PVC imports in Ukraine decreased by 15% in 2014

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) in Ukraine decreased to 119,100 tonnes in 2014, down 15% year on year. The greatest reduction in demand occurred for the sector of soft compounds, according to MRC DataScope.

December imports of SPVC in Ukraine has decreased to 8,800 tonnes, compared to 9,300 tonnes on the seasonal decline in demand for finished products. Total PVC imports in the country were 119,100 tonnes in 2014, compared with 140,400 tonnes year on year. Because of a number of factors the demand for resin declined in all sectors of consumption, but the largest decline occurred for plasticised PVC compounds.
Structure of PVC imports in Ukraine over the reported period was as follows.
December imports of US SPVC in Ukraine shrank to 3,300 tonnes, compared with 3,900 tonnes in November. Last year's imports of US PVC in to the country totalled 65,500 tonnes, compared with 73,900 tonnes year on year. Imports of US SPVC are expected to decrease further in 2015.

Because of the long-term logistics and stronger supply from Russian producers, many Ukrainian companies fully refused from buying of the North American PVC. December imports of European PVC in Ukraine increased to 4,200 tonnes, compared with 4,000 tonnes in November.

Total imports of European SPVC in Ukraine were 48,900 tonnes in 2014, compared with 63,400 tonnes year on year. Key suppliers of the suspension PVC in the Ukrainian market because of to geographical nearness were producers from Hungary, Poland and Germany.

The share of Russian PVC is expected to significantly increase in the Ukrainian market in 2015. In recent months, Russian resin prices became more attractive due to the devaluation of the rouble; some Ukrainian companies have already shifted to the purchase of the resin in the Russian Federation. Imports of Russian PVC into the country were about 1,000 tonnes in 2014.


MRC

MOSCOW (MRC) -- PAO Sibur Holding, Russia’s largest petrochemical company, may slow some project spending as the Russian petrochemical producer seeks to curb risks from the economy amid US and European sanctions against the country, reported Bloomberg.

"This is to avoid risks for the company in 2016 and 2017 if the price and economic situation does not change," CEO Dmitry Konov said in an interview in Davos, Switzerland, without identifying any specific projects.

Russia, the largest oil and gas exporter, faces a recession this year as crude prices fell more than 50% in six months. The US and Europe also sanctioned people and companies after Russia annexed Crimea in Ukraine and supported a separatist insurgency in its neighbor.

Billionaire Gennady Timchenko, who owns more than 15% of Sibur, is among those sanctioned.

While Sibur isn’t on any sanctions list, it doesn’t have any borrowing plans as wider debt costs have risen, Konov said.

"Due to the economic situation and existing sanctions against a number of Russian companies and banks, public debt sales for any Russian company will be extremely expensive if possible at all," he said.

Even if annual spending falls, Sibur expects higher output in its crude and petrochemicals operations as recently-completed projects expand capacity, Konov said.

As MRC wrote previously, in September 2014, SIBUR said that following the completion of the front-end engineering design (FEED) contracts and assessment of the design documentation, it would be proceeding with the previously announced mega ZapSibNeftekhim project at Tobolsk, Russia.

ZapSibNeftekhim's project is designed to operate a steam cracker (by Linde AG, Germany) with a capacity of 1.5 mtpa of ethylene, around 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF), along with units with a total capacity to produce 1.5 mtpa of various grades of polyethylene (by INEOS, UK) and a polypropylene unit of 500 ktpa (by LyondellBasell, Netherlands).

The cracker, polyethylene and polypropylene units’ FEED has been completed. SIBUR has signed an agreement to design infrastructure and off-site facilities with NIPIgazpererabotka, Russia's leading engineering centre in the gas processing industry.
MRC

MOSCOW (MRC) -- H B Fuller has completed the acquisition of 95% of the equity of China-based engineering adhesives provider TONSAN Adhesive for around RMB1.4bn (USD225m), said Chemicals-technology.

The acquisition will provide H B Fuller with strong customer relationships in fast-growing engineering adhesives markets, manufacturing facilities and strong product and technology development capabilities, the company said.
Under terms of the deal, the four founding shareholders of TONSAN will remain with the company as part of the leadership team and will retain a minority equity interest.

"TONSAN Adhesive specialises in the research and development (R&D), manufacture and sale of engineering adhesives."

Following completion of the deal, financial results of the business will be included in H B Fuller's Asia Pacific operating segment. H B Fuller president and CEO Jim Owens said: "With the addition of the TONSAN business, H B Fuller is now a key, global competitor in some of the adhesives industry's most innovative and profitable segments.
"Together with TONSAN's management, we will build a stronger position from which to serve our customers in China and around the world.

"And, with our combined expertise and focus on innovation and growth, we will continue to help customers design new, different and better products."

As MRC wrote before, in December 2014, H B Fuller signed an agreement to purchase Continental Products Limited, a provider of industrial adhesives in East and Central Africa.

H B Fuller is an adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. H.B. Fuller serves customers in packaging, hygiene, general assembly, electronic and assembly materials, paper converting, woodworking, construction, automotive and consumer businesses.

TONSAN Adhesive specialises in the research and development (R&D), manufacture and sale of engineering adhesives.

Continental works with customers to develop high-quality adhesives solutions for a range of industries, including paper converting, printing and packaging, labeling, laminating, book-binding, automotive assembly, footwear and construction.
MRC

MOSCOW (MRC) -- Arkema has finalized the acquisition of Bostik, the world’s No. 3 in adhesives, on 2 February 2015, reported the company on its site.

With this acquisition, the group reaches a new milestone in its development, and confirms its ambition to become a world leader in specialty chemicals and advanced materials. Bostik’s growth prospects and the complementarities identified between the two groups will sustain the success of this high value creating project.

With the acquisition of Bostik, Arkema fulfils a project that is perfectly aligned with its strategy to reinforce its position in specialty chemicals and further develop its High Performance Materials segment. Bostik, which will constitute a new business unit of this segment, holds leadership positions in most of its markets, has internationally recognized brands and technologies, and achieves around EUR1.5 billion sales with 4,900 employees in over 40 countries.

"It is with great pleasure that we welcome the Bostik teams. I firmly believe in the quality and the development potential of this company which represents a promising growth platform for the future. I also want to thank everyone who, through their true professionalism, has helped finalize quickly the operation and its financing," stated Thierry Le Henaff, Arkema Chairman and Chief Executive Officer.

The financing of this operation was successfully finalized early 2015 with a EUR700 million bond issue with a 1.5% coupon, and complements the hybrid bond issue conducted in October 2014 and the share capital increase completed in December 2014.

With the acquisition of Bostik, the new entity achieves sales of around EUR7.6 billion and employs some 19,000 people around the world.

Bostik develops high-performance and high-value-added bonding and sealing products for the nonwoven, industrial, construction, and consumer markets. Bostik employs about 4,900 people across 48 production facilities - 18 in Europe, 10 - in North America, 8 - in Asia, 6 - in Australia and New Zealand, 2 - in Africa, and 4 - in South America.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC

MOSCOW (MRC) -- Lubrizol Corporation announces that it has acquired EcoQuimica Industria e Comercio Produtos Quimica Ltda., a manufacturer and supplier of coatings technology for products sold into decorative paints, textiles, cement, elastomeric coatings and paper coatings, as per the company's press release.

Headquartered in Paulinia, a municipality in the state of Sao Paulo, EcoQuimica (formerly under common ownership with Mercia Industria e Comercio Produtos Quimica Ltda.) will expand Lubrizol's performance coatings footprint in the Latin America marketplace.

"The acquisition of EcoQuimica will enable Lubrizol to broaden our already comprehensive portfolio on a global basis and provide us a stronger local presence in this market," said Tesh Gor, vice president and general manager of Lubrizol Performance Coatings. "The combined technologies and knowledge of our two companies will allow us to provide our customers with more comprehensive solutions in both the global and regional markets.

In addition, Lubrizol recently purchased land adjacent to the EcoQuimica facility to support future expansion. "With the combined property situated in a prime location in Sao Paulo, Lubrizol plans to expand with the addition of a warehousing facility as well an applications and technical services lab," said Gilson Santos, Lubrizol vice president, Latin America.

As MRC wrote before, Lubrizol Corporation completed the acquisition in the United States and Canada of Weatherford International’s global oilfield chemicals business, known as Engineered Chemistry and its United States drilling fluids business, known as Integrity Industries.

EcoQuimica is now part of Lubrizol Advanced Materials, reporting into Lubrizol's Performance Coatings business. This transaction includes all intellectual property, trademarks and customer lists of EcoQuimica. Financial terms of the agreement were not disclosed.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol is providing innovative solutions for its customers high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth. With headquarters in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 8,000 employees worldwide. Revenues for 2013 were USD6.4 billion.
MRC