Braskem invests USD23 mln to expand production of specialty polyethylenes-us

MOSOCW (MRC) -- Brazilian petrochemical company Braskem said it will invest about 50mn reais (USD23mln) in increasing its production capacity of linear low-density polyethylene (LLDPE) by 120,000 tonne a year, said the company in its press release.

Of this total, 100 kton correspond to the Braskem Flexus family, which is the brand under which Braskem's metallocene-based polyethylenes are sold. The Company will convert one of its polyethylene production lines to offer a resin that employs the latest technology in plastic films manufacturing. The decision attests to Braskem's commitment to furthering the development of Brazil's plastics production chain.

The unit located in the Camacari Petrochemical Complex in the state of Bahia will have a line fully dedicated to the resin's production. Braskem has already concluded the engineering studies for the plant's conversion. The production line is expected to start operations in the first half of 2015. "We are expanding our offering of products in the Braskem Flexus line to support our clients' growth in market segments that demand high-tech resins," explained Braskem's vice-president of polyolefins, Luciano Guidolin.

"With this investment, we will be able to meet the growth of the Brazilian market over the coming years and to serve our clients' need for films with higher performance," said Edison Terra, Braskem's polyethylene business director.
Braskem Flexus is used in packaging that requires specific features, such as increased resistance, gloss, transparency and sealing properties. The product line targets manufacturers of specialty films, technical reels and industrial films.

Since 2004, Braskem has led the Latin American market in supplying metallocene-based polyethylenes, with production capacity in excess of 350 kton/y. The Company also offers an application engineering structure that clients can use to develop specific formulations for their films.

As MRC wrote before, Braskem is participating in the bidding to acquire the polyvinyl chloride (PVC) assets of Belgium's Solvay in South America. Braskem said the negotiations had not yet concluded and it could not say when they would be completed.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).

MRC

MOSCOW (MRC) - Dutch paints and chemicals company AkzoNobel third-quarter core earnings narrowly missed and the company said full-year operating income was unlikely to beat last year's level due to restructuring charges and weak markets, said Reuters.

The company said it expected to incur about 160 million euros in restructuring charges in the fourth quarter, making full-year operating income before incidental items unlikely to exceed 908 million euros (USD1.24 billion).

AkzoNobel, which owns the Dulux paint brand, reported third-quarter earnings before interest, tax depreciation and amortization (EBITDA) of 456 million euros on revenue of 3.78 billion euros.

Analysts in a poll commissioned by Reuters had expected EBITDA of 457 million euros and revenue of 3.76 billion euros.

AkzoNobel reiterated that its performance improvement program was on track to be completed in 2013, giving 500 million euros in EBITDA benefit at the end of the year, a year early. It said full-year restructuring charges were expected to be about 300 million euros.

AkzoNobel - which makes performance coatings for cars, aircraft and ships as well as specialty chemicals for the pulp and paper industry - said in July it would take additional restructuring charges to reflect deteriorating growth prospects in China, India and Brazil.

The company's results over the recent quarters have been hit by fragile consumer demand and weak housing markets in the United States and Europe, as well as high costs of raw materials such as titanium dioxide, a pigment used in paint.

In the past 18 months, it has taken a huge writedown on its purchase of Dulux paint maker ICI and sold its struggling North American decorative paints arm to U.S. rival PPG Industries for USD1.1 billion to focus on its larger European and fast-growing businesses and markets.

"The trading environment behind these results has not changed in that demand remains soft and on a comparative basis Q3 last year was particularly weak," Chief Financial Officer, Keith Nichols, said in a statement.

As MRC wrote before, Akzo Nobel N.V. reported a 4% decrease in revenues in the second quarter compared with the same period last year.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.

MRC

MOSCOW (MRC) - U.S. oil major Chevron suspended its search for shale gas at a site in eastern Romania after opposition from local residents, said Reuters.

The company earlier this year won approval to drill exploratory wells in the impoverished eastern county of Vaslui and also has rights to explore three blocks near the Black Sea.

Thousands of people have rallied across Romania in recent months to protest government backing for shale gas exploration and plans to set up Europe's largest open cast gold mine in a small Carpathian town.

In the small town of Pungesti, where Chevron was expected to begin work on its first exploration well, locals blocked access to the site earlier this week. Chevron aimed to set up the first well by the end of the year.

"Chevron can today confirm it has suspended activities in Silistea, Pungesti commune, Vaslui county," the company said on Thursday.

