Innovative research and new products brings BASF EUR8.5 billion in 2012

MOSCOW (MRC) --BASF, the largest diversified chemical company in the world, had sales of approximately EUR8.5 billion in 2012 from new products that have been on the market for less than five years, reported the company in its press-release.

"Our research Verbund has increased its innovative strength to a new level of performance in 2012," said Dr. Andreas Kreimeyer, member of the Board of Executive Directors of BASF SE and Research Executive Director, at the Research Press Conference in Ludwigshafen.

In 2012, BASF launched more than 250 new products onto the market.

"If we also include new formulations and optimized products, the total actually runs to several thousand," added Kreimeyer. In 2020, BASF aims to achieve sales of EUR30 billion from new products that have been on the market for less than ten years.

To continue being successful with innovations, in 2012 BASF increased its research and development expenditures to EUR1.7 billion (in 2011 - EUR1.6 billion). At present around 10,500 employees are working in international and interdisciplinary teams on about 3,000 projects worldwide.

In 2020, BASF plans to conduct half of its research outside Europe.

"Our aim is to achieve greater access to customers, young scientists and innovation centers in the various regions."

In 2012, BASF opened seven new laboratories in Asia and the United States and expanded laboratories worldwide to achieve this goal. The proportion of research activities outside of Europe has increased from 24% in 2011 to 27% in 2012.

As MRC reported earlier, in early April, the company presented its innovative solutions for energy-efficient and low-maintenance construction in Russia at the trade fair MosBuild. The BASF's new wide-range construction portfolio is aimed to increase energy efficiency in buildings and enhance durability and, thus, reduce repair and maintenance costs.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, announces a net profit of EUR 61 million compared to EUR 140 million in the same quarter in 2012, said the producer.

The decrease in net profit was a result of lower sales volumes and profits in its joint venture, Borouge, due to a planned turnaround for routine maintenance, as well as soft market conditions for the European Polyolefins business. The Base Chemicals Business Group including fertilizer continued to perform well and delivered results above the same quarter of last year.

Net debt increased by EUR 173 million, driven largely by the acquisition of DEXPlastomers and a dividend payment to Borealis’ shareholders. Borealis’ financial position remains strong with financial gearing at 47% at the end of the first quarter.

The start-up of the new semi-commercial polyolefins catalyst plant progresses well, with multiple batches of catalyst successfully tested through the company’s polymer lab and pilot plant facilities. Preparations are underway to commence the qualification process at Borealis’ key commercial production facilities during the second quarter of 2013. The second line within the catalyst plant, which will focus on the development of new catalysts, was completed during the first quarter of 2013.

Borouge, Borealis’ joint venture in Abu Dhabi, has safely completed scheduled turnarounds at its Borouge 1 and Borouge 2 crackers and polyethylene and polypropylene plants. All the plants have been restarted successfully after the turnaround and production levels have returned to normal.

Borouge has entered the final preparation phase for the start-up of its Borouge 3 expansion which will increase the annual production capacity of the company’s integrated polyolefin site from the current 2 million tonnes to 4.5 million tonnes by mid-2014. Over 23,000 contractors and sub-contractors remain involved in the construction work in Ruwais. The new Borouge Innovation Centre in Abu Dhabi will be completed in 2013 to further support Borouge’s value-creation approach and help develop innovative plastics solutions to meet all customers’ requirements.

In February, Borealis made a firm offer to French oil and petrochemicals company TOTAL to purchase all outstanding shares of GPN SA, France’s largest nitrogen fertilizer manufacturer. Coinciding with its bid for GPN, Borealis made a firm offer to TOTAL for its entire 56.86% interest in Rosier SA. Rosier is a mineral fertilizer manufacturer with two production facilities in Moustier, Belgium and in Sas van Gent, The Netherlands.

In early March, Borealis announced that it had completed the acquisition of DEXPlastomers VOF in Geleen, The Netherlands, from DSM Nederland BV and ExxonMobil Benelux Holdings BV. DEXPlastomers was a 50/50 joint venture ultimately owned by Royal DSM and ExxonMobil Chemical Company and has since been renamed Borealis Plastomers.
MRC

MOSCOW (MRC) -- The Malaysian company Toray Plastics is likely to shut operations at two of its five lines at its acrylonitrile-butadiene-styrene (ABS) plant in Malaysia, as per Apic-Online.

A Polymerupdate source in Malaysia informed that the lines are planned to be shut in November 2013. The lines are expected to remain off-stream for around one month.

