HDPE imports into Kazakhstan grew by 3% in the first nine months of 2015

MOSCOW (MRC) - Imports of high density polyethylene (HDPE) to Kazakhstan increased to 62,800 tonnes in the first nine months of the year, up 3% compared with the same time a year earlier, as per MRC analysts.

September HDPE imports in Kazakhstan decreased to 4,000 tonnes, compared with 6,900 tonnes in August. The decrease in supply resulted from the severe reduction of export quotas from Russian producers and the August devaluation of the national currency, which has significantly increased the cost of the feedstock despite the fact that the prices of finished products remained unchanged. Total HDPE imports into the country grew to 62,800 tonnes in January - September 2015, compared with 61,000 tonnes year on year. The main increase in foreign supplies of polyethylene traditionally occurred for the local pipe producers.

Structure of HDPE consumption over the period was as follows: more than 85% from the total imports occurred for the producers of pipe PE.
According to the Statistics Committee of the Republic of Kazakhstan, production of plastic pipes and fittings, rose 2.1% to 87,600 tonnes in the first nine months of this year.

The second largest consumer sector was the film sector, with the share of about 10% from the total HDPE consumption over the reported period. According to official statistics, production of bags made from PE reached more than 8,400 tonnes in nine months of the year, up 25% year on year.

The main suppliers of HDPE to the local market remained Russian HDPE producers. Their share in total deliveries for the period slightly exceeded 67%. The second and third place in PE deliveries into the local market took producers from South Korea and Uzbekistan. It is also worth noting that in the last few months, Iranian pipe HDPE entered the local market (August deliveries amounted to about 250 tonnes, September imports grew to 1,250 tonnes).


MRC

Turkish MTN targets exports with new molding plant

MOSCOW (MRC) -- Turkish plastics processor and mold maker MTN Kalip Sanayi Ltd. Sirketi is building a second factory to expand its injection molding business, targeting exports to Europe, said Plasticsnews.

The Istanbul-based firm will open the second facility in Turkey early next year with 16 injection molding machines, serving its existing end markets in automotive and appliance manufacturing, said Kadir Yavuz, sales and marketing supervisor.

"MTN has decided to grow strategically in plastic parts manufacturing," he said. "We’re very well known for molds. We are working with all well known automotive and white goods brands. That is why we would like to grow in plastic parts production."

Yavuz was interviewed at the Fakuma 2015 fair, held Oct. 13-17 in Friedrichshafen. The small company builds molds and manufactures plastic parts as a Tier 1 and Tier 2 supplier for global car brands, and in the appliance sector for Whirlpool, BSH Hausgerate GmbH, Turkey’s Arcelik A.S. and others.

MTN started as a mold manufacturing company 20 years ago and in 2011 launched its injection molding business, and sees good possibilities for growth there, Yavuz said.

In a corporate sales presentation provided to Plastics News, MTN said the new factory would eventually grow to 45 injection molding machines in its second phase. No time frame was specified. Its plastics parts business - which has 12 injection molding machines — currently is focused on Turkey’s domestic market. But it would like to grow exports to a level closer to that of its mold making unit, which exports 60 percent of molds it produces, Yavuz said.

The company also wants to pursue what it calls "localization projects," or more generally replacing imported injection molded parts that currently are not manufactured in Turkey. While the country’s economy has been hurt by the wars in neighboring Iraq and Syria and ensuing refugee crisis, Yavuz said Turkey’s plastics sector continues to grow.

MTN carries out production of moulds with professional management attitude based on the approach of Mould Innovation. MTN have experienced team, software, machinery and other equipment with latest technology. MTN can do Co-Design and FSS (Full Service Supplier) for the customers. MTN is a solution partner for customers in various projects.
MRC

LG Chem to sell OLED business to affiliate

MOSCOW (MRC) -- LG Chem Co., South Korea's top chemical company, said that it had decided to hand over its organic light-emitting diode (OLED) business to its affiliate as part of efforts to focus on its flagship business, as per Yonhap News Agency.

In a regulatory filing, LG Chem said it plans to sell its OLED business unit to LG Display Co. on Dec. 15, for 160 billion won (USD142 million).

"LG Chem will focus on its material business, while LG Display will develop OLED-based products," said a LG Chem official.

LG Display, which counts Apple Inc. as one of its major clients, has shored up production of its flagship OLED, as well as quantum dot-based panels known for their high color reproduction. The move is to vie with its bigger rival Samsung, which has been pushing its quantum dot TVs.

LG Chem, the country's leading maker of car battery packs, is making efforts to focus on developing high-end chemicals and electric vehicle-related battery packs.

As MRC wrote before, last week, LG Chem shut its polyvinyl chloride (PVC) plant for a maintenance . It is expected to remain shut till end-October 2015. Located in Daesan, South Korea, the PVC plant has a production capacity of 240,000 mt/year.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

Uflex to operationalise aseptic packaging plant in Gujarat in 2017

MOSCOW (MRC) -- India’s largest flexible packaging company UFlex Ltd has targetted an April 2017 start up of its aseptic packaging plant, at Sanand in Gujarat, said Plasticsnews.

The company, which already has manufacturing facilities at Noida, Jammu and Malanpur, will spend Rs 580 crores in the first phase and employ around 250 people, as per Business Standard.

Uflex is planning multi-phase expansion at the new site and estimates a total investment of about Rs 1500 crores in all the phases of the project. About 90% of the output from this factory will cater to the domestic demand. Starting with initial capacity of around 3.5 bln packs, the plant will finally produce up to seven billion packs over time.

As MRC informed earlier, Reliance Industries Ltd. (RIL) has successfully put into operation two plants in Dahej, Gujarat, India. The first is a polyethylene terephthalate (PET) resin plant, which consists of two lines with a combined manufacturing capacity of 650 KTA. The plant has been built with Invista technology for continuous polymerization and Buhler AG technology for solid state polymerization.

Uflex is one of the major players in the flexible packaging industry world over with clients like P&G, PepsiCo, Tata Global, Mondelez, L’Oreal, Britannia, Haldiram, Amul, Ferro Rocher, Perfetti, GSK, Nestle, etc.

MRC

Bemis Co. Inc. posts profit increase in Q3

MOSCOW (MRC) -- Bemis Co. Inc. saw net profit increase during the third quarter compared to last year, said Plasticsnews.

The Neenah, Wis.-based packaging company said net profit was USD62.5 million, or 64 cents per diluted share, on sales of USD1.02 billion for the quarter. That compares with net profit of USD17 million, or 17 cents per diluted share, on sales of USD1.1 billion for last year’s third quarter.

Net profits from last year were impacted by a loss of USD44.5 million, or 44 cents per diluted share, from discontinued operations.

"Our third quarter results demonstrate continued progress in the implementation of our long-term strategy, as we again delivered increased margins, return on invested capital, and cash from operations," said CEO William F. Austen said in a statement.

Bemis breaks out financial details for its U.S. packaging and global packaging operations.

Global packaging had net sales of USD328.1 million for the quarter, down 14 percent from the year before. Currency impacts decreased net sales by 22.1 percent. Increased unit volumes and “positive sales price and mix” helped offset currency issues.

U.S. packaging had net sales of USD690.2 million for the third quarter, down 3.7 percent from the third quarter of 2014. About 3 percent of the drop was from unit volumes and the remaining decrease was from a pass through of lower raw material costs, the company said.

Bemis Co. closed a plant in St. Louis Park and will close one in Minneapolis. Both facilities make flexible packaging for food under the Curwood brand, a division of Bemis.

Bemis, based in Neenah, Wis., is one of the country's largest packaging firms and is North America's largest film and sheet manufacturer with annual sales of USD5.3 billion.
MRC