Sahara Petrochemicals Company signed a bridge loan agreement with Riyad Bank

(Arabian oil and gas) -- Sahara Petrochemicals Company has signed a bridge loan agreement with Riyad Bank with the value up to $267m, te company said in a statement. ⌠This value will be used to finance the new projects that are currently under implementation, and future projects of the company, the company said in a statement.

The company said that it will repay this loan to Riyad Bank after completion of the company's capital increase/Rights Issue and from the future earnings of the Company with maximum period of 12 months.

The company has recently signed MoU with Chemanol for new Neopentyl glycol (NPG) project. According to the MoU, Chemanol will provide formaldehyde, the necessary feedstock for this product. SAHARA also signed a heads of agreements with Mitsubishi Gas Chemical and Sojitz Corporation from Japan to provide the necessary technology to develop and build the NPG plant, with a total cost of $125.3m.

Sahara Petrochemicals produces mainly polypropylene and polyethylene through its subsidiaries Al Waha and Saudi Ethylene and Polyethylene Company.


In China demand for prilled and powdered polypropylene has been slowing

(ICIS) -- China's demand for prilled and powdered polypropylene (PP) has been slowing, with the full-year import volumes of the polymer expected to fall while its domestic production will have a moderate increase, industry sources said on Tuesday.

Consumption of the material from downstream industries weakened significantly amid a domestic credit crunch, as China continues with its monetary tightening policy to tame inflation, they said.
China's demand for PP resins is estimated to grow by 5.7% this year to 16m tonnes, just about a third of the 15.6% growth recorded last year, according to Chemease, an ICIS service in China.
The country consumed 15.2m tonnes of PP in 2010, of which 4.8m tonnes or about 32% were imported, data from Chemease showed. This year, Chemease expects China to take in 3% less PP from abroad at 4.66m tonnes.

Meanwhile, China's PP output is estimated to rise by 10% to 11.4m tonnes this year, slowing from a 28% increase in output last year at 10.3m tonnes, according to Chemease. Of the total PP output in 2010, China exported 940,000 tonnes, the data showed.


Sabic announced financial results for the third quarter of 2011

(Arabian oil and gas) -- Saudi Basic Industries Corporation (SABIC) announced on October 17, 2011 at a press conference held at its headquarters in Riyadh, its financial results for the third quarter of 2011. SABIC achieved US$2.186 billion (8.2 billion Saudi Riyals) in net profit for the 3Q2011. These are another record result in the history of the company, for this quarter ended on 30 September, 2011. The company's nine month profit jumped 52% year on year, reaching $6.39bn compared to $4.29bn during the same period 2010.

During the press conference, Mohamed Al-Mady, SABIC Vice Chairman and CEO, emphasized that SABIC has achieved positive results in the third quarter and maintained its pace of growth based on the reliability of its performance and sound operations. This has been achieved thanks to the efforts of SABIC employees and recent programs that have transformed SABIC into an integrated global company.

Al-Mady also attributed the positive results to increased production and sales, as well as to the reduced cost of funding. He also gave credit to the diversity of SABIC's markets, and its strong presence in global production hubs, especially in the markets of developing economies such as China, India and Saudi Arabia. In these markets, it has maintained its competitive position and continued to succeed and grow.


Ultradur High Gloss B4570 is one of new engineering resins from BASF

(BASF) -- The new Ultradur High Gloss B4570 is one of the numerous new engineering resins from BASF making their appearance at the trade fair FAKUMA 2011 being held in October in Friedrichshafen, Germany. Compared to existing polybutylene terephthalate (PBT) grades: for headlight bezels, this material offers not only high gloss. It is specifically characterized by its extremely low outgassing at temperatures up to 160╟C over an extended period of time. Like related resins in the Ultradur family, the new material can be metallized without difficulty and is immediately available in Europe and Asia.

When standard PBT grades that outgas at high temperatures are used for reflectors or bezels of especially hot headlights, fogging of the lens may result and reduce the light output of the headlight. On the one hand, automobile headlights have now become design elements with complex aesthetic forms. At the same time, the space in which the headlight must fit has become smaller. Both effects can lead to rising temperatures, which cause outgassing of the bezel material. The substances released during outgassing condense on the clear headlight lens and cause fogging. With the new Ultradur High Gloss, hardly any outgassing can be detected even at very high temperatures.

The material expands the PBT product line for headlights from BASF, which to date consisted of Ultradur B4520 for standard applications, Ultradur B4560 with optimized release characteristics and Ultradur S4090 with especially good flow properties and a minimal tendency to warp.


Dutch AkzoNobel's net income is forecast to drop by 13.9% year on year

(ICIS) -- Dutch chemicals major AkzoNobel's net income is forecast to drop by 13.9% year on year to ┬649m ($889m) in 2011, as earnings from its core segments come under pressure from higher raw material costs and deteriorating global economic conditions, Bernstein Research said on Tuesday.
AkzoNobel is expected to lower its 2011 guidance for its earnings before interest, tax, depreciation and amortisation (EBITDA) by about 5-10% on a year-on-year basis when it announces its third quarter results on 20 October, the research firm said in a report. The company posted an EBITDA of ┬1.96bn in 2010, according to the report.

AkzoNobel said earlier in July that its 2011 EBITDA is expected to be at least in line with the year before, assuming that economic conditions do not deteriorate further.

While Bernstein has maintained its ⌠outperform rating on AkzoNobel, it has lowered its earnings per share (EPS) to ┬3.26 in 2011, from ┬3.71 in 2010. The company's EPS is forecast by Bernstein to rise to ┬3.76 in 2012.

Raw material costs increased by 20% in the second quarter of this year, which had a major impact on the company's three business areas: decorative paints, performance coatings and specialty chemicals.
For the decorative paints segment, its EBITDA is expected to fall by 10-15% in 2011 because of strong cost inflation in the third quarter of this year, Bernstein said.