Vietnam concluds refinery deal with Japan and Kuwait companies

MOSCOW (MRC) -- Vietnam on Sunday signed a deal with firms from Japan and Kuwait to build an oil refinery complex worth nearly USD9 billion as part of efforts to meet its growing energy needs, reported Hydrocarbonprocessing.

The Nghi Son refinery, which is due to start operating by 2017 in Thanh Hoa province, about 125 miles south of Hanoi, will turn Kuwaiti oil into gasoline and other petroleum products. It will be able to process 10 million tpy of crude oil, the government said. As MRC infomred earlier, the petrochemical complex in Vietnam’s Nghi Son Economic Zone will include a 200,000-b/d refinery, as well as the production of polypropylene (PP) and aromatics.

The Nghi Son Refinery and petrochemical project is a joint venture between four sides, with close to equal shares. Idemitsu Kosan and Kuwait Petroleum International each hold a 35.1% stake in the planned refinery, while PetroVietnam and Mitsui Chemicals own 25.1% and 4.7%, respectively.

A ground-breaking ceremony for the Nghi Son refinery was held in May 2008 but the project has suffered a number of delays. It is still unclear when construction will start, an official from PetroVietnam said.

The country's first refinery Dung Quat with the capacity of 6.5 million tpy of crude opened in central Vietnam in 2009 after lengthy delays.

PetroVietnam has said that it hopes the two refineries would satisfy 65% of the nation's oil and gas needs. It is also preparing for a third refinery project in southern Ba Ria-Vung Tau province.
MRC

MOSCOW (MRC) -- PPG Industries yesterday announced the successful closing of the previously announced separation of its commodity chemicals business and merger of its wholly-owned subsidiary, Eagle Spinco Inc., with a subsidiary of Georgia Gulf Corporation, according to PPG's press release.

As MRC wrote earlier, Georgia Gulf and PPG Industries announced the merger between commodity chemicals business in July, 2012.

Pursuant to the merger, Eagle Spinco, the entity holding PPG’s former commodity chemicals business, is now a wholly-owned subsidiary of Georgia Gulf. The closing of the merger followed the expiration of the related exchange offer and the satisfaction of certain other conditions. The combined company formed by uniting Georgia Gulf with PPG’s former commodity chemicals business will be named Axiall Corporation and will be traded on the New York Stock Exchange under the ticker symbol AXLL.

In connection with the separation of PPG’s commodity chemicals business and its merger with Georgia Gulf, PPG also received approximately USD900 million in cash.

PPG will report the results of its commodity chemicals business for January 2013 and a net gain resulting from the separation as results from discontinued operations when it reports its results for the quarter ending March 31, 2013.

The Georgia Gulf Corporation has historically been a major manufacturer and marketer of chlorovinyls (caustic soda, chlorine, VCM, EDC, PVC resins, PVC rigid and flexible compounds) and aromatics (acetone, cumene, phenol). With the acquisition of Royal Group Technologies the company is now also a major producer of building materials ranging from piping and siding to window profiles, decking, and fencing.

PPG Industries Inc. is an Americain international company that produces paints, chemicals, optical components, specialty materials, glass and fiber glass. The company consists of more than 150 production units and offices in more than 60 countries. PPG industries is in the list of the top 500 U.S. corporations in terms of sales of. As MRC reported previously, PPG Industries plans to open its first factory in Russia near Tver. As of today, PPG Industries has no production facilities in Russia.
MRC

MOSCOW (MRC) -- Demostrating its growth commitment, Saudi Basic Industries Corporation (SABIC) has expanded its multi-year agreement with one of the world's top-ranked universities, ETH Zurich (Swiss Federal Institute of Technology, Zurich) for multiple future projects in a wide range of areas in technology and innovation, according to the company's press release.

SABIC had entered into a research collaboration agreement with the Swiss university last year in the field of functional materials and nanotechnology. The new agreement will strengthen this research alliance and allow the two sides to enter into strategic partnerships. The agreement will allow SABIC to develop advanced technologies into innovative solutions to meet global market needs and demands in many societal areas.

In late September, 2012, the company also signed a multi-year agreement with the University of Cambridge, as MRC informed previously. Earlier last year, SABIC signed three other research collaboration agreements - with the Dalian Institute of Chemical Physics, China; National Research Council, Italy; and Fraunhofer-Gesellschaft, Germany; not counting the said agreement with ETH Zurich, Switzerland.

Ernesto Occhiello, Executive Vice President, SABIC Technology and Innovation, said that collaborative projects with well-established scientific organizations and research centers are an essential part of SABIC's research program.

Besides, the company will launch four new state-of-the-art technology and innovation facilities in 2013: two in Saudi Arabia and one each in India and China. This move represents SABIC's strategic investment to improve technology, applications and solutions and meet the needs of an increasingly sophisticated marketplace, as well as address a wide variety of sustainability issues.
MRC

MOSCOW (MRC) -- On the back of unprecedented and on-going increases in its feedstock costs, DSM Engineering Plastics is required to increase prices for its Akulon PA6 polymers and compounds both in Europe and in North America, according to the company's press release.

Effective 1 February 2013, DSM will increase prices by EUR200/tonne in Europe, and by at least USD0.10/lb in North America.

While DSM Engineering Plastics continues to pursue and implement cost savings initiatives targeted at absorbing the impact of the feedstock escalations, this additional increase is necessary to ensure DSM Engineering Plastics’ sustainable long-term growth.

DSM has recently introduced its new thermally conductive thermoplastic polyester for such components, as foglamp housings, lens holders and AFL (Adaptive Forward Lighting) frames.

We remind that, as MRC wrote previously, DSM is going to invest about EUR100 million in three new R&D facilities in Delft and Sittard-Geleen (both in the Netherlands) over the next two years.

DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) -- Two leading pipe manufacturers from Russia have recently chosen KraussMaffei Berstorff as a systems supplier for premium-quality technology and invested in PO pipe extrusion systems, said Kraussmaffei.

Isoljazionny Trubny Zawod (ITZ) is seeking to enter into a long-term partnership with KraussMaffei Berstorff. Polyplastic Group is already a satisfied KraussMaffei Berstorff customer and, consequently, has placed a follow-up order.

Andreas Kessler, General Sales Manager at KraussMaffei Berstorff, stressed, "Our customer Polyplastic, the largest plastics manufacturer in Russia, is impressed by our proven 36D single-screw extrusion technology and relies on the high quality of our products and our many years of experience in systems engineering".

"Our customer is currently modernizing its machinery with our equipment". The order is for two models of the 36D single-screw extruder series which will be integrated into an existing corrugated pipe production plant.

Another extruder model, the KME 90-36 B/R, will be installed in an existing line for the production of smooth HDPE tubes (up to a diameter of 800 mm). The systems will go into operation in the spring of 2013. In addition, the largest KraussMaffei Berstorff compounder line began operation at maximum output at Polyplastic's Saratov facility in May 2012.

Isoljazionny Trubny Zawod (ITZ) with head offices in Peresvet (near Moscow) has total confidence in KraussMaffei's large-diameter pipe technology. ITZ, a newcomer to HDPE production, has consciously chosen KraussMaffei technology because, in addition to delivering high quality it has a technical edge over other production systems available on the market.

The KraussMaffei Group is a global leader in the plastics and rubber processing industries. The company covers all areas of injection molding machinery, extrusion technology and reaction process machinery, which gives it a unique selling point in the industry.

As MRC wrote earlier, Onex Corporation,a Toronto based private equity investment firm and holding company, announced that it completed the acquisition of KraussMaffei Group, a leading manufacturer of plastic and rubber processing equipment, for EUR568 million.


MRC