ZRCC shut PP plant for maintenance in China

MOSCOW (MRC) -- Zhenhai Refining & Chemical Co (ZRCC) has shut a polypropylene (PP) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant was taken off-stream on May 18, 2014. It is expected to remain shut for a period of around 40 days.

Located in Ningbo, Zhejiang province in China, the plant has a production capacity of 300,000 mt/year.

As MRC informed previously, Sinopec Sabic Tianjin shut down its PP plant for maintenance turnaround on May 7, 2014. It is planned to remain off-stream for around one month. Located in Tianjin city, China, the plant has a production capacity of 450,000 mt/year.

We remind that in November 2013, top Asian refiner Sinopec Corp won initial approval from China's top economic planner for a plan to build a USD10-billion refinery and petrochemical complex in Shanghai. China, the world's largest net importer of oil, is likely to add 3 million barrels per day, or a quarter of new refining capacity, between 2013 and 2015 to fuel economic growth, industry officials and Chinese media estimate.
MRC

MOSCOW (MRC) -- Imports of polyvinyl chloride (PVC) into Belarus fell by 39% in the first quarter of 2014. The main reason was weaker demand for finished products made from PVC from the domestic market, reported MRC analysts.

March imports of unmixed PVC to Belarus totalled 2,800 tonnes. PVC imports fell to 6,200 tonnes in the first quarter of the year from 10,200 tonnes a year earlier. Weaker demand for finished products in the domestic market was the main reason for the reduced interest in PVC from local converters.

Belarusian converters shipped rather large quantities of finished products made from PVC to export markets, particularly, to Russia. Exports of shaped and linear articles virtually remained at the last year's level over the said period and totalled about 4,000 tonnes.

Ineos with the share of about 50% is the main PVC supplier to the local market. The second largest supplier is the Polish company Anwil (about 2,000 tonnes in the first quarter of 2014). Russian PVC accounts for about 11% of the total imports to the Belarusian market.
MRC

MOSCOW (MRC) -- Imports of polypropylene (PP) into the Belarusian market increased by 6% over the first three months of 2014. Demand for copolymers of propylene continued to grow, while demand for homopolymers of propylene (homopolymer PP) has been subsiding, reported MRC analysts.

March PP imports to Belarus totalled about 7,200 tonnes. Imports of polymers of propylene to the local market rose to 18,000 tonnes in the first quarter of 2014 from 16,900 tonnes a year earlier. Demand for copolymers of propylene increased.

Imports of homopolymer PP to Belarus totalled about 4,900 tonnes in March. The overall imports of homopolymer PP to the local market dropped from January to March 2014 by 5% to 12,500 tonnes. Russian producers with the share of about 7,700 tonnes are the key suppliers to the local market.

Imports of copolymers of propylene totalled about 2,300 tonnes in March. Thus, imports of copolymers of propylene increased to 5,500 tonnes over the first three months of the year from 3,700 tonnes a year earlier. European producers with a share of over 70% are the main suppliers of this PP grade to Belarus.
MRC

MOSCOW (MRC) -- Arkema's Q1 2014 sales stood at EUR1,523 million against EUR1,563 million in 1st quarter 2013, as per the company's financial report.

Volumes grew by 3.3% compared to 1st quarter 2013, sustained by more favourable market conditions than at the beginning of 2013 in High Performance Materials and by solid volumes in the Coating Solutions segment.

The -2.6% price effect essentially reflects lower prices and an unfavourable product mix in fluorogases. The currency translation
effect, mostly related to the weakening of the US dollar compared to the euro, amounted to -2.1%. The -1.2% scope of business effect reflects the deconsolidation of the coating resins companies in South Africa currently being divested and the change in the consolidation method for certain joint ventures.

EBITDA reached EUR213 million (EUR234 million in 1st quarter 2013) and EBITDA margin stood at 14%. A strong increase in volumes combined with productivity efforts and a strict control of fixed costs helped mitigate the impact, in fluorogases, of lower unit margins and an unfavorable product mix compared to the very high basis of comparison last year, as well as the strength of the euro compared to the US dollar.

In 1st quarter 2014, Arkema generated EUR83 million free cash flow against EUR100 million in 1st quarter 2013. It mostly reflects the traditional seasonality of working capital related to the increase in sales compared to year-
end, and includes capital expenditure totalling EUR90 million, of which EUR45 million exceptional capital expenditure
related to the construction of the thiochemicals platform in Malaysia and the finalisation of the investment programme in Lacq (France) as part of the site’s securing of sulphur feedstock for the next 30 years.

The group’s capital expenditure should amount to EUR450 million for the full year. Net debt stood at EUR1,007 million at 31 March 2014, stable compared to 31 March 2013 (EUR1,009 million). Gearing remained well under control at 42%.

"The 1st quarter performance is underpinned by growth in volumes. As anticipated, performance in fluorogases was significantly down compared to the high reference point of last year. Excluding fluorogases, the Group’s EBITDA improved noticeably despite an unfavourable euro/US dollar exchange rate.

High Performance Materials achieved very good results in market conditions that had improved over last year, and benefited from the group’s innovation drive.

The results of Industrial Specialties were affected by the specific situation in fluorogases, but showed a slight improvement overall in the other product lines.

The Coating Solutions segment has shown, quarter after quarter, its ability to adapt to mixed environments. This performance reflects the productivity efforts that have been ongoing for the past two years, as well as the relevance of the investment projects undertaken in this segment, in particular in North America."

As MRC reported before, in early 2014, Arkema announced the construction of a new organic peroxide plant on its Changshu site in China. This investment will help double the site’s production capacity. By doubling its production capacity in China, Arkema will continue to support the strong growth in the organic peroxide market in Asia, a region in which the Group is also a producer in India, South Korea and Japan. The new Changshu plant is due to come on stream in early 2016.

Arkema with annual revenue of EUR6.1 billion is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. Arkema operates 11 organic peroxide plants on the three continents, has operations in more than 40 countries, some 14,000 employees and 10 research centers.
MRC

MOSCOW (MRC) -- Jacobs has received a five-year frame agreement for work at three Borealis facilities in Belgium, reported Hydrocarbonprocessing with reference to officials' announcement.

Company officials did not disclose the contract value, but noted that the three facilities covered under the contract are Borealis Polymers N.V., Borealis Kallo N.V. and Borealis Antwerpen Compounding N.V.

Under the terms of the contract, Jacobs’ scope of work includes study, engineering, procurement, construction management, and personnel support services on a variety of projects at the three facilities.

Each project is expected to have a total installed cost varying in range up to USD13 million (EUR10 million).

"This agreement is a continuation of a 10-year working relationship with Borealis in Europe," said Jacobs vice president Mark Bello. "We look forward to bringing our recognized chemicals and polymers experience to support Borealis in Belgium."

As MRC wrote earlier, Jacobs Engineering Group has recently received a contract from Borealis to provide engineering, procurement, project management and construction management services for a project to increase cross-linked polyethylene (XLPE) capacity at its manufacturing site in Stenungsund, Sweden. Company officials did not disclose the contract value.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With 50 years of experience in polyolefins, Borealis supports key industries including infrastructure, automotive and advanced packaging and offers a wide range of base chemicals.
MRC