Sadara selects Intertec enclosure technology for process analysers

MOSCOW (MRC) -- Petrochemical company Sadara has contracted Intertec to protect around 1,000 field-based process analysers at its new complex in Saudi Arabia, said Chemicals-technology.

"The complex is expected to serve the emerging markets of Asia Pacific, the Middle East, Eastern Europe and Africa."
As part of the contract, Intertec will supply the environmental protection cabinets and shelters, which will protect the process analysers from the region's extreme climatic conditions.

Constructed from high-performance grades of glass reinforced polyester (GRP), the outdoor cabinets are being designed and produced at two of Intertec's plants, in Neustadt, Germany, and Sarnia, Canada.

Intertec had started making the deliveries of cabinets to the instrumentation OEMs involved in the Sadara project in the first quarter of 2013.

As MRC wrote earlier, Sadara Chemical Company awarded Tecnicas Reunidas (TR) the Chem-III project, contract for part of the chemical complex being built in Jubail Industrial City II, Saudi Arabia. Sadara is a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow), and is the world's largest chemical complex ever built in a single phase. The project awarded to Tecnicas Reunidas includes the ethylene oxide, propylene glycol, polyols, ethanol amines, ethylene amines, butyl glycol ether plants and the auxiliary and control facilities necessary for their operation.

The Sadara complex, which will have 26 manufacturing facilities, is claimed to be the world's largest petrochemical facility ever built in a single phase and will manufacture more than three million tonnes of chemical and plastics products.

The complex is expected to serve the emerging markets of Asia Pacific, the Middle East, Eastern Europe and Africa.
The joint venture between Saudi Aramco and The Dow Chemical Company Sadara Chemical Company will build, own and operate an integrated chemicals complex in Jubail Industrial City II, Saudi Arabia.
MRC

MOSCOW (MRC) -- Russian petrochemicals industry is set to expand in the next five year as plans to diversify the economy will bring more investment into the industry, said Plastemart.

Russian economy, which has been highly dependent on hydrocarbon resources, will receive more support from the petrochemicals industry once all the planned plants come on-stream, as per GlobalData's new report.

The major beneficiary of the diversification drive will be the olefins sector, where the production capacity will increase by more than 100% by 2017. The government is also supporting the industry by establishing petrochemical clusters at six locations across the country. This will further boost investments in the petrochemicals industry as these clusters will be integrated with the feedstock sources as well as downstream producers.

As MRC wrote earlier, Russia has identified six locations for cracker-based petrochemicals clusters as part of plans to develop this sector in the country.
The clusters will be located at two "brownfield" sites and four "greenfield" sites. They will be developed in phases, with the two brownfield sites - in western Siberia and in the Volga region - included in phase one.

Sibur already has gas fractionation and petrochemicals activities in Tobolsk, and is planning a new cracker project at the site. There is also already some petrochemicals production, including crackers, in Volga.

Phase two of Russia’s petrochemicals cluster plan involves developing a cluster in the Caspian region, he said. Phase three will involve developing clusters in the northwest region and eastern Siberia, and the final phase will involve a cluster in the far east of Russia.
MRC

MOSCOW (MRC) -- Several polymer producers reported higher quarterly profits for the fourth quarter, although most producers said that their full year results for 2012 fell below their 2011 figures, said Apic-online.

Producers active in other chemical markets said that their polyolefin business generally performed poorly relative to their base chemical business.

Saudi Arabia’s SABIC posted a net profit of SAR5.83 billion (USD1.55 billion) for the fourth quarter of 2012, an 11.3% rise compared to the company’s fourth quarter results for 2011 but down 7.6% from its third quarter results. For the full year of 2012, SABIC’s net income declined 15.5% to reach SAR24.72 billion (USD6.6 billion). The company attributed the reduction in yearly profits to higher sales costs and lower sales prices for some products, which pulled down the company’s results in spite of the fact that the company achieved higher sales and production volumes and incurred lower financial charges in 2012.

As MRC wrote earlier, global major LyondellBasell posted higher profits both for the fourth quarter and the full year of 2012 as strong profits from the company’s operations in the Americas help offset the operating losses seen in their European business. For the full year, LyondellBasell’s profits rose from USD2.14 billion in 2011 to USD2.83 billion in 2012. The company reported that profitability in their North American olefins and polyolefins business more than doubled over the same period of last year to reach USD693 million in the fourth quarter, helping to offset steeper losses outside the Americas. The company’s olefins and polyolefins business outside the Americas witnessed an operating loss of USD94 million in the fourth quarter of 2012 after the same segment had recorded a loss of USD73 million for the same period of 2011.

Following a similar trend, Borealis recorded a stronger net profit in the fourth quarter while posting weaker profits for the full year. The company’s fourth quarter profits rose from EUR58 million in 2011 to EUR100 million in 2012. For the full year, the company’s profit’s slumped from EUR507 million in 2011 to EUR480 million in 2012. The company attributed their strong financial performance to high growth rates in its fertilizer business as well as support from its Borouge joint venture in the United Arab Emirates. These factors helped offset low growth and low margins in the European polyolefins industry, with the company adding that they did not expect the outlook for European polyolefins to improve over the short term.

Malaysia’s Petronas also witnessed higher fourth quarter results while recording weaker profits for the full year. Petronas’ recorded a 12% increase in its fourth quarter profits to MYR988 million (USD313.5 million) in 2012. For the full year, Petronas’ net profit slumped 11% from 2011 to reach MYR3.84 billion (USD1.23 billion). In the olefins and derivatives segment, Petronas’ net profit plunged 89% in the fourth quarter to reach MYR70 million (USD22.5 million) and its full year results for the olefins and derivatives segment dropped 37% to MYR2.08 billion (USD670.5 million). Helping to offset weaker results from its olefins division, Petronas reported that profits in its fertilizer and methanol business tripled in 2012.

German major BASF posted lower profits for both the fourth quarter and the full year due to poorer performance from its chemicals segment. The company’s fourth quarter profit was down 13% from 2011 at EUR980 million. Profit for the full year slipped 21% from 2011 to reach EUR4.88 billion. EBITDA from the company’s chemical business fell 24% to EUR2.41 billion due to lower margins as well as shutdowns at its Ludwigshafen and Port Arthur, Texas facilities. Helping to offset lower performance from the chemicals segment, the company reported that earnings from its oil and gas division rose 81% to EUR4.72 billion.

MRC

MOSCOW (MRC) -- Polyplastic Group, the Russian and CIS market leader in plastic processing, completed the
acquisition of Radius Systems, the UK pipes and fittings maker, with the help of Eversheds, reported Eversheds on its site.

The sum of transaction is not disclosed.

Global law firm Eversheds has advised the shareholders of Radius Systems Limited on the disposal of Radius Systems to Polyplastic Group. The Eversheds’ team was led by Principal Associate, Alistair Cree.

"We are pleased to have helped the shareholders of Radius complete this significant disposal. The future partnership between Polyplastic and Radius represents a strong alignment between two premium businesses and should provide real growth opportunities for both parties," Alistair commented.

"The completion of this acquisition is exceptionally good news for the Radius Group and should be welcome reassurance for both our loyal employees and those suppliers who have supported the business through a tough two year period. Alistair and his team provided excellent advice, assistance and service throughout culminating in the successful completion of the deal," said Andy Taylor, CEO of Radius Systems.

We remind that, as MRC informed previously, last summer Polyplastic Group (Moscow, Russia) and Talis Group (Rodgau, Germany) announced strategic cooperation with regard to selling Talis production in the Russian market and its inclusion in Polyplastic Group's range of products.

Radius Systems’ business involves the development and manufacture of plastic pipes and fittings for the gas, water and wastewater sectors, as well as the production of solutions for the telecoms market. Radius generated net sales of over EUR100 million in 2012 and employs 370 people at its facilities in Hilcote (Derbyshire), Banbridge and Lurgan (both in Northern Ireland).

Polyplastic Group was founded in 1991 and is today the leading European supplier of thermoplastic compounds and polyethylene piping solutions for infrastructure markets, with production plants in Russia, Ukraine, Belarus and Kazakhstan.
MRC

MOSCOW (ICIS-MRC) -- Russian polypropylene (PP) makers hope to keep February price level for March, though many converters expect lower prices amid low demand and the start of a new plant in Omsk, according ICIS-MRC Price report.

February was quiet enough for the Russian market of polypropylene. Many converters restricted their purchasing volumes amid weak demand for finished goods. In addition, the launch of a new polypropylene plant in Omsk, at the production site of Polyom (Titan Group), also influenced the buying activity.

The information about a new supplier in the polypropylene market foremost put a heavy pressure on importers. Prices of Turkmen raffia went down to the level of Rb60,000-61,000/tonne, FCA Astrakhan, including VAT. Russian producers did not start adjusting PP prices in February.

Last week of February, price offers for Omsk polypropylene appeared in the market. Meanwhile, Polyom does not actively promote its production in the market, the company is more focused on the development of the technology and strategy of promoting polypropylene in the market.

By the end of the month, consumer activity had fallen noticeably. Many converters expect an increased competition among producers in March and, as a result, lower PP prices. Price offers for raffia in the spot market are in the range of Rb62,000-64,700/tonne, CPT Moscow, including VAT. Injection moulding homopolymer propylene is offered on average by Rb1,000/tonne higher.

Russian producers still hope to keep February PP prices for March, citing rising prices in the foreign markets and an increasing demand in the domestic market. Besides, the decline in production of homopolymer propylene at Stavrolen (5-days' outage in early March) and Ufaorgsintez (the production of new grades of propylene copolymer is planned) will also help to reduce pressure on the polypropylene market.
MRC