Dow strategic investments in plastics franchise in the Americas are on schedule

MOSCOW (MRC) -- The Dow Chemical Company has announced that several key milestones have been reached with the company’s Plastics investments in the US Gulf Coast and Latin America, as per the company's press release.

The projects on the US Gulf Coast are nearing peak construction and remain on track and on-plan for start-up, with all site construction underway. When fully operational, Dow’s collective feedstock and plastics expansions on the US Gulf Coast are projected to deliver an estimated USD2.5 billion in EBITDA annually. In Bahia Blanca, Argentina, Dow plans to expand capacity and enhance production technologies and equipment of its polyethylene (PE) production units to support increased market demand in consumer and industrial films.

Thus, in Freeport, Texas, all engineering for the on-purpose propylene PDH project is complete and more than 50% of construction is complete. The project remains on track for start-up in mid-2015.

Dow’s previously announced world-scale ethylene production facility, which began construction on June 30, remains on track and on-plan for start-up in the first half of 2017. The facility, which has more than 65% of engineering and 5% of construction complete, will support market growth and derivative expansions of Dow’s industry leading Performance Plastics franchise.

For derivatives, Dow will expand its High Melt Index (HMI) AFFINITY, AFFINITY GA and ENGAGE brand polymer franchises in Freeport. These materials deliver stronger bonding in hot melt adhesives for packaging and hygiene markets, and enable lighter and more durable components for transportation. Building on Dow’s proprietary solution PE technology, the company will also expand its popular ELITE franchise which delivers enhanced durability and flexibility for food packaging, hygiene & medical, and industrial and consumer packaging markets. These high performance brands are powered by Dow's industry leading proprietary INSITE catalyst technology.

In Plaquemine, Louisiana, Dow will expand its NORDEL EPDM franchise with next generation technology. Also powered by INSITE, NORDEL EPDM provides the infrastructure, transportation, consumer durables, appliance and electrical and telecommunications markets with highly flexible, heat and chemical resistant polymers that deliver enhanced durability and long service life. Also in Plaquemine, Dow will expand its low density polyethylene (LDPE) family of high performance products like AGILITY that are faster to process, more stable and deliver improved optics for applications in flexible food packaging.

Besides, starting in 2015, Dow plans to expand capacity and enhance production technologies and equipment at its four PE production units - LDPE, Slurry, Gas Phase, Solution - in Bahia Blanca, Argentina. These investments will enable Dow to produce more high performance resins for flexible and rigid packaging applications to meet growing demand in Latin America.

The LDPE plant will be refurbished to enable production of resins for extrusion coating used in multiple packaging applications. The Slurry plant expansion will help drive growth of bimodal blow molding resins, which is currently in short supply in the region. The Gas Phase plant, which produces resins for geomembranes and pipes, will also be refurbished for improved operational performance. The Solution plant expansion will bring more of Dow's popular DOWLEX and ELITE resins to market and enable Dow to increase its participation in high value markets like food packaging and hygiene.

As MRC informed before, Dow Chemical had signed a definitive agreement under which ANGUS Chemical Co. will be sold to Golden Gate Capital for USD1.215 billion. The transaction is expected to close during the first quarter of 2015, subject to completion of customary regulatory filings.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber. In 2012, Dow had annual sales of approximately USD57 billion. The company's more than 5,000 products are manufactured at 188 sites in 36 countries across the globe.
MRC

MOSCOW (MRC) - Exports of Russian polyamide (PA) grew to 85,100 tonnes in January-October 2014, up 8% year on year, according to MRC DataScope report.

The main producer of PA 6 in Russia, Kuibyshev Azot, is a leading Russian exporter of unfilled PA 6 to foreign markets. The main consumers of Russian polyamide are countries such as China, India, Turkey, Germany. Their share in Russian PA exports occurred for 44%, 18%, 14% and 10% respectively.

Exports of Russian PA in China grew to 37,600 tonnes in January-October 2014, up 28% year on year. Exports of Russian PA in India increased to 15,200 tonnes in the first ten months of the year, up 60% year on year. Exports of Russian PA 6 in Turkey increased to 12,100 tonnes in January-October 2014, up 15% year on year. Exports of Russian PA 6 in Germany remained at the level of 2013 - 8,600 tonnes.

About 60% of all exports of Russian PA 6 occurred for the production of fibers and filaments, which mainly used in textile industry. That is why the main sector of consumption were countries with developed of textile industry and high volume production. The textile industry index was 0.009 in Russia in the first three quarters of the reporting year. Weak growth rates in this sector in Russia because of high costs, outdated technology and low investments.
MRC

MOSCOW (MRC) -- Oil & Natural Gas Corp. (ONGC), is seeking to sell to strategic investors a 25% stake each in two petrochemical ventures and a power project before taking the units public- ONGC Petro-additions Ltd., ONGC Mangalore Petrochemicals Ltd. and ONGC Tripura Power Co, said Plastemart.

Talks are on with a number of potential buyers for stakes that could fetch collectively, a minimum of USD1 bln based on the investments the projects require.

ONGC will own 26% in ONGC Petro-additions, GAIL India Ltd. 15.5% and Gujarat State Petroleum Corp. 5% after the stake sale and public offer, according to ONGC’s annual report. ONGC Petro-additions will spend 214 billion rupees (USD3.5 billion) to build a petrochemical plant in the western state of Gujarat, according to ONGC.

As MRC informed previously, ONGC signed a memorandum of understanding with fellow Indian company Reliance Industries which could see the pair share the latter's infrastructure on the country's east coast. ONGC said the agreement would help minimise its capital expenditure as well as speed up the development of its deep-water fields which lie near Reliance's.

Oil and Natural Gas Corporation Limited (ONGC) is an Indian multinational oil and gas company headquartered in Dehradun, India. It is one of the largest Asia-based oil and gas exploration and production companies, and produces around 77% of India"s crude oil (equivalent to around 30% of the country"s total demand) and around 81% of its natural gas.
MRC

MOSCOW (MRC) -- Bayer MaterialScience has named Klaus Schafer head of Industrial Operations and Technology, said Coatingworld.

He will assume global responsibility for this unit effective January 1, 2015. At the same time, he will become a member of the company’s Executive Committee.

Schafer, who previously served in other leadership roles at Bayer MaterialScience, will succeed Tony Van Osselaer, who is retiring after 34 years with the company.

As MRC wrote before, Bayer MaterialScience (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.

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

MOSCOW (MRC) -- The Dow Chemical Company has announced an increased divestiture target aligned to further enhance the value of its portfolio and support the company’s market-driven, integrated strategy, reported the company on its site.

On track to complete its goal of realizing USD4.5 billion to USD6 billion in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to USD7 billion to USD8.5 billion to be complete by mid-2016. Since 2013, the company has generated USD2.5 billion in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.

"As part of our ongoing process to drive value through a best owner mindset and using economic value add as our lens, we are consistently looking across our portfolio to identify additional sources of long-term value creation and maximize the returns on the capital we invest," said Andrew N. Liveris, chairman and chief executive officer. "Our focus on continuously and increasingly rewarding shareholders is at the core of every decision and action we take."

Dow continues to assess opportunities to enhance the value created across its portfolio, including rationalizing its position in major joint ventures and divesting Dow businesses that, while valuable, no longer align with Dow's integration strategy.

In line with this strategy, and as MRC wrote earlier, Dow plans to reduce its equity position in all of its Kuwait joint ventures, which will release capital for other strategic purposes including shareholder remuneration. The company also announced the signing of a definitive agreement for the divestiture of its ANGUS Chemical business for USD1.215 billion in net proceeds.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC