DSM signs distribution agreement agreement with Resinex

(DSM) -- DSM Engineering Plastics and RESINEX have entered into a distribution agreement, to join forces in the market development and sales of DSM Engineering Plastics resins in Romania, Bulgaria, Slovenia, Croatia, Serbia and Bosnia.

The move, which is effective from 1 July 2010, is designed to strengthen the position of DSM Engineering Plastics in Eastern Europe. As such, this agreement is in line with DSM's corporate strategy to focus on new and emerging markets - as defined in Vision 2010, the corporate blueprint for future development of the company.


SIBUR compromises with former Biaksplen owner

MOSCOW (SIBUR) - SIBUR nonjudicially solved difficulties with former owner of Biaksplen Group - Vladimir Borodavkin. Company's claims were about the value of 50% stake of Biaksplen that had been purchased by SIBUR before.

The company is satisfied with achieved compromise regarding the decrease of deal value. Both sides do not have complaints to each other.

MRC Reference

Sibur Holding is the largest Russian petrochemical group.

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

Chevron to acquire about 1/3 in joint project with Rosneft

(Vedomosti) - Chevron will acquire about 30% in the joint project on Western Black Sea shelf developing with Rosneft, said the source close to the Russian company. Investments into geological survey are going to amount to $1 bln. The first stage of the project will be financed by Chevron, said Igor Sechin, Russian Deputy Prime Minister. If the prospecting is successfull, total expenses might exceed RUB 1 trillion ($ 32 bln. according to the current Central Bank exchange rate).


PE processing capacities up 209 kt

MOSCOW (MRC) -- Polyethylene (PE) processing capacities increased 209 kt in Russia last year - according to just published MRC Annual report.

Comparing with 2008, growth of capacities dropped by 63%. MRC analysts do not regard this figure as critically small for the market as the equipment, capacity of which exceeds current PE consumption nearly 2 times, had already been installed in the market during the last decade.

At year-end, 331 PE processing lines were installed in that sector. The pipe extrusion sector demonstrated the highest growth of capacities (+92 kt/year) in 2009, despite the fall of pipe-grade HDPE consumption by 32% according to the results of the year. That sector is followed by the film extrusion (+57 kt/year) and cable extrusion (+28 kt/year) sectors. Converters in these three sectors are likely quite optimistic about r Probably, in these three sectors exactly the converters are optimistic about their business outlooks for the next 2-3 years.


For more detailed analysis of processing capacities and polyethylene consumption in the context of sectors, markets and types of finished goods of each converter is available in ⌠Polyethylene - 2010 Annual report.

Russian production of PVC plasticizers in early July

MOSCOW (MRC) -- Insufficient plasticizer supply in the domestic market in conditions of seasonal demand increase holds PVC plasticizers production growth - according to MRC Price reports.

The demand for PVC plasticizers in the Russian market keeps up growing. Single plasticized PVC producers tell that in June plasticizer sales exceeded the production. Further increase of production is impossible due to insufficient DOF supply in the domestic market. In July even some big producers of plasticized PVC faced problems with purchases of additional plasticizer volumes. Last month the demand in the Russian market was covered by DOF supply from Eastern Europe. However, force majeur at one of the biggest plasticizer plants of ZAK company in Poland has led to decrease of export quotes and sharp price increase. So, European DOF went up in price by EUR 90 - 100/mt for July.

Single companies offer DOF from South Korea and North America, however, the first plasticizer supplies are expected no earlier than mid-August. For now, Russian converters are forced to limit the production. DOF price range in the Russian market is quite big and is in the range of RUB 72.000 - 92.000/mt, including VAT, FCA.


For more information about Russian DOF market please refer to MRC Annual reports.