PS prices in Ukraine rose following hryvnya depreciation

MOSCOW (MRC) -- Traders raised spot prices of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS), following the hryvnya devaluation, according to ICIS-MRC Price report.

The collapse of the hryvnya exchange rate leads to a constant increase in prices of imported polymers. Traders raise polystyrene (PS) prices and adjust them almost every day. The price spread of the most popular injection moulding GPPS grades of Nizhnekamskneftekhim production were heard in the range of UAH27,000-28,200/tonne CPT Kiev, including VAT, on Wednesday. The price of 525 grade rose by UAH6,500-6,900/tonne since early 2014.

The slump in prices is no less significant in the HIPS market. HIPS prices of Nizhnekamskneftekhim's 825 grade were heard at UAH28,000-29,000/tonne CPT Kiev, including VAT, up by UAH6,500-6,800/tonne compared with prices of the beginning of the year.

Traders said prices have been bound long to foreign currencies (dollar, euro or rouble depending on the country of origin of the polymer) and they are recalculated at the current foreign currency rate of the interbank market. Many companies initially calculate selling prices at a higher exchange rate, because the hryvnya has fallen almost every day in recent months. Almost all traders work now on 100% prepayment basis. Deferred payments are granted only to very disciplined customers with a good payment history, a Ukrainian trader said.

Demand is present in the PS market, despite a high rate of price increases, sellers said. At the same time, producers of finished products said buying activity dropped in the market of finished products, following the general decline in economic activity of the population, which would have a negative impact on the overall PS consumption.
MRC

MOSCOW (MRC) -- Solvay has signed an agreement to sell its polyvinyl chloride (PVC) compound business Benvic Europe to U.S. investment company OpenGate Capital, further improving the resilience of the Group’s portfolio, according to the companie's press-release.

Benvic Europe mixes PVC and additives, pigments and stabilizers to make innovative plastic compounds, which are processed to serve markets ranging from cars and aircrafts to medical applications and construction.

"This divestment is part of Solvay's transformation to achieve higher growth and greater cash returns and helps to reduce its exposure to the economic cycle," said Jacques van Rijckevorsel, member of Solvay’s Executive Committee. "OpenGate Capital’s long-term investment strategy will allow Benvic to seize growth opportunities in Europe."

The closing of this transaction is expected in the first half of 2014 and is subject to the approval of the anti-trust authorities. The deal was announced in late December of the year.

As MRC informed previously, Braskem, the largest polymer producer in the Americas and the world leader in biopolymers, has recently announced the execution of an agreement with Grupo Solvay for the acquisition of 70.59% of the total and voting capital of Solvay Indupa, which produces PVC and caustic soda and owns two integrated industrial facilities in Brazil and Argentina.

OpenGate Capital is a global private buyout firm specializing in the acquisition and operation of businesses seeking revitalization through growth and operational improvements. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California and maintains offices in Paris, France and Sao Paulo, Brazil.

Benvic generated revenues of about EUR160 million in 2013. It has about 220 employees across Europe, with three PVC compounding production sites in France, Italy and Spain. The divestment will not affect Benvic’s current headcount.


MRC

MOSCOW (MRC) -- German specialty chemicals company Lanxess, the world’s largest synthetic rubber supplier, and EconCore N.V. are joining forces to develop new thermoplastic sandwich materials for lightweight construction, as per the company's press release.

The objective of the collaboration is to fabricate honeycomb cores from Durethan polyamides with the help of an automated, continuous process patented by EconCore. In addition, Tepex continuous fiber-reinforced thermoplastic composites from Lanxess subsidiary Bond-Laminates are to be combined with the new polyamide honeycomb cores to produce high-performance composites.

Polyamide honeycomb cores, and the sandwich composites in which they are incorporated, open up entirely new possibilities in lightweight construction, for instance of high load-bearing structural automotive parts. This applies in particular to composites with Tepex facings.

"With EconCore and its key technology for the production of lightweight honeycomb cores, we have found a partner who gives us and our customers access to a key method of lightweight construction," explained Hartwig Meier, head of Product and Applications Development in the Lanxess High Performance Materials business unit.

"As a leading global supplier of lightweight construction materials and the associated engineering know-how, Lanxess offers us the great opportunity to develop new mass production applications for our innovative ThermHex honeycomb core technology," said Jochen Pflug, CEO of EconCore N.V., based in Leuven, Belgium, which operates a German production location, ThermHex Waben GmbH, in Halle (Saale).

