A. Schulman raises profit forecast as demand rises in Europe

MOSCOW (MRC) -- Specialty chemical maker A. Schulman Inc raised its full-year profit outlook, topping the average analyst expectation, citing strengthening demand in Europe and relatively stable raw material prices, said Reuters.

The company, which also reported a better-than-expected quarterly profit on Monday, raised its 2014 adjusted profit to USD2.23-USD2.28 per share from USD2.13-USD2.18.

Analysts on average were expecting USD2.16 per share, according to Thomson Reuters.

Net sales in the Europe, Middle East and Africa region rose 12% in the second quarter ended Feb.28, helped by demand from automotive, electronics & electrical markets.

Total revenue increased 13% to USD588.5 million.

Net income attributable to A. Schulman fell to USD6.8 million, or 23 cents per share, from USD11.8 million, or 40 cents per share, a year earlier.

Adjusted profit from continuing operations was 39 cents per share, higher than analysts' average estimate of 33 cents per share.

As MRC wrote before, A. Schulman, Inc. announced that it has purchased the Perrite Group, a thermoplastics manufacturing business with operations in Malaysia, the United Kingdom and France, for approximately USD52 million.

A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio. The company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The company employs approximately 3,300 people and has 34 manufacturing facilities globally.
MRC

MOSCOW (MRC) -- Specialty chemicals company Lanxess has successfully concluded the pilot phase for a highly efficient production process for butyl rubber, reported the company on its site.

In the past seven years, Lanxess worked on a fundamentally new technology for a more sustainable production. An important step in this process was the testing of the new technology in two pilot plants at its production site in Zwijndrecht/Belgium since spring 2012. The production process of butyl rubber is highly complex and requires process steps at very low temperatures and significant usage of steam. The new process technology is significantly more energy and cost efficient.

Lanxess now intends to mothball the pilot plants after successful development of the new production process. A labor consultation process was started locally to align potential impacts on staff with unions and employees.

Butyl rubbers are used in tire inner liners - the innermost, air- and humidity-impermeable layer of a tubeless tire. They keep tire pressure constant over a long period, thus making vehicles safer and ensuring they consume less fuel and therefore produce fewer emissions. Special applications include protective clothing and medical devices. The use of butyl in chewing gum production represents one particularly interesting niche market.

Besides its Zwijndrecht plant Lanxess operates butyl production facilities in Sarnia/Canada and Singapore.

As MRC wrote previously, last July, Lanxess celebrated the opening of its first production facility in Russia. In the new plant at the Lipetsk site, Lanxess subsidiary Rhein Chemie manufactures polymer-bound rubber additives for the markets in Russia and the Commonwealth of Independent States (CIS), primarily for the automotive and tire industries. A production facility for the bladders used in tire production is to be added in 2016. The overall investment volume in euros amounts to a seven-digit figure.

The Butyl Rubber business unit is part of Lanxess’ Performance Polymers segment, which recorded sales of EUR4.49 billion in fiscal 2013.

Lanxess is a leading specialty chemicals company with sales of EUR 8.3 billion in 2013 and roughly 17,300 employees in 31 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

MOSCOW (MRC) -- KraussMaffei Berstorff has recently developed a highly cost-effective production process for multilayer PVC floor coverings, also referred to as Luxury Vinyl Tiles (LVT)? said the producer in its press-release.

In contrast to conventional multistage processes using calenders or belt presses, compounding and tile production are performed in a single cycle with the material being heated up only once. Offering a range of convincing benefits, LVT floor coverings are an attractive alternative to laminate flooring, which is why they are in high demand worldwide.

LVT flooring is composed of a highly filled core layer - usually provided with an integrated glass mat – plus decorative film and a wear protection layer. While the glass mat gives strength and dimensional stability, the core layer provides flatness of the floor covering and impact sound insulation. For this purpose, the PVC sheet material is filled up to 60 to 70% with mineral additives to obtain thick sheeting of high density and weight. The decorative film is laminated to the thick sheeting to produce the desired design and the product is rounded off by wear protection layers of different thickness depending on the future application.