Located at Penang in Malaysia, the ABS plant has five lines with a combined production capacity of 330,000 mt/year.

ABS - resin used for the manufacture of toys, consumer electronics, home appliances, office equipment, as well as in the automotive and construction industries.

As MRC informed previously, on 1 February, 2013, Toray Plastics has resumed operations at two lines in Penang for the production of ABS after maintenance. They were stopped on 5 November for a turnaround, which was planned as early as mid-October, 2012, and was supposed to last one month. Thus, the production of ABS plastics at these lines was to resume in the first half of December 2012, but the re-start of production was postponed until the end of January due to poor market conditions. The nominal capacity of the said two ABS lines are 55,000 tonnes each.

Toray Plastics is a subsidiary of Toray Industries, Inc - the world's leading producer of synthetic fibers and textiles, high-quality polypropylene and polyester films and engineering plastics. Toray Plastics is the largest manufacturer of ABS plastic in Southeast Asia, which it produces under the brand name TOYOLAC.
MRC

MOSCOW (MRC) -- Dow Chemical has reported earnings of USD0.35 per share, or adjusted earnings of USD0.61 per share, according to the company's press-release.

This compares with earnings of USD0.54 per share in the same quarter last year, or adjusted earnings of USD0.82 per share. Earnings for the quarter were reduced by certain items totaling USD0.26 per share, due to restructuring activities the Company elected to implement in the quarter, as well as a charge related to the early extinguishment of debt.

Sales were USD14.7 billion, in line with the same quarter last year. Adjusted sales rose 4% versus the year-ago period, marking the tenth consecutive quarter of year-over-year sales growth.

EBITDA was USD1.7 billion, or USD2.1 billion excluding certain items.

The company's operating rate was 84% for the quarter, up 12% versus the previous quarter and up 1% versus the year-ago period.

The Company reduced debt by more than USD1 billion in the quarter. Interest expense declined nearly USD50 million versus the year-ago period, due to the Company's ongoing capital management strategy and deleveraging actions over the last 12 months. Net debt to total capitalization was 41.2%, remaining on target to reach the company's year-end 2012 goal.

Andrew N. Liveris, Dow’s chairman and chief executive officer, stated: "Dow again demonstrated the strength of its transformed portfolio, even as demand remained slow early in the quarter. The benefit of our balanced portfolio was again evident: We captured demand gains in developed regions – particularly in the US and Germany – and posted a tenth consecutive quarter of volume increases in rapidly growing emerging economies".

As MRC wrote previously, in 2012, net profit of US petrochemical giant Dow Chemical fell by almost 2.5 times to USD1.19 bln compared with 2011 (from USD2.74 bln).

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber. In 2012, Dow had annual sales of approximately USD57 billion. The company's more than 5,000 products are manufactured at 188 sites in 36 countries across the globe.
MRC

MOSCOW (MRC) -- Protests against a planned oil refinery and petrochemicals facility broke out in southwest China for the second time this month, as pressure mounted on local leaders over environmental impact of the project, said Hydracarbonprocessing.

Local activists are demanding that officials scrap plans to produce the chemical paraxylene, known as PX, as part of the refinery under construction nearby. Many are outraged that local officials won't release the results of an environmental impact assessment of the project, according to activists and local media.

PX production is booming in China. The chemical is a critical building block in the production of textiles and plastics, and industry advocates say under normal conditions it can be produced safely and without threat to humans.

But its production has repeatedly come under fire in recent years from residents in multiple Chinese cities who fear it will damage their health as well as the environment. Following protests in 2007 in the eastern city of Xiamen, local officials pledged to move a planned PX plant away from the popular tourist town.

Similarly, in 2011, officials promised to close a plant in the northeast city of Dalian after more than 10,000 people took to the streets in protest of PX production there. State media reported in December that relocation work for the Dalian plant was still under way.

As MRC wrote earlier, Zhenhai district government said Sunday it had halted construction of a paraxylene plant in Ningbo planned by China Petroleum & Chemical Corp., or Sinopec, amid growing environmental concerns. The government said that it would conduct additional research on the project. The PX plant with a capacity 1.6 million mt/year was scheduled to come on stream in 2014.

Concerns over transparency and locating the planned refinery so close to the city underpin resistance in Kunming. Residents have demanded officials release results of a government required environmental impact assessment. Others have called for third party groups to be allowed to conduct an independent assessment of the planned refinery, which has already been approved by China's National Development and Reform Commission, its top economic planning body.
MRC