As MRC informed previously, in March 2014, Lanxess and Korean Hankook Tire signed a memorandum of understanding (MOU) to co-develop synthetic rubber technologies for high-performance tire. Under the agreement, the two companies will jointly study the development of new high-performance synthetic rubber grades and applications that increase the performance of tires from early stages of product development.

EconCore is the market leader in technologies for economic honeycomb sandwich production. EconCore’s ThermHex technology allows producing honeycomb cores and sandwich panels in a fast, continuous, in-line process. Due to its high efficiency ThermHex technology is applied typically in mass market applications allowing reductions of product’s cost and weight and consequently reductions of CO2 emissions.

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) -- Foster Wheeler AG has announced that Eni S.p.A. has renewed for a further two years its existing framework agreement with a subsidiary of Foster Wheeler’s Global Engineering and Construction Group, as per Plastemart.

Under this agreement, Foster Wheeler provides basic design and front-end engineering design for downstream, upstream, power and petrochemical projects world-wide undertaken by five Eni business units: Eni Refining & Marketing, Eni Exploration & Production, Enipower, Versalis and Syndial.

Foster Wheeler has worked with Eni companies under a range of frame agreements for more than fifteen years.

As MRC wrote earlier, in Novemer 2013, Foster Wheeler was selected by Rosneft and ExxonMobil to undertake the initial phase of the front-end engineering design (FEED) for a proposed Russian Far East liquefied natural gas (LNG) project.

Besides, Eni has recently reported that it will invest EUR125 million in its Versalis plant in Mantua to under the Group 2014-2017 four-year strategic plan.

Foster Wheeler AG is a global conglomerate with its principal executive offices in Geneva, Switzerland and its registered office in Baar, Canton of Zug, Switzerland. It is focused on the Engineering, Procurement, and Construction (EPC) industry and the Electrical Power equipment industry.

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company with a market capitalization of 68 billion euros (USD 90 billion), as of August 14, 2013. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC

MOSCOW (MRC) -- Solvay Specialty Polymers has expanded its family of Cogegum cross-linkable, halogen-free flame retardant (HFFR) compounds for cable jacketing for the railway, shipboard, industrial, and oil and gas industries, according to the companie's press-release.

The new polyolefin grade, Cogegum GFR 380, delivers greater flexibility and superior flame resistance compared to competitive silane-grafted HFFR materials. This material will be included in Solvay’s exhibition at Wire 2014 in Hall 12 Booth B33.

The new grade represents a major breakthrough in the silane-grafted HFFR space, according to Luigi Dalpasso, Senior Vice President, Head of Cross-Linkable Compounds for Solvay Specialty Polymers.

GFR 380 addresses the inherent limitations of silane-grafted HFFR materials which are typically stiff because of the lack of a plasticizer component. With a 38 Shore D hardness, the new grade is softer and more flexible than competitive silane-grafted HFFRs which typically exhibit a 45 to 50 Shore D hardness. This is particularly important in railway and shipboard applications where cable space is narrow and bending ability is a key advantage.

Cogegum GFR 380 also provides superior flame retardant properties compared to competitive silane-grafted HFFRs. During burning, the material’s char is compact and protects the cable from accelerated burning. The new grade also offers the same chemical resistance as previous grades to such substances as oil, fuels, alkalines, acids, and service fluids.

Cogegum GFR 380 incorporates a masterbatch that contains special additives to improve cross-linking action and aging. An anti-ultraviolet (UV) agent for enhanced weatherability is also part of the formulation. The material is rated for use up to 90°C (194°F) and can be adapted for certain applications up to 105°C (221°F).

The material launch is the result of an extensive research and development program by Solvay that not only focused on material formulation and compounding but also on plant-specific features to facilitate manufacturing. Cogegum GFR 380 is commercially available throughout the world. Power, data, and signal cables are among the key application areas. Solvay said the technology platform will be expanded to include other silane-grafted HFFR materials in the near future.

The Cogegum GFR series of ambient-cure, cross-linkable HFFR compounds offers superior solutions for wire and cable insulation and sheathing that require a wide range of operating temperatures, Restriction of Hazardous Substances (RoHS) compliance, and broad chemical resistance.

As MRC reported earlier, in 2012, Solvay Specialty Polymers and Rhodia Engineering Plastics launched a new EUR 21 million compounding plant in Changshu, Jiangsu province. It will serve the Chinese markets for electrical and electronics, wire and cable, automotive, consumer, and industrial applications.

Solvay Specialty Polymers manufactures over 1500 products across 35 brands of high-performance polymers ? fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds for use in Aerospace, Alternative Energy, Automotive, Healthcare, Membranes, Oil and Gas, Packaging, Plumbing, Semiconductors, Wire and Cable, and other industries.
MRC