Reliance commissions new polyester unit - first in a series of PC expansion projects

MOSCOW (MRC) -- Reliance Industries Ltd. (RIL) said it has successfully commissioned its 395,000-t/y polyester filament yarn plant in Silvassa, India, the first in a series of planned petrochemical expansion projects announced earlier, reported Polyester.

"This plant will be the first 'zero-waste' plant globally from day one on account of total waste recycling," RIL said.

With completion of the polyester expansion, RIL's total polyester capacity has increased to 2.8-million t/y from 2.4-million t/y.

In 2012, RIL signed a USD2-billion equivalent loan with nine banks to help finance its petrochemical expansion projects. Among the projects are a cracker having over 1.5-million t/y of olefins capacity, a 1-million-t/y acetic acid plant and a 1.4-million-t/y paraxylene facility, all being built in Jamnagar.

As MRC informed previously, in October 2012, Reliance Industries announced its plans to expand capacity at its refineries in the western state of Gujarat. Earlier, Reliance had unveiled an USD18 billion investment plan for India over the next five years.

Reliance Industries is one of the world's largest producers of polymers which include polypropylene, polyethylene and polyvinyl chloride.
MRC

MOSCOW (MRC) -- Fourth quarter 2013 earnings were USD8.4 billion, down 16% from the fourth quarter of 2012. Full year 2013 earnings were USD32.6 billion, down 27% from 2012, according to the company's report.

ExxonMobil delivered strong business results in 2013 while remaining focused on improving profitability and long-term shareholder value. Disciplined use of capital, project execution and asset management are positioning the company to deliver sustained superior financial performance across the business cycle.

Over the next two years, ExxonMobil will start up numerous major projects delivering profitable new supplies of oil and natural gas while strengthening the company's refining and chemicals businesses, the company's statement reads.

Capital and exploration expenditures were USD9.9 billion in the fourth quarter and USD42.5 billion for the year, including USD4.3 billion for acquisitions.

In the fourth quarter 2013, the company's chemical earnings of USD910 million were USD48 million lower than the fourth quarter of 2012. Weaker margins, mainly in specialties, decreased earnings by USD70 million, while volume and mix effects increased earnings by USD50 million. All other items decreased earnings by USD30 million.

For the full year of 2013, Exxon's chemical earnings of USD3,828 million were USD70 million lower than 2012. The absence of the gain associated with the Japan restructuring decreased earnings by USD630 million. Higher margins increased earnings by USD480 million, while volume and mix effects increased earnings by USD80 million.

Dividends per share of USD0.63 increased 11% compared to the fourth quarter of 2012. In 2013, the corporation distributed USD26 billion to shareholders through dividends and share purchases to reduce shares outstanding.

As MRC wrote previously, ExxonMobil started operations at this ethylene steam crackers in Singapore in early 2013. The expansion is integrated with the existing petrochemical plant. Over the next few weeks, the petrochemical complex, powered by a 375-megawatt cogeneration plant, increased production at its three polyethylene plants, two polypropylene plants, a specialty metallocene elastomers unit and the expanded oxo-alcohol and aromatics units.

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) -- French flooring manufacturer Tarkett has signed a non-binding agreement with construction materials specialist Gamrat (Jaslo,Poland) to acquire the Polish company’s subsidiary, Gamrat Flooring, which is also based in Poland, said the producer in its press release.

The planned transaction has Tarkett purchasing 100% of the Jaslo-based specialist in high-performance vinyl flooring, used for applications in the health, education and hospitality sectors. No financial details of the deal have been disclosed.

The next step for both companies involves pursuing negotiations of the planned purchase, which entails handing over both production and distribution activities of the subsidiary’s existing product ranges to the French group.

Should the purchase go through as outlined, Tarkett would add a second manufacturing facility in Poland, where it currently has a site in Orzechowo, in the country’s western Wielkopolskie region.

