Arkema announces a worldwide expansion of its bis-peroxide capacity

MOSCOW (MRC) -- Arkema has announced a 15% debottlenecking of its bis-peroxide capacity in both its Spinetta (Italy) and Franklin (Virginia) factories, according to the company's press release.

This new capacity will allow Arkema to respond immediately to strong demand in the synthetic rubber crosslinking industry, in particular in Asia, and to support recent developments in fast-growing markets.

This increase capacity, already effective, is the first stage of a multi-step plan which intends to grow the global bis-peroxide capacity by 30% by end 2014.

With its two brands Luperox and Vulcup, Arkema is the world leader in the production of bis-peroxide (Bis-Isopropylbenzene-Peroxide), an organic peroxide largely used in the crosslinking of rubber in various sectors such as wire & cable, automotive and footwear. The bis-peroxide market is expected to grow by some 6%/year in the 3 main regions of Asia, Americas and Europe.

Arkema has recently developed the Luperox FreeO grade which provides an alternative to current crosslinking technologies used extensively today in the foamed EVA industry, as it has the advantage of producing no strong smelling and persistent VOCs (Volatile Organic Compounds), a characteristic which has become a major expectation especially for footwear manufacturers.

"This new capacity will further strengthen our leadership position in bis-peroxide. But above all, it will allow Arkema to follow the growth of our clients, which is expected to be strong especially in Asia. Arkema will also be able to serve new customers that make the choice to replace traditional crosslinking agents with more eco-friendly bis-peroxide," indicated Manny Katz, Global Group President, Organic Peroxides.

As MRC informed previously, last year Arkema announced its 2016 ambition to become a world leader in specialty chemicals and advanced materials. With a selective and profitable growth strategy, the Group targets sales of EUR8 billion and an EBITDA margin of 16% in 2016 while maintaining gearing below 40%. The Group also intends to maintain its pace of development and aims to achieve sales of Eur10 billion with an EBITDA margin close to 17% in 2020.

Arkema is a leading European supplier of chlorochemicals and PVC. The Fonds Strategique de Participation (FSP), a mutual fund created by four major French insurance companies - BNP Paribas Cardif, CNP Assurances, Credit Agricole Assurances through its subsidiary Predica and Sogecap (Groupe Societe Generale) - in order to support long-term investments in listed companies, has recently announced that it now owns 6% of Arkema's share capital.
MRC

PetroChina, INEOS form JVs for Grangemouth, Lavera refineries

MOSCOW (MRC) -- China-based oil and gas company, PetroChina Company, and INEOS Group, a UK-based chemicals group, have formed trading and refining joint ventures (JV) between PetroChina International (London) Company and INEOS Investments (Jersey), said Refiningandpetrochemicals.

The JVs have been formed to manage the trading and refining operations at INEOS' Grangemouth refinery in Scotland and Lavera refinery in France. PetroChina paid USD1.015bn in cash for the shares in the joint ventures.

The JVs are expected to create a strategic partnership between both companies to strengthen presence of both the refineries, improve security of supply for customers and secure jobs in both the UK and France.

Through the JVs, PetroChina is expected to explore the high-end European market and start establishing PetroChina's European oil and gas operation centre.

INEOS Refining CEO Calum MacLean said PetroChina is its long-term strategic partner in both the Grangemouth and Lavera refineries.

"The formation of the joint ventures provides further investment in our refineries, and enhances their competitiveness in European markets," MacLean added.

PetroChina's parent company China National Petroleum (CNPC) and INEOS are also working on a strategic co-operation agreement to share refining and petrochemical technology and expertise.

The Grangemouth refinery is located on the Firth of Forth and processes about 210,000 barrels of crude oil per day, and provides fuel to Scotland, Northern England and Northern Ireland.

The Lavera refinery located on the coast of the Mediterranean crude oil trading basin processes 210,000 barrels of crude oil per day and supplies fuel through pipelines into France, Switzerland and Southern Germany.
MRC

Huntsman to acquire US polyols manufacturer Oxid

MOSCOW (MRC) -- Huntsman Corp. has signed a definitive agreement to acquire Oxid LP, a privately-held manufacturer and marketer of specialty urethane polyols based in Houston, Texas, said Hydracarbonprocessing.

Oxid's polyols are a key component in the production of energy-saving polyurethane insulation products that are used in residential and commercial construction.

The polyols are combined with methylene diphenyl diisocyanate (MDI) to create polyurethane foam insulation for walls, roofs, refrigerators and other applications.

Oxid markets its product line of specialty polyols under the trademark Terol, and it distributes products worldwide from its manufacturing facility in Houston.

The addition of Oxid's MDI product portfolio will support Huntsman's offerings to downstream insulation markets in North America and provide new opportunities globally. The transaction is expected to close in the 3Q. Oxid generated USD86 million of revenue in 2012.

As MRC wrote before, Huntsman Corp, the U.S. chemicals producer founded by Jon Huntsman Sr., is considering an offer for Rockwood Holdings Inc. titanium-dioxide pigments business.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

Russian injection HDPE prices increased on tight supply

MOSCOW (MRC) - Prices of injection high density polyethylene (HDPE) in the Russian market surged to Rb66,000/tonne early this week on the back of tight supply, according to ICIS-MRC Price Report.

Russian market of injection HDPE in June was oversupplied, but by the end of the month the shipment disruptions from Kazanorgsyntez had changed the market balance.

As a result, in July, Russian converters faced with a shortage of injection HDPE, resulting in higher prices.
In the beginning of June the price for Russian injection HDPE were heard in the range of Rb60,000-61,000/tonne CPT Moscow, including VAT, but by the second week of July they reached Rb65,000-66,000/tonne CPT Moscow, including VAT.

In June many converters did not replenish their stocks of injection HDPE, but now many companies, despite higher prices, try to form an additional inventories of it.

The deficit in the market of injection HDPE resulted from several factors. Firstly, one of the main producers of injection PE Gazprom neftekhim Salavat shifted to the production pipe HDPE in June, moreover the plant is to stop its capacities for a month long maintenance works from 18 July.

The second Russian producer of injection HDPE - Kazanorgsyntez also soon suspends the output of the material, and according to preliminary information, plans to return to resume the production of HDPE injection only after a scheduled turnaround in October.
MRC

Nizhnekamskneftekhim raised PS prices

MOSCOW (MRC) -- Nizhnekamskneftehim, Russia's largest polystyrene (PS) producer, has increased July prices by 1,000/tonne, according to ICIS-MRC Price report.

General purpose polystyrene (GPPS) and high impact polystyrene (HIPS) prices in the Russian market increased a bit in early June, slightly offsetting the price fall in April-May. In late June, market participants did not expect significant changes and counted on maintaining June prices for July.

However, it was announced at the beginning of the week that Nizhnekamskneftekhim, the largest GPPS and HIPS producer in Russia, raised its prices for the material by Rb1,000/tonne. A similar increase was also made for export shipments.

Devaluation of the ruble in June, which resulted in higher GPPS and HIPS import prices, is named as the main reason for the price rise.

Other Russian producers still maintain their prices at the same level. PGProf's PS is not available in the spot market at present, as virtually all the volumes are used for self-processing.

Gazprom neftekhim Salavat keeps its prices at June's level. In mid-July, the plant will stop PS production for a month of scheduled maintenance works. Traders that sell Salavat PS intend to increase July prices on the upcoming outage. However, present deliveries are shipped at June prices.
MRC