Demand for SPVC in Russia decreased by 4% in 2013

MOSCOW (MRC) - Demand for suspension polyvinyl chloride (SPVC) has been reducing for the second year in a row in the Russian market.
Thus demand for SPVC dropped by 4% in 2013, the outlook for 2014 - is not optimistic, according to MRC Annual Price Report.

After a record high in 2011, with SPVC consumption of about 1.015 million tonnes, the demand for PVC in the Russian market began to decline.
SPVC consumption in 2012 had hardly exceeded 1 million tonnes, while in 2013 this figure shrank to 967,000 tonnes. The demand reduced in practically all sectors of consumption - profiled mouldings, pipes, films and plastic compounds.

Some market participants expect the demand for finished products made of PVC to reduce further in 2014. Demand for SPVC in key sectors reduced within 3-18% in 2013.
Key consumers - producers of profiled mouldings reported that their sales fell by 3-7% in 2013, compared to 2012 figures. Producers of PVC soft compounds, used for the production of cable insulation, shoes, hoses, etc., reduced their production down by 5%.

Russia's production of pipes declined by more than 18% in 2013, according to official data of Rosstat. Disappointing performance in 2013 made many Russian PVC converters make cautious outlook for 2014. According to them, the demand for SPVC in the current year will be within 0-2%.

As reported earlier, the demand for SPVC began to rapidly grow from 2004, helped by active investments in refining capacities and the reduction in the imports.

Russia's demand for SPVC has increased more than two and a half times over the last ten years, from 375,000 tonnes in 2004 to 967,000 tonnes in 2013.

MRC

Styrolution outfits FIAT with UV-resistant aesthetics

MOSCOW (MRC) -- FIAT, the quintessential Italian car manufacturer and one of the largest car makers worldwide, partnered with Styrolution, the global leader in styrenics, to source a high-performance styrenic solution for exterior parts that would enable them to retain their premium appearance over time, reported Styrolution in its statement.

The FIAT Group designs cars for the modern, urban lifestyle with a range of colorful city cars known for their fuel efficiency.

As a result of the company's close collaboration and Styrolution's ability to offer global sourcing, FIAT selected specialty copolymer Luran S, with a high-performance UV additive, to replace a commodity ABS polymer for all unpainted exterior applications across its car models worldwide. Luran S will be used in a number of exterior applications, ranging from rear view mirrors, emblems and front grills to b-pillars and roof rack bars.

The Luran S grades and their blends (ASA and ASA+PC) are impact-modified with acrylic ester rubber, making them suitable for components that are exposed to rain, wind and weather, ensuring they retain high aesthetic quality.

Maurizio Servetti, Manager at FIAT Center Research - Group Materials Labs: "Luran S is one of the best materials of choice, as it allows us to create external parts that retain the premium surface quality our customers expect while reducing total costs. This is the kind of material innovation that helps FIAT deliver true value to our customers."

Pierre Juan, global industry lead, automotive, Styrolution: "FIAT is launching an increasing number of new models that are truly built on plastic design innovation," said Juan. "Styrolution has been a proud partner of FIAT for a number of years. We are very pleased we could work side-by-side with FIAT to co-create a customized styrenic solution that can now be found in literally every external application on every new FIAT model worldwide."

As MRC informed previously, in August 2013, Styrolution announced the start-up of its Luran S plant located in Ulsan, South Korea. The new plant has a capacity of 43,000 mt per year, complementing current ASA capacity in Europe and North America.

Luran S belongs to Styrolution's specialties portfolio, which is well-known for its innovation, quality and customizability. It is the brand name for Styrolution's styrene acrylonitrile copolymers that have been impact-modified with acrylic ester rubber, acrylonitrile styrene acrylate (ASA). It is used in outdoor applications in various industries including automotive, electrical & electronics, building & construction, as well as sports & leisure.

The Styrolution Group GmbH is a global provider of styrenics , headquartered in Frankfurt am Main. The company is a joint venture between BASF (50%) and INEOS (50%), were merged into the main styrene operations of the two partners. Its main focus is on the production of monomer, polystyrene, styrenic specialties, and ABS. The company offers styrene plastics for a variety of everyday products from different industries , such as automotive, electronics, construction, household, leisure, packaging, medicine and health.
MRC

Arkema sets up joint venture with Jurong Chemical

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, and Jurong Chemical, China’s leader in acrylic acid, has announced the creation of Sunke, a joint venture, in which Arkema will have a majority interest, comprising the assets of Jurong’s acrylic acid production site in Taixing opened in 2012, according to Arkema's press release.

This acquisition, in the wake of Arkema’s recent startup of its coating resins and Coatex production plants on the Changshu site, will enable the company to accelerate the development of its Coating Solutions segment in China and in Asia and to assist its customers in particular in fast-growing markets such as superabsorbents, paints, adhesives, water treatment, etc.

It represents a new milestone in Arkema’s growth strategy and the achievement of its 2016 targets, in particular by strengthening the group’s position in high growth countries. Finally, it provides the company with a highly competitive acrylic monomer industrial footprint in Asia.

Production capacity for Arkema initially will be 160,000 t/year for a USD240 mln investment, with the option to raise it without delay to 320,000 t/year for a further USD235 mln investment.

As MRC informed earlier, Arkema, the world’s second leading producer of organic peroxides, has recently announced the construction of a new organic peroxide plant on its Changshu site in China. This investment will help double the site’s production capacity. The new Changshu plant is due to come on stream in early 2016.

Arkema with annual revenue of EUR6.4 billion is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. Arkema operates 11 organic peroxide plants on the three continents.
MRC

Pemex to build first solidifying sulfur plant in Mexico

MOSCOW (MRC) -- The PMI Trading arm of Pemex will build the first solidifying sulfur plant in Mexico,seeking to ensure the movement of sulfur from different refineries and gas processing complexes in the country, reported Hydrocarbonprocessing with reference to the company's announcement.

The new plant will be located in the Port Authority of Coatzacoalcos, Veracruz, with a processing capacity of 360,000 tpy and over USD38 million in investment.

Pemex CEO Emilio Lozoya Austin said the project reflects his company's willingness to collaborate on the development of joint projects, thereby finding a more efficient and cost effective use of resources to expand infrastructure.

The long-term trade agreement reached between the PMI Trading subsidiary and Pemex Gas states that the latter contributes nearly 40% of its production of liquid sulfur to be solidified.

That allows PMI, as an international marketer of sulfur, to participate in other markets such as China, India, Brazil and Mediterranean countries - which consume solid sulfur.

This project is of high strategic importance for Pemex, according to company officials, who are projecting their sulfur production to grow by over 50% due to clean fuel projects.

We remind that, as MRC informed earlier, in Semtember 2013, Mexico's state-owned oil Pemex Petroquimica and Mexichem entered into a joint venture, which will enable greater competitiveness of the domestic petrochemical industry in the global market through the integration of a new company, which will create value to the chlorine-vinyl chain. The joint venture includes a cash investment and assets contribution up to the amount of USD518 million, in order to modernize the Pajaritos complex.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
MRC

BASF invests approximately EUR7 million in the resin production at its Munster site


MOSCOW (MRC) -- BASF is investing around EUR7 million to expand and optimize the resin production at its Munster site, said the producer in its press release.

The investment in resin production will result in an expansion of the production capacity and, thanks to a better heating technique, it will also contribute to a significant improvement of the environmental performance. The energy efficiency for heat generation and the exhaust gas combustion will be increased.

The investments are scheduled to be completed in 2016. At present, BASF is also building a new resin plant in Shanghai to meet the growing demand for automotive OEM coatings in Asia Pacific.

The resins produced by BASF are integral components of industrial and automotive OEM coatings and automotive refinish products. As binders, they contribute to good adhesion, gloss and scratch resistance of the coating. Resins also provide corrosion protection and weather resistance for BASF’s products.

As MRC informed before, SIBUR and 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.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success with environmental protection and social responsibility. BASF had sales of EUR72.1 billion in 2012 and more than 110,000 employees as of the end of the year.

MRC