Total plans to cut jobs, sell assets after big loss

MOSCOW (MRC) -- Total SA, Europe’s third-largest oil company, on Thursday became the latest casualty of the oil-price swoon, reporting a USD5.66 billion net loss for the latest financial quarter and promising to shed billions more in cost savings, including 2,000 layoffs by 2017, reported WSJ.

The company swung to a net loss for the three months to the end of December from a net profit of USD2.23 billion in the same quarter the previous year. Total wrote off USD6.5 billion of the value of its less profitable shale and oil-sands ventures, as well as its unprofitable European refineries.

Total said that it intends to become profitable at an oil price of USD70 a barrel.

Total Chief Executive Patrick Pouyanne said Thursday that the restructuring plan shows the company’s determination to come to grips with the shift in oil markets.

Mr. Pouyanne, who was holding his first corporate news conference as CEO since he succeeded the late Christophe de Margerie , insisted that he wasn't overreacting to the situation.

"We don't gamble at the casino. We need a company that resists whatever the barrel price is," he said at a news conference.

With new projects coming on stream, the company expects to raise its output by more than 8% in 2015 from 2.15 million barrels of oil equivalent in 2014.

As MRC wrote previously, in January 2014, Total called on peers to revise projects that require tens of billions of dollars of investment as costs escalate.

But Total intends to invest EUR160m before 2016 to adapt its petrochemical platform in Carling, in the Lorraine region of eastern France, and to restore its competitiveness. Total plans indeed to develop new activities on the platform in the growing markets for hydrocarbon resins (Cray Valley) and for polymers, while shutting down the acutely loss-making steam cracker in the second half of 2015.

Besides, in November 2014, Total unveiled its plans to permanently shut its high density polyethylene (HDPE) line with the capacity of 70,000 mt/year in Belgium.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
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MOSCOW (MRC) -- In the future, Essen-based Evonik Industries, a leading specialty chemicals manufacturer, will be able to produce the plasticizer alcohol 2-propyl heptanol (2-PH) much more efficiently at the Marl site, reported the company in its press release.

This is made possible by the development of the new ligand OxoPhos 64i; ligands are important components of catalysts and essential for many large-scale processes. The new ligand makes the process more efficient and enables longer plant operation and less maintenance. With this innovation Evonik strengthens its technology position in the attractive growth market for plasticizer alcohols.

Plasticizer alcohols have a volume of 5 million metric tons per year and represent an interesting, continuously growing market for Evonik. Besides 2-PH, the company also produces the plasticizer alcohol isononanol (INA) on a world-scale level. With a capacity for both alcohols of more than 400,000 metric tons annually, Evonik is the largest manufacturer of C9/C10 plasticizer alcohols in Europe.

The plasticizer alcohol 2-PH is produced using the so-called oxo reaction. An alkene is transformed using a mixture of carbon monoxide and hydrogen as well as a catalyst system, which is made of a metal and a ligand. Because this key step is one of the most cost intensive process steps, Evonik has developed OxoPhos 64i using cutting-edge methods such as computational chemistry. The improved process started at the end of 2014.

The process improvement is sustainably impacting the whole C4 integrated production network of Evonik at the Marl site. With this production network Evonik converts C4 crack generated in crude oil processing to high-quality precursors and products such as butadiene, MTBE or plasticizer alcohols.

As MRC wrote previously, in January 2015, Evonik Industries announced that the company had invested in Nanocomp Oy Ltd. (Lehmo, Finland) and now holds a minority share in the company.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
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Moscow (MRC) - Weak demand continues to put pressure on polyethylene (PE) prices in Uzbekistan. This week export prices for high density polyethylene (HDPE) were cut by USD100/tonne, according to ICIS-MRC Price Report.

Since December, the demand for HDPE at the export trades Uzbek Republican Commodity Exchange greatly reduced, as a result, PE prices have been decreasing over for the past few months. The current week was no exception, polyethylene prices fell by USD100/tonne because of the almost complete lack of demand.

Earlier this week, was put up for the sale 1,400 tonnes of injection moulding HDPE, 1,300 tonnes blow moulding HDPE, 200 tonnes of pipe HDPE and 100 tonnes of linear low density polyethylene (LLDPE). The low end of HDPE prices was at USD1,150/tonne FCA Kengsoy, for LLDPE at USD1,215/tonne, FCA Kengsoy.

Demand was seen only for the linear polyethylene, with the price for it increased to USD1,228/tonne FCA Kengsoy during the trades. Demand for HDPE last week was almost completely absent. There were only two bids for the purchase of 50 tonnes each, while HDPE prices have been reduced to the level of USD1,050/tonne FCA Kengsoy.
Many market participants said they hoped to further decline in export HDPE prices in Uzbekistan this week.
MRC

MOSCOW (MRC) -- Styrolution, the global leader in styrenics, is making three appointments to its management board, including two new regional presidents and a newly created position - president of operations, said the producer on its site.

Hyung Tae (HT) Chang, who currently serves as President, Asia Pacific will retire in July 2015 following over 41 years of service to the chemical industry.

Steve Harrington, currently President, Global Styrene Monomer, will assume an additional role as President, Asia Pacific, effective April 1, 2015. During Mr. Harrington's 25-year career, he has held various commercial roles at INEOS, and previously worked for ICI and Unilever. He holds a degree in chemistry from Hull University in England and currently serves as chairman of the Styrene Information and Research Center.

Rob Buntinx will join Styrolution's management board as President, Europe, Middle East and Africa, effective March 1, 2015. He will replace Kevin McQuade, who took over the reigns as Styrolution's Chief Executive Officer last month. Mr. Buntinx currently serves as Senior Vice President of Styrolution's organizational unit, Global Focus Industries and R&D, and will retain this responsibility in his new role. Over the course of his 25-year career, Mr. Buntinx has held management positions at Styrolution, BASF and DSM. Mr. Buntinx received a degree in chemical engineering from Hogeschool Zuyd in the Netherlands.

Pierre Minguet will fill a newly created position on Styrolution's management board as President of Operations, effective March 1, 2015. This new role will further drive Styrolution's manufacturing and technology excellence programs globally. Mr. Minguet currently serves as Senior Vice President, EMEA Manufacturing. Throughout his 20-year career, he has held management positions at Styrolution, Ineos, BP and Amoco. Mr. Minguet holds a master's degree in chemical engineering from Faculte Polytechnique de Mons in Belgium.

As MRC reported previously, in May 2014, Styrolution inaugurated a new line for the high performance styrenic specialty product Absolan at its Katol site located in Gujarat, India. The new 40,000 mt line intends to meet the growing demand for Absolan across key growth industries in India, such as household, electronics, automotive. Absolan customers will benefit from improved local service and greater security of supply.

The Styrolution Group GmbH is a global provider of styrenics , headquartered in Frankfurt am Main. The company is a joint venture between BASF (50%) and INEOS (50%), were merged into the main styrene operations of the two partners. Its main focus is on the production of monomer, polystyrene, styrenic specialties, and ABS. The company offers styrene plastics for a variety of everyday products from different industries, such as automotive, electronics, construction, household, leisure, packaging, medicine and health.
MRC

MOSCOW (MRC) -- Huntsman plans to reduce its titanium dioxide (TiO2) capacity by approximately 100,000 tons, representing 13% of Huntsman's European TiO2 capacity, the chemicals company announced Thursday.

The plan will generate approximately USD35 million of annual savings.

As part of the plan, Huntsman is proposing to close certain operations at its site in Calais, France. Huntsman says it will close the 'black end' manufacturing operations and ancillary activities during 2015.

The 'black end' is responsible for the start of the titanium dioxide manufacturing process. The 'white end' is used to finish and pack TiO2 and will remain operational, employing up to 100 people on the site.

"With the recent deterioration in industry conditions, we have reviewed our manufacturing network in terms of cost and potential," said Huntsman CEO Peter R. Huntsman.

"We are confident that by rationalizing our capacity, we can continue to meet our customer's needs and improve our competitiveness as we create a market-leading pigments and additives business," he added.

This announcement is in addition to the company's plan announced in December 2014. Annual cost savings from that plan are expected to be approximately USD130 million and will be achieved by the middle of 2016, Huntsman says.

As MRC wrote previously, in October 2014, Huntsman Corporation completed the acquisition of the Performance Additives and Titanium Dioxide (TiO2) businesses of Rockwood Holdings.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2013 revenues of over USD11 billion. Huntsman is a global manufacturer and marketer of differentiated chemicals. The company's operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
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