Lanxess increases prices for EPDM rubber

MOSCOW (MRC) -- The Keltan Elastomers (KEL) business unit of specialty chemicals group Lanxess will raise its prices for all of its Keltan EPDM grades (Ethylene Propylene Diene Monomer) in Europe, Middle East and Africa, effective February 1, 2014, reported the company on its site.

The price adjustment for EPDM is EUR125 per tonne.

EPDM, which is offered under the brand name Keltan, is used in the automotive industry as door sealants, hoses, belts or anti-vibration parts. The product is also used in plastic modification, wire and cable, construction and oil additives. Its properties include very low density, good resistance to heat, oxidation, chemicals and weathering as well as good electrical insulation.

As MRC informed previously, in November 2013, Lanxess KEL business unit implemented a price increase for all of its Keltan EPDM grades of up to USD150/tonne. The price rise, which only affected the Asian region, was due to rising costs, especially for raw materials.

The Keltan elastomers business unit is part of Lanxess’ Performance Polymers segment, which recorded sales of EUR 5.18 billion in fiscal 2012.

Lanxess is a leading specialty chemicals company with sales of EUR 9.1 billion in 2012. The company is currently represented at 50 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. The Butyl Rubber business unit is part of Lanxess’ Performance Polymers segment, which recorded sales of EUR 5.2 billion in 2012.
MRC

PeMex to sign agreements with international companies

MOSCOW (MRC) -- Petroleos Mexicanos, Mexican state-owned oil producer, expects to sign its first exploration and output agreements with international companies by end of 2014, after Mexico abolished its 75 year monopoly, as per Bloomberg.

This will allow foreign companies to produce crude in the largest supplier to the U.S. after Canada and Saudi Arabia. The overhaul may bring an additional USD20 bln in foreign direct investment as soon as 2015, according to Bank of America Corp. Associations in refining, transportation and petrochemicals can be done once congress approves so-called secondary legislation, which is expected in April. Pemex will initially focus on mature and deep-water fields to establish the ventures, Chief Executive Officer Emilio Lozoya said.

Pemex is exploring deep waters in the Gulf of Mexico in a bid to replicate U.S. success by companies including Chevron Corp. (CVX), Royal Dutch Shell Plc (RDSA) and Anadarko Petroleum Corp. (APC). The Mexican company is also seeking partners to help it maximize reserves in older fields. Schlumberger Ltd. (SLB), Petrofac Ltd. (PFC), and Alfa SAB (ALFAA) were among the winners to develop four mature oil fields in a 2012 auction. Foreign crude producers have to wait about two years before they will be allowed to bid on their own fields for exploration and production without Pemex, as per Deputy Energy Minister Enrique Ochoa. Prior to granting operating licenses, the legal framework has to be determined and Pemex must select the fields it plans to continue to develop.

As MRC informed before, 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, of which PEMEX will participate with USD228 million in assets while Mexichem will contribute with both, USD90 million in assets and USD200 million in cash 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

SIBUR joins responsible care programme

MOSCOW (MRC) -- Dmitry Konov, SIBUR's CEO, and Viktor Ivanov, President of the Russian Chemists Union, signed an agreement for SIBUR to join the Responsible Care programme, said the producer in its press release.

Responsible Care is a global, voluntary initiative of companies committed to continuous improvement of their health, safety and environmental (HSE) practices. The mission of the programme is to drive corporate responsibility in the chemical industry and to create a favourable environment for its sustainable development.

Members of the programme are required to report their HSE performance to a national professional body (the Chemists Union – in Russia), carry out HSE audits, including those performed by international auditors, implement social development projects and enhance their social responsibility. Responsible Care members follow the Responsible Care guidelines in their business practices.

Responsible Care has been acknowledged by the United Nations Environment Programme (UNEP) as an initiative that contributes towards sustainable development targets for chemical companies and the chemical industry as a whole.

56 countries and 90% of chemical manufacturers around the world are part of this global initiative. 28 Russian companies have joined the programme so far.

As MRC wrote before, Fitch Ratings has affirmed Russia-based petrochemical group JSC SIBUR Holding's (SIBUR) Long-term Issuer Default Rating (IDR) at 'BB+' with stable outlook.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry. As well as thermoplastic elastomers for the road construction sector, SIBUR also produces polymer-modified geosynthetics.
MRC

Jurong Aromatics likely to start trial runs at Singapore complex by April

MOSCOW (MRC) -- Jurong Aromatics Corporation (JAC) could start trial runs at its USD2.4 billion petrochemical complex in Singapore by April, said Businesstime.

The project includes a 100,000 barrels per day (bpd) condensate splitter and an aromatics complex and it will be mechanically complete in February, the sources said.

The company spokesman declined to comment.

The splitter, one of three to start operation in Asia this year, will tighten supply of condensate, a super light oil produced from gas fields, while adding more oil products and petrochemicals in Asia, trade sources said.

The plant will produce 1.5 million tonnes per year (tpy) of aromatics and 2.7 million tpy of petroleum products a year, JAC had said. The oil products will comprise 783,000 tpy of jet fuel, 662,000 tpy of ultra-low sulphur diesel, 647,000 tpy of naphtha, 283,000 tpy of naphtha and 195,000 tpy of fuel oil.

SK Group and Jiangsu Sanfangxiang Group are the project's largest shareholders.

As MRC wrote before, ExxonMobil officially opened its multi-billion dollar Singapore chemical plant expansion on Jurong Island, to serve growth markets in the Asia-Pacific region. The expansion included a second 1-million-t/y steam cracker, two 650,000-t/y polyethylene plants, a 450,000-t/y polypropylene plant, a 300,000-t/y specialty elastomers unit, an aromatics extraction facility to produce 340,000 t/y of benzene, and a 125,000-t/y oxo-alcohol expansion.
MRC

Dow reports fourth Quarter and full-year results

MOSCOW (MRC) -- Dow earned USD1.05 billion last quarter, compared with a loss of USD631 million a year earlier. Revenue rose 3.4% to USD14.4 billion, exceeding targets from analysts for USD14.13 billion, volumes increased 2%, said the producer in its press release.

"We generated significant earnings growth, margin expansion and return on capital improvement through Dow-specific actions that gained momentum throughout 2013," Dow CEO Andrew Liveris said in a statement.

Liveris has come under pressure in recent weeks from activist investor Dan Loeb, who has called on Dow to spin off its petrochemical business, which he said may be a "significant drag on profitability." Last week, the billionaire hedge fund giant revealed taking a USD1.3 billion stake in Dow.

Dow generated sales growth in nearly all of its operating segments during the fourth quarter, highlighted by a 13% leap in agricultural sciences and a 10% jump for coatings and infrastructure solutions.

The company said performance plastics sales increased 5% basis, while performance materials revenue was up 1%. However, Dow said feedstocks and energy revenue dropped 6% year-over-year due to a 6% decline in prices and flat volume.

As MRC wrote before, Dow Chemical plans to separate chlorine-related assets including its epoxy business as the company focuses on higher-margin activities. The chlorine assets account for as much as USD5 billion of annual revenue and include plants at 11 sites employing almost 2,000 people, Midland, Michigan-based.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.

MRC