"This bolt-on acquisition would strengthen Tarkett’s leadership in manufacturing and selling commercial vinyl flooring in central Europe," stated Michel Gianuzzi, company CEO. Tarkett, which also specialises in sports surfaces, is owned primarily by the Deconinck family and private equity funds affiliated with US-based Kohlberg Kravis Roberts and Co. In 2012, Tarkett posted net sales of EUR 2.3 bn and targets its business in Europe, North America as well as emerging markets. As MRC wrote before, Tarkett SA took the first regulatory step toward selling shares in an initial public offering as 50 percent-owner KKR & Co. (KKR) seeks to exit the French floor maker amid rising valuations of building product companies in October 2013.

Gamrat Flooring, also known as Gamrat Wykladziny, employs 260 individuals and recorded net sales of about EUR 20m in 2012.
MRC

MOSCOW (MRC) -- Pluss Polymers one of the leading manufacturers of specialised polymers and phase-change materials (PCMs), is aiming for manifold increase in overseas business by tapping into new markets and strengthening its existing base across the world, said Plastemart.

This year is planning to increase its presence in markets such Turkey, Russia and Thailand. Pluss Polymers has a strong distributor base in Thailand and is in advanced talks of appointing distributors in Indonesia, Malaysia, Singapore and other ASEAN countries. To capture the growing polymer market, the company is increasing its participation in plastic and polymer exhibitions in these regions.

Built on in-house R&D, Pluss claims to be the first company to manufacture grafted polymers and PCMs in India. It has patents on synthetic paper compounds and has currently filed four patents in the PCM space.

Samit Jain, Managing Director, Pluss Polymers, said, "Being a part of the show in Turkey was very rewarding for us. We also saw very positive interest from other nations like Iran, Saudi Arabia, Jordan, Italy, South Korea and Egypt. With increased involvement in such exhibitions in various markets of the world, we are sure to steadily expand our market base to newer regions, besides fortifying existing associations."

As MRC wrote before, Tata Capital Innovations Fund, VC firm headed by Tata Capital, invested USD2.7 million in specialized polymer maker Pluss Polymers Pvt. Ltd. through equity infusion. The company is in the business of R&D and manufacture of specialized polymers and phase change materials (PCM) and the funds will be utilized to enhance R&D and manufacturing initiatives.

Pluss Polymers is an offshoot of Manas, established to develop and market new technologies and products developed in house. Pluss Polymers was incorporated in 1993 to commercialise the technology for grafted modified polymers and alloys and blends. The company produces super tough nylon alloys under the brand of ADNYL, maleic anhydride grafted polymers, HDPE profiles for the telecom industry, papyrus compound for blown film synthetic paper.
MRC

MOSCOW (MRC) -- Demand for polyethylene (PE) in Kazakhstan continues to grow dynamically. Demand for PE in the local market increased by 5% last year, according to MRC DataScope report.

Thus, demand for PE in Kazakhstan rose by 5% in 2013 to 141,400 tonnes. Local PE pipes producers remain the main driver of stronger demand. The absence of the country's own production predetermines its strong dependence on PE supplies from Russia.

Last year's structure of PE imports by grades looks the following way.

The overall imports of high density polyethylene (HDPE) totalled in 2013 about 119,000 tonnes, while this figure was 113,500 tonnes a year earlier. Russian plants produced about 49% of the total HDPE imports. Local pipes producers, which accounted for about 86% of total imports, remain the key consumers.

The low density polyethylene (LDPE) market grew by 4% in 2013 to about 17,700 tonnes. Films producers, which accounted for more than 95% of the total imports, remain the main LDPE consumers. Russian producers are the key LDPE suppliers, their share in the total imports was about 94%.

The linear low density polyethylene (LLDPE) market rose by 8% in 2013 and totalled about 4,700 tonnes. Producers from Asia and Uzbekistan, which accounted for more than 95% of total imports, remain the key PE suppliers to the republic.

As reported earlier, Kazakhstan intends to launch a new petrochemical complex in Atyrau region in 2015. The new chemical complex will be build in two phases. The first phase presupposes a commission of polypropylene production with the capacity of 500,000 tonnes per year. The second phase includes the construction of a PE plant with the annual capacity of 800,000 tonnes (starting from in 2016). Investments in the project ammount to about USD4.15 billion.
MRC