Production of polymer products in Belarus decreased by 13.9% in Q1 2014

MOSCOW (MRC) - Production of polymer products in Belarus decreased by 13.9% in the first quarter of this year, according to MRC analysts.

The greatest reduction in production volumes occurred for the goods used in the construction sector: plastic windows, boxes and window sills and doors and door boxes made of polymers.

According to the National Statistics Committee of Belarus, production of windows, window boxes and sills was 34,900 sq. m in March, compared with 19,500 sq. m in February. Total production of these products in Belarus reduced to 72,000 sq. m in Q1 2014, down 15.7% in the same time a year earlier.

March production of plastic doors and boxes in Belarus increased to 1,900 sq. m, compared with 1,500 sq. m in February. Total production of plastic doors and boxes in Belarus was 5,100 sq. m in Q1 2014, down 16.4% year on year.

Last month' s production of plates, films and polymer sheets in Belarus was 7,200 tonnes, compared with 5,800 tonnes in February. Production of these products in Belarus was 19,600 tonnes in Q1 2014, down 12.2% in the same time a year earlier.

March output of boxes, crates, plastic trays in Belarus was about 66.8 million units, from 58.9 million units in February. Total production of these polymer products in Belarus rose to 187.3 million units in Q1 2014, up 12.1% compared to the same time in 2013.

Production of pipes, hoses and fittings made of polymers in March decreased to 897 tonnes, from 915 tonnes in February. Total production of pipes, hoses and fittings made of polymers in Belarus was 2,800 tonnes in Q1 2014, up 4.3% year on year.
MRC

MOSCOW (MRC) -- INVISTA and Solvay have signed a settlement agreement that resolves disputes related to adiponitrile (ADN) intellectual property and technology in use at their nylon 6,6 intermediates Butachimie joint venture in Chalampe, France, said the company in its press release.

The settlement confirms INVISTA’s exclusive ownership of the ADN technology at Butachimie and includes a plan to upgrade the facility with INVISTA’s latest and most advanced ADN technology. The planned upgrade would be one of several components in a new joint venture relationship between the two companies.

"Retrofitting Butachimie with INVISTA’s newest ADN technology will dramatically increase the plant’s efficiency," said Warren Primeaux, president of INVISTA Intermediates. "Under this new joint venture, we are excited to work together with Solvay to better serve our customers and support nylon 6,6 growth."

The Butachimie joint venture has been operating for 40 years, and is the world’s largest ADN facility. The nylon 6,6 intermediates made at Butachimie are used to make nylon 6,6 fibers and polymers that ultimately become part of air bags, automobile parts, carpet, workout apparel, outdoor equipment and more.

As MRC wrote before, INVISTA signed an exclusive, long-term agreement with Petrochemical Conversion Company Ltd. (PCC) to purchase and market nylon 6,6 engineering resin for export from PCC’s new world-scale nylon 6,6 plant in Al-Jubail, Saudi Arabia.

INVISTA is one of the world’s largest integrated producers of chemical intermediates, polymers and fibers. The company’s advantaged technologies for nylon, spandex and polyester are used to produce clothing, carpet, car parts and countless other everyday products. Headquartered in the United States, INVISTA operates in more than 20 countries and has about 10,000 employees.

Solvay assists industries in finding and implementing ever more responsible and value-creating solutions. Solvay generates 90% of its net sales in activities where it is among the world's top three players. It serves many markets, varying from energy and the environment to automotive and aerospace or electricity and electronics. The group is headquartered in Brussels, employs about 29,400 people in 56 countries and generated 9.9 billion euros in net sales in 2013.
MRC

MOSCOW (MRC) -- Sabic Innovative Plastics will invest in a production line for Stamax-brand long glass fiber-reinforced polypropylene (PP) resin at its manufacturing site in Shanghai, reported the company on its site.

Investment or production capacity numbers were not revealed, but the new line is expected to come on stream in H2-2015.

This will be Sabic's third Stamax plant, joining existing facilities in Genk, Belgium, and Bay St. Louis, Miss., according to the statement.

The new China capacity brings Stamax operations closer to customers in Asia, noted Alan Leung, vice president of global and Asia Pacific commercial operations. It also helps respond to growing demands by automakers in the region for lightweight-enabling materials that can help reduce vehicle emissions.

As MRC informed earlier, designed specifically to help customers in the beverage industry reduce transportation losses, Sabic has recently broadened its stretch film portfolio to include one of the first commercially available materials in Europe to combine polypropylene (PP) and linear low density polyethylene (LLDPE).

