SIBUR reports more than 5% increase in APG processing in Q1 2013

MOSCOW (MRC) -- In the first quarter of 2013, SIBUR’s gas processing plants (GPPs) processed 4.9 billion cubic metres of associated petroleum gas (APG), an increase of 5.3% year-on-year, reported the company in its press-release.

As a result, production of natural gas rose 4.2% year-on-year to 4.2 billion cubic meters. Raw natural gas liquids
(NGL) production increased by 12% year-on-year to 1.3 million tonnes.

In the first quarter of 2013, the company's natural gas sales volumes increased by 26.7% year-on-year to 3.5 billion cubic meters. External sales of natural gas liquids, which comprise liquefied petroleum gases (LPG), naphtha and raw NGL, rose 11.7% year-on-year to 1.1 million tonnes.

Sales volumes of petrochemical products totaled 529,203 tonnes, a decrease of 13.3% year-on-year, primarily attributable to the reclassification of a significant portion of external polypropylene sales to intercompany following the consolidation of BIAXPLEN, as well as lower sales of synthetic rubbers due to weak demand.

As MRC wrote previously, in mid-March 2013, SIBUR and TNK-BP signed a set of agreements that defined the format of cooperation between the parties within OOO Yugragazpererabotka, an APG processing joint venture (JV), for the period from 2017 through 2026. The parties have extended the key agreements related to the supply of associated petroleum gas (APG) and purchase of dry gas and natural gas liquids (NGLs) that are products of APG processing. Both have also revised the guaranteed APG volumes that will be supplied by TNK-BP to Nizhnevartovskiy and Belozerniy GPPs as part of the JV. The parties have extended the term of the JV for an indefinite period of time, while terminating the call option agreements.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. The company owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2013, SIBUR operated 27 production sites across Russia and employed over 30,000 personnel. SIBUR serve over 1,500 large customers operating in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 60 countries.
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MOSCOW (MRC) -- Polymer Group, Inc. (PGI) plans to invest in a strategic site in Nanhai, China that will enable the company to expand its manufacturing capacity for high quality nonwoven products for the global hygiene and healthcare markets it serves, reported Plastemart.

PGI's investment in a state-of-the-art facility in Nanhai will also increase its capacity to produce advanced chemical bond products for hygiene applications to meet the growing needs of key customers in the region. PGI has operated in Nanhai for over 15 years. This investment will enable the company to continue to support growth through this strategic location.

PGI has been instrumental in leading the growth of the nonwovens industry into China, both through early entry in the region and investment in a proprietary manufacturing platform. The company will continue to expand its manufacturing footprint as it serves the growth and innovation needs of its customers.

The company's Nanhai facility will combine the benefits of PGI's current and new manufacturing technologies and is expected to be complete by H1-2016, with no disruptions to customers. PGI's investment will be supported by The Nanhai District People's Government, a key partner to PGI in its successful operation in the region.

As MRC informed previously, recently Dow Chemical announced the introduction of its technology platform for Rhoplex Econext - acrylic binders for the North American hygiene and medical market. This series of low and ultra-low formaldehyde binders allows companies an opportunity to manufacture end-use nonwoven products with minimal levels of formaldehyde and comply with the industry’s most stringent standards.
MRC

MOSCOW (MRC) -- Dow Chemical, an American multinational chemical corporation, has announced the signing of the main financing for the Sadara project, reported the company on its site.

Sadara Chemical Company (Sadara), Dow’s joint venture with Saudi Aramco, entered into definitive agreements with certain export credit agencies, commercial banks and the Public Investment Fund of the Kingdom of Saudi Arabia for approximately USD10.5 billion of additional project financing.

The financing supplements the USD2 billion raised through a Sukuk Islamic bond issuance in April, 2013, bringing the total Sadara project financing raised to approximately USD12.5 billion, which will be used to fund the construction and start-up of the joint venture.

Financial close of the project financing is expected to occur in the third quarter of this year.

"Securing the financing for this historic project is the achievement of a significant and critical milestone," said Andrew N. Liveris, Dow’s chairman and chief executive officer. "Sadara is a cornerstone of Dow’s growth strategy. The joint venture will introduce a differentiated product slate from a competitive, low-cost position which will transform the landscape of our industry and the chemicals and plastics sector in Saudi Arabia."

Bill Weideman, Dow’s executive vice president and chief financial officer commented: "This high-quality investment is expected to provide a competitive cost position for the company, while capturing customer demand in emerging regions and driving high-margin, sustainable global growth."

The formation of this joint venture is a major step forward in Dow’s strategy to drive long-term profitable growth in its downstream, innovation-driven businesses and in fast-growing regions such as Asia Pacific, the Middle East and Africa, and Eastern Europe. The joint venture is expected to deliver EBITDA margins of 35-40% and a stream of equity earnings for Dow averaging USD500 million annually during the first 10 years following its start-up.

Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City 2, Kingdom of Saudi Arabia. The complex will be comprised of 26 manufacturing units, will possess flexible cracking capabilities and is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016. As MRC wrote previously, petrochemical company Sadara has recently contracted Intertec to protect around 1,000 field-based process analysers at its new complex in Saudi Arabia.

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, polyurethane, polyethylene, polypropylene, 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) -- Mitsui Chemicals, a Japanese chemical company, has announced a further expansion of its dental material business with acquisition of 50.01% of issued and outstanding shares of DENTCA, Inc. on June 20, 2013, reported the company in its press-release.

"Mitsui Chemicals, in line with one of its strategies in the FY2011 Mid-term Business Plan, has expanded its portfolio in businesses resilient to changing economic conditions such as healthcare," stated Minoru Koshibe, Mitsui Chemicals Executive Vice President. "As part of this strategy, Mitsui Chemicals targets active expansion including M&As, such as this April’s acquisition of the dental materials business of German Heraeus Holdings GmbH, which has a global manufacturing and sales network."

The dentures market is expected to continue to grow leveraged by the increase in aging of world-wide populations and rising incomes in emerging countries.

Mitsui Chemicals targets expansion of its global denture business through DENTCA's cutting-edge denture design technology using CAD/CAM and its own advanced material development and processing technology to develop high-performance dentures that meet global needs. In addition, both parties will benefit from the synergistic effect brought by the abundant selection of dental-related materials of Heraeus Dental.

As MRC informed earlier, Mitsui Chemicals Inc. detailed its 1 April 2013 organizational restructuring intended to support further acceleration of its portfolio transformation and implementation of safety directives. The plan involves restructuring of research and development, strengthening its safety management structure and restructuring of the Finance and Accounting Division.

DENTCA, with its head office in the United States, develops, manufactures, and distributes dentures using new cutting edge computer-aided design (CAD), computer aided manufacturing (CAM) technology, and proprietary 3-Dimensional modeling and printing technology.

Mitsui Chemicals,a Japanese chemical company, is a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. Mitsui Chemicals’ business portfolio includes petrochemicals, basic chemicals, polyurethanes, functional polymeric materials, functional chemicals, and films and sheets.
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