AkzoNobel to divest 50% stake in Eka Synthomer Oy joint venture

MOSCOW (MRC) -- AkzoNobel has announced the EUR5 million divestment of its 50% share in non-consolidated joint venture Eka Synthomer Oy, to Synthomer, reported the company on its site.

The divestment of these shares follows a strategic review of the businesses within AkzoNobel's portfolio.

Commenting on the transaction, Niek Stapel, Managing Director of AkzoNobel's Pulp and Performance Chemicals business, said: "Following an earlier announcement about the intended divestment of our Paper Chemicals activities to Kemira, this deal completes our exit from the paper chemicals market.

"Divesting our holding in Eka Synthomer Oy will now allow us to focus on our strong chemical platforms, as well as our global leadership positions in bleaching chemicals, colloidal silica, Kromasil and expandable microspheres."

The Eka name will remain a core part of AkzoNobel's Specialty Chemicals business.

As MRC informed previously, in early July 2014, Finnish chemicals company Kemira announced it would buy rival Akzo Nobel's paper chemical business for EUR153 million (USD209 million).

Eka Synthomer Oy is a non-consolidated joint venture between AkzoNobel Pulp and Performance Chemicals and Synthomer from Germany. Based in Finland, it produces and sells styrene-butadiene latex products for the paper and board industry, mainly in Nordic countries.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- Sales of BASF Group grew by 3% compared with the previous third quarter, reaching EUR18.3 billion, as per the company's statement.

A sharp rise in volumes in the Natural Gas Trading business sector was mainly responsible for this growth. Income from operations (EBIT) before special items increased by EUR150 million to around EUR1.8 billion. The primary contributors to this development were the Chemicals and Oil & Gas segments, together with Other. The increase was dampened by a considerable earnings decline in the Agricultural Solutions segment.

"The economic environment remained challenging in the third quarter of 2014. Geopolitical tensions and increasing uncertainty about the global economic development significantly dampened demand for chemical products. Nevertheless, sales and earnings of BASF Group increased in the third quarter of 2014," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF.

EBIT grew by EUR128 million to EUR1.8 billion compared with the third quarter of the previous year. EBITDA rose by EUR30 million to EUR2.5 billion. Income before taxes and minority interests increased by EUR126 million quarter-on-quarter to EUR1.6 billion. Because of the higher tax rate and increased minority interests, net income declined by EUR53 million to EUR1.0 billion.

For the fourth quarter of 2014, BASF does not anticipate an upturn in demand. The company has adjusted its expectations for the global economy in 2014 as follows (previous forecast in parentheses): growth of gross domestic product: 2.3% (2.5%); growth in chemical production: 4.0% (4.4%).

Bock: "We assume that the environment will remain volatile and challenging. We nevertheless still aim to slightly raise our EBIT before special items for the year 2014." Sales are likely to decrease slightly as a result of the divestiture of the gas trading and storage business planned for this year in addition to negative currency effects.

At the telephone conference, the company gave an update on the "We create chemistry" strategy and the related financial targets for 2015, which were originally published in 2011.

From today’s point of view, BASF will not achieve its ambitious financial targets for 2015 (sales: EUR80 billion; EBITDA: EUR14 billion). The growth rates for gross domestic product, industry and chemical production for 2010 to 2015 are lower than originally expected:

BASF now expects the average annual growth of global gross domestic product to be about 0.8% points lower (prior assumption: 3.4% p.a., current assumption: 2.6% p.a.). Growth of industrial production is now assumed to be 3.4% p.a., versus a previous assumption of 4.6% p.a. The company now assumes the growth of chemical production to be 4.0% p.a. instead of 4.9% p.a. - still growing well above GDP and industrial production.

Bock: "The reasons for this weak global economic development are obvious: reduced growth dynamics of emerging markets and a delayed recovery in the European economy."

For 2015, BASF now expects sales and EBITDA to be in line with market expectations. For EBITDA, they are between EUR10 billion and EUR12 billion. As usual, the company will provide an outlook for 2015 at its Annual Press Conference on February 27, 2015, and give an update on its long-term targets.

As MRC reported earlier, in a bid to revive its diversification plan, India’s Essar Industries is in talks with Germany's BASF for a petrochemicals joint venture. The diversification plan had been put on hold for long, because of global factors and the company's high debt burden.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- The output of low density polyethylene (LDPE) in Russia decreased by 2% over the first nine months of 2014. Only Angarsk Polymer Plant and Tomskneftekhim inreased polyethylene (PE) production, reported MRC ScanPlast report.

September LDPE production in Russia rose to 48,500 tonnes from 39,700 tonnes in August (scheduled outages for maintenance at Tomskneftekhim, Ufaorgsintez and Angarsk PP). Overall, Russian plants produced 458,800 tonnes of LDPE from January to September 2014 versus 466,500 tonnes a year earlier. Only Angarsk Polymer Plant and Tomksneftekhim increased their output, whereas Kazanorgsintez, Ufaorgsintez and Gazprom neftekhim Salavat reduced their production of material.

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

Angarsk PP significantly increased its capacity utilisation this year, the plant's September production was 6,700 tonnes. The output at Angarsk PP surged to 49,200 tonnes over the first nine months of 2014, up by 78% year on year.

Tomskneftekhim produced about 23,000 tonnes of LDPE last month. The plant managed to increase its production to 190,800 tonnes over the stated period versus 180,700 tonnes a year earlier.

Gazprom neftekhim Salavat (Gazprom) reduced its output by 1% over the first nine months of the year to 25,700 tonnes.

Kazanorgsintez and Ufaorgsintez accounted for a more substantial fall in LDPE production. The Kazan plant reduced its LDPE production to 133,100 tonnes because of issues with ethylene (163,400 tonnes a year earlier). The reason for lower production at Ufaorgsintez was a shutdown for maintenance in August and September, resulting in the overall LDPE production to decrease by 13% over the first nine months of 2014 to 60,100 tonnes.

MRC

MOSCOW (MRC) -- The Supervisory Board of BASF has appointed Sanjeev Gandhi (47) to the Board of Executive Directors effective December 1, 2014, as per the company's press release.

He has been head of BASF’s Intermediates division since 2010.

After 12 successful years on the Board of Executive Directors, Dr. Andreas Kreimeyer (59) will retire with the expiration of his contract following the Annual Shareholders’ Meeting on April 30, 2015. He has been on the Board since 2003 and Research Executive Director since 2008. Dr. Martin Brudermuller (53), Vice Chairman of the Board of Executive Directors, will take over this role following the Annual Shareholders’ Meeting.

Following these changes, the Board of Executive Directors has decided to redistribute its responsibilities effective May 1, 2015 :

Dr. Kurt Bock (56), Chairman, Ressort I
Legal, Taxes & Insurance; Strategic Planning & Controlling; Communications & Government Relations; Global Executive Human Resources; Investor Relations; Compliance

Margret Suckale (58), Industrial Relations Director, Ressort II
Human Resources; Engineering & Maintenance; Environment, Health & Safety; European Site & Verbund Management

Dr. Hans-Ulrich Engel (55), Chief Financial Officer, Ressort III
Oil & Gas, Finance, Procurement, Information Services & Supply Chain Operations, Corporate Controlling, Corporate Audit

Michael Heinz (50), Ressort IV
Dispersions & Pigments, Care Chemicals, Nutrition & Health, Performance Chemicals, South America, Advanced Materials & Systems Research

Dr. Harald Schwager (54), Ressort V
Crop Protection, Construction Chemicals, Europe, Bioscience Research

Dr. Martin Brudermuller (53), Vice Chairman and Research Executive Director, Ressort VI
Intermediates, Monomers, Petrochemicals, Process Research & Chemical Engineering, Corporate Technology & Operational Excellence, BASF New Business

Wayne T. Smith (54), Ressort VII located in North America
Catalysts, Coatings, Performance Materials, Market & Business Development North America, Regional Functions North America

Sanjeev Gandhi (47), Ressort VIII located in Asia
Greater China & Functions Asia Pacific; South & East Asia, ASEAN & ANZ

As MRC wrote before, dffective September 1, 2014, Ralf A. Spettmann, previously Senior Vice President, Pigments & Resins Europe, Ludwigshafen, became President of the Construction Chemicals operating division headquartered in Ludwigshafen. Spettmann succeeds Dr. Tilman Krauch, who took up a new position at another company.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has declared a quarterly dividend of USD0.25 per share on its Series A common stock, payable on November 14, 2014, reported the company on its site.

The dividend is payable for the period beginning August 1, 2014 and ending on and including October 31, 2014 to stockholders of record as of November 3, 2014.

As MRC reported earlier, in early October 2014, Celanese Corporation announced that it would increase the price of vinyl acetate-based emulsions sold in the Americas. Thus, PVAc homopolymer, vinyl acetate ethylene (EVA) and vinyl acrylic emulsions will increase by up to USD0.05/wet pound effective November 1, 2014, or as contracts allow.

This increase is attributed to the continued pressures on raw materials, notably vinyl acetate monomer (VAM), and freight.

This price increase affects all applications including, but not limited to, adhesives, paints and coatings, building products, nonwovens, glass fiber, carpet, paper and textiles.
MRC