Kemira Oyj lowers its operative EBIT guidance for the fourth quarter of 2013

MOSCOW (MRC) -- Kemira Oyj has lowered its operative EBIT guidance for the fourth quarter of 2013. Kemira's operative EBIT (excluding non-recurring items) was previously expected to be between EUR 42-50 million in the fourth quarter of 2013, said the producer in its press release.

Kemira's updated guidance now indicates that operative EBIT is expected to be between EUR 34-35 million in the fourth quarter of 2013. Main reasons for the lowered operative EBIT guidance for the fourth quarter of 2013 are as follows.

Lower-than-expected contribution from 3F. Kemira closed the acquisition and started consolidation of 3F on October 1, 2013.

Higher-than-expected fixed and inventory related costs, especially in the South America region.

Increased pension fund related accruals and other pension costs in the EMEA region, mainly due to the ongoing relocation of certain business units.

Revenue guidance for 2013 remains as previously communicated. Kemira expects revenue in local currencies, excluding divestments to be slightly higher than in 2012.

Kemira will publish its Financial Statements Bulletin 2013 on February 7, 2014.

As MRC wrote before, Kemira signed an agreement to sell its distribution of hydrochloric acid, sulfuric acid and sodium hydroxide (caustic soda) in Denmark to Brenntag Group. The deal includes the distribution business and certain assets in Copenhagen. Revenue of the divested business in 2012 was approximately EUR 15 million and the transaction is expected to be completed during the first quarter of 2014.

Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise and chemicals that improve our customers' water, energy and raw material efficiency. In 2012, Kemira had annual revenue of EUR 2.2 billion and around 4,900 employees.
MRC

MOSCOW (MRC) -- Royal DSM, the Life Sciences and Materials Sciences company, reported preliminary, unaudited, results for 2013 and provided an outlook for 2014, said the producer in its press release.

Final audited results, in conjunction with its Integrated Annual Report, will be published as scheduled on 26 February 2014. DSM delivered roughly 20% higher EBITDA for the full year 2013, in spite of the challenging economic environment. For Q4 the company realized an approximately 30% higher EBITDA.

Organic sales growth in Q4 2013 was approximately 2% compared to the same quarter last year, with higher volumes and lower prices. Overall sales were impacted by negative currency effects of about 2%. EBITDA for the quarter was higher than in Q4 2012, when there was a negative effect from a plant turnaround in the USA. Cost savings and license income further contributed to the improvement in EBITDA.

For 2014 DSM takes a prudent approach, assuming foreign exchange rates are maintained at the current unfavorable levels for the year. Furthermore, DSM assumes a continued challenging macro-economic environment, with low growth in Europe, modest growth in the US, and a slowdown in the high growth economies.

Based on the above, DSM targets for 2014 to improve its business performance to at least offset the negative currency impact of an estimated EUR70 million at current exchange rates.

Comparable EBITDA in 2013 from continuing operations after new accounting rules for Joint Ventures amounted to approximately EUR1,260 million.

As MRC wrote before, Royal DSM (Heerlen / The Netherlands) has signed a partnership agreement with long fibre thermoplastic (LFT) specialist Plasticomp (Winona, Minnesota / USA) to develop bio-based LFT composite materials based on DSM’s "EcoPaXX" polyamide 4.10. The lightweight materials, which include compounds reinforced with glass fiber as well as carbon fiber, will be targeted at automotive and other performance-driven markets.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.

MRC

MOSCOW (MRC) -- Exports of polystyrene (PS) and styrene plastics from Russia grew in 2013 by 43% compared with 2012 and reached 71,000 tonnes, according to MRC Annual report.

Local plants not only fulfilled the program of import displacement last year amid increased PS production in Russia, but were also strengthening its presence in foreign markets. The high impact polystyrene (HIPS) market accounted for the largest export shipments. HIPS exports from Russia rose by 28% in 2013 or more than 25,000 tonnes. Nizhnekamskneftekhim's 825ES grade remained the most popular Russian HIPS grade in foreign markets.

