Brenntag acquires stake in Trychem to strengthen its position in Middle East

MOSCOW (MRC) -- Brenntag, the global market leader in chemical distribution, enters into a joint cooperation with 51% ownership in chemical distributor Trychem FZC, Dubai, United Arabic Emirates (UAE), said the producer in its press release.

Trychem is active in the distribution of solvents serving the paint, ink and coatings industries mainly in the UAE, Saudi Arabia, Bahrain, Oman, Egypt and East Africa. In addition, the company offers mixing, blending, packaging and labeling capacities. In a first step, Brenntag will hold 51% and Tri Star Transport LLC/JRA Holding 49%.

Germany-based Brenntag reported a 31.2 per cent increase in second quarter net-profit. The company’s quarterly earnings attributable to shareholders were 107.2 million euros over the three months to June 30.

Tristar acquired Trychem from Emirates National Oil Company (Enoc) in 2013. The company was previously branded as Enoc Chemicals.

The Middle East is a fast growing region with ongoing investments in chemical production. The chemical distribution market is still fragmented and consolidation offers significant potential for global players like Brenntag.

As MRC informed earlier, in June 2015, Evonik and Brenntag agreed to cooperate on hydrogen peroxide and peracetic acid for pharma and cosmetics markets.

Brenntag is the global market leader in full-line chemical distribution. Linking chemical manufacturers and chemical users, Brenntag provides business-to-business distribution solutions for industrial and specialty chemicals globally. The value-added services include just-in-time delivery, product mixing, formulation, repackaging, inventory management, drum return handling as well as extensive technical support. Headquartered in Mulheim an der Ruhr, Germany, the company operates a global network with more than 400 locations in 70 countries.

MRC

SPVC imports in Ukraine decreased by 41% in January - July 2015

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 41% in the first seven months of this year, compared to the same period in 2014 and reached 39,300 tonnes, according to MRC DataScope.

July SPVC imports into Ukraine increased to 7,600 tonnes, compared with 3,700 tonnes in June 2015 on a resumption of the deliveries from the USA. July's surge of PVC imports resulted from the seasonal factor, with the main growth of deliveries occurred for the local producers of window profiles. Ukraine's SPVC imports over the first seven months of the year decreased to 39,300 tonnes, compared with 66,100 tonnes year on year.

Structure of PVC imports into Ukraine over the reported period was as follows.

July imports of PVC from the United States rose to 3,500 tonnes, while in June the delivery of the material to the domestic market were not carried out. Export quota restrictions and high prices made many Ukrainian companies shift to the purchases of the resin in the United States back in May. Total US PVC imports into the country decreased to 11,800 tonnes in January - July 2015, compared with 38,500 tonnes year on year.

July imports of European PVC were about 3,700 tonnes, compared to 3,100 tonnes in June on the growing supplies from Anwil (Germany).
Total imports of European SPVC decreased to 21,500 tonnes in the first seven months of the year, compared with 26,200 tonnes year on year.

July imports of Russian SPVC dropped to 460 tonnes compared to 600 tonnes in June because of the further reduction of export quotas from local producers. Total imports of Russian resin in the first seven months of this year amounted to about 5,700 tonnes, while in the same time a year ago the figure was 340 tonnes.


MRC

HDPE imports to Russia fell by a third from January to July 2015

MOSCOW (MRC) -- The overall imports of high density polyethylene (HDPE) totalled 103,700 tonnes over the first seven months of 2015, down by 33% year on year. Film grade and pipe grade polyethylene (PE) accounted for the greatest fall in imports, according to MRC DataScope report.


Russian companies increased their HDPE purchasing in foreign markets in July, the final figure was 18,800 tonnes versus 13,500 tonnes a month earlier. The overall HDPE imports were 103,700 tonnes from January to July 2015 versus 155,600 tonnes a year earlier. Imports decreased in all consumption sectors, except for the rotational moulding sector. At the same time, pipe and film grade PE accounted for with the largest decline in shipments.

The supply structure by the consumption sectors looks the following way over the stated period.


