Keyuan Petrochemicals receives three patents on ABS

MOSCOW (MRC) -- Keyuan Petrochemicals Inc. an independent manufacturer and supplier of various petrochemical products in China received three patent notices from the Patent Office of China regarding inventions related to the production process of acrylonitrile, said Dailymarkets.

As MRC wrote earlier, In January 2012, Keyuan signed a cooperation agreement with Fangchenggang City to build a new petrochemicals production facility, Guangxi Keyuan New Materials Industrial Park, in Guangxi Province. Once the facility is fully operational, it is expected to have annual production capacity of 400,000 metric tons of acrylonitrile butadiene styrene (ABS) and related products. Keyuan has been focused on the complex pre-construction government approval work and on research to improve the efficiency of the production of Guangxi Project since the signing of the agreement.

While working with East China University Of Science and Technology (ECUST), the Company discovered the technique to improve recovery rate and output capacity of acrylonitrile. Based on that discovery, the Company applied for patents for three devices in the production process in August, 2012, which are Fluidization Reaction System of Acrylonitrile, Cooler of Acrylonitrile Gas and Absorption Tower of Acrylonitrile. These three technology inventions are used for improving the output capacity and recovery rate, decreasing discharge waste to improve production efficiency. The Company has now received the patent notices from Patent Office, which means its application has been approved.

Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. Having commenced production in October 2010, Keyuan’s operations include an annual petrochemical manufacturing design capacity of 720,000 MT for a variety of petrochemical products.

One SBS production line began commercial production in December 2011 and the second line began commercial production in August, 2012. The company plans to add additional storage capacity, a raw material pre-treatment facility, an asphalt production facility, and an ABS production facility.
MRC

MOSCOW (ICIS-MRC) - European producers of polyolefins are not able to pass the costs of feedstock on export prices for March, despite a substantial increase in contract prices of ethylene and propylene, according to ICIS-MRC Price Report.

Although oil prices in late February began to decline, contract prices of olefins in Europe for March increased significantly. Ethylene and propylene prices increased by EUR50/tonne and EUR55/tonne, respectively, from February. European producers have announced at least proportional increase in export prices of polyethylene and polypropylene for the CIS markets.

February was quite difficult for European producers in terms of exports to the CIS countries. The high rate of the euro against other world currencies and low demand for polyethylene and polypropylene in the CIS markets forced European makers keep on February delivery polymers January prices. Some makers have been forced to cut prices to the level of December 2012.

By mid-February the European export prices of HDPE were agreed at EUR1,200-1,280/tonne , FCA. Prices of homopolymer propylene were agreed at EUR1,170-1,240/tonne, FCA. But even with these price cuts demand for European polyolefins from CIS markets was low.

This week the oil prices continued to decline, and this has further aggravated the situation of European producers. The negotiations on European export prices of polyethylene and polypropylene for March began on Monday.

Some makers announced a proportional increase in prices of monomers according to of export prices of polyethylene and polypropylene for the CIS countries. Some makers increased prices by EUR10-20/tonne, compared to the February level. On some grades of polyolefins European producers even had to reduce prices.

The situation is also complicated the offers of polyethylene and polypropylene from the Middle East, North American and Asian makers. Thus, offers for March shipments of HDPE from Middle Eastern producers in Ukraine were voiced at USD1,450-1,560/tonne, CIF Odessa. Offers for North American HDPE for Russian market were at USD1,520-1,580/tonne, CFR St. Petersburg.

MRC

MOSCOW (MRC) -- Sri Lankan Government has given its approval to allow the Singapore based Peak Energy to build a polyethylene terephthalate (PET) manufacturing plant in the port city of Hambantota, according to Plastemart.

The Singaporean firm has already registered a new firm in Sri Lanka under the name of Hambana Petrochemicals Private Limited, which will bring in an initial investment of USD135 mln.

SLPA is expected to sign the agreement with the Petrochemical firm very soon. Government will lease out 5 hectares in the Hambantota Port city to the Singaporean firm to build the proposed PET Plant.

We remind that, as MRC informed earlier, Sri Lanka is to become a major petrochemical marketing centre for the Asian region in line with a marketing expansion plan of Qatar Petrochemical Company (QAPCO). QAPCO plans to explore the full potential of the strategic location of the island country in marketing low-density polyethylene (LDPE) products to countries in the region.
MRC

MOSCOW (MRC) -- A. Schulman Inc. (SHLM) has made public its offer to buy Ferro Corp. for about USD563 million in cash and stock as the specialty chemicals company continues to pursue a deal with its smaller peer, which has rejected the deal, according to The Wall Street Journal.