Exports of expandable polystyrene (EPS) grew by 32% and totalled 23,800 tonnes. Increased production at SIBUR-Khimprom accounted for the growth in exports. The key export market for Russian EPS of SIBUR remained Ukraine. At the same time, SIBUR managed to lift sales in the region, because of effective export pricing and displacement of European suppliers, as well as reduced EPS production at Stirol, despite the overall fall in EPS consumption in Ukraine last year.

Exports in the general purpose polystyrene (GPPS) market surged by 53%. GPPS exports from Russia totalled in 2013 17,500 tonnes. Nizhnekamskneftekhim (the most popular were 585 and 525 grades) and PGProf's grades were exported last year.

Acrylonitrile-butadiene-styrene (ABS) exports rose by 14 times and totalled 4,330 tonnes due to the launching of a new GPPS-ABS line in Nizhnekamsk. Exports are expected to grow in the ABS market in 2014. Nizhnekamskneftekhim's representatives announced their plans to increase ABS production. Russian ABS will be shipped both to the domestic and foreign markets.

MRC

MOSCOW (MRC) -- Solvay Specialty Polymers has confirmed that it has closed a major strategic investment in Aonix Advanced Materials Corp. and acquired a minority stake in the company, according to the company's press release.

The investment lays the foundation for a partnership that will be a leader in the fast growing market for thermoplastic composites.

"Investments of this size are rare in our industry,"said Jerome Le Corvec, president and CEO of Aonix Advanced Materials Corp. "Solvay’s investment is a significant endorsement of our technology. Aonix is setting new standards for thermoplastic composite performance and manufacturing productivity, on the same platform."

The companies’ partnership will provide Aonix with ready access to Solvay’s extensive portfolio of polymers and world class expertise to help expand the range of applications possible for customers of Aonix’ UltraMaterials Solution.

The UltraMaterials Solution is the industry’s first and only turnkey solution for the mass production of ultra high performance thermoplastic composites (UHPC) for the consumer electronics, sporting goods, automotive, aerospace and energy markets.

As MRC informed previously, in October 2013, Solvay Specialty Polymers signed an agreement with Aonix Materials for acquisition of a minority stake in the company for jointly development and production of thermoplastic composites.

Solvay Specialty Polymers manufactures over 1500 products across 35 brands of high-performance polymers - fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds - for use in aerospace, alternative energy, automotive, healthcare, membranes, oil and gas, packaging, plumbing, semiconductors, wire and cable, and other industries.

Aonix Advanced Materials supplies turnkey UltraMaterials Solutions - ultra high performance composites together with production-ready Express high capacity molding machines - to global customers in the electronics, sporting goods, automotive, aerospace and energy industries.
MRC

MOSCOW (MRC) -- Qatar Petroleum (QP) and Zeon Corporation and Mitsui & Company, both Japan-based, have signed a memorandum of understanding (MoU) for the development of an integrated butadiene extraction and elastomer complex in Ras Laffan, reported GV.

Under the agreement, the partners will be undertaking a detailed feasibility study to evaluate the technical, commercial and economic aspects of the integrated world-scale butadiene and synthetic rubber/elastomer project.

The feedstock will come from the planned Al-Sejeel Petrochemicals Complex and the Al-Karaana Petrochemicals Complex, both of which are currently under development, as well as from the existing plant of Ras Laffan Olefins Company (RLOC).

Butadiene will be extracted from feedstock and then converted into high-value elastomers like styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR) using Zeon’s state-of-the-art technology.

As MRC wrote before, Qatar Petroleum (QP) and Qatar Petrochemical Company (QAPCO) have recently signed the FEED contract with Tecnimont SpA for the Al Sejeel Petrochemical Complex, to be built in Ras Laffan Industrial City. 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.

Qatar Petroleum is a state owned petroleum company in Qatar.
MRC