Huntsman experiences Q2 2014 manufacturing disruption

MOSCOW (MRC) -- Huntsman Corporation has announced that during the second quarter of 2014 it experienced an unplanned manufacturing disruption within its Polyurethanes division, reported the company on its site.

The disruption occurred at its propylene oxide and MTBE facility in Port Neches, Texas. The manufacturing facility is now operating at normal rates.

The estimated financial impact of the manufacturing disruption in the second quarter of 2014 was approximately USD10 million.

As MRC informed earlier, in early 2014 the performance products division of Huntsman announced that it will expand its global polyetheramines (PEA) capacity by a minimum of 15% as a result of debottlenecking three of its PEA manufacturing plants globally. The projects at the company's Conroe, Texas (US), Llanelli, Wales (UK) and Singapore sites had become fully operational by May 2014.

Last year, Huntsman Corp. signed a definitive agreement to acquire Oxid LP, a privately-held manufacturer and marketer of specialty urethane polyols based in Houston, Texas. Oxid's polyols are a key component in the production of energy-saving polyurethane insulation products that are used in residential and commercial construction.

Huntsman is a global manufacturer and marketer of differentiated chemicals with 2013 revenues of over USD11 billion. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

MOSCOW (MRC) -- With immediate effect BASF, the world's petrochemical major, increases prices for all its Kaurit and Kauramin glues by EUR15 per metric ton in Europe on top of fluctuations in raw material prices as of the month of July, repoted the company on its site.

The price increase is necessary due to higher energy, personnel and maintenance costs.

Kaurit and Kauramin glues are condensation products of urea and formaldehyde. Kauraminadditionally contains melamine. Both Kaurit und Kauramin glues are specifically developed for the efficient production of any wood-based material - from chip and fiber boards to OSBs.

As MRC wrote previously, BASF is increasing its European sales prices for Ethyleneamines (EEA). The price increase will be as follows: ethylenediamine (EDA) - by EUR50/tonne, diethylenetriamine (DETA) - EUR50/tonne or by the equivalent amounts in local currency.

Ethyleneamines are high-class intermediates used in the manufacture of crop protection agents and paper chemicals, surfactants for detergents and cleaning products, process chemicals for gas treatment, lubricants and cement additives as well as active pharmaceutical ingredients.

Besides, BASF increased its May prices for all its Lupranat MDI (methylene diphenyl diisocyanate) basic products by EUR70 per metric ton and for its Lupranat TDI (toluene diisocyanate) basic products by EUR50 per metric ton in the EMEA region (Europe, Middle East and Africa). The products affected by the price increase are used mainly as raw materials in the coatings, printing and packaging industries.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- A high committee within Brazil's antitrust regulator recommended blocking the purchase of Argentina's chemical firm Solvay Indupa by petrochemical giant Braskem, reported Reuters with reference to Brazil's official gazette.

In a non-binding decision, the General Superintendence of Brazil's watchdog Cade said the deal is potentially anti-competitive. The ruling is not final and will be reviewed by Cade's Tribunal.

Solvay Indupa, which makes vinyl and caustic soda in Argentina and Brazil, is a subsidiary of Belgian chemical group Solvay. The deal announced in December 2013 would mark Braskem's first move into Argentina.

Braskem, Latin America's largest petrochemical company, said it disagreed with the recommendation, noting it remains confident in the approval of the deal.

"Braskem is a price-taker, not a price-maker. With the purchase of Solvay Indupa, Braskem's share in the PVC and caustic soda international markets will be of 2% and 1%, respectively," the company said in a statement.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC

MOSCOW (MRC) -- The ICIS Kavaler Award, sponsored by The Chemists' Club in recognition for outstanding achievement as voted on by his peers, will be awarded to LyondellBasell CEO Jim Gallogly, said ICIS.

This unique global chemical industry award will be presented to Mr. Gallogly at a black tie dinner ceremony on Tuesday, September 16, 2014, at the Metropolitan Club of New York. The distinguishing feature of this award is that the winner is selected by his/her peers - the senior executives selected in the ICIS Top 40 Power Players listing, a global ranking of the leaders making the greatest impact on the chemical industry.

"Few have capitalized on the US shale gas boom better than LyondellBasell. Led by Mr. Gallogly, the company has established and maintained a solid financial footing for many years to come," said Joseph Chang, global editor of ICIS Chemical Business.

"LyondellBasell has significantly boosted value by returning profits to shareholders though dividends and stock buybacks - all while making smart investments in key expansion projects that will raise cost advantaged capacity without massive capital outlays," he added.

"At LyondellBasell, we understand the importance of having a sound business strategy. Striving to get the basics right is essential. We call it 'Everyday Excellence.' It starts with operating our facilities safely and reliably. Nothing matters more. When you do this and apply a disciplined approach to costs and future investments, special things can happen," said Jim Gallogly, CEO of LyondellBasell.

"On behalf of all the employees at LyondellBasell, we thank ICIS and The Chemists' Club for this recognition. It honors the hard work of so many in transforming a recently bankrupt company into an industry leader," Gallogly added.

The award is a revival of the Kavaler Award, which was presented by Chemical Market Reporter to leading chemical CEOs from 1990 to 1999, including Jon Huntsman Sr, founder, chairman and CEO of Huntsman, and Frank Popoff, chairman and CEO of Dow Chemical.

Arthur Kavaler, who served for 46 years as reporter, editor and eventually publisher and editor-in-chief of Chemical Market Reporter - one of the three publications incorporated into ICIS Chemical Business - passed away at the age of 91 on January 18, 2012. Kavaler, a probing reporter and an editor with unwavering conviction, had a major impact on chemical industry journalism.

ICIS Chemical Business is part of ICIS. ICIS is the world's largest petrochemical market information provider and has fast-growing energy and fertilizer divisions. Our aim is to give companies in global commodities markets a competitive advantage by delivering trusted pricing data, high-value news, analysis and independent consulting, enabling our customers to make better-informed trading and planning decisions. With a global staff of more than 800, ICIS has employees based in Houston, Washington, New York, London, Montpellier, Dusseldorf, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Yantai, Tokyo, Perth. ICIS is a division of Reed Business Information, part of Reed Elsevier Plc.

LyondellBasell (LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 55 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.
MRC

MOSCOW (MRC) -- Chemicals maker DuPont cut its operating profit forecast for the second quarter and the full year, saying sales in its agriculture and performance chemicals units increased at a slower pace than it had expected, said Reuters.

The company's shares fell about 4% in extended trading. DuPont has been focusing on its agriculture business, its biggest, for the past few quarters.

The company, however, reported a rare quarterly decline in sales at this unit in April as farmers in North America delayed purchases due to an unusually harsh winter. DuPont had then said it expected "significant" growth in the unit's operating earnings in the second quarter ending June 30.

The company said on Thursday that corn seed sales in its farm business were lower than expected, while seed inventory write-downs were higher than anticipated. The harsh winter also hit herbicide sales, the company said.

DuPont expects operating earnings in its agriculture business to fall in low teens in percentage terms in the second quarter, the company said on a conference call. Corn pricing in North America is expected to be a bit lower than its previous estimate, the company said.

The spinoff is part of the company's strategy to move into less volatile businesses. The chemicals unit has weighed on DuPont's results since 2012, mainly due to weak prices for a white pigment used in toothpastes, sunscreen and other products.

The company also said it expected to record a pretax restructuring charge of about USD270 million, or 20 cents per share after tax, in the second quarter.

A number of chemical companies, including Dow Chemical Co, have come under investor pressure to raise shareholder returns by spinning off less stable units.

As MRC wrote before, DuPont Co. said its first-quarter 2014 earnings fell 57% as the chemicals and agricultural-products company reported that growth in most of its businesses was offset by harsh weather and shifts in agriculture. DuPont reported a profit of USD1.44 billion, down from USD3.35 billion, a year earlier. Excluding expenses related to the separation of the performance-chemical business, year-earlier customer-claims-related charges, tax impacts and other items, adjusted earnings rose to USD1.58 from USD1.56. Revenue decreased 2.7% to USD10.1 billion.

DuPont, is an American chemical company that was founded in July 1802. DuPont developed many polymers such as Vespel, neoprene, nylon, Corian, Teflon, Mylar, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona and Lycra. DuPont developed Freon (chlorofluorocarbons) for the refrigerant industry, and later more environmentally friendly refrigerants. It developed synthetic pigments and paints including ChromaFlair.
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