"Chevron is committed to building constructive and positive relationships with the communities where we operate and we will continue our dialogue with the public, local communities and authorities on our projects."

The Pungesti local council decided on Thursday to hold a referendum on Nov. 24 on whether to allow Chevron to explore for shale. The referendum would not be binding, and the company said it has all the necessary permits it needs for the works.

Shale gas faces local opposition due to environmental concerns around hydraulic fracturing, the process of injecting water and chemicals at high pressure into underground rock formations to push out gas.

Many countries in central and southeastern Europe see shale gas as a way to wean themselves off Russian supplies, though Romania only imports about a quarter of what it uses due to conventional reserves.

The U.S. Energy Information Administration estimates that Romania could potentially recover 51 trillion cubic feet of shale gas, which would cover domestic demand for more than a century.

As MRC wrote before, a second regional council in Ukraine on Thursday approved a government draft for a USD10 billion shale gas production-sharing agreement with US supermajor Chevron, clearing the way for it to be signed. Deputies in Lviv region voted by 66-to-3 in favour of the draft, which calls for shale exploration in the Olesska block in the west of the country. A council in the neighbouring Ivano-Frankivsk region, whose approval was also necessary, backed the deal last month in a 62-to-1 vote with 11 abstentions.

Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States, and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's six "supermajor" oil companies.

MRC

MOSCOW (MRC) -- BASF, the world's leading chemical company and the global leader in plastic additives, has successfully completed the expansion of its antioxidant capacity in Singapore, reported the company on its site.

Irganox 1010 is now produced at BASF’s site along with other antioxidants on Jurong Island as part of BASF’s global production network.

The facility enjoys a strategic central location with excellent infrastructure. With global plastics production projected to grow above GDP level in Asia and the Middle East, BASF will ensure continuous and reliable supply of antioxidants for its customers in the polymer industry. In doing so, BASF further optimizes its production footprint in Asia Pacific.

According to its Asia Pacific strategy, BASF plans to invest EUR10 billion in the Asia Pacific region by 2020 in order to ensure that around 75% of its products sold in the region will be locally produced.

BASF has a global network of regional antioxidants production sites including Shanghai (China), Jurong (Singapore), Kaisten (Switzerland), McIntosh, AL (USA), and Lampertheim (Germany). In line with this new investment, the current production of Irganox 1010 at the Isohara plant, Japan will be consolidated in Singapore.

As MRC wrote previously, in mid-September, SIBUR, a leading Russian gas processing and petrochemicals company, and the German chemicals giant BASF signed a long-term cooperation memorandum to supply additives used for polymer production and processing at SIBUR’s production facilities. The deal provides for supplies of additives used to produce polypropylene, polyethylene, synthetic rubbers, thermoplastic elastomers (TPE), and ABS plastics at SIBUR's production facilities, with BASF ensuring also technical support.

Besides, BASF is investing several hundred million euros in expanding its additive production sites over the next five years.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- State oil company PDVSA and Spain's Repsol are discussing a USD1.2 billion financing deal for a joint venture in Venezuela, reported Upstreamonline with reference to a top government official's statement.

The announcement was made by Petroleum Minister Rafael Ramirez during a visit to Caracas by Repsol boss Antonio Brufau, Reuters reported.

The funds would go to the Petroquiriquire joint venture, which runs mature oil fields in the east and west of the South American OPEC member country, the news wire added.

Ramirez said the financing was aimed at increasing the joint venture's output by 75,000 barrels per day, from a total of about 40,000 bpd currently produced at its three fields.

If signed, the new deal would add to about USD10 billion in loans that PDVSA has agreed this year, including with Chevron and Schlumberger of the United States and China's CNPC, as it seeks to boost stagnant national oil output of some 3 million bpd.

Repsol is working with PDVSA in an offshore natural gas project and is a key part of a consortium seeking to tap Venezuela's vast Orinoco extra heavy crude belt.

Separately, the minister said he would also be discussing financing with visiting executives from Italy's ENI in November for their joint ventures.

As MRC informed earlier, Repsol is planning a comeback in Asia after divesting most of its assets in the region in the 1990s to invest in Argentina. Repsol was forced to exit Argentina last year after the government there expropriated a controlling stake in its Argentinian subsidiary YPF. Most of the company's revenue and production is generated from its businesses in Latin America, the North Sea and US, but the company is now rebalancing its portfolio by increasing its focus on West Africa and Asia-Pacific.

Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC