PTT Chemical anticipates mid-year decision on JVs in China, Indonesia, Malaysia

MOSCOW (MRC)-- PTT Global Chemical (PTTGC) expects a final decision by the middle of this year on proceeding with joint venture projects in China, Indonesia and Malaysia, said Apic-online.

PTTGC has signed a memorandum of understanding with Sinochem International Corp. to establish a Chinese joint venture petrochemical product that would supply the construction and auto parts sectors.

In Indonesia, PTTGC has been shortlisted as a partner in a USD5-billion integrated refinery and petrochemical complex planned by Pertamina on Java Island.

PTTGC has also announced plans for a partnership with Malaysia's Petronas in Petronas' proposed Refinery & Petrochemical Integrated Development project in Pandering, Malaysia.

These projects are among those for which PTTGC has allocated USD4.5-billion between 2013 and 2017 to expand its operations.

Separately, Chief Executive Anon Sirisaengtaksin said PTTGC expects earnings before interest, taxes depreciation and amortization (EBITDA) to increase between 5% and 6% a year over the next five years based on planned expansion and improved production efficiency. He believes the company’s 2017 EBITDA will be 15% to 30% higher than the 55-billion baht reported for 2012.

As MRC reported earlier, PTT is also in talks with Indonesia's state-run Pertamina Oil Co on investment in a petrochemical-refinery project, which the Thai energy giant expects to conclude in April or May. PTTGC has agreed to conduct a feasibility study on expanding a fully integrated petrochemical complex with Pertamina.

Incorporated in late 2011 through a merger of PTT Chemical PCL and PTT Aromatics and Refining PCL, PTT Global Chemical has petrochemical capacity of 8.2 million tpy of olefins and aromatics and refining capacity of 280,000 bpd.
The Polymer product business produce a wide range of plastic products for use in various industries. Among the main products are HDPE, LDPE, LLDPE, PS.

MRC

VOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), the world’s leading vertically integrated Polyester Value Chain producer, saw revenues rise by USD678 m to USD6.78 billion in 2012, said IVL in its statement.

The general sentiments for commodity polyester value chain was weak, however, operational excellence improvements, a Brownfield PET capacity addition at Rotterdam, the acquisition of FiberVisions’ global hygiene business as well as the addition of the Indorama Ventures (Oxide and Glycols) business in North America, have potentially offset the weak Polyester chain margins in Asia.

The 2012 consolidated reported EBITDA is USD453 million, consolidated net profit after tax and minority of USD148 million, consolidated operating cash flow of USD 471 million and consolidated return on average net operating capital employed of 7%. Consolidated EBITDA declined by 19% from continuing oversupply of PTA in Asia that has weakened spreads across the value chain.

The Company believes it has seen the worst of the Asian-led weakness and expects to see a gradual rebound over the 2013-2014 period. Therefore, the Company has recommended a final dividend of THB 0.18 for 2012, amounting to THB 0.36 for the full year 2012, an increase from 31% payout for 2011 to 38% payout for 2012.

As MRC wrote earlier, Indorama Ventures is going to expand the PET polymers production capacity in the USA by setting up a new plant with a capacity of 540,000 tonnes per year. This expansion, which is expected to be completed in Q4 2015 will take IVL's total capacity in North America of PET polymers up to 2,100,000 tonnes per annum.

Indorama Ventures a.k.a. Indorama Ventures Public Company Limited is a polyester and yarn manufacturer. Indorama Ventures is headquartered in Bangkok and started its operations in 1994. It has offices in 16 countries and total of 32 manufacturing sites.
MRC

MOSCOW (MRC) - In January 2013, the Russia's production of bottle PET made more than 35,000 tonnes, which is equivalent to 81% of all countries's capacitiy utilisation of PET production, according to MRC ScanPlast.

The January demand for granulate in Russia was steady. Though the capacities of Russian plants do not operate at full capacity. The last months' PET production in Russia was slightly lower than in January 2011.

The largest volumes of PET have been produced by Polief (Bashkir), with about 12,000 tonnes of material. Alco-Nafta, the largest producer of PET in Russia, last month was loaded only by 49%, though a monthly capacity of the plant can produce more than 18,000 tonnes of material. According to the sources, company is going to increase production of granulate this spring.

As per MRC, in 2012 the Russian production of PET granulate increased by 55,700 tonnes, up 14% from 2011 on the back of imports displacement. In general in 2012, Russia produced about 450,000 tonnes of bottle PET. The average annual capacity utilization of Russian producers was 86.5%.

MRC

MOSCOW (MRC) -- Due to a high level of capacity utilization, Russian PE producers managed to increase production of polyethylene to more than 150,000 tonnes in January, according to MRC ScanPlast.

Since November last year, the output of polyethylene has been increasing in Russia. In January, Russian producers showed a high level of capacity utilization, despite a serious decline in demand in all sectors of PE consumption. Makers of high-density polyethylene (HDPE) accounted for the main increase in the output. The total output of HDPE exceeded 92,000 tonnes, while the production of low-density polyethylene (LDPE) made about 58,000 tonnes. Russian makers did not produce LLDPE in January.

Last month Russian HDPE producers managed to keep 100% capacity utilization, despite low domestic demand, and reduced exports. In January, Kazanorgsintez retained December level of HDPE production - about 42,000 tonnes. Stavrolen increased production to 26,400 tonnes, Nizhnekamskneftekhim produced about 19,000 tonnes. Gazprom Neftekhim Salavat reduced the production volume of HDPE to 5,000 tonnes in January.

Producers of low-density polyethylene (LDPE) kept a high level of capacity utilization last month, except for Tomskneftekhim and Angarsk polymer plant. The total output of LDPE at these plants amounted to 20,600 tonnes and 4,500 tonnes, respectively. In January, the largest producer of polyethylene - Kazanorgsintez produced a little more than 21,000 tonnes of LDPE. The total output of low-density polyethylene by Ufaorgsintez and Gazprom Neftekhim Salavat made 8,000 tonnes and 3,500 tonnes, respectively.

MRC

MOSCOW (MRC) -- In January 2013, sales of Ukrainian titanium dioxide (TiO2) to the foreign markets rose by 3.4% to 10,200 tonnes, according to MRC DataScope.

The share of export shipments of "Crimean Titan" titanium dioxide made around 77%. Last month "Crimean Titan" exported 7,874 tonnes of TiO2.

Exports of Sumykhimprom TiO2 made 2,300 tonnes, accounting for 22% of the total sales of titanium dioxide by Ukrainian producers to the foreign markets.

MRC analysts report that the largest sales market of the Crimean TiO2 is Turkey. Most of Sumykhimprom production has been exported to Russia.

In 2012, the total exports of Ukrainian titanium dioxide amounted to 135,700 tonnes. In 2011, Ukrainian producers of titanium dioxide exported 138,900 tonnes of TiO2. Last year the fall in shipments was due to a general decline in global consumption of titanium dioxide in the main processing sectors of the material.

MRC