LLDPE imports in Russia decreased by 11% in the first five months of 2015

MOSCOW (MRC) - Russia's imports of linear low density polyethylene (LLDPE) in the first five months of this year decreased to 75,600 tonnes, down 11% year on year on the back of export quota restrictions at the majority of external suppliers and weaker consumption in key processing sectors, according to MRC DataScope.

May LLDPE imports into the country decreased to 15,200 tonnes, compared with 16,100 tonnes in April because of a weaker demand for PE for rotational moulding products and cable insulation. Total LLDPE imports in Russia were 75,600 tonnes in January - May 2015, compared with 85,400 tonnes year on year. Reduction of LLDPE imports resulted from lower export quota restrictions for film PE from European and Middle Eastern producers, as well as a significant reduction in demand in the cable insulation sector and production of overall products.

Structure of LLDPE supply over the reported period looked as follows. May imports of film LLDPE remained practically at the April level at 13,500 tonnes. Total imports of film LLDPE in Russia in the first five months of the year were 65,700 tonnes, compared with 74,600 tonnes year on year. The reduction in film LLDPE imports into the country over the reported period occurred for the Russian producers of multilayer and stretch films.

May imports of LLDPE for rotational moulding sector for overall products dropped to 300 tonnes against 830 tonnes a month earlier. Total demand for this type of polyethylene for the reported period decreased twofold to about 2,200 tonnes.

May imports of LLDPE for laminating paper remained at the April level at about 600 tonnes. Russia's imports of LLDPE into the laminating paper sector increased to 3,600 tonnes in the first five months of the year, up 35% year on year.

Russia's imports of LLDPE in other consumption sectors decreased to 4,200 tonnes in the first five months of the year compared with 3,600 tonnes year on year.



MRC

MOSCOW (MRC) -- Coca-Cola has introduced the world's first polyethylene terephthalate (PET) bottle made entirely from plants using Virent's BioFormPX paraxylene (PX), as per GV.

Coca-Cola and Virent have been working together since 2011 to develop and commercialize Virent's bio-based paraxylene technology for use in Coca-Cola's PlantBottle packaging.

Since 2009, Coca-Cola has distributed more than 35-billion bottles using its current version of PlantBottle packaging, made from up to 30% plant-based materials.

"The Coca-Cola Co. continues its innovative leadership commitment to sustainability and is a valued partner for Virent," said Virent Chief Executive Lee Edwards. "Their support of our plans for the BioFormPX material in the next generation of PlantBottle packaging is critical in attracting manufacturing investment from the PET supply chain," he added.

As MRC wrote before, in September 2014, Coca-Cola Company made an additional investment in the US-based Virent, which is developing its bio-based PX - BioFormPX. This investment will enable Virent to scale up separation and purification of BioFormPX material at their demonstration plant in Madison, Wisconsin.
MRC

MOSCOW (MRC) -- SK Global Chemical Co. has announced plans to sell its Nexlene polyethylene (PE) solution technology business to Sabic SK Nexlene Co., its equally owned PE joint venture with Sabic Industrial Investments Co., as per GV.

With the sale, for which a closing date was not given, SK will retain a 50% stake in the Nexlene assets through the joint venture with Sabic.

Sabic SK Nexlene has a 230,000-t/y metallocene linear low-density PE plant in Ulsan, South Korea, which is expected to begin commercial production during the second half of this year.

The venture has said it plans to build a second plant based on the Nexlene technology in Saudi Arabia, and, over time, expects to establish production bases globally.

As MRC wrote before, Sabic has recently broadened its SABIC PCG portfolio for healthcare with the addition of a new LDPE grade to help the global IV packaging industry benefit from consistent and reliable supply.

Saudi Basic Industries Corporation (Sabic) ranks among the worldпїЅs top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Germany-based Henkel has unveiled plans to build an adhesives plant at Kurkumbh, near Pune, in the Indian state of Maharashtra, with an investment of EUR30m, said Chemicals-technology.

With production planned to start by early 2017, the facility will be constructed in phases and will serve automotive, metal and industrial segments. It will be the tenth plant for Henkel in India. The first phase will have an operational area of around 20,000m, and is expected to produce 80,000t of adhesives and surface treatment products annually.

"This plant will enable us to localise our product portfolio and reduce imports, while bringing the best global technology to India." Henkel Group India president Jeremy Hunter said: "This plant will enable us to localise our product portfolio and reduce imports, while bringing the best global technology to India.

"Considering the proximity of the plant to our customers, it will also help us to work closely with them in developing solutions. We are aiming to win a greater market share in India, which is one of the biggest emerging markets for us."

The project is in line with the company's plan to strengthen its presence in the emerging markets. With this investment, Henkel aims to obtain a 40% share in the adhesives segment in India.

The Kurkumbh facility will be designed in compliance with LEED standards set by the Indian Green Building Council (IGBC), and will implement the highest safety, health and environment standards.

Business Standard cited Hunter as saying that the company intends to double its revenue in India in the next five years.

By the end of 2016, Henkel expects to record net sales of EUR10bn in markets where it already has strong presence.

As MRC informed earlier, in April 2015, Henkel said it plans to acquire Novamelt, a privately owned company based at Wehr in southern Germany, to further enhance its competence in the area of hotmelt adhesives

Henkel operates in three business units, including laundry and home care, beauty care and adhesive technologies.
MRC

MOSCOW (MRC) -- GS Engineering & Construction has notified the Korea Stock Exchange that it has withdrawn from a USD 1.4-billion contract to build a polyethylene (PE) plant in Kazakhstan, reported GV with reference to an industry source.

In 2013, a consortium of GS, Petrofac and Linde received a contract from Kazakhstan LG Polyethylene LLP (KLPE) for a PE plant comprised of two 400,000-t/y lines. The project is part of KLPE’s integrated petrochemicals complex and infrastructure project in the Tengiz and Karabatan regions of Kazakhstan.

GS attributed its decision to cancel the contract to a disagreement on the cost of construction for the project.

KLPE is an equally-owned joint venture of Kazakhstan Petrochemical Industries and LG Chem.

GS Engineering & Construction (GS E&C) is aiming to take a larger piece of the global construction pie. Founded in 1969, the company provides engineering and construction services to a variety of industries around the world. GS E&C's civil division builds roads, bridges, railroads, underground subways, and harbors. Its plant division undertakes work on oil and gas and petrochemical facilities. Projects include sewage system maintenance and wastewater treatment and commissioning of nuclear power plants. GS E&C also builds housing across Korea and in Vietnam. In addition to offices in South Korea, the firm has offices in China, India, Indonesia, Iran, Saudi Arabia, Italy, United Arab Emirates, and Vietnam.
MRC