DuPont merges US headquarters for collaboration

MOSCOW (MRC) -- DuPont Co. is moving to the suburbs after an activist shareholder criticized its ownership of the landmark DuPont Building once visited by luminaries such as Charles Lindberg and John F. Kennedy, as per Hydrocarbonprocessing.

Executive offices will relocate to its Chestnut Run Plaza campus from downtown Wilmington, Delaware, effective July 1, the company said today in a statement. DuPont’s performance chemicals unit, which is being renamed Chemours Co. and spun off, will own the building and use it as temporary headquarters.

Trian Fund Management, the activist investor seeking two seats on DuPont’s board, highlighted the building in a September letter as symbolic of the company’s waste. The DuPont Building, which has served as its headquarters for 107 years, also houses the Hotel DuPont and a 1,250-seat theater. DuPont said the move will support management collaboration while saving money.

The Chestnut Run facility is about 4 miles (6 kilometers) west of the current headquarters. DuPont in 2012 added 220,000 square feet of office space at Chestnut Run, where the company has had a presence for more than 60 years.

As MRC reported earlier, Borealis AG is buying out DuPont Co.’s two-thirds share in their Specialty Polymers Antwerp NV joint venture. No purchase price was disclosed. Wilmington, Del.-based DuPont will continue to sell ethylene vinyl acetate (EVA) and acrylate copolymers made at the JV’s plant, which is in Zwijndrecht, Belgium.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
MRC

MOSCOW (MRC) -- Unipetrol welcomes the decision of the Office for the Protection of Competition regarding transaction in Ceska rafinerska, reported the company on its site.

The decision of the Office for the Protection of Competition is not yet effective.

Transaction is an opportunistic acquisition with the aim to gain full control over decisions in Ceska rafinerska, especially in the area of capital investments. The completion of transaction will also increase security of feedstock supplies for Unipetrol’s petrochemical business development.

Unipetrol currently owns 67.555% of the Ceska Rafinerska’s share capital after acquisition of Shell’s shareholding interest at the beginning of 2014. After completion of the transaction, Unipetrol shareholding interest will increase to 100%, making Unipetrol the sole shareholder of the Ceska Rafinerska.

CESKA RAFINERSKA, a.s. operates refineries in Litvinov and Kralupy, currently the only two running refineries in the Czech Republic.

As MRC wrote before, in Q3 2014 Unipetrol Group posted very good results and significantly increased its profitability. Company recorded operational profit (EBITDA LIFO) of CZK 2.304 bn. Net profit reached CZK 1.399 bn(USD64.5million). Revenues increased y/y by 37% to CZK 34.041 bn in 3Q14.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.
MRC

MOSCOW (MRC) - Ukraine may introduce an additional 5% import duty on polymers and products made of them, from 1, January 2015, according to a text of the bill imposed by the Government to the Verkhovna Rada and published on the website of the Parliament.

Cabinet registered the bill "On the balance of payments of Ukraine" (N156) and "On amendments to the Customs Code of Ukraine" (N1563) in the Verkhovna Rada on 23, December. According to the draft law, the import of food products (product groups 1-24, according UKTVED) will be imposed by an additional duty of 10%, the rest goods (group 25-97) - at the rate of 5%. Polymers and products made of them belong to the group 39.

In addition, the rate of 10% government introduces for the goods imported into the territory by Ukraine nationals.
The duties will be introduced during 12 months, "regardless of the country of origin of the goods and trade agreements concluded by Ukraine."

The government will release vital goods from the duties collection: natural gas, steam coal, the fuel for nuclear power plants, oil and petroleum products, gold and precious metals, humanitarian aid.

In the explanatory memorandum the Government notes that the introduction of such temporary import charges corresponding to the position of the WTO, as the balance of payments of Ukraine significantly deteriorated.

As MRC reported earlier on 10 December, the Ukrainian parliament submitted a bill to increase the import duty on suspension polyvinyl chloride (SPVC) to 6.5% from 1, January 2015.
MRC

MOSCOW (MRC) - Ukrainian producer of polymers Karpatneftekhim, subsidiary of Lukoil Group, is to resume production in March-April 2015, writes Capital, citing an interview with a representative of the president of Lukoil in Ukraine Sergey Chmyhalov.

"If the economic situation will be favourable Karpatneftekhim will be restarted in spring 2015. I think it is beneficial to all: the region, which receives an operating company with an annual turnover of USD7 bn, and investors for whom the plant's shutdown is also unprofitable, "- he said.

S. Chmyhalov also said that fall in oil prices - a good incentive for the development of oil refining and petrochemicals in Europe and in Ukraine. But to make the business profitable, state has to support it. "We should be supported quite a bit in all three directions. The first - reduction of railway tariffs for transportation of the feedstock, the second - abolishment of excise duty on petroleum products, which is necessary for the production of PVC and polyethylene, the third - the protection from SPVC imports. We will work with the government on the implementation of these items, in order to begin production in April", - said S. Chmikhalov.

As the newspaper writes, Karpatneftehim has a support in the parliament. Investors are looking forward to the introduction of protective tariffs on imported suspension PVC (SPVC), which the company can produce in excess of the needs of Ukraine; as well as exemption from excise duties on imports of feedstock.

A bill to impose tariffs on imported SPVC at a rate of 6.5% was re-registered in the parliament on 10, December.
The chances of being accepted are large enough.

Karpatneftekhim is the only Ukrainian producer of polyvinyl chloride, polyethylene, ethylene, as well as one of two producers of caustic soda. Its capacity to produce PVC is 300,000 tonnes/year, polyethylene - 110,000 tonnes/year.
As MRC wrote before, the producer resumed PVC production on 8, November 2013 and PE on 10, September 2013 following the shutdown from September 2012. However, Karpatneftekhim in November 2013 shut PE production, and in the end of December 2013 - the production of SPVC.
MRC

MOSCOW (MRC) - Ufaorgsintez, subsidiary of United Petrochemical Company (UPC), announced an increase in the contract prices of polypropylene (PP) and low density polyethylene (LDPE) by Rb500-2,000/tonne, effective from 1, January 2015, according to ICIS-MRC Price Report.

The company's customers, price for general purpose film LDPE grew by Rb1,000/tonne, compared with the level on 15, December; price for shrinkable films LDPE by Rb1,400/tonne. Prices for homopolymer PP remained steady compared with the level on the middle of December, block copolymer PP grew Rb500 - 1,000/tonne. Prices for PP random copolymer grew by Rb2,000/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. UPC owns 87.76% of the share capital Ufaorgsintez.

Total PE and PP production at Ufaorgsintez was 75,300 tonnes and 111,600 tonnes in the first eleven months of 2014, respectively.
MRC