Wacker opens logistics center at Amtala production site in India

MOSCOW (MRC) -- The Munich-based chemical group Wacker has announced the opening of a new logistics facility at its production site in Amtala near Kolkata (India), according to the company's press release.

The high-bay warehouse has a capacity of 5000 pallet spaces and will be operated by Wacker Metroark Chemicals Pvt. Ltd. (WMC), a joint venture between Wacker and Kolkata based Metroark Ltd. Pvt.. The new logistics center compliments WMC’s existing network of warehouses strategically located in Mumbai, Delhi, Chennai and Kolkata.

At the opening ceremony, attended by WMC Executive Director Levi Cottington and WMC Managing Director Soumitra Mukherjee, Dr. Christian Hartel, President of Wacker’s silicones business division, said the new facility will help maximize flexibilty of logistics, increase delivery speed, and minimize lead times for customers.

"This investment will strengthen our growth opportunities in India. Therefore, the warehouse has more capacity than we will use currently", Dr Hartel said. He emphasized that investing more than EUR 1 million for the facility will have an immediate effect on WMC’s ability to increase the efficiency of its logistics operations. "This will enhance the accuracy and traceability of our deliveries for our customers, and will ultimately help to keep the costs in line."

As MRC wrote before, in early 2014, Wacker started strengthening its presence in India by opening its expanded technical center for silicone products in Amtala near Kolkata. Operated by the joint venture Wacker Metroark Chemicals Pvt. Ltd. (WMC), the enlarged regional competence center now comprises state-of-the-art applications technology and test equipment for silicone products needed in the textiles, personal care and construction industry. The chemical Group is thus responding to the growing demand for silicone products and the emerging needs of regional customers for technical support and expertise. The investment amounts to around half a million Euro.

Wacker Metroark Chemicals Pvt. Ltd. (WMC) is headquartered in Kolkata and responsible for production, marketing and sales activities in the Indian subcontinent relating to Waacker silicone products. The joint venture - in which Wacker has a 51% stake - was set up in 1998 and is active in greater India's most important trade centers with sales offices in Delhi, Mumbai, Kolkata, and Chennai, as well as in Dhaka in Bangladesh. Key markets are the textile, personal care, construction, coatings, transmission and distribution, automotive, plastics, adhesives, and packaging sectors. The company also markets Wacker sealants, silanes and pyrogenic silica in India.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
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SPVC supplies in Russia decreased by 22% in the first half of 2014

MOSCOW (MRC) - Supply of suspension polyvinyl chloride (SPVC) in the Russian market fell by 22% in the first six months of 2014 on the back of significant decline in the demand for finished SPVC products, according to MRC ScanPlast.

Russia's SPVC supplies (production plus imports minus exports) fell to 437,800 tonnes in June, compared to 560,500 tonnes in the same time a year earlier. In part, such a serious decline in demand for SPVC resulted from more cautious procurement policy of many local converters.

However, the main reason was a reduction in demand for finished products in the domestic market. PVC supply in the market decreased by 22%, while demand for finished goods fell not so much. According to preliminary data, demand for finished goods decreased by 7-15% depending on the type of finished products.

At the same time in each of the sectors of consumption, there were companies which, despite the overall downtrend, managed to increase their market share. Such a significant difference in SPVC supply and sales of finished products resulted from several factors. First, more cautious purchasing policy. In early 2013, many Russian companies actively bought PVC in foreign markets in the hope of a serious increase in demand in the season. The resulted in a record high imports of more than 53,000 tonnes of resin in March - April. Experience of the first half of last year, high export prices for US resin, Russian rouble devaluation and difficulties with crediting made many companies to less buy in foreign markets, and some have even stopped buying imports, in particular from the United States. As a result of this factor, producers and converters' PVC stocks have been quite low for several months. Market participants remembered overstocked inventories in the end of last year.

All of these stocks have moved in in 2014 and also led to a distortion of figures. Third, "grey" supply of Chinese acetylene PVC continue to increase. According to some estimates, these supplies may be about 15,000-20,000 tonnes in the first half of 2014. Demand for finished PVC products continues to seasonally increase in July, and it will be high enough in the next months.

But we can say that the total demand for SPVC in 2014 will be negative.
MRC

Styron publishes 2013 sustainability and corporate social responsibility report

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, has published its 2013 Sustainability and Corporate Social Responsibility (CSR) Report, reported the company on its site.

This marks the company’s fourth report since its formation in 2010.

In 2013 the company continued its trend of reducing its environmental footprint, as measured by a range of environmental performance indicators. Compared with the 2012 performance, the company achieved reductions in 2013 in the following areas: electricity use - down 2%; total chemical emissions - down 2%; volatile organic chemical (VOC) emissions - down 5%; water consumption - down 4%.

The report profiles how the company’s products help its customers improve their own sustainability in areas such as LED lighting, green tires, smart meters, life-saving medical devices, and lighter weight cars that get better mileage. The report also outlines Styron’s programs in product stewardship, quality, safety, ethics and compliance, volunteerism, and Responsible Care.

"At Styron, our sustainability commitment is an integral part of our business strategy," said Chris Pappas, President and CEO of Styron. "We continue our work to reduce Styron’s environmental footprint, while developing new innovative solutions that benefit our customers and the world."

As MRC informed earlier, Styron (Hong Kong) Limited, an affiliate of Styron, the global materials company and manufacturer of plastics, latex and rubber, and its affiliate companies in Asia Pacific have increased prices for all polystyrene (PS) grades in July, as follows:

- STYRON general purpose polystyrene grades (GPPS) - by USD20tonne;
- STYRON and STYRON A-TECH high-impact polystyrene grades (HIPS) - by USD20/tonne.

"The price increase responds to the rising costs associated with the manufacturing of polystyrene grades in Asia Pacific," said Samer Al Jabi, Global Product Manager for Polystyrene.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. Styron’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world, and approximately 2,100 employees.
MRC

Whirlpool to buy 60% of Italy's Indesit for USD1 billion

MOSCOW (MRC) - Whirlpool, the world's largest maker of home appliances, has agreed to pay EUR758 million (GBR602.67 million) to buy a 60% stake in smaller Italian rival Indesit to further expand beyond its U.S. home market, said Reuters.

The acquisition of Indesit, which is a market leader in Italy, the United Kingdom and Russia, follows Whirlpool's purchase of a majority stake in China's Hefei Rongshida Sanyo Electric Co Ltd last year for USD552 million (GBR322.57 million).

Family-controlled Indesit, which produces washing machines, freezers and ovens, has been searching for eight-months for a buyer that would help it reduce its dependence on Italy and compete against cheaper products from eastern Europe and China.

The U.S. company has agreed to pay EUR11 a share in cash to the members of the Merloni family who control Indesit and will launch a bid for the rest of the company which is likely to be delisted after the buyout, according to sources.

Analysts said Europe, where growth in several countries is still very weak, is unlikely to boost Whirlpool's sales near-term, but the purchase could offer cost synergies and help margins, which are lower than Indesit's in the region.

Whirlpool says it is currently the fourth-biggest player in Europe, Middle East and Africa, where it made 16% of its USD19 billion global sales last year. "This will ideally position us for sustainable growth in the highly competitive and increasingly global home appliance market in Europe," Jeff M. Fettig, Whirlpool's CEO said in a statement.

The Merloni family began producing scales and other home appliances in the 1930s and in 1987, under the leadership of Vittorio Merloni, acquired the then bankrupt Indesit brand. Under their ownership, Indesit expanded abroad, most notably into Russia. But it was never able to make a mark beyond Europe. There have disagreements in the family over strategy for the company. The company posted a net loss in the first quarter, although it remains profitable at operating level.

Indesit has eight industrial sites in Italy, Poland the United Kingdom, Russia and Turkey and employs 16,000 workers. The Group’s main brands are Indesit, Hotpoint and Scholtes.

The combined 60.4% stake that Whirlpool is taking over from the Merloni family represents a 66.8 percent voting stake in the firm due to treasury shares held by Indesit.

Whirlpool said it plans to finance the deal, which it expects to close by year end, through existing cash and debt.
MRC

PolyOne announces asset realignment in Brazil

MOSCOW (MRC) -- PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, has announced a realignment of its manufacturing assets in Brazil, as per the company's press release.

As part of the realignment, PolyOne will close manufacturing plants located in Diadema and Joinville, Brazil. The company will continue to operate and invest in its facilities in Novo Hamburgo and Itupeva, Brazil, while offering specialty solutions throughout the region.

"This asset realignment will accelerate our specialty strategy in Brazil, streamline our operations, and improve our financial performance in the region," said Robert M. Patterson, president and chief executive officer, PolyOne Corporation. "Further, these actions will increase our focus on specialty solutions for customers, consistent with current and future market trends in this important and strategic market."

The company expects to incur cash costs of approximately USD5 million associated with these actions and non-cash charges of USD12 million primarily associated with accelerated depreciation and asset impairments. PolyOne will provide additional detail and discussion on the strategic realignment during its Q2 2014 earnings call on July 22, 2014.

As MRC wrote before, in June, PolyOne Corporation has presented its specialty portfolio for automotive interiors to designers and engineers at the 2014 WardsAuto Interiors conference. These advanced technologies, including soft-touch materials as well as colorants and special effects, enable customers to design new features that boost consumer appeal and reduce manufacturing complexity.

We also remind that in February 2014, PolyOne Corporation announced the addition of new capabilities to its OnColor HC Plus portfolio. These expanded offerings add medical-grade LDPE, nylon, PEBA, PS and PVC to the globally available palette of specialty healthcare colorants, and are pre-certified to meet or exceed biocompatibility requirements for ISO 10993 and/or USP Class VI protocols.

PolyOne Corporation, with 2013 revenues of USD3.8 billion, is a global provider of specialized polymer materials, services, and solutions. PolyOne is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
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