Malaysia imposes anti-dumping duties on PET and BOPP from certain markets

MOSCOW (MRC) -- Malaysia has imposed anti-dumping duties on polyethylene terephthalate (PET) imported from Thailand and biaxially-oriented polypropylene (BOPP) from China, Indonesia, Taiwan, Thailand and Vietnam, as per Apic-online.

The duty on PET from Thailand will increase to 49.25% from zero for the period from 21 April 2011 through 20 April 2016.

For BOPP imported from China, Taiwan, Thailand and Vietnam, a permanent anti-dumping duty of up to 12.37% will apply from 24 April 2013 to 22 Apr. 2018.

In addition, a temporary 21.43% duty on BOPP from the four countries, as well as Indonesia, has been levied for the 24 December 2012 to 22 April 2013 period.

However, Deputy Finance Minister Datuk Ahmad Maslan noted, "if checks show that there is no dumping, then we will refund the (temporary) duty collected from the foreign companies."

As MRC reported earlier, Japan's Toray Industries Inc. plans to invest RM1 billion in Malaysia and achieve 1.8 times sales increase by 2020. However, Taiwan's Kuokuang Petrochemical Technology Co. has abandoned plans to set up an integrated refining and petrochemical complex in Pengerang in the Malaysian state of Johor due to poor project economics.
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MOSCOW (MRC) -- The Dow Chemical Company, the largest US chemical maker by sales, has announced that it has signed a definitive agreement under which Dow’s global Polypropylene Licensing & Catalysts business will be divested to W. R. Grace & Co. for a sale price of USD500 million, reported the company on its site.

Dow expects to report a gain on this divestment and net proceeds will be directed toward the company’s main priorities of remunerating shareholders, debt reduction and funding growth. The transaction is expected to close by the end of 2013, pending regulatory clearance.

Dow had previously announced its intent to divest this business on March 14, 2013, as part of the company’s ongoing commitment to proactive portfolio management and plan to divest nearly USD1.5 billion in assets by mid to late 2014.

"Today’s announcement is another clear demonstration of Dow’s rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value," said Andrew N. Liveris, Dow’s chairman and chief executive officer. "Our accelerated strategy is focused on narrowing our market participation and preferentially funding our select growth businesses with strong competitive positions in attractive markets such as electronics, water, packaging and agricultural sciences. We are planning further proactive divestments in the next 12 months in our relentless pursuit of rewarding shareholders."

The divestiture includes Dow’s polypropylene catalysts manufacturing facility at Norco, Louisiana, and customer contracts, licenses, intellectual property and inventory.

Approximately 90 employees globally are expected to transition employment status to W. R Grace & Co. as part of the transaction. Under terms of the purchase agreement, W. R. Grace & Co. will honor customer, licensing and supplier contracts and related agreements. Both companies are committed to working together for a seamless transition for all stakeholders.

As MRC wrote previously, Dow Chemical has already divested non-core businesses worth about USD8 billion in revenue since 2009, and plans this year to close the previously announced sale of its polypropylene licensing and catalyst business and its plastics additives unit.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
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MOSCOW (MRC) -- OAO Gazprom, the world’s biggest natural-gas producer, is seeking payment from EON SE and BASF SE after boosting reserves at a joint project in Siberia, according to two people with direct knowledge of the matter, Bloomberg said.

Gazprom is claiming "more than 1 billion euros" (USD1.35 billion) from EON, Germany’s biggest utility, and Wintershall, an oil and gas unit of BASF, one of the people said. The partners are in talks to try to sort out a "dispute and misunderstanding" about the Yuzhno-Russkoye field’s reserves, the other person said.

The German companies were supposed to pay by Oct. 1 for an increase in reserves, while the Russian gas producer would have had to compensate for any decrease, under the terms of asset swaps the partners agreed on as part of their venture, the people said, asking not to be identified because the information is confidential.

"A reserves review for the Yuzhno-Russkoye field is part of the contract with Gazprom," Adrian Schaffranietz, a spokesman for EON, said by e-mail late on Oct. 9. "EON is following the terms of the contract and is currently engaged with Gazprom addressing the reserves review." Anna Bungarten, a spokeswoman at Wintershall, declined to comment on possible compensation as it’s confidential. Sergei Kupriyanov, a spokesman at Gazprom, declined to comment.

Gazprom, the holder of the world’s biggest gas reserves, agreed to develop Yuzhno-Russkoye with the German partners after a meeting between President Vladimir Putin and Chancellor Angela Merkel in 2006. The Moscow-based gas producer completed an asset swap with Wintershall in 2007 and with EON in 2009, which gave the companies 25 percent stakes in the Gazprom unit that holds the license to the Russian field.The field, located in the Arctic Yamal region, feeds Nord Stream, a pipeline directly to Germany under the Baltic Sea.

Gazprom and China's CNPC agreed on basic terms of long-awaited gas supplies to China, paving the way for the final deal, which would cement Moscow's footing in the world's second largest economy. The pressure on Gazprom to venture into the Chinese market is rising as its Russian rivals, such as Novatek, have already secured deals to supply China with gas from yet-to-build liquefied gas plants and are lobbying for limiting Gazprom's export monopoly.
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MOSCOW (MRC) -- Rising cost levels at Gazprom have again come under scrutiny after the Russian state-owned gas giant was reported to have increased its investment level for the current year by 46% to USD32 billion, said Upstreamonline.

The company has now increased its planned investments for this year to 1.03 trillion roubles (USD32.01 billion) from 705 billion roubles envisaged previously, mainly due to higher long-term financial costs. A company spokesman declined to comment.

Gazprom, which earlier this year acquired Moscow power generation company Moek with a bid of around USD3 billion, has faced criticism from analysts over a swollen investment programme and ineffective spending.

"Gazprom continues to show extremely poor capital discipline, and significant structural and organisational changes are required to alleviate investors' concerns over its investments," Otkritie brokerage said in a note cited by Reuters.

Meanwhile, the company, led by executive chairman Alexei Miller, is set to face charges of anti-competitive practices under a European Union probe into claims that it abused its dominant position in the continent’s gas market.

According to EU rules, Gazprom could be fined up to 10% of its annual revenue if found guilty of the charges, which would equate to a fine of up to USD15 billion.

As MRC wrote before, Gazprom's sales are likely to fall further in 2013 as weak economic conditions lead to continued low demand in Europe, the company's key market for natural gas. Russian gas production data for 2012 indicate that Gazprom's European and FSU gas sales fell slightly more than expected.
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MOSCOW (MRC) -- Chevron has nominated a clutch of long-time employees to key executive positions as the US supermajor's upstream boss prepares for retirement. Jay Johnson is set to take up the role of senior vice president for upstream from 1 January, said Upstreamonline, citing Chevron.

The 54-year-old, who is currently president of Chevron's Europe, Eurasia and Middle East exploration and production unit, has been with the oil giant since 1981. He will report to current vice chairman and executive vice president for upstream, George Kirkland, who is preparing to retire in 2015, as per company policy.

Todd Levy, who currently works in Chevron's upstream unit, will replace Johnson at his current position in London. Also reporting to Kirkland will be current president of gas and midstream, Joe Geagea, who will become senior vice president for technology, projects and services.

Geagea, also 54, has been with Chevron since 1982 and has worked in all of the company's upstream, midstream and downstream divisions. Current managing director of the Asia South upstream business unit, Pierre Breber, will become corporate vice president and president for gas and midstream at Chevron, reporting to chief executive John Watson.

"These appointments ensure a smooth transition in our upstream business and simplify the delivery of technology and services to all of our businesses,” Watson said. "Jay, Joe and Pierre are experienced leaders who will enhance a very effective leadership team."

As MRC wrote before, Chevron Phillips Chemical has secured approval to construct the US Gulf Coast (USGC) petrochemicals project. The project includes construction of an ethane cracker at Chevron's Cedar Bayou plant in Baytown and two polyethylene units at a site in Old Ocean, near the company's Sweeny plant.

Chevron Phillips is a chemical producer jointly owned by Chevron Corporation and Phillips 66. The company was formed July 1, 2000 by merging the chemicals operations of both Chevron Corporation and Phillips Petroleum Company. A 50/50 venture, the company continues to be governed by a board of directors composed of two members from each of the parent companies. Chevron Phillips is headquartered at The Woodlands, Texas (a northern suburb of Houston), and is a major producer of ethylene, propylene, polyethylene, polypropylene, K-Resin(r) SBC, ryton polyphenylene sulfide (PPS), alpha-olefins, polyalphaolefins, aromatic compounds and a range of specialty chemicals.

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