Altana expands its business in Brazil through acquisitions

MOSCOW (MRC) -- The German specialty chemicals group Altana has acquired two companies in Brazil, said the producer in its press-release.

As a result, Altana’s Actega division - which produces specialty coatings, sealants, printing inks, and adhesives for the rigid and flexible packaging industry – will now have its own sites in South America's largest country. Both of the acquired companies are owner-operated and headquartered in the federal state of Sao Paulo.

Premiata, which operates two facilities under the name of Premiata Tintas and Premiata Especialidades Quimicas, specialises, respectively, in printing inks and coatings for the packaging industry with140 employees. Overlake is an over-print varnishes specialist with 70 employees at one site.

"Through these acquisitions we are systematically expanding our business in the growing Brazilian market. As both companies focus entirely on specialty chemicals and tailored customer solutions they are a perfect match for Altana," explained Martin Babilas, member of the Management Board of Altana AG.

The Actega division's entire Brazilian operations will be concentrated in the new Actega do Brasil company with immediate effect. "Taking over Premiata and Overlake means we can significantly expand our portfolio of solutions particularly for the Brazilian packaging industry. I am convinced that our many years of expertise in printing inks and overprint varnishes combined with our new production facilities will swiftly make Actega the preferred supplier in Brazil," said Dr Roland Peter, president, Actega Division.

In addition to the newly acquired facilities, Altana already has a production and research site in Brazil run by its Elantas division that develops and distributes insulating materials for the electrical and electronics industry.

As MRC wrote before, Altana acquired technologies and customer-specific know-how in the field of polypropylene wax emulsions from Royal DSM. The products can be used to coat glass fibers which are needed for the manufacturing of composites. They are typically used in the construction industry and the automotive sector.

Altana develops and produces high-quality, innovative products in the specialty chemicals business. The Altana Group has four divisions: BYK Additives & Instruments, ECKART Effect Pigments, ELANTAS Electrical Insulation, and ACTEGA Coatings & Sealants. All of these divisions occupy a leading position in their target markets with respect to quality, product solution expertise, innovation and service.
MRC

MOSCOW (MRC) - Imports of expandable polystyrene (EPS) in Russia decreased to 56,500 tonnes in the first eleven months of the year, down 15% compared to January-November 2013, according to MRC ScanPlast.

This year, the market tends to decrease purchases of imported feedstock and increase the purchases of the Russian material. This trend was backed by the growth of EPS production in Russia.

Devaluation of the rouble significantly increased the interest to the Russian materials in the national currency. At the same time Russian producers can not fully cover the needs of the market.

Chinese Loyal remained to be the largest EPS supplier. Imports of Chinese EPS from Loyal increased by 7% to 25,000 tonnes over the reported period despite the general decline in purchases in foreign markets in the sector.
November EPS imports in Russia fell to 3,830 tonnes, down 12% from the level in October. Traders have decreased their EPS purchase since August.

The rouble devaluation leads to an increase in the cost of imported feedstock. The high price of imported material has damped the demand in the domestic market. Demand for imported EPS has sharply dropped in December. Traders have continued to increase prices, converting the entering volumes into the current exchange rate of the rouble.

Market players reported a strong demand for Russian EPS. High demand and a shortage of Russian EPS resulted from attractive prices in roubles compared to imported material.
MRC

MOSCOW (MRC) -- Imports of polyethylene (PE) in Belarus increased by 0.4% in the first ten months of this year.
The demand for high density polyethylene (HDPE) decreased over the reported period, while the demand for other types of PE on the contrary grew, according to MRC analysts.

According to the National Statistical Committee of the Republic of Belarus, October PE imports in Belarus were about 11,000 tonnes, compared to 11,700 tonnes in September. The total PE imports increased in January-October 2014 to 90,400 tonnes from 90,000 tonnes over the same period of 2013.

Structure of PE imports in Belarus over the reported period looked as follows.

October imports of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) seasonally grew to 5,400 tonnes, compared with 5,000 tonnes in September. Total imports of LDPE and LLDPE to Belarus reached 43,500 tonnes in January - October of this year, compared with 37,600 tonnes in the same time a year earlier. The main suppliers of PE in the local market were producers of Saudi Arabia (26,200 tonnes) and Russia (about 6,000 tonnes).

Imports of high density polyethylene (HDPE) in the country decreased to 5,600 tonnes, compared with 6,700 tonnes in September. The main reduction in HDPE supplies occurred for the producers from Saudi Arabia, resulting from the limited export quotas from producers. Total HDPE imports to Belarus decreased to 46,800 tonnes in January-October 2014, down 10.6% year on year.
MRC

MOSCOW (MRC) -- Formosa Plastics Corp (FPC) will be shutting its methyl methacrylate (MMA) plant for maintenance turnaround, said Apic-online.

A source in Taiwan informed that the plant will be shut in early January 2015. It is likely to remain off-stream for around one month. The plant is currently running at close to full capacity, the sources added.

Located in Mailiao, Taiwan, the plant has a production capacity of 98,000 mt/year.

As MRC wrote before, FCFC will start a new phenol-acetone plant in China in end December 2014 or early January 2015. Located in Ningbo, China, the plant has a phenol capacity of 300,000 mt/year and acetone capacity of 180,000 mt/year.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) - Production of high density polyethylene (HDPE) in Russia decreased by 19% in the first eleven months of this year.
Other Russian producers were not able to compensate for the lack of Stavrolen's PE production, despite the growth in HDPE output, according to a MRC ScanPlast.

November production of HDPE in Russia was 73,400 tonnes, compared to 47,900 tonnes in October (Kazanorgsintez was shut for the turnaround for two weeks). Total HDPE production in Russia decreased to 744,800 tonnes in January - November of this year, compared to 918,200 tonnes year on year. The increase in production capacity at all could not compensate offset the emergency shutdown at Stavrolen.

Structure of HDPE production over the reported period looked as follows.

Russia's largest producer of polyethylene - Kazanorgsyntez in November produced 46,900 tonnes compared to 20,700 tonnes. Total HDPE production by the producer grew to 445,900 tonnes in the first eleven months of the year, up 5% year on year.

Nizhnekamskneftekhim last month produced 18,700 tonnes of HDPE. The producer's HDPE production over the eleven months of the year exceeded 167,700 tonnes, up 12% year on year.

Gazprom neftekhim Salavat last month kept the October level of production - 7,800 tonnes of HDPE, the producer's HDPE output in January - November of the current year was 83,300 tonnes, up 29% year on year.

As it was written earlier, Stavrolen due to the accident in the workshop production of ethylene on 26, February, had to suspend production of polyethylene. According to recent statements of the company's officials, the resumption of HDPE production is expected in March - April 2015.
Its annual production capacity is 300,000 tonnes.


MRC