Borealis announced a 31% increase in third quarter net profits

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, recorded a net profit of EUR 185 million in the third quarter of 2014, compared to EUR 131 million in the same quarter of 2013, said the company in its press release.

The improved result is a reflection of stronger margins for the polyolefins and olefins businesses, as well as the start-up of the Borouge 3 project. Borouge, Borealis' joint venture in Abu Dhabi, started up its third cracker in June and, as a result, had an improved result in the third quarter of 2014 compared to the third quarter of 2013.

Net debt increased by EUR 114 million in the third quarter of 2014 largely due to an increase in working capital needs driven by a stock build-up ahead of the site turnaround in Burghausen, Germany. Borealis' financial position remains strong with financial gearing of 47% at the end of the third quarter.

Borouge 3's newest world scale ethane cracker is running efficiently, the rest of the plants are scheduled to start-up sequentially. With Borouge 3 operational, Borouge's total annual production will increase to 4.5 million tonnes of polyolefins, making Borouge the biggest integrated polyolefins complex in the world. Borouge also commissioned the Borouge 3 Container Terminal in Ruwais, with the additional equipment the yard's total capacity of 16,000 twenty-foot equivalent units (TEUs) for Borouge will be able to handle an annual throughput of up to 1 million TEUs. The Borouge 3 plant expansion in Abu Dhabi will be fully operational in 2014. Borouge 3 will deliver an additional 2.5 million tonnes of capacity when fully ramped up, bringing the total Borouge capacity to 4.5 million tonnes. Borealis and Borouge will then have approximately 8 million tonnes of polyolefin capacity.

In August, Borealis announced the signing of a 10-year agreement with US-listed Antero Resources to supply, on an annual basis, 240,000 tonnes of ethane from the United States for its flexible steam cracker in Stenungsund, Sweden.

In September, Borealis completed the acquisition of DuPont Holding Netherland B.V. shares of Speciality Polymers Antwerp N.V, located in Zwijndrecht (Antwerp, Belgium). Previously, the company was a joint venture between DuPont Holding Netherlands B.V. (67%), Borealis Polymers N.V. and Borealis Kallo N.V. (together 33%). Speciality Polymers Antwerp N.V primarily manufactures ethylene acrylates copolymers and ethylene vinyl acetate.

In October, Borealis announced plant restructuring measures aimed at optimising production in Brazil. The company has strengthened its market position in Brazil by way of a EUR 45 million investment in its Itatiba production facilities located near Sao Paulo. Borealis will be able to better capitalise on long-term growth opportunities in Brazil and the South American market by transferring production from its second plant in Triunfo to the newly upgraded and expanded plant in Itatiba, a move scheduled for early 2015.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. It generated EUR 8.1 billion in sales revenue in 2013. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% owned by OMV, the leading energy group in the European growth belt. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).


MRC

MOSCOW (MRC) -- For the fourth year in a row Arkema, a France-based chemical manufacturer, has been ranked by Thomson Reuters among the top 100 global innovators from all sectors of activity, as per the company's press release.

"Innovation has been at the heart of Arkema’s strategy since its creation. We are very proud of this recognition which rewards the work of our R&D teams all around the world, including our recent major work in the field of composites and electronics" explains Thierry Le Henaff, Chairman and Chief Executive Officer of Arkema.

The fourth edition of this award ranks France in third place among the countries represented, with 7 companies rewarded.

Arkema ranked in the Top 100 Global Innovators for the fourth consecutive year.

This Top 100 Global Innovators ranking identifies the most innovation-active companies and research structures. Selection is based on four criteria: rate of success of patent application, global reach of patent portfolio, influence of a patent calculated from the number of citations in trade publications, and volume of patents.

As MRC reported earlier, in July 2014, Arkema and Omya, a Switzerland-based global provider and distributor of specialty chemicals, entered into an exclusive pan-European distribution agreement.

Under this distribution agreement, Omya will market Arkema's plastic additives range for various polymer markets (impact modifier and processing aid solutions): Plastistrength, Durastrength, Clearstrength and Biostrength across Europe, except Spain and Portugal. This agreement is based on genuine synergy between the two companies. By leveraging its distribution network in Europe, Omya will bring extensive business opportunities for Arkema and provide a complete plastic additives range as well as tailor-made services to its clients.