Schulman is offering Ferro's shareholders a per-share price of USD6.50, which is a 25% premium over Ferro's Friday closing price. The per-share price includes an immediate cash payment of USD3.25 for each Ferro share outstanding and USD3.25 worth of A. Schulman common stock.

Shares of Ferro rose 28% to USD6.65 in recent premarket trading. Through Friday's close, the stock has risen 24% so far this year.

Including debt, the deal is valued at about USD855 million.

In a letter to Ferro on Feb. 13, Schulman expressed its "strong intent" in buying the company. However Ferro's board rejected its offer and expressed its belief that the company should remain independent. Schulman said it first contacted Ferro in November of last year.

"A. Schulman and Ferro are both recognized leaders in specialty chemicals with value-added product lines, similar business models, complementary competencies, markets and applications," A. Schulman Chief Executive Joseph M. Gingo said. "We believe our combination will deliver superior value to our respective shareholders and offer better value to customers, and we would welcome the opportunity to engage in a mutually beneficial dialogue with Ferro's board and management."

A representative of Ferro didn't immediately respond to a request for comment.

Schulman highlighted its free cash flow generation over the past five years, noting this has been USD400 million as compared with Ferro's USD60 million. Schulman added that were it able to perform due diligence on Ferro, it could adjust its offer, which is currently based on public information.

We remind that, as MRC wrote previously, in mid-2012 A. Schulman Inc. inked a definitive agreement to acquire ECM Plastics, a privately owned plastics compounder located in Worcester, Mass., for USD36.5 million. Besides, Jeddah-based National Petrochemical Industrial Company (Natpet), a subsidiary of Alujain Corporation, entered into a joint venture agreement with A. Schulman to produce polypropylene compounds.

A. Schulman is a global plastics supplier, headquartered in Akron, Ohio, and a leading international supplier of high-performance plastic compounds and resins, which are used as raw materials in a variety of markets. A. Schulman has 33 manufacturing facilities globally. It reported net sales of USD2.2 billion for the fiscal year ended August 31, 2011.
MRC

MOSCOW (MRC) -- Siluria Technologies announced it is developing an efficient and economic process to convert natural gas into value-added chemicals, used by industry and also manufactured into thousands of everyday products, said Prnewswire.

Backed by some of the world's leading venture capital firms, Siluria is a San Francisco Bay Area start-up. Siluria is working on a proprietary catalytic process for the direct conversion of natural gas, the world's most abundant petrochemical feedstock, into ethylene, the world's largest commodity chemical. Siluria's success will enable a novel, economically attractive pathway to produce existing chemicals and fuels.

"While the world's access to oil supplies is becoming more expensive, the natural gas resource base continues to grow," explains Dr. Alex Tkachenko , president of Siluria. "Our goal is to convert methane, the principal component of natural gas, directly into ethylene, the fundamental building block of the chemical industry. Ethylene and its derivatives, such as polyethylene, are in thousands of everyday products, including tires, medical devices, cosmetics, food packaging, anti-freeze, paints, appliances, and liquid crystal displays."

Ethylene is the largest global commodity chemical, with 140 million tons used annually in an industry worth USD160 billion per year. Today, ethylene is produced via steam cracking, a mature technology that consumes more energy than any other chemical process, uses valuable oil resources, and is the largest contributor to greenhouse emissions in the chemical industry.

Siluria's catalyst synthesis technology is based on the innovative discoveries of MIT Professor and Siluria founder, Dr. Angela Belcher . Dr. Belcher's synthetic technology produces inorganic materials in the same way nature makes them: with a bottom-up, versus a conventional, top-down synthetic approach.

Siluria's technology application is to grow nanowire catalysts with unique surfaces, structures and shapes. This synthetic approach offers improved ways to manipulate catalyst surfaces. Novel surfaces have the potential for improving catalyst performance in structure-sensitive reactions. Under license from MIT, Siluria is developing catalysts that are robust, stable at high temperature, and compatible with the existing petrochemical industry infrastructure.

As MRC wrote earlier, Siluria successfully raised USD 30 million in a round led by Russia-based Bright Capital and Microsoft co-founder Paul Allen"s Vulcan Capital. Besides, existing venture capital investors like Kleiner Perkins Caufield & Byers, also contributed. In all the company raised USD 63.3 million.
MRC