Offer for Dina Petrokemija arrives via British fund Devon

MOSCOW (MRC) -- A concrete offer has arrived via Great Britain's fund Devon for the takeover of the debts of Croatia's Dina Petrokemija petrochemical company, the increase of its capital and broadening of production, said Daje, citing Dina management board president Fabio Giacometti.

Giacometti told Hina in a telephone interview this was a serious offer. He, however, declined to reveal the name of the investor, saying only that the technical crew hired by the investor to check out Dina plants was from Kazakhstan.
Dina cannot be profitable with this production and investments need to be made in new plants and products, mostly petrochemicals, Giacometti said, explaining that the investor would launch new plants and significantly increase the production capacities.

A total of EUR 25 million is necessary to launch the present scope of production and we are negotiating a loan for the payment of one of a total of 15 unpaid salaries, he added.

Asked about Ivan Cermak's Crodux Plin company, which expressed interest in Dina, Giacometti said he only had information about Crodux Plin representatives having contacts with a new potential investor.

A pre-bankruptcy settlement for the Omisalj-based Dina was reached before the commercial court in Rijeka on 30 September 2013. Dina’s units have been mothballed since late 2011, when creditors froze the companies' bank accounts through a petition to the courts.

MRC

MOSCOW (MRC) -- Honeywell's UOP announced Tuesday that two Chinese petrochemical producers have selected UOP process technologies to help meet growing demand for high-value petrochemicals in China, said Hydrocarbonprocessing.

Shandong Huachao Chemical Co. will use the UOP C4 Oleflex process to produce isobutylene, a key ingredient for fuels and synthetic rubber. In addition, Zibo Qixiang Tengda Chemical Co. will use the UOP Butamer process to transform normal butane to isobutane and UOP's C3/C4 Oleflex process to convert isobutane to isobutylene and propane to propylene for the production of plastics.

Both companies are located in Shandong Province on China's East Coast. The Oleflex projects represent UOP's 16th and 17th announced licenses for the Oleflex technology since the beginning of 2011, as demand for propylene and isobutylene grows in the region.

The Shandong Huachao project will be the sixth C4 Oleflex unit in China, and the Zibo Qixiang Tengda project is the third combined C3/C4 Oleflex license UOP has been awarded.

The new units are expected to start up in 2016. The Shandong Huachao facility will process 200,000 metric tons of isobutane. and the Zibo Qixiang Tengda facility will process 400,000 metric tons of propane and butane feedstocks.

In addition to the technology licensing, UOP will provide the engineering design, catalysts, adsorbents, equipment, staff training and technical service for both projects.

As MRC informed before, Honeywell's UOP granted the third technology license for its breakthrough methanol-to-olefins (MTO) technology to China's Shandong Yangmei Hengtong Chemicals. The Chinese company will use Honeywell UOP's advanced MTO process to convert methanol from gasified coal into ethylene and propylene.
MRC

MOSCOW (MRC) -- ExxonMobil officially launched the world's first chemical unit that processes crude oil in Singapore, aiming to lower costs to better compete with rivals in a market saddled with excess capacity, said Brecorder.

Chemical companies typically process refined oil products such as naphtha - created by separating crude oil into lighter groups - at facilities called crackers to create petrochemicals like ethylene and propylene. These are further processed into products such as plastics, soaps or synthetic fibres.

But Exxon's new cracker in Singapore allows the company to bypass the refining process by processing crude directly into petrochemicals.

The new technology helps reduce raw material costs, energy consumption and carbon emissions, Pryor said, while the cracker also produces fuel components.

Crackers in Asia typically use naphtha as a feedstock, while those in the Middle East enjoy a cost advantage as they process cheaper ethane and propane gases into petrochemicals.

The multi-billion dollar complex on Singapore's Jurong Island includes the 1 million tonne per year (tpy) steam cracker as well as production of at least 1.4 million tpy of polymers and elastomers. The cracker was brought online in the middle of last year, but Exxon has not previously confirmed the use of crude as a feedstock.

The project had been delayed for two years due to its complexity and a weak economic outlook which has pared the use of petrochemicals in automobile parts, electrical appliances and consumables, despite excess capacity.

ExxonMobil's Singapore chemical facility accounts for about 25% of the company's global chemical capacity, incorporates over 40 new technologies and is one of ExxonMobil's most energy efficient and flexible sites.

ExxonMobil has operated in Singapore for 120 years and is one of Singapore’s largest foreign manufacturing investors. The company has expanded refining and petrochemical production in Singapore to meet expected demand for transportation fuels and the chemicals used for plastics and other manufacturing across the Asia Pacific region.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- North American suppliers of polyvinyl chloride (PVC) have announced a further increase in export prices, including the CIS markets, according to ICIS-MRC Price report.

Limited export quotas and strong demand from some export markets have led to higher PVC prices in the United States. Offer prices for the CIS countries rose to USD1,120/tonne this week.

Deals for February shipments of North American PVC were negotiated in the range of USD1,080-1,120/tonne CFR St Petersburg and USD1,080-1,110/tonne CIF Odessa. Russian companies said they had to completely abandon procurement of PVC from the US because of high prices and the depreciation of the Russian rouble against the dollar. Seasonal weaker demand for finished products also puts a serious pressure on purchasing of North American PVC.

At the same time, Ukrainian companies continued purchasing resin in the United States, despite the seasonal decline in demand. They explain their decision by an outage at Karpatneftekhim and higher prices in Europe.
MRC

MOSCOW (MRC) -- Eastman Chemical Company is increasing prices on the following products from 15 February, or as contracts allow, reported the company on its site.

These increases are due to elevated operating costs, particularly in raw materials.

Eastman TXIB Formulation Additive: List price increase of USDUSD 0.06/lb (USDUSD 0.13/kg) globally. Off-list price increase of USDUSD 0.06/lb (USDUSD 0.13/kg) and EUR 0.10/kg globally.

Eastman TXIB SG Formulation Additive : List price increase of USDUSD 0.06/lb (USDUSD 0.13/kg) globally. Off-list price increase of USDUSD 0.06/lb (USDUSD 0.13/kg) and EUR 0.10/kg globally.

As MRC informed previously, Eastman Chemical Company already increased prices on the following products starting from 1 September 2013. Those increases were due to elevated operating costs, particularly in raw materials, as follows:

- Eastman 168 non-phthalate; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOP; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOA; all packaging and grades : Off-list price increase of USD 0.03/lb (USD 0.07/kg) in North America;
- Eastman TOTM; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman TOTM-CA; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman TEG-EH; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOM; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC