SK Global Chemical plans to shut SM plant for maintenance in 2016

MOSCOW (MRC) -- South Korean petrochemical company SK Global Chemical has scheduled a maintenance turnaround its styrene monomer (SM) plant in H2 2016, as per Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut in September-October 2016. It is likely to remain off-stream for around 20-25 days.

Located in Ulsan, South Korea, the plant has a production capacity of 450,000 mt/year.

As MRC wrote before, in October 2015, SABIC and SK Global Chemical inaugurated a new industrial plant to manufacture a range of high-performance polyethylene products using the cutting-edge Nexlene Solution Technology. The 50-50 joint venture holding company, SABIC SK Nexlene Company (SSNC) was established last July and is headquartered in Singapore. Its wholly-owned subsidiary, Korea Nexlene Company (KNC), owns the plant in Ulsan, which has an annual capacity of 230,000 tons. The plant will produce metallocene linear low density polyethylene (mLLDPE), polyolefin plastomers (POP) and polyolefin elastomers (POE) that will meet the growing needs of diverse industries such as advanced packaging, automotive, health care, footwear and electrical and lighting.

SK Global Chemical is a pioneering petrochemical company in Korea, being the first in the country to build a naphtha cracking facility in 1972. Through continuous facility investment, R&D and technological improvement, the company has maintained its position as the leader of the petrochemical industry in Korea.

OMV Q3 downstream profit increased by 83%

MOSCOW (MRC) -- Austria’s integrated international oil and gas company OMV showed signs of difficulties, announcing a 35% decrease in sales in the third quarter of the year with respect to the same period in 2014, said Naturalgaseurope.

On the other hand, it also reported a 31% increase in clean CCS net income.

"Given the ongoing challenging oil price environment, we have decided to reduce our future oil price assumptions resulting in asset impairments in the Upstream business" Rainer Seele, CEO of OMV, commented in a note.

Production of oil, NGL and gas registered a 6% decrease in the quarter, due to the shut-downs in Libya and Yemen, and lower gas production in Romania and Pakistan. Production increases in Norway (up by 18%) and New Zealand (up by 16%) partly offset this decline.

The company’s strategy seems to hinge on the Downstream and on stronger ties with Gazprom.

"We have achieved several strategic milestones. We have signed a term sheet with Gazprom for OMV’s participation in the project Achimov IV/V based on an exchange of assets as well as the shareholder agreement for the Nord Stream 2 pipeline project. Additionally, we decided to sell a stake of up to 49% of Gas Connect Austria and reached a provisional agreement on the full takeover of EconGas by OMV, both of which mark important steps towards the optimization of the Downstream Gas portfolio" Seele explained.

As it was informed earlier, Russia's Gazprom said it had signed a memorandum of understanding with Austrian energy group OMV on the supply of oil. The document reflects the intention of the parties to consider the possibility of organizing the supply to OMV of oil from the Gazprom Group's portfolio.

OMV is an integrated international oil and gas company, headquartered in Vienna. Its main businesses are exploration and production of oil and gas, natural gas distribution and power generation, and refining and marketing oil products. OMV is the largest listed manufacturing company in Austria.

US Trinseo posts Q3 2015 financial results

MOSCOW (MRC) -- Trinseo (former Styron), a global materials company and manufacturer of plastics, latex and synthetic rubber, has reported its third quarter 2015 financial results with record net income of USD52 million and EPS of USD1.06 per diluted share, as per the company's report.

Additionally, results for the third quarter included adjusted EPS of USD1.07 per diluted share, adjusted EBITDA of USD116 million, and adjusted EBITDA excluding inventory revaluation of USD144 million.

Commenting on the company’s performance, Chris Pappas, Trinseo President and Chief Executive Officer, said, "After a very strong first half, Trinseo continued with strong results in the third quarter. We had net income of USD52 million and earnings per diluted share of USD1.06. Adjusted EBITDA excluding inventory revaluation of USD144 million in the third quarter was our second highest ever, and we had very strong free cash flow of USD95 million."

Pappas continued, "As expected, Performance Materials adjusted EBITDA excluding inventory revaluation returned to a more normalized run rate at USD72 million. We continue to be encouraged by the results in Basic Plastics & Feedstocks, which had adjusted EBITDA excluding inventory revaluation of USD93 million, making this the third straight quarter with adjusted EBITDA higher than all of 2014. We are seeing further evidence of the supply/demand improvements driving higher margins in styrene monomer, polystyrene, and polycarbonate."

Revenue in the third quarter decreased 21% versus prior year due to the pass through of lower raw material costs, with the significant decline in the overall energy complex, and currency, as the euro weakened in comparison to the U.S. dollar. Sequentially, revenue remained flat.

As MRC reported before, effective February 1, 2015, Styron announced it had changed its name to Trinseo.

Trinseo is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. Trinseo’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Trinseo had approximately USD5.1 billion in revenue in 2014, with 19 manufacturing sites around the world, and approximately 2,100 employees.

LyondellBasell Board authorizes interim dividend

MOSCOW (MRC) -- LyondellBasell, one of the world's largest plastics, chemical and refining companies, has announced that its Management Board has declared an interim dividend of USD0.78 per share, as per the company's press release.

The interim dividend will be paid December 7, 2015 to shareholders of record November 23, 2015 with an ex-dividend date of November 19, 2015.

As MRC informed previously, in November 2014, LyondellBasell Industries said "tight" markets for its products may stall the narrower margins that it expects will ultimately come from lower oil prices.

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.

Taiyo Vinyl eyes to undertake maintenance at cracker in 2016

MOSCOW (MRC) -- Taiyo Vinyl, a subsidiary of Tosoh Group,, is likely to shut its cracker for a maintenance turnaround in 2016, according to Apic-online.

A Polymerupdate source in Japan informed that the cracker is planned to be shut in March 2016. The exact period of the shutdown could not be ascertained.

Located in Yokkaichi, Japan, the cracker has a production capacity of 500,000 mt/year.

The last shutdown was undertaken at the cracker in March 2015. Currently, it is running at full production capacity levels.

We remind that, as MRC wrote before, another major Japanese petrochemical producer - Asahi Kasei - is likely to mothball a naphtha cracker permanently by February 2016. The permanent shutdown has been attributed to sluggish demand in the domestic markets. Located in Mizushima, Japan, the cracker has a capacity of 500,000 mt/year.

Taiyo Vinyl Corporation, a subsidiary of Tosoh Group, is one of Japan's largest manufacturers of polyvinyl chloride (PVC). The plant in Chiba is one of the company's key assests, which supplies 50% of its products to the domestic market. The company also produces PVC at the plants in Yokkaichi and Osaka with the annual capacity of 310,000 and 150,000 tonnes, respectively.