Alpek posts Q2 loss on Cape Fear closure

MOSCOW (MRC) -- Alpek, the petrochemicals arm of Mexican conglomerate Alfa, reported a loss attributable to controlling interests of USD71mn in the second quarter compared to a profit of USD82mn year-on-year as a result of a USD114mn net impact related to the closure of the Cape Fear site in North Carolina, said Bnamerica.

Excluding the closure, profit attributable to controlling interests amounted to USD43mn for the quarter, Alpek said in a statement.

For the first half the company reported a loss of USD10mn compared to a USD160mn profit in 1H12.

Ebitda declined 39% to US$122mn in the second quarter from USD201mn a year earlier. Year-to-date Ebitda decreased 29% to USD282mn from USD396mn. Excluding the Cape Fear expense provision (USD27mn), Ebitda amounted to USD149mn in the quarter and USD309mn in H2.

Sales in the quarter and half were down 5% year-on-year to USD1.81bn and USD3.64bn, respectively.

Capex for the quarter was USD60mn, increasing 120% year-on-year driven by the ongoing investment in the Cosoleacaque cogeneration plant, which through end-June was more than 80% complete.

Net debt at end-June amounted to USD644mn, unchanged from a year ago but 14% lower than end-March, while gross debt declined by 21% over the period.

As MRC wrotebefore, Alpek reported a profit attributable to controlling interests of USD61mn in the first quarter, down 22% year-on-year as a result of a 23% decrease in operating income, to USD119mn.

Alpek is the largest petrochemical company in Mexico and the second largest in Latin America. The company operates through two business segments: Polyester chain products (PTA, PET and polyester fibers), and Plastics and Chemicals products (PP, EPS, caprolactam, polyurethanes and other specialty and industrial chemicals). Alpek is a leading producer of PTA and PET worldwide, operates the largest expandable polystyrene plant in America and one of the largest polypropylene plants in North America. It is also the only producer of caprolactam in Mexico. In 2012, Alpek reported revenues of USD7,277 million and EBITDA of U.S. USD728 million. The company operates 20 plants in Mexico, USA and Argentina, and employs 4,700 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
MRC

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, offers a complete portfolio of acrylonitrile butadiene styrene products under the MAGNUM ABS Resins brand name, according to the company's press release.

Customers have relied on this material for decades because of its noticeable advantages.

The difference between Styron’s product and its competitors’ material is in the manufacturing. Styron’s MAGNUM ABS resins use continuous mass polymerization technology, as opposed to an emulsion process. This ensures superior lot-to-lot consistency in properties and performance, low gel, and a superior natural whiteness.

The aesthetic finish of the material is also low gloss, as opposed to the high gloss obtained from emulsion polymerization. Customers have found that this is perfect for non-commodity-type, high end applications.

The Styron ABS business has traditionally supported the automotive industry where customer demand values the characteristics of the material -- such as a premium finish on the trims in the interior of a vehicle.

Most recently Styron’s global ABS business has expanded to include non-automotive sectors as consumers seek a premium appearance in items such as equipment housings for medical devices, cabinetry for consumer electronics and home furnishings, opaque sheet and furniture.

Thus, in February 2013, Styron introduced several new resins for medical equipment enclosures. These materials complement Styron's portfolio for enclosures providing resins that result in an economical system cost. The new advanced resins are EMERGE PC/ABS 7700 blend, which provide a well-balanced, cost-effective solution for powered medical devices offering ignition resistance and color stability over time, and MAGNUM 2642 MED and MAGNUM 8391 MED ABS resins, which are manufactured in a continuous mass production process that offers superior lot-to-lot consistency, exceptional natural resin whiteness, and excellent processing characteristics.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. Styron’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD 5.5 billion in revenue in 2012, with 20 manufacturing sites around the world.
mrplast.com

MOSCOW (MRC) - Russian companies reduce importing polyethylene terephthalate (PET) in foreign markets.
Imports of PET to the Russian market totalled 90,300 tonnes over the first half of 2013, down by 16% year on year, according to a MRC ScanPlast.

Korean PET producers have lost their positions, having reduced its supplies in Russia's imports over this period by 11,4% to 27% (24,200 tonnes). This decrease is explained by the price advantage of Chinese material in the first half of 2013. The share of China's PET imports have increased by 16.5% and accounted for 57% (51,400 tonnes) in the total Russia's PET imports over first half of 2013.

Though imports continue to fall in 2013, PET consumption in Russia is growing. In January-May 2013 domestic supplies of Russian PET have grown, despite the overall decline in production rates, which was achieved by cuts of exports volumes.
The domestic supplies of Russian PET in the first half of 2013, grew by 13,000 tonnes year on year and totalled 177,300 tonnes. Weaker demand in the European market and strong buying activity in the domestic market contributed to the increased domestic consumption.

Falling PET prices in Europe encourage producers to boost sales to the domestic market of Russia. As MRC wrote before, Russian exports of PET in the first half of 2013 decreased by 62% and totalled 13,500 tonnes.


The imports of PET in June 2013 made 14,600 tonnes, while June's imports in 2012 reached its year' s maximum of 25,000 tonnes, on the back of favourable prices in the Asian markets. The sharp drop in prices in China and Korea in early June and customers' expectations of a soon prices recovery in mid-July has led to an increase in the purchases of the material.


MRC

MOSCOW (MRC) -- The Russian linear polyethylene (LLDPE) market continues to show upward dynamics, according to MRC DataScope.

The Russian LLDPE market is one of the few markets that show high growth rates. LLDPE imports exceeded
102,400 tonnes in the first half of the year, while over the same period in 2012 this index made 74,300 tonnes. Thus, an increase made 38% year on year.

Films producers, particularly, stretch films producers, have ensured the main increase. Only three major
producers of cast stretch films (Regent-stretch, Lava, Nova Roll- Stretch) raised PE purchases by 42% this year.

Meanwhile, the second largest consumption sector of linear polyethylene - producers of large items by rotomoulding - reduced its consumption by 28% to 3,000 tonnes this year.

As reported earlier, the Russian LLDPE market is almost completely dependent on imports. Kazanorgsintez refused from the LLDPE production in 2009. Nizhnekamskneftekhim also does not see the economic feasibility of producing large volumes of LLDPE. Nizhnekamsk plant produced slightly more than 14 tonnes of LLDPE in the first six months of 2012, which is virtually equal year on year.

MRC

MOSCOW (MRC) -- Saudi International Petrochemical (Sipchem) announces that its affiliate International Diol Company (IDC) has signed an Engineering, Procurement and Construction Contract with eTEC of South Korea on Sunday July 14, 2013 to debottleneck and improve the efficiency and the reliability of its plant facilities, said Ameinfo.

The project cost for construction and licensing are planned at SR393m. The construction of project will begin effective 14 July 2013 and project is targeted for completion during Q4 of 2014. Initial and commercial operation dates will be announced in due course.

The financial impact of the project, which will be announced in due course, will appear on financial results after commercial operation.

IDC had signed the financing arrangement for this debottlenecking as the second tranche of the financing agreement signed with Saudi Hollandi Bank and Saudi British Bank that was announced previously on March 31, 2013.

As MRC wrote before, Saudi Arabia's Sahara Petrochemicals and Saudi International Petrochemical Co (Sipchem) have announced the beginning of initial talks on a potential merger.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC