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MOSCOW (MRC) -- Braskem, the largest polymer producer in the Americas and the world leader in biopolymers, announced today the execution of an agreement with Grupo Solvay for the acquisition of 70.59% of the total and voting capital of Solvay Indupa S.A.I.C., sid the producer in its prress release.
The acquisition confirms Braskem's commitment to develop the petrochemical and plastics industries in Brazil and South America by strengthening the vinyls chain and by its decision to continue investing to support the growth of its clients. It also establishes an industrial base in Argentina, a market in which Braskem already has maintained a commercial presence for over 20 years.
The transaction price is USD290 million. The consummation of the sales agreement will depend on prior analysis and approval by Brazil's antitrust agency CADE (Conselho Administrativo de Defesa Economica). Following the transaction's conclusion, Braskem will launch a public tender offer to non-controlling shareholders for the purchase of shares in Solvay Indupa on the Buenos Aires Stock Exchange.
Solvay Indupa produces PVC and caustic soda and owns two integrated industrial facilities in Brazil and Argentina that enjoy privileged geographic positions close to South America's two major consumer markets. Created in 1948, Solvay Indupa has annual production capacity of 540 kton of PVC and 350 kton of caustic soda. Once the acquisition is finalized, Braskem will increase its annual production capacity to 1.25 million tons of PVC and 890 kton of caustic soda.
Indupa, with a manufacturing capacity of more than 500,000mtpa of polyvinyl chloride (PVC), runs facilities at Santo Andre, Brazil, and Bahia Blanca, Argentina. Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market.
"Vinyls is a strategic market for our company. Braskem recently invested around R1 billion in a PVC plant in the state of Alagoas, which was inaugurated in 2012, in order to meet the strong growth in demand for this resin associated with the growth in Brazil's infrastructure sector," said Carlos Fadigas, CEO of Braskem.
Braskem will acquire Argentine-Brazilian plastics maker Solvay Indupa for USD290 million
UK to introduce plastic banknotes in 2016
The polymer notes will retain "the familiar look of Bank of England banknotes", including the portrait the Queen and a historical character.
The first polymer note will be the GBP5 note featuring Sir Winston Churchill and will be issued in 2016. It will be followed around a year later by a polymer GBP10 note featuring Jane Austen.
The bank’s decision follows a three-year research program, which concluded that plastic notes are cleaner, more durable and more secure than their paper counterparts. There has also been an "overwhelmingly supportive" response from the public, it added.
The bank’s research showed that polymer banknotes are cleaner, more secure, and more durable than their paper counterparts. They will also provide enhanced counterfeit resilience, and are more environmentally-friendly than paper. Because they last longer, polymer banknotes are cheaper over time than paper.
Resistant to dirt and moisture, polymer banknotes are made from a transparent plastic film, coated in an ink layer that carries the printed design features. The material allows for 'windows' or transparent areas in the design which discourage counterfeiting because they require several machines to make.
The new notes will cost around 50% more to produce, but the Bank estimates it will save GBP100m as it will need to replace the notes far less frequently.
MRC
QP and Qaprco awarded FEED contract to Technimont for Al Sejeel Petrochemical Complex
MOSCOW (MRC) -- Qatar Petroleum (QP) and Qatar Petrochemical Company (QAPCO) have signed the FEED contract with Tecnimont SpA for the Al Sejeel Petrochemical Complex, to be built in Ras Laffan Industrial City, according to the Qapco's statement.
The signing of the FEED contract for the project, in which QP and QAPCO own respectively 80% and 20% equity interest, marks a strategic milestone for the progress of the mega-petrochemical complex.
The complex's construction scheduled for completion in 2018. It will comprise the worlds largest mixed-feed steam crackers, and is designed to produce 2.2 million tpa of polymers, including polyethylene (PE) - high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) - and polypropylene (PP) resins.
Al Sejeel Petrochemical Complex will surely be unique in terms of its feedstock, as it will assure production efficiency and access to a steady supply of critical chemical building blocks while increasing its global competitiveness. The plants will be processing several feed types simultaneously, namely ethane, butane, and naphtha, ensuring an optimum use of natural resources and allowing extra flexibility and diversity in terms of products.
"It is the vision of our leadership to harness the tremendous potential of the petrochemical sector, and to embark on a large-scale expansion of our downstream industry. To this end, we aim to raise our petrochemical output to 23 million tpa by 2020, thus supporting the growth and diversification of the Qatari economy," Dr. Al-Sada added.
Over the course of one year the project has achieved significant progress.
As MRC informed previously, this summer, QP and Qapco signed technology licence contracts for the multibillion dollar Al Sejeel petrochemical complex with Univation Technologies for the PE technology and Dow Chemical for PP technology. The Project Management Contract (PMC) was also awarded, marking the firm progression of the project, as Al Sejeel is entering phase IV.