Sabic is a diversified manufacturing company, active in chemicals and intermediates, industrial polymers, fertilizers and metals. It is the largest public company in Saudi Arabia and the largest company in the Middle East. Sabic is currently the second largest global ethylene glycol producer and is expected to become number one after the introduction of these new projects. Sabic is the third largest polyethylene manufacturer, the fourth largest polyolefins manufacturer and the fourth largest polypropylene manufacturer. It is also the world's largest producer of mono-ethylene glycol, MTBE, granular urea, polyphenylene and polyether imide.
MRC

MOSCOW (MRC) -- The long anticipated privatization of insolvent Romanian PVC producer Oltchim has been postponed yet again, this time until mid-May, said Plasticsnews.

A March 28 deadline for filing binding bids to purchase Oltchim SPV, the "special purchase vehicle" containing core debt free assets of the Oltchim SA, passed with no offers received. One foreign bid is reported to have been received after that deadline.

The Romanian government agreed to a 45-day delay at the request of key potential bidders who are hopeful they could receive an enhanced package, which would also include the Romanian Arpechim oil refinery.

Those would-be investors, said by Oltchim’s administrators to include a Chinese consortium and a Romanian investment fund, are waiting for the government to conclude purchase talks with Pitesti-based Arpechim’s owner Petrom, part of the Austrian OMV oil group.

The government is expected to combine Oltchim SPV assets with the Arpechim refinery, which was shut down by Petrom two years ago. Oltchim acquired Arpechim’s petrochemicals business, including an ethylene cracker and low density/high density polyethylene extraction, in 2010, but then suffered from a serious feedstock shortage.

Companies in the Chinese consortium interested in buying the enhanced Oltchim package are understood to be Baota Petrochemical Group and Junlun Petroleum, while the Romanian bidder is said to be SIF Transilvania.

Ramnicu Valcea-based Oltchim, with debts still amounting to 700 million euros (USD967.2 million), employs around 2,000 and has been operating at less than 30% of capacity.

The successful buyer of the package is likely to have to deal with environmental liabilities at the Arpechim refinery amounting to several hundred euros, according to Romanian media reports.

Oltchim, which is a state-owned company, has been insolvent since January 30, 2013, the Romanian authorities seeking to eventually complete its privatization, after some unsuccessful attempts.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating PVC for panels, doors and window frames.
MRC

MOSCOW (MRC) -- Dow Chemical, the largest US chemical maker, has posted better-than expected profit for the first quarter after its plastics unit sold out and sales volumes increased at the company’s paints ingredients business, according to Hydrocarbonprocessing.

Net income rose to 79 cents/share from 46 cents a year earlier, Midland, Michigan-based Dow said. That topped the 71-cent average of 17 estimates compiled by Bloomberg.

Plastics, Dow’s biggest business by revenue, saw profit gain 5% on higher prices. CEO Andrew Liveris said the unit has the advantage of energy and raw materials that are relatively cheaper in North America amid a boom in gas production from shale rock. Dow is adding plastics capacity in Saudi Arabia and the US, which will use low-cost natural gas liquids such as ethane, starting next year.

"We are sold out globally" in plastics, he said in a telephone interview. "The industry is not sold out, because most of the industry is located outside North America running on high cost inputs."

Besides, Dow has reiterated its plan to sell underperforming assets worth USD4.5 billion to USD6 billion by the end of 2015.

In January, Dow tripled its share buyback program to USD4.5 billion and raised its dividend. The company said it repurchased USD1.25 billion of shares in the first quarter.

Sadara, Dow’s USD20 billion joint venture with Saudi Arabian Oil Co., is scheduled to begin production at its first units in late 2015. Dow also is building plants in the US to convert inexpensive shale gas into propylene and ethylene. Dow expects the US and Saudi projects to add USD3 billion to annual earnings after 2017.

As MRC reported earlier, last March, Dow Chemical signed a long-term ethylene off-take agreement with a new Japanese joint venture that will allow the chemical producer to enhance its performance plastics franchise. The joint venture was being formed between Japanese companies Idemitsu Kosan and Mitsui & Co. to construct and operate a Linear Alpha Olefins unit on the US Gulf Coast.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber. In 2012, Dow had annual sales of approximately USD57 billion. The company's more than 5,000 products are manufactured at 188 sites in 36 countries across the globe.
MRC