Arkema sells 6% stake of its share capital to The Fonds Stratégique de Participation

MOSCOW (MRC) -- 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 announced that it now owns 6% of Arkema's share capital, according to Arkema's press release.

Arkema considers this acquisition of a stake in its share capital as a positive sign showing the confidence of the FSP in the long-term strategy implemented by the group and in its management.

With a prospect of maintaining a long-term investment of at least 6% of Arkema's share capital, the FSP has shared with Arkema's Board of Directors (BOD) its intent to seek the appointment of a representative at the Board of Directors.

The Board of Directors will consider favorably the demand for the appointment of an independent representative that the FSP will sent. Upon approval of the proposed representative, BOD should submit the proposed resolution to Arkema's next annual general meeting to be held on May 15th, 2014.

We remind that, as MRC reported earlier, 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 company 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. As MRC informed previously, Moody's Investors Service had upgraded Arkema S.A.'s senior unsecured rating to Baa2 from Baa3. The outlook on the rating was changed to stable from positive.
MRC

MOSCOW (MRC) -- The largest increase in consumption of PET preforms in the current year in Ukraine was provided by the producers of mineral water. In January-May 2013 production of non-carbonated mineral water in Ukraine grew by 25% compared to the same period in the previous year and totalled 17 million dal, according to MRC analysts.

The production of soft drinks (CSD) also grew. Thus, in January-May 2013 production of soft drinks increased by 2.5% and amounted to 61 million dal.

While the production of mineral waters and carbonated soft drinks increased the output of beer and carbonated mineral waters went down. In January-May 2013, Ukraine's production of beer has decreased by 2% to 113.7 million dal.

Production of carbonated mineral water has decreased by 2.6% to 37.3 million dal. MRC analysts said that considering the average weight of PET preforms is 34 grams, the Ukraine's consumption in January-May of 2013 totalled about 2.3 billion pieces of preforms (from 2.27 billion pieces year on year) .

The imports of PET in January-May 2013 to Ukraine grew by 18% compared to the same period in the previous year and amounted to 87,140 tonnes. Market players have formed warehouses, preparing for the seasonal increase in demand.

According to the MRC analysts, the growth in imports resulted from stronger demand and increased production rates from major consumer PET this summer. By midsummer some converters of PET in Ukraine reached 100% of production rates.

Because of strong sales some market players expanded their capacities setting new injection moulding lines.
Some Ukrainian market players said that the major producers of mineral water provided the greatest increase in consumption of PET preforms in the current year.
MRC

MOSCOW (MRC) -- Imports of Russian suspension polyvinyl chloride (PVC-S) in the first half of 2013 grew by 30% year on year to 242,000 tonnes, according to MRC DataScope.

Optimistic expectations for increasing demand for finished products made of PVC made many Russian converters and traders actively buy resin in foreign markets. As a consequence, PVC-S imports in the first six months rose to record levels - to about 242,000 tonnes. Chinese PVC accounted for the bulk of imports.
March-April accounted for peak imports of PVC-S, when they totalled 58,000 tonnes and 54,700 tonnes, respectively. It is in these months that acetylene PVC imports from China reached their record level - more than 28,000 tonnes per month.

After a record high import in March-April, purchases of PVC began to decline in May on weaker demand for finished products. In June, the total imports of resin to the Russian market amounted to 35,700 tonnes, down 4% from May.
North American PVC imports showed an upward trend last month. Shipments of resin from the United States rose to 20,500
tonnes in June, while in May they made 18,300 tonnes. Imports of acetylene PVC from China fell to 10,000 tonnes last month from 13,100 tonnes in May.

MRC

MOSCOW (MRC) -- Evonik, the German specialty chemicals company,has reached all self-imposed environmental goals two years ahead of schedule, according to the company's Corporate Responsibility Report 2012.

The document states that Evonik reduced its specific (i.e. production output-related) energy-related greenhouse gas emissions by 20% in the time from 2004 to 2012. During the same period, specific production waste fell by 23% and specific water consumption by 31%. Original plans had called for the Group to reduce all three values by 20% by the year 2014.

Overall, Evonik invested some EUR39 million in improved environmental protection in the past year, with operating expenses for environmental protection totaling EUR251 million.

We remind that, as MRC reported earlier, in June, 2013, Evonik launched its Composites Project House, based primarily in Marl, with a branch in Darmstadt, to develop new materials and system solutions for the lightweight construction sector. This is Evonik’s tenth project house. Among the topics addressed will be automotive and aviation applications and applications in the domain of renewable energies.

Evonik, the industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik is active in over 100 countries around the world. In fiscal 2012 more than 33,000 employees generated sales of around EUR13.6 billion and an operating profit (adjusted EBITDA) of about EUR2.6 billion. The international rating agency Moody's has upgraded the credit rating of Evonik Industries AG from Baa3 with a positive outlook to Baa2 with a positive outlook. The rating agency quotes, among other things, the robust operational performance.
MRC

MOSCOW (MRC) -- Huntsman Corp, the U.S. chemicals producer founded by Jon Huntsman Sr., is considering an offer for Rockwood Holdings Inc. titanium-dioxide pigments business, said Bloomberg.

Such a deal would create a titanium-dioxide maker with about 15% of global capacity, vying with Cristal Global as the world’s second-largest, after market leader DuPont Co. Salt Lake City-based Huntsman had USD1.44 billion in pigment sales last year while Rockwood had USD889 million in revenue from titanium dioxide. Also known by its chemical formula Ti02, the chemical is used as a whitener in paint and toothpaste.

Nahla Azmy, a Rockwood spokeswoman, declined to comment on the status of the company’s efforts to separate the TiO2 unit. She reiterated that the company plans to sell or spin off the unit tax-free to shareholders by year-end. Gary Chapman, a Huntsman spokesman, declined to comment.

Huntsman Chief Executive Officer Peter Huntsman said in April that his company wants "to be part of any consolidations in this industry."

Huntsman may face competition from rival U.S. TiO2 producer Tronox Ltd. (TROX), whose Chairman and CEO Tom Casey said in February his company was considering buying assets from Rockwood.

As MRC wrote earlier, Moody's Investors Service has lifted its outlook on Huntsman Corp., noting improvements across the chemical maker's main product lines. Moody's backed Huntsman's corporate family rating at Ba3, three notches into junk territory. The outlook was raised to positive, from stable.

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