US bank to fund Saudi Arabia petro complex

(chemicals-technology) -- The US Export-Import Bank has approved a USD4.975bn direct loan to Sadara Chemical Company for construction of a petrochemical complex in Saudi Arabia.

"The loan released by the Ex-Im Bank to Sadara marks the second petrochemical transaction in Saudi Arabia."

Sadara Chemical Company is a joint venture between The Dow Chemical Company and Saudi Arabian Oil.
Fred Hochberg, Ex-Im Bank president, was quoted by Reuters as saying that the loan will support more than 18,000 American jobs across 13 states.

Approximately 70 companies, including Dow, KBR , ABB and more than 20 small businesses, will be exporting US goods and services to the facility in Jubail Industrial City II in eastern Saudi Arabia, as part of the loan.

The petrochemical complex, which will consist of 26 processing units, will produce more than 3mmt of ten major categories of chemical products and specialty plastics each year, and is expected to become operational in 2016.

British, German, French and South Korean government export credit agencies are also financing the complex.
The loan released by the Ex-Im Bank to Sadara marks the second petrochemical transaction in Saudi Arabia.
MRC

(bloomberg) -- Bayer MaterialScience is spawning major investment in eastern Germany. Another plant for the production of a key precursor for Apec is currently under construction in the chemical industry center of Bitterfeld of a cost of approximately EUR 50 million. The Japanese-German joint venture, in which Bayer MaterialScience also holds an interest, is doubling its production capacity there. Plant is scheduled to come on stream in mid-2014.

Apec, which is particularly heat resistant, is used in automotive lighting, lighting technology, the electrical and electronics industry and in household appliances. The transparent Bayer plastic is particularly well suited for articles with demanding optical requirements that must withstand high temperatures.

Bayer MaterialScience produces Apec at it site in Antwerp, Belgium.

The remaining shares are held by the Japanese conglomerate Mitsui & Co (35 %) and its Honshu Chemical Industry subsidiary (55 %). The Bayer Group maintains an important production site in Bitterfeld, which is also home to other companies from the chemical and pharmaceutical industries.
MRC

(romania-insider) -- The bid over Romania’s state – owned chemical producer Oltchim was canceled, Romanian prime Minister Victor Ponta announced on Monday evening. "We have to end this circus," said the PM.

This came after a last meeting with previous bid winner Dan Diaconescu, who had brought in cash bags at the ministry to show he has the money to pay for Oltchim employees’ salaries. The Government will use its B plan for Oltchim, and try to re-start privatization in 2013. A new GM and a new managerial team will be named and the company will re-start production, said the PM.

The contract should have been signed in ten days, meaning by October 1, and the winner should have paid EUR 45 million, and not money to cover salaries, the PM explained, quoting the agreement signed by Diaconescu upon winning the company. The investor should have submitted a business plan within this timeframe, but he did not do that either. A managerial team should also have been presented.

The Economy Ministry will go to court against Dan Diaconescu for using false documents and for lying to public institutions.

Romania was hoping to sell Oltchim to a strategic Russian investor, but only two Romanian bidders and the minority Oltchim shareholder PCC showed up at the auction.

In the future auction, the state will make sure to avoid allowing investors like Diaconescu to take part in the bid, said the PM.
MRC

(azelis) -- On October 1st, Azelis announced the sale of its international Composites business to VELOX GmbH who has acquired this business in its entirety. As a result, VELOX will take over and manage the Composites business and its employees, effective October 1st, 2012.

As part of the company’s natural progression and clear focus on value added growth within specialities, a strategic review was undertaken by the Azelis board and the Composites market was judged to be sub-critical to the company’s plans for future development.

Within the markets it serves, industrial chemicals, coatings, rubber and plastic and Life Sciences have been identified as primary value added growth areas within Europe. Further expansion within Asia Pacific is also another key pillar using a speciality chemicals business model.

As MRC wrote before, in June 2012 Azelis announced the sale of the Thermoplastic Polymers Business Area within the Azelis Group to Gazechim Plastics who acquired this business. This transfer means Gazechim Plastics is now managing in its entirety the Thermoplastic Polymers business and its employees.
MRC

(worldnews) -- The fire, occurred after explosion at Nippon Shokubai's polymer facility in Hyogo Prefecture, central Japan, on 29 September, might affect the global production of diapers.

Nippon Shokubai produces one fifth of the global volume of superabsorbent polymers and it is one of the world's biggest makers of acrylic acid, the main ingredient of a resin called SAP, which is used in diapers.

A fire broke out about 2 p.m. after an abnormal chemical reaction at the plant, the Japan Times said. The explosion occurred near the tank with acrylic acid. A 28-year-old firefighter was killed and at least 30 people were reported injured. Other details are not disclosed. The cause of the explosion is being determined. Information on possible contamination of the environment by combustion products have not been reported yet.

Operations at the plant are likely to be halted for a long time and other makers of SAP resins are operating on a full-production footing.
MRC