Sipchem begins initial operations of polymer plant in Saudi Arabia

MOSCOW (MRC) -- Saudi International Petrochemical (Sipchem) has started initial operations at its SAR600m (USD160m) polybutylene terephthalate (PBT) plant in Jubail Industrial City, Saudi Arabia, said Chemical-Technology.

The operations at the plant started after the company completed tests on plant equipment, to ensure efficiency in production capacity and product quality.

Sipchem's affiliate Sipchem Chemical will manage operations at the PBT plant. The facility is designed to produce 63,000t of thermal highly specialised polymer that is used to produce materials for automotive, IT, electrical and electronic segments, as well as in manufacturing polymers and engineering plastics.

Butanediol is the main feedstock that is used to produce PBT. Sipchem's affiliate International Diol produces the organic compound. Sipchem said it will soon begin commercial operation of the PBT plant, and will announce its financial impact at a later date.

The company has also commissioned International Polymers' (IPC) ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE) plants.

Sipchem Chemical chairman Ahmad Al-Ohali said that the plant is an important step in the company's expansion and growth programme, which is designed to develop specialised products through the implementation of integrated downstream projects using its existing products.

The company's products from polymers, which are key materials for advanced and downstream industries, will allow it to invest in those industries in Saudi Arabia.

Sipchem has 95% stake in Sipchem Chemical, while Sipchem Marketing owns the remaining interest.

As MRC informed earlier, Sipchem's net profit rose by 17.3% year on year to Saudi riyal (SR) 80.6m ($21.5m) in the first quarter of this year amid increased production volumes and sales. The company’s gross profit rose marginally by 0.3% year on year to SR234.1m in the first three months of 2015, while its operational profit was up by 5.31% at SR176.6m, it said in a filing to the Saudi bourse, Tadawul.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound.
MRC

MOSCOW (MRC) -- Dutch chemicals and polymers maker LyondellBasell Industries, the world’s biggest maker of polypropylene (PP) plastic, has reported that first-quarter net income increased to USD1.16 billion or USD2.41 per share from USD944 million or USD1.72 per share in the prior-year quarter, as per the company's report.

Income from continuing operations grew to USD1.17 billion or USD2.42 per share from USD943 million or USD1.72 per share last year.

Results for the latest quarter include a USD92 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment (USD58 million after tax).

Excluding items, adjusted income from continuing operations was USD1.23 billion or USD2.54 per share, compared to USD943 million or USD1.72 per share in the year-ago quarter.

Sales and other operating revenues for the quarter declined to USD8.19 billion from USD11.14 billion in the same quarter last year. Analysts expected revenue of USD9.48 billion for the quarter.

Looking ahead, CEO Bob Patel said, "Planned and unplanned industry downtime has continued to support polyolefins pricing. Additionally, in the U.S., NGL feedstock inventories stand at or near record levels, production has remained strong, and NGL prices are low. During the quarter, we expect our Intermediate and Derivatives segment to benefit from normal seasonal trends. Thus far, Refining industry spreads have declined versus the first quarter but remain healthy."

As MRC wrote before, in July 2014, LyondellBasell delayed the start-up of expanded production at its ethylene plant in La Porte, Tex., until later last year. A mechanical issue with a compressor at the plant was partially to blame for the extended turnaround at La Porte.

LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

MOSCOW (MRC) -- Dutch chemicals maker AkzoNobel has announced that it is open to bolt-on acquisitions this year after reporting strong first-quarter results, but its focus will continue to be on tight cost control, as per Reuters.

The company, which makes paints, speciality chemicals and advanced coatings ranging from the maritime to the construction industries, said the weak euro and cost control had helped it improve revenues across its three business units.

"We are aiming to be cash positive this year," said Chief Financial Officer Maelys Castella in an interview. "We can envisage making a bolt-on acquisition if it makes sense in any of our business areas."

The company expects significantly lower restructuring costs in 2015 after shedding thousands of jobs last year.

Volumes were down in AkzoNobel's decorative paints and performance coatings businesses, though revenues were up across the board. Revenue growth was weakest in the decor business, where the first quarter is traditionally weak.

The United States was AkzoNobel's strongest-performing market, while traditionally high-growth economies like China and Brazil were weaker, Castella said.

The European picture was mixed, with France and eastern Europe weighing on performance, she said, adding that the company was now well-placed to benefit from a recovery.

The company reported a return on sales of 8.5% and said it was still on track to reach its 9% target for 2015. Exchange rate movements and lower growth in emerging markets would be the major performance drivers in 2015.

It earned revenue of 3.6 billion euros (USD3.86 billion), up 6% on last year, and ahead of the 3.5 billion forecast by analysts polled for Reuters.

Earnings before interest, tax, depreciation and amortisation of EUR462 million were up 27% and ahead of a EUR402 million consensus forecast.

As MRC reported earlier, in September 2014, AkzoNobel announced that it wouldl establish a new organization for its Performance Coatings Business Area in order to drive leading performance.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- A. Schulman, Inc. (Nasdaq: SHLM), a leading international supplier of high-performance plastic compounds, powders and resins, announced that it has expanded its existing polyethylene terephthalate ("PET") compounding capacity by adding a new production line at the Bornem masterbatch plant in Belgium, said the company in its press release.

"The additional PET capacity will reinforce our leading market position as a masterbatch provider for the European food packaging and BoPET film markets," said Heinrich Lingnau, Vice-President and General Manager Europe, Middle East and Africa ("EMEA"), A. Schulman. "This investment is indeed aligned with current megatrends and addresses the needs of the packaging market."

"Coupled with our extensive technical and market knowledge as well as the existing polystyrene and polyolefin offering, this investment will enable us to meet our customers' growing demand for customized food packaging solutions," added Frank Roederer, Business Unit Director Masterbatch, EMEA.

The added PET product, which is commercialized under the name of PolyPet will significantly increase the Company's PET yearly production capacity. In the first phase, the new line will be dedicated primarily to the production of additive concentrates and white PET masterbatch.

As MRC informed earlier, A. Schulman announced that it is consolidating its North American production facilities. As part of its ongoing review of its manufacturing footprint, the company will close its plant in Stryker, Ohio, in April 2015 and shift the plant's production to other facilities in North America.

A. Schulman is a global plastics supplier, headquartered in Akron, Ohio, and a leading international supplier of high-performance plastic compounds and resins, which are used as raw materials in a variety of markets. A. Schulman has 33 manufacturing facilities globally. A. Schulman's fiscal third-quarter earnings fell 69% amid continued sluggishness in European markets and higher-than-expected costs in Latin America, where the company has been consolidating its Brazilian operations.
MRC

MOSCOW (MRC) -- Brazilian petrochemical companies Odebrecht and Braskem are reviewing their proposed ethane cracker and petrochemical complex in West Virginia, said Hydrocarbonprocessing.

In a joint statement, Braskem and Odebrecht confirmed to media outlets that the delay is necessary due to present energy market conditions.

A spokesman for Gov. Earl Ray Tomblin of West Virginia shared with the media that the re-evaluation is understandable due to changes in global energy markets and the magnitude of investment.

The proposed Appalachian Shale Cracker Enterprise (ASCENT) petrochemical complex included an ethane cracker, three polyethylene plants and associated infrastructure. The complex would be located in Wood County.

In late 2014, Technip entered into a contract to supply its proprietary ethylene technology and process design package (PDP) for a world-class grassroots ethane cracker at the proposed ASCENT complex.

As MRC informed earlier, Braskem has lifted the investment forecast for its flagship Etileno XXI complex in Mexico by 13% amid rising construction costs.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).

MRC