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.


LyondellBasell developed a new concept to improve service to its PP and PE customers

(LyondellBasell) -- LyondellBasell announced today that it has developed an enhanced logistics concept with its distributors designed to improve service to its polypropylene and polyethylene customers in Europe. The company also plans to close its online polyolefins sales channel Alastian on Nov. 1.

LyondellBasell distributors will serve customers from dedicated warehouses at LyondellBasell's European production sites, reducing logistics complexity and accelerating order turnaround and responsiveness. This new logistics concept already has been realized at LyondellBasell's largest European polymer site in Wesseling, Germany. Other production sites will adopt this approach in 2012.

After the closure of the Alastian online sales channel, customers will be served one of two ways - directly through LyondellBasell's technical service and sales organization or through a distributor for those customers purchasing smaller volumes. All former Alastian customers will now be able to enjoy the benefits of technical service and sales support available directly from LyondellBasell or its distributors.

LyondellBasell's distributors have been selling polypropylene and polyethylene resins and compounds into their local markets for decades, and are regarded as an important element of LyondellBasell's approach to the European market.


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.