Siam Cement to boost year's profits

(plastemart) -- Siam Cement expects a boost to this year's profits with the start up of a US$1.2 bln petrochemical plant that will triple the size of high-margin petrochemical products produced by the Thai company. Under current conditions, the Thai major is witnessing a slowdown in domestic sales of cement, ceramic tiles and other building materials. The petrochem plant start up will help counter this slowdown . The plant can produce 1.7 mln tpa of ethylene and propylene. Since the first half of the year, test runs have been started, keeping run rates at the facility at about 70% of capacity.

Siam Cement, Thailand's number three company by market value has increased investments in petrochemical plants in Thailand and Vietnam. Demand for chemicals used to make plastics has surged as economic growth rest of Asia spurs sales of cars, electrical appliances and other consumer products.


SIBUR to produce EPS using up-to-date technology

MOSCOW (SIBUR) -- SIBUR is starting to sign contracts with customers to supply expanded polystyrene, which is going to be produced by the company using state-of-the-art Austrian-Norwegian SUNPOR technology.

A new 50.000 tpa complex will be located at the Sibur-Chimprom site and is scheduled to be launched at the end of 2010. Today installation of the equipment has been accomplished tests are ongoing.

The product is made to produce various goods including construction thermo-insulation, home appliances and food packaging.

MRCMRC Reference

Sibur Holding is the largest Russian petrochemical group.

Gazprombank (70% minus 1 share);
Gazfond (25% plus 1 share);
5% reserved for option program.

Demand for imported PE to go up in China in late July

MOSCOW (MRC) - Asian market players expect demand increase in China later in July, when converters are to start to build up stocks before the beginning of the season - according to MRC Price reports.

Chinese plastic goods producers usually start to increase production in August to ensure exports to Europe and the USA before Christmas and New Year holidays. The agricultural season that usually lasts in China from September to December will push up demand for film-grade LLDPE, which is going to stimulate consumption of all the other types of polyethylene.

In May - June, polyethylene demand in China remained weak. Prices for imported material went down by USD 200-250/mt since May. In view of weak demand for LDPE in China, some Asian producers switched to production of more profitable EVA. Low interest in film-grade HDPE in the Chinese market made some producers from Taiwan, Thailand and South Korea redirect production toward other HDPE grades, as well as to redirect exports to the markets of SE Asia, where demand for film-grade material is stronger.

As to market players, these factors together with suspensions of a number of plants in the Middle East may lead to serious limitations in HDPE supplies to the Chinese market in July - August.

PE demand remains weak in China, today. Prices continue to go down despite the limited supply. However, positive dynamics in stock market and the market of oil futures in conditions of the decision of Chinese authorities to increase flexibility of Yuan exchange rate give reason to think that PE prices are going to reach their bottom soon. At the same time, some Chinese importers tell about their fears that strengthening of Yuan may limit export potential of Chinese plastic products, which can lead to weaker demand for polyethylene.


For more information about the PE market please refer to MRC Price reports.

Mecalit to extend Polish production facility

(Plasteurope) -- German plastics processor Mecalit Kunststoffverarbeitung plans to invest EUR 1m in its production plant in the special economic zone in Lodz, Poland. Since founding Mecalit Polska in 2005, the manufacturer has spent about EUR 6.3m in the plant. The finished goods are earmarked for customers such as BSH Bosch und Siemens Hausgerate, which also operates a plant in Lodz.

Some 380 workers are employed at Mecalit's production sites in Lichtenau, Germany and in Lodz. Equipped with injection moulding machinery with a clamp force of between 150-13,000 kN, the company processes about 4,000 t/y of plastics, predominantly PE, PP, PS, ABS, PA, POM and blends.


Salavatnefteorgsyntez held annual general stockholders' meeting

SALAVAT (Salavatnefteorgsyntez) -- Salavatnefteorgsyntez annual general stockholders' meeting took place on June 30, 2010. Shareholders approved the annual report, the annual financial report, including profit and loss staments. ⌠Audit - Novye Tekhnologiy Ltd. was approved as Salavatnefteorgsyntez's auditor.