Tecnimont SpA is a leading global engineering, procurement and construction (EPC) with a vast experience to execute large and complex projects worldwide, being in particular the market leader in polyolefin with about 30% of world installed capacity. In Qatar Tecnimont has already experience as EPC contractor for petrochemicals.
Qatar Petroleum is a state owned petroleum company in Qatar.
Qatar Petrochemical Company (QAPCO) is a Qatar-based company established in 1974 and is a joint venture between Industries Qatar (80%) and Total Petrochemicals (20%). The company is currently one of the largest producers of low density polyethylene (LDPE) in the region. In addition to LDPE, QAPCO also produces linear low density polyethylene (LLDPE), ethylene, and sulfur, which it sells to over 4500 industry customers in 145 countries through its extensive global marketing network.
MRC
Motiva to mothball Louisiana refinery FCC by 2016 amid weak profits
MOSCOW (MRC) -- Motiva Enterprises plans to shut the fluid catalytic cracker at its refinery in Convent, Louisiana, by October 2016 because it’s unprofitable to operate, said Hydrocarbonprocessing.
The refinery’s crude units don’t produce as much feedstock, such as vacuum gasoil, as the unit can process. Motiva found it too costly to purchase additional feed, said the person, who asked not to be identified because the information isn’t public. A catalytic cracker upgrades vacuum gasoil into gasoline and other fuels.
Motiva may add other equipment, such as a third crude unit, to boost its ability to make catalytic cracker feed. It’s more profitable for the company to make and sell feedstock to other refineries than to process it at Convent.
The company is alternately considering adding a ROSE unit, which can convert heavy residual fuel into feed for catalytic crackers, the person said. Motiva is also weighing whether to add a coker, another unit that breaks down residual fuel into lighter products, to back up its hydrocracker when that unit is shut for repairs, the person said.
Without a catalytic cracker, the Convent plant will focus more on making diesel, the person said.Destin Singleton, a spokeswoman for Motiva in Houston, said in an e-mail seeking comment about these plans that she would respond as soon as possible.
In addition to the catalytic cracker, the refinery has two crude units, the hydrocracker, which converts heavy fuel oil into lighter fuels like gasoline, and an H-Oil unit, or heavy-oil cracker. An alkylation unit works in association with the catalytic cracker to make high-octane gasoline blending components.
Convent receives crude primarily by pipeline and distributes finished oil products by pipe, rail, truck and water to markets along the Gulf Coast and in the southeastern United States, the company said on its website.
The 255,000 bpd Convent plant is 80 km west of New Orleans. Motiva operates a second plant in Louisiana, the 250,000 bpd Norco refinery, about 21 km west of New Orleans.
As MRC wrote before, the company had a fire at the unit's reactor on August 12, 2013 at the sulfur unit. Kim Windon, a Houston based spokeswoman for Motiva, confirmed that there was a small fire in a unit that was quickly extinguished.
Motiva is a refining and marketing joint venture of Saudi Refining, a subsidiary of Saudi Arabian Oil, and Shell Oil, a unit of Royal Dutch Shell.
Output of products from polymers in Russia rose by 7.3% in January-November 2013
MOSCOW (MRC) -- The November output of finished products from polymers in Russia dropped in all key sectors. However, production of major products from polymers grew by 7.3% over the eleven months of 2013, reported MRC analysts.
The output of key products from polymers in Russia fell in November by 13.8% from October. The sector of production of plastic windows and window sills accounted for the greatest reduction.
In general, the output of products made of polymers from January to November looks the following way.
According to the Federal State Statistics Service, the November production of plastic windows and window sills fell to 2.3 million square meters from 3.4 million square meters in October. Production of these products from polymers reached 25.8 million square meters over the eleven months of 2013, up by 7.7% year on year.
About 89,400 square meters of doors and their boxes from polymers were produced last month, down by 17% from October. The overall output of these products totalled 903,800 tonnes from January to November 2013, down by 3.9% year on year.
The November production of plates, films and non-combined sheets dropped to 68,800 tonnes from 76,800 tonnes a month earlier. The overall output of these products from polymers totalled about 773,700 tonnes from January to November 2013, up by only 0.4% year on year.
Production of hoses and fittings from polymers fell to 47,600 tonnes last month from 50,400 tonnes in October. The overall output of these products totalled about 544,100 tonnes over eleven months of the year, down by 17.3% year on year.
The November output of plates, sheets, combined and porous films by Russian companies dropped to 19,1000 tonnes, down by 6.9% from October. The total production of these products amounted to 192,300 tonnes from January to November 2013, up by 15.9% year on year.
Production of bottles, large bottles and flasks from polymers rose to 1.1 billion pieces in November. The output of these products totalled about 12.5 billion units from January to November 2013, down by 0.3% year on year.
MRC