DuPont 2015 net income reduced almost twofold


MOSCOW (MRC) -- Chemicals and seed producer DuPont's quarterly profit topped analysts' estimates as the company intensifies its cost-cutting efforts ahead of its merger with Dow Chemical Co, as per Reuters.

DuPont said it was looking to cut its costs in 2016 by USD730 million from 2015-levels. The company's previous cost-reduction plan, launched under former CEO Ellen Kullman, had pegged cuts at USD1.3 billion by the end of 2016 from 2013 levels.

Both DuPont and Dow Chemical are streamlining their businesses, ahead of a merger that will create a company with an estimated combined market value of about USD95 billion as of Monday's closing. DuPont's cost-cutting measures, including a planned 10 percent reduction in its workforce of about 63,000 employees, will add about 64 cents per share to the company's 2016 profit.

The company said it expects full-year operating earnings of USD2.95-USD3.10 per share, compared with analysts' average estimate of USD3.10 per share. Excluding USD622 million of restructuring and other charges, fourth-quarter operating profit was 27 cents per share, slightly above analysts' average estimate of 26 cents.

The company said its cost-reduction efforts added 10 cents to its profit in the three months ended Dec.31. Net loss attributable to the company was USD253 million, or 29 cents per share, in the quarter, compared with a profit of USD683 million, or 74 cents per share, a year earlier.

Net sales fell 9.4 percent to USD5.3 billion.

As MRC informed earlier, in mid December 2015, Dow Chemical Co. and DuPont Co. announced an all-stock merger of equals that’s the first step in a plan to create three new highly-focused businesses.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.


MRC

LG Chem cancels polysilicon project in South Korea

MOSCOW (MRC) -- LG Chem (Seoul) said on Tuesday that it has abandoned plans to enter the polysilicon business and has cancelled its project to build a new plant, as per Chemweek.

The company announced in 2011 that it planned to enter the business with a 491 billion South Korean won (USD408.4 million) investment to build a 5,000 m.t./year plant at Yeosu, South Korea, using its own technology. The plant was due to be completed in 2013 with LG Chem’s entry into the business in 2014 to supply the solar cell market.

As MRC informed earlier, South Korea's LG Chem said it had decided to drop a plan to jointly build a USD4.2-billion petrochemical complex in Kazakhstan, citing a prolonged slump in oil prices and a sharp increase in facility investments.

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

Praxair signed a 15-year contract with Total in the Port of Antwerp

MOSCOW (MRC) -- Praxair, Inc. has signed a 15-year contract to supply oxygen (O2) and nitrogen (N2) to Total in the Port of Antwerp, said Gasworld.

Total, a global integrated energy producer and provider, is currently investing EUR1bn (USD1.1bn) in the port to upgrade its largest refining and petrochemicals platform in Europe.

In order to successfully supply Total with this influx, Praxair is expanding its recently built O2 pipeline an additional three miles to connect with Total’s refinery. The Tier One company will also expand its N2 pipeline on the west bank of the river to efficiently serve existing and petrochemical customers.

Frank Wegmann, Managing Director of Praxair Germany and Benelux, explained, "Our pipeline network expansion provides us the enhanced ability to efficiently and effectively meet the nitrogen and oxygen needs of companies in this growing chemical park. Integrated petrochemical ports such as Antwerp remain highly competitive, continue to attract billions of dollars of investment and are positioned for growth for years to come."

The O2 and N2 pipeline supply is expected to be operational in the second half of this year.

As MRC informed earlier, Praxair has started up an air separation facility in Zoucheng City, China with Yankuang Guohong Chemical Co. Through a long-term contract, Praxair’s 3,000 ton/day plant will provide oxygen and nitrogen to Yankuang, replacing the existing customer-owned air separation units.

Praxair, Inc., a Fortune 250 company with 2014 sales of USD12.3 billion, is the largest industrial gases company in North and South America and one of the largest worldwide. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies are making our planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, primary metals and many others.
MRC

PVC imports into Belarus dropped by 35% in Jan-Nov 2015

MOSCOW (MRC) - Imports of unmixed polyvinyl chloride (PVC) into Belarus slightly exceeded 23,700 tonnes in the first eleven months of 2015, down 35.2% year on year, according to MRC DataScope.

According to the National Statistical Committee of the Republic of Belarus, November PVC imports in Belarus decreased to 702 tonnes, compared to 1,100 tonnes in October. All local converters seasonally decreased their PVC purchases, with the greatest reduction in demand occurred for the profiles producers.

According to the National Statistics Committee of Belarus, PVC imports in the country decreased to 23,700 tonnes in January - November of 2015, compared with 36,600 tonnes in the same time a year earlier. Demand for unmixed PVC in the local market resulted from the fall in sales of finished products in the domestic market - more than by 25%, and in foreign markets - down 48% (sales of profiles decreased to 11,600 tonnes against 22,300 tonnes a year earlier).

The key suppliers into the local market during the reporting period were Russian producers. Their share in 2015 grew to 71%, the total volume of shipments amounted to 16,800 tonnes. The second volume of supply was a Polish producer Anwil with a total of 3,500 tonnes of resin.

MRC

Hainan Shihua Jiasheng shuts SM unit in China unexpectedly on Jan 25

MOSCOW (MRC) -- China's Hainan Shihua Jiasheng has shut its styrene monomer (SM) plant unexpectedly on January 25, a company source told TPS.

Market sources said it was due to insufficient ethylene feedstock which was caused by port closures amid falling temperatures at Chinese ports this winter.

The plant located in Hainan, is able to produce 80,000 mt/year of SM. It is expected to be shut for 12 days.

As MRC informed previously, China's Jiangsu Leasty Chemical restarted both its styrene monomer (SM) units on January 10, 2016. Both units were previously shut for a turnaround - one on Dec 20 and the other on Nov 25, 2015. They are located in Jiangyin, Jiangsu province, and have a combined capacity of 210,000 mt/year. Its expandable polystyrene (EPS) plant, located at the same site has capacity of 360,000 mt/year.

The foundation of the Hainan Shihua Jiasheng Chemical Company is based on the development of global expanded polystyrene (PS) production capacities. The company was established as a result of a joint venture between the Hainan Shihua Petrochemical Company and the Jiansu Jiasheng Chemical Company. The Hainan Shihua Jiasheng Chemical Company also increased the output of the entire sector of industry, in that it contributes 100,000 tons of expanded polystyrene per year.

MRC