Exports of Russian polyamide grew by 8% in January-October 2014

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 Weak growth rates in this sector in Russia because of high costs, outdated technology and low investments.

ONGC seeks strategic investors to sell 25% stake each in two petrochemical .

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.

Bayer MaterialScience has named Klaus Schafer head of Industrial Operations and Technology

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.


Dow increases divestiture target to USD7-8.5 billion by mid-2016

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.

Ufaorgsintez increased PE and PP prices

MOSCOW (MRC) - Ufaorgsintez, subsidiary of United Petrochemical Company (UPC), announced an increase in the contract prices of polypropylene (PP) and low density polyethylene (LDPE), effective from 17, November, according to ICIS-MRC Price Report.

Clients of the company said prices for 108 and 158 PE rose by Rb500/tonne and Rb200/tonne, respectively, compared with the level at 1, November. Price for LDPE for shrinkable films production was not changed.

Prices for homopolymer PP of raffia grade and injection moulding homopolymer PP increased by Rb1,500/tonne and Rb2,000/tonne, respectively, compared with the level at the beginning of the month. Contract prices for PP block copolymers grew by Rb800-1000/tonne
A week earlier, SIBUR, parent group of Tomskneftekhim, Neftekhimiya , Tobolsk-Polymer and Poliom, increased contract prices for LDPE and and homopolymer PP by Rb1,000/tonne.

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. As of January 22, 2010, Ufaorgsintez OAO operates as a subsidiary of Bashneft Joint Stock Oil Company. "United Petrochemical Company" (UPC) owns 87.76% of Ufaorgsintez"s registered capital. Bashneft sold Ufaorgsintez"s stake to UPC in May 2013. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, polyvinyl chloride and polyethylene items, thinners, and dilutants. The plant"s annual polypropylene (PP) production capacity is 100,000 tonnes.

Ufaorgsintez JSC manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. Total PP production at Ufaorgsintez was 89,600 tonnes in the first nine months of this year. UPC owns 87.76% of the share capital Ufaorgsintez.
In May 2013, Bashneft sold shares of Ufaorgsintez to "Joint petrochemical company."