Styron announces price increase for polycarbonate in Europe

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, and its affiliate companies in Europe has announced an increase in its polycarbonate (PC) prices, as per the company's press release.

Thus, effective August 1, 2014, or as existing contract terms allow, the company will increase the selling price of natural PC, as follows:

- CALIBRE polycarbonate resins - by EUR180/tonne.

This price increase is in response to escalating costs of key raw materials used in the production of polycarbonate.

As MRC informed previously, recently Styron (Hong Kong) Limited, an affiliate of Styron and its affiliate companies in Asia Pacific have increased prices for all polystyrene (PS) grades in July.

The prices for the products listed below will increase 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. StyronпїЅs 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.
MRC

MOSCOW (MRC) -- Tomskneftekhim (part of SIBUR group) has shut down its low density polyethylene (LDPE) and polypropylene (PP) production for a scheduled maintenance, reported MRC analysts.

Tomskneftekhim shut down its LDPE and PP production yesterday, on 20 July 2014. The outage at the plant's polyolefin production was carried out in the framework of maintenance works, which will last about 14 days. The plant is expected to resume production on 6 August.

Tomskneftekhim's annual LDPE and PP production capacity is 240,000 tonnes and 140,000 tonnes, respectively. According to MRC ScanPlast, the plant's ouput totalled 132,800 tonnes of polyethylene and 67,300 tonnes of polypropylene in the first half of 2014.
MRC

MOSCOW (MRC) -- The overall output of low density polyethylene (LDPE) in Russia remained over the first six months of 2014 at the last year's level and totalled 327,800 tonnes, according to MRC ScanPlast.

June LDPE production rose to 54,700 tonnes from 48,600 tonnes in May. Kazanorgsintez and Ufaorgsintez reduced their output in the first half of 2014, while Tomskneftekhim and Angarsk Polymer Plant increased their polyethylene (PE) production.

The structure of LDPE production by plants looks the following way over the stated period.

Tomskneftekhim produced 22,700 tonnes of PE in June (22,600 tonnes in May). The plant's overall LDPE production rose to 132,800 tonnes over the first six months of the year versus 130,700 tonnes a year earlier.

Angarsk Polymer Plant produced about 6,000 tonnes of LDPE last month. Angarsk PP's overall output surged by 43% from January to June 2014 and totalled 32,700 tonnes.

Gazprom neftekhim Salavat mantained its production at the last year's level, the plant's total LDPE output was 19,300 tonnes in the first half of the year.

Kazanorgsintez increased its LDPE production to 15,900 tonnes in June. The plant's overall LDPE output fell to 100,000 tonnes over the first six months of 2014, down by 8% year on year, because of long outages in April and May.

Ufaorgsintez increased its LDPE production to 7,100 tonnes last month. The overall plant's PE output dropped to 44,000 tonnes from January to June 2014 versus 47,400 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Alternative investment firm Strategic Value Partners (SVP) Global is looking to sell Germany-based polyvinyl chloride (PVC) producer Vestolit for approximately USD407m, as per Chemical Technology.

SVP has appointed investment bank Jefferies to search for a potential buyer, reported Reuters citing three sources familiar with the matter.

The investment firm acquired Vestolit in 2006 from private investor Candover.

Formerly part of chemicals group Degussa-Huls, Vestolit produces PVC used in window frames, floor coverings, tarpaulin fabric and under-body coating for passenger vehicles.

The company generates annual revenues of about EUR500m and earnings before interest, tax, depreciation and amortisation (EBITDA) of around EUR40m.

SVP is seeking Vestolit to be valued at around eight times its expected earnings, the source said.

Chemical producers such as Braskem and Axiall could be potential buyers of the PVC business. Westlake Chemical, which acquired PVC producer Vinnolit earlier this year, may also enter the race for Vestolit, the source added.

As MRC wrote before, in late May 2014, Westlake Chemical Corporation as signed a definitive agreement to acquire German-based Vinnolit Holdings GmbH and its subsidiary companies from Advent International, a private equity firm.
Vinnolit is an integrated global leader in specialty polyvinyl chloride (PVC) resins. The acquisition price of EUR490 million will be financed using existing Westlake cash and credit facilities. The transaction is expected to close in the third quarter of 2014, subject to standard closing conditions, including regulatory review.

Vestolit GmbH operates in Marl (North Rhine-Westphalia, Germany) the largest fully integrated PVC (polyvinyl chloride) production plants in Europe, with a capacity of 400,000 tonnes per annum. Integration means that, from the starting point of energy and the raw materials ethylene and rock salt via the intermediate products EDC (ethylene dichloride) and VCM (vinyl chloride), the production of PVC all takes place at one location. Vestolit is market leader as raw material supplier for the manufacture of window frames, as well as paste-making PVC for floor coverings, tarpaulin fabrics and underbody coatings.
MRC

MOSCOW (MRC) -- The polyurethane systems house Bayer Pearl has broken ground for construction of its new headquarters in the Dubai Investments Park, which will be the site of the regional offices and production facilities, as per the company's press release.

The site will feature research, development, and application laboratories as well as a demonstration centre for the use of high-quality materials. The construction contract has been awarded to Amana Constructing and Steel Buildings, and the work is scheduled for completion next year.

Bayer Pearl was established in 2007 as a joint venture between Bayer MaterialScience AG (BMS) and Pearl Insulation Materials Industries LLC.

"The Middle East is one of the fastest growing economies in the world, and Dubai serves as the ideal base for us to further strengthen our presence in the region," said Thorsten Eschmeier, CEO of Bayer Pearl. "Our new site makes it possible to expand our competence in developing new applications and improved manufacturing processes for polyurethane products in close collaboration with our customers." The site at Dubai Investments Park is strategically located close to the port of Jebel Ali and the new Dubai World Central airport.

The joint venture is part of the global network of polyurethane systems houses of Bayer MaterialScience. Bayer Pearl develops solutions for the insulation of buildings and piping, and for the automotive industry. Such challenges can be met with polyurethane rigid foam, for example, which thanks to its good thermal insulation properties makes an important contribution to conservation of scarce natural resources, says the company. Polyurethane materials also make it possible to design cars that weigh less and are therefore more fuel-efficient.

As MRC wrote previously, BMS plans to invest EUR 15 million in the construction of a production line at its Dormagen site, which will use CO2 to produce a precursor for premium polyurethane foam. The line will have an annual production capacity of 5,000 metric tons. The permit application will be submitted to the Cologne district authority in the next few weeks. The greenhouse gas carbon dioxide can be used as a basic building block for plastics.

With 2013 sales of EUR 11.2 billion, Bayer MaterialScience is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. At the end of 2013, Bayer MaterialScience had 30 production sites and employed approximately 14,300 people around the globe. Bayer MaterialScience is a Bayer Group company.
MRC