July imports of HDPE for extrusion coating of large diameter steel pipes dropped to 3,400 tonnes from 5,500 tonnes a month earlier. The overall imports of this PE grade decreased to 33,500 tonnes over the said period from 36,000 tonnes over the same period of 2014. The growth of domestic production of this PE grade at Metaclay was the reason.

Last month's imports of injection moulding HDPE rose to 4,100 tonnes from 2,900 tonnes in June partially because of the increased supplies from Uzbekistan. Imports of injection moulding PE totalled 27,200 tonnes from January to July 2015, down by 7% year on year.

July imports of HDPE for pipe extrusion more than tripled from June and totalled 6,600 tonnes. However, the overall imports of pipe grade PE to Russia were 15,700 tonnes over the first seven months of 2015 versus 42,900 tonnes a year earlier. A major fall in demand for finished products in the domestic market, high HDPE prices in foreign markets and a significant devaluation of the Russian rouble against the major world currencies were the key factors that led to lower imports.

Last month's imports of HDPE for extrusion blow moulding (EBM) grew to 2,000 tonnes from 1,600 tonnes a month earlier. The overall imports of this PE grade to Russia totalled 14,500 tonnes over the stated period versus 24,400 tonnes a year earlier.

July imports of film grade HDPE were just over 1,500 tonnes versus 1,100 tonnes in June. Imports of film grade HDPE slumped to 6,800 tonnes over the said period from 15,500 tonnes a year earlier.

The overall HDPE imports to other consumption sectors, including the cable extrusion products, totalled about 6,000 tonnes from January to July 2015 versus 7,400 tonnes in 2014.

MRC

Orpic receives 5 bids for polymer plant in Sohar, 3 bids for NGL extraction

MOSCOW (MRC) -- Oman Oil Refineries and Petroleum Industries Company (Orpic) has received five technical bids for a polymers plant in Sohar industrial area and three technical bids for an NGL extraction plant in Fahud, which are part of its mega petrochemical project -- Liwa Plastics Industries Complex, said Plastemart.

Bidding is now underway for four engineering, procurement and construction (EPC) bid packages of Orpic's Liwa Plastics Industries Complex, which consists of a polymers plant in Sohar's industrial area, an NGL extraction plant in Fahud, a steam cracker plant, and a 300-km pipeline from Fahud to Sohar, according to a company release. A number of bids are also expected on the steam cracker and pipeline packages by mid-August.
Orpic is on track to conclude evaluation of bids for all the packages early October 2015, with the final investment decision to be decided by the end of October 2015. Once bids are submitted for the remaining two packages, they will be evaluated in October 2015 and awarded soon after.

The project has already obtained environmental permits from the Ministry of Environment and Climate Affairs, and has been granted gas allocation, and is finalising the gas supply agreements, with the Ministry of Gas.

As MRC informed earlier, the Porner Group delivers the comprehensive planning of a Biturox plant for the SOHAR Refinery at the Sohar Port to ORPIC, the refining and petrochemical flagship of the Sultanate of Oman. The bitumen plant, designed with two reactors, will be able to achieve an annual capacity of 300,000 t.

Orpic (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. Orpic is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector.


MRC

Petronas plans metallocene LLDPE, LDPE/EVA plants at Johor by mid-2019

MOSCOW (MRC) -- Malaysian state-owned Petronas plans to build a C6-based metallocene linear LDPE plant and a low density polyethylene/ethylene vinyl acetate swing plant at its greenfield integrated refinery and petrochemical complex in southern Johor state by mid-2019, said Plastemart.

The proposed metallocene LLDPE will have a capacity of 350,000 tpa, while the LDPE/EVA will have a capacity of about 150,000 tpa.

The two plants are part of Petronas' planned Refinery and Petrochemical Integrated Development project in Pengerang at Johor. RAPID includes a 300,000 bpd refinery and a petrochemical complex with a 3 million tpa steam cracker, and is expected to come onstream in mid-2019. The petrochemical complex will have the capacity to produce 7.7 million tpa of petrochemical products.

As MRC informed earlier, Petronas selected Axens as a technology provider for its refinery and petrochemicals integrated development (RAPID) project in Pengerang, Johor.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.

MRC