LG Chem completes deal to acquire Dongbu Farm Hannong

MOSCOW (MRC) -- South Korea’s LG Chem has completed the acquisition of Dongbu Farm Hannong, the country’s largest agricultural products provider, according to TPS.

Following a series of negotiations since September 2015, LG Chem has finally acquired 100% equity stake in Dongbu Farm Hannong’s shares worth USD426.49 million (KRW 515.20 billion).

LG Chem, South Korea’s leading producer of basic materials and chemicals, has been keen on expanding into agrochemical business in order to diversify its business portfolio amid gloomy outlook for the country’s petrochemical industry.

Dongbu Farm Hannong is the country’s largest producer for crop protection products and the second largest manufacturer of fertilizers in South Korea.

"The world’s top chemical companies have been fostering agrochemical business as the key industry for future growth. Therefore, we expect that the acquisition of Dongbu Farm Hannong will boost our global competitiveness," said Park Jin Soo, Chief Executive Officer (CEO) of LG Chem.

As MRC wrote before, LG Chem shut down its polyvinyl chloride (PVC) plant for a maintenance turnaround in mid-October 2015. It remained 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.

Gail restarts HDPE/LLDPE swing plant in India

MOSCOW (MRC) -- Indian public gas major Gail India Limited has brought on-stream a high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant at its petrochemical complex in the north Indian state of Uttar Pradesh, as per Apic-online.

A Polymerupdate source informed that the company has resumed operations at its plant yesterday. The plant was shut on January 7, 2016 owing to non-availability of gas feedstock from ONGC plant. The company buys feedstock from ONGC on a regular basis.

Located at Pata, Uttar Pradesh in India, the complex comprises a cracker with an ethylene production capacity of 500,000 mt/year, a high-density polyethylene/linear low-density polyethylene (HDPE/LLDPE) swing unit having a production capacity of 210,000 mt/year and two dedicated HDPE plants, each having a production capacity of 100,000 mt/year.

We remind that, as MRC reported earlier, The Brahmaputra Cracker and Polymer Limited (BCPL), also known as the Assam gas cracker project, was partially commissioned in early July 2015. Three units of the petrochemical plant - the gas sweetening unit (GSU), C2+recovery unit and polypropylene unit (PPU) were commissioned. The ethylene cracker unit and linear low density polyethylene (LLDPE)/high density polyethylene (HDPE) unit are almost near completion and expected to be ready in two months.

The gascracker project is a joint venture in which GAIL holds equity share of 70%, while OIL, NRL and the state government hold 10% stake each. GAIL and BCPL have already inked a deal for marketing petrochemical products produced at the plant. There are also plans to export polymer and finished products to countries like Bangladesh, Myanmar, Bhutan, Nepal and China.

Rosneft and Sinopec consider cooperation in gas, petroleum chemicals projects

MOSCOW (MRC) -- Rosneft and Sinopec have signed a Memorandum of Understanding regarding cooperation in gas and petroleum chemicals projects to be developed in East Siberia, reported GV.

The memorandum envisions a detailed pre-feasibility and concept design study for a joint venture that would include the conversion of natural gas and its liquid fractions to ethylene and propylene with integrated downstream production.

Rosneft said the integrated complex, to be located in Boguchany, Krasnoyarsk, and Angarsk, Irkutsk, is expected to process up to 10-billion cu m/y of natural gas and produce up to 3-million t/y of ethylene with about 6-million t/y of derivative production.

We remind that, as MRC wrote before, in June 2015, Rosneft and BP signed several agreements strengthening the long term strategic relationship between the two companies, at the St. Petersburg International Economic Forum.
Rosneft and BP signed final binding agreements for Rosneft’s sale to BP of a 20 per cent share of Taas-Yuryakh Neftegazodobycha (Taas), creating a new joint venture in East Siberia. The venture will further develop the Srednebotuobinskoye oil and gas condensate field which is one of the largest fields in eastern Siberia, currently producing about 20,000 barrels a day.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.

January prices of European PE dropped by EUR 10-20/tonne for CIS markets

MOSCOW (MRC) -- The January contract price of ethylene in Europe was agreed by EUR27,5/tonne lower than in December. However, many European polyethylene (PE) producers limited the reduction in export prices of polymer for the CIS countries to EUR20/tonne, according to ICIS-MRC Price report.

Negotiations over January prices of European PE for the CIS markets began last week. Export quotas of most producers are still limited, with the pipe grade high density polyethylene (HDPE) segment accounting for the tightest supply. All producers announced reductions in export PE prices, following lower monomer prices. However, the fall in export prices of polymer was not proportional to the price cut of monomer.

Deals for January HDPE shipments were negotiated in the range of EUR1,290-1,345/tonne FCA last week, down by EUR10-20/tonne from December. Some market participants said there were certain restrictions in supply of film grade and blow moulding PE by some producers.

European producers of high density polyethylene (LDPE) do not have restrictions in exports in January. Deals were mainly negotiated between EUR1,300-1,350/tonne FCA, whereas the last month's deals were discussed in the range of EUR1,320-1,370/tonne FCA.

Huntsman increases global TiO2 prices

MOSCOW (MRC) -- Huntsman Corporation has announced global price increases for all its titanium dioxide (TiO2) pigments, said the company on its site.

The following increases are effective January 1, 2016, or as contracts allow:

- Europe: EUR150/tonne or USD160/tonne in dollar-based markets;

- North America: USD0.07/pound;

- Asia-Pacific, Africa, Latin America and Middle East: USD160/tonne.

As MRC reported earlier, in October 2014, Huntsman Corporation completed the acquisition of the Performance Additives and TiO2 businesses of Rockwood Holdings, Inc. And, in February 2015, the company announced its plans to reduce its TiO2 capacity by approximately 100,000 tons, representing 13% of Huntsman's European TiO2 capacity. As part of the plan, Huntsman is proposing to close certain operations at its site in Calais, France.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2013 revenues of over USD11 billion. Huntsman is a global manufacturer and marketer of differentiated chemicals. The company's operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.