Similar to roofing sheets, the three-layer floor covering core is produced on two twin-screw extruders and two smoothing calenders. The first extruder - used for plasticizing and homogenizing a PVC compound - is equipped with a side feeder to incorporate a high mineral filler share and additional additives. The material leaving the extruder is applied to the glass mat on the first downstream smoothing calender.

The composite obtained is then guided through the second smoothing calender to apply the PVC compound - previously processed on the second extruder - to the other side of the glass mat. This method offers the decisive benefit that processing, compounding and tile production are carried out in-line, which is of fundamental importance for heat-sensitive PVC in particular. Downstream from the second smoothing calender, the three-layer core material is provided with the decorative film and the wear protection layer. The five-layer composite then passes through an embossing station as well as a temperature control section to ensure dimensional stability before being cut to size.

We remind that KraussMaffei Berstorff (Munich, Germany) presented its innovative concept for producing weatherproof sheets based on renewable raw materials to a 60 customers during a live demonstration in Munich on March 12, 2014.

As MRC wrote earlier, two leading pipe manufacturers from Russia have recently chosen KraussMaffei Berstorff as a systems supplier for premium-quality technology and invested in PO pipe extrusion systems.

The KraussMaffei Group is a global leader in the plastics and rubber processing industries. The company covers all areas of injection molding machinery, extrusion technology and reaction process machinery, which gives it a unique selling point in the industry.

MRC

MOSCOW (MRC) -- Kem One has announced the launch of a project to convert its diaphragm and mercury "chlorine/caustic soda" electrolysis to the membrane technology at the Lavera site located in the Bouches du Rhone -France, as per the company's statement.

This project goal is to make existing facilities to comply with the European Directive concerning mercury cells end of 2019 phase out dead-line. From the middle of 2016, this conversion will also improve the competitiveness and the reliability of the Lavera site production units.

The conversion of Lavera diaphragm and mercury "chlorine/caustic soda" electrolysis to bipolar membrane technology is a major investment for Kem One development and sustainability. This project will improve Kem One competitiveness, the company enjoying today an integrated production chain from the salt to PVC and chloromethanes via chlorine production.

Through this modernization, the existing production units will benefit from the best technology currently available. Less energy consumption, more reliable units, higher product quality, and reduction of the environmental impact are expected from this project.

"This change will significantly reduce the Lavera production site energy consumption on one hand, and its environmental footprint on the other hand. It will strengthen Kem One competitive position in the chlorochemicals and PVC Field," says Alain de Krassny, the new President of Kem One.

The financing of this project is supported by the French state according to the terms presented to the European Commission in the notification file. Thus, this investment project will consolidate Kem One position within the European Vinyl Industry.

A newly formed company from Arkema's vinyl products division, Kem One, is fully integrated in the vinyl sector. The company will continue its development within the Klesch Group, a leading European operator of industrial and commodity-related businesses. Kem One is Europe's third-largest producer of PVC with revenues in excess of one billion euros, which already possesses numerous strengths for growing and becoming the integrated vinyl solutions leader in southern Europe and the Mediterranean basin. The company has been chaired since February 2014 by the French Industrialist Alain de Krassny.
MRC

MOSCOW (MRC) -- The Lubrizol Corporation announces the groundbreaking for a new TempRite chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej, India, said the producer in its press-release.

Construction of this plant is an integral component of the company's previously announced USD400 million global expansion of its resin and compounding manufacturing capacity. Further solidifying Lubrizol's commitment to the Indian market, investment in this new plant marks Lubrizol as the first major global producer of CPVC to establish operations in India. The estimated investment in the new plant is more than USD50 million U.S., and it will have the capacity to produce approximately 55,000 metric tons of compounds annually.

The plant will be strategically located in the Gujarat Industrial Development Corporation (GIDC), which is one of the largest chemical parks in the country. Many of the raw materials required for Lubrizol's specialty chemical product portfolio are produced in GIDC. The plant is located near excellent infrastructure and is well-positioned geographically to serve the growing Indian market as well as support the emerging growth of the TempRite CPVC business in South Asia, the Middle East and East Africa.

We remind that, as MRC wrote previously, Sekisui Chemical and Lubrizol will initialise a joint venture (JV) company in Thailand, in order to produce chlorinated polyvinyl chloride (CPVC), which is used as a raw material in pipes for supplying hot water, industry and sprinklers.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol"s advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC