyst Sergey Karaychentsev.

Nizhnekamskneftechem increased HDPE production by 30%, Stavrolen - by 8%. This year Kazanorgsyntez, on the contrary, reduced HDPE output by 15%.

Over the nine months, overall HDPE production by Russian producers made 643,400 tonnes, 3% up year on year. In October suspension of HDPE production by all Russian producers (Stavrolen, Kazanorgsyntez, Nizhnekamskneftechem and Gazprom neftechem Salavat) will not allow them to exceed 60,000 tonnes of HDPE in October.


In Russia polymer processing capacity hit 2 years record

(MRC) -- In August, an increase in polymer processing capacity made 180,000 tonnes per annum, the highest index in Russia since the beginning of 2010. The amount of investment over this period is estimated at $51 million, according to MRC Monthly DataScope: Equipment.

In August, the increase in volume polymer processing in Russia made 180,000 tonnes per annum, which hit a record of the last 20 months. During this period, Russia imported 224 complete lines of equipment with total value of about $51 million.
Among August investments, there should be mentioned a number of significant investments that will contribute to the development of processing in different directions. As for film production companies, the bulk of investment was made by Regent-stretch, Rani Plast Kaluga, Sealed Air Limited, Kamsky Plant of Polymer Materials - 60% (22,000 tonnes) of August total increase in capacities.

Company BSH Household Equipment bought a production line for ABS sheets production, used in the production of the inner cabinet shell of household refrigerators by Bosch & Siemens. The equipment capacity is estimated at 45,000 tonnes per annum.

In August, there were imported two lines for the production of polypropylene yarns with total capacity of 11,000 tonnes per annum. This equipment is for production of floor coverings by company Merinos Wool Carpets.

A detailed analysis of investment by processing technologies, sectors, finished goods, suppliers of equipment and brands of equipment is presented in MRC Monthly DataScope: Equipment.


US DuPont proposes 15 cent/lb TiO2 hike

(ICIS) -- DuPont Titanium Technologies announced on Friday its plan to increase North American pigment prices by 15 cents/lb ($331/tonne, ┬238/tonne) effective on 1 November, making it the second domestic producer to propose an increase. Current North American TiO2 prices are $1.80-1.94/lb, as assessed by ICIS. Buyers said they were frustrated but not surprised.

⌠I am hearing a possibility of another 30% in price increases next year, a coatings maker said. But he and other buyers said they would resist the increase as strongly as possible.

Kronos announced in September its intent to implement a 25 cent/lb increase effective on 1 October, but buyers likewise vowed to fight the effort.

⌠White business is still soft, a compounder said, ⌠and TiO2 sales are just as soft. Customers are hoarding TiO2, awaiting another shortage in the marketplace. But you can only sit on so much inventory before you run into cash-flow problems.

Producers did back off of recent initiatives for October implementation by 10 cents/lb, generally conceding softer market conditions, but a producer said that it would continue to negotiate to achieve that remaining portion in the near term.

If the newest initiatives succeed, the Kronos hike would take place on 1 January, in accordance with the market's typical 90-day lag. Likewise, DuPont's increase would take place on 1 February. For all the supply-side rationale, the ongoing increases will have a chilling effect on the marketplace, a buyer said.


Anadarko agrees to pay $4.0 billion to BP

(Arabian oil and gas) -- Anadarko Petroleum Corporation has announced an agreement with BP to settle all of BP's current and future claims against Anadarko associated with the Deepwater Horizon event. Under the terms of the settlement agreement, Anadarko agrees to pay $4.0 billion to BP, and both parties have agreed to mutually release claims against each other. As part of this agreement, BP will release its claims against Anadarko for approximately $6.1 billion of outstanding invoices received to date, as well as to forego reimbursement for any future costs related to the event.

In addition, BP will fully indemnify Anadarko for damage claims arising under the Oil Pollution Act, claims for natural resource damages and associated damage-assessment costs, and any claims arising under the relevant Joint Operating Agreement. Anadarko also will transfer its 25-percent interest in Mississippi Canyon block 252 (Macondo) to BP.

According to its public filings, BP has recorded a charge in excess of $40 billion for total estimated costs associated with the event.

To date, BP has invoiced Anadarko an aggregate of $6.1 billion for what BP considers to be Anadarko's 25-percent proportionate share of BP's actual and near-term costs.