Arkema with annual revenue of EUR6.4 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.
MRC

MOSCOW (MRC) -- Teijin Ltd. has disclosed "dramatic restructuring" initiatives that reflect changes in the business environment and are intended to move the company toward a solutions-oriented business model, reported Apic-online.

Among the planned actions, Teijin said it will with-draw by the end of December 2015 from its Teijin Polycarbonate Singapore subsidiary which lacks competitiveness in terms of energy costs. According to a recent notice to the Tokyo Stock Exchange, the Singapore plant has 225,000 t/y of polycarbonate (PC) capacity.

The company explained that the plastics business has been impacted by a supply-demand balance that remains persistently adverse, and an inability to pass on price increases for raw materials by raising sales prices.

In the future, Teijin said the company's polycarbonate production will be concentrated on its competitive Matsuyama plant in Japan and in Jiaxing, China.

Additionally, Teijin will discontinue production of dimethyl terephthalate by the end of fiscal 2015. The company noted "the cost competitiveness of the integrated production business model, which encompasses from raw materials to polyester finished products, is unlikely to recover." Polymerization operations currently split between the Matsuyama plant's northern and southern sectors will be cen-tralized in the facility's northern sector.

Going forward, Teijin will implement additional dra-matic measures to further reduce costs. "This will include the reassessment of each plant in Japan to modify facility size and operations as required, the development of innovative production processes, the merger of product families, and the improvement of the productivity of existing equipment."

As MRC informed before, last October, Teijin Limited announced that it had established a joint venture with South Korean chemical producer SK Chemicals opening a new window to develop and sell polyphenylene sulfide (PPS) resins and compounds in Ulsan, South Korea.

Teijin is a technology-driven global group offering advanced solutions in the areas of sustainable transportation, information and electronics, safety and protection, environment and energy, and healthcare. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 150 companies and around 17,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY745.7 billion (USD 7.4 billion) and total assets of JPY 762.4 billion (USD7.6 billion) in the fiscal year ending March 31, 2013.

MRC

MOSCOW (MRC) -- Wacker, the Munich-based chemical group, introduced its new WACKER SG 3377 Low Temperature Oil Demulsifier at the 2014 Annual Technical Conference and Exhibition (ATCE) of the Society of Petroleum Engineers, as per the company's press release.

The formulation permits the breaking of oil emulsion in areas where sufficient temperature is not available at process sites such as older wells or arctic drilling fields. The company is also showcasing its comprehensive portfolio of performance-enhancing silicone- and polymer-based materials designed for the oil and gas industry.

Crude oil contains water which needs to be removed in order to avoid problems downstream from the production. This is done with the help of demulsifiers. The demulsifier molecule reaches the oil and water interface and destabilizes the emulsion, thus separating the brine from the oil. Conventional demulsifiers have their best performance at temperatures over 40C. At lower temperatures, performance and effectiveness deteriorate significantly.

Due to its high surface activity, the additive breaks the emulsion rapidly and removes the water effectively. This improves both the crude oil and the effluent water quality significantly. WACKER SG 3377 reduces the water fractions in crude oil to one percent and minimizes the oil remnants in the waste water down to 10 ppm.

WACKER SG 3377 is suited to all international onshore and offshore applications. When mixed with conventional demulsifiers, it is an economically attractive and effective solution that permits the breaking of oil in areas where sufficient temperature is not available for the process, such as older wells or offshore drilling fields.

Wacker also presented its silicone and polymeric additive lines engineered to meet the rigorous demands of down-hole cement during both the installation phase and the operational phase.

SILFOAM SD 986 is a low viscous antifoam solution containing a low proportion of a highly viscous silicone fluid. It can be used in numerous mineral oil products as well as in other non-aqueous systems, even in extreme environmental conditions.

Special attention will also be given to AQUAPHOB 8173, an aqueous solution of potassium methyl siliconate, which develops its water-repellent properties by reaction with carbon dioxide. The product improves the hydrophobicity and bulk physical properties of cement. This translates into higher cement integrity, less potential failure and long term durability.

As MRC wrote previously, in July 2014, Wacker announced that it was expanding its product range with a new liquid silicone rubber for the production of automotive gaskets.

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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