Turkish technology giant Vestel exits Russian market

MOSCOW (MRC) -- Turkish electronics and domestic appliances maker Vestel closed down its factory in Russia, citing the country’s 2014 financial crisis, said Hurriyetdailynews.

"We had closed down the factory before the Nov. 24 2015 jet crisis erupted. ... We will move the machines. We are looking for a place abroad but we may move the factory to Turkey too" said Vestel CEO Turan Erdogan, adding that their search for a new location for the factory is ongoing. Vestel was producing TVs in Russia.

Although Vestel’s exit from the Russian market developed independent from the jet crisis between Turkey and Russia, many Turkish companies have been exiting Russia after the economic and political relations between the two countries deteriorated severely.

On Nov. 24, 2015, Turkey shot down a Russian fighter jet for violating its airspace despite repeated warnings.

Following the downing, Russia imposed several sanctions on Turkey that caused the trade and tourism relations between two countries to hit rock bottom. Recently Turkish Fiba Holding’s Credit Europe Bank exited the Russian market due to the bleak future of Turkish businesses in Russia.

Erdogan’s statements about the closure of Vestel’s Russia factory came during his speech at the Mobile World Congress (MWC) in Barcelona, which Vestel has been participating in for three years.

"We are doing talent hunting in these fairs… Look at Apple and Samsung, they do not develop any new technologies themselves. In order to renew their technologies, they buy start-ups then develop them," said Erdogan citing recent predictions that technology fairs will turn into entrepreneur fairs in the coming years.

As MRC informed earlier, Turkish petrochemicals major Petkim Petrokimya Holdings has staged an official opening for a new plastic packaging factory at its petrochemical complex in the western Turkish town of Aliaga. The factory was built in five months, Petkim said in a statement, adding that the bulk of its output will be exported.
MRC

MOSCOW (MRC) -- Valero Energy Corp.’s previously-announced USD700 million methanol plant, planned at its existing St. Charles Parish, LA, facility, has been shelved indefinitely, said Naturalgasintel.

A spokeswoman for the San Antonio-based mega-independent refiner told NGI this week that "after continued evaluation of the proposed methanol project at St. Charles, Valero does not have plans to move forward at this time."

The methanol plant, announced in 2013 would have produced 1.6 million tons/year of methanol, tapping low-cost natural gas from the nearby Eagle Ford Shale and other basins to make a wide range of products, including paints, solvents, plastics and other consumer goods.

But the project appears to be a casualty of the commodities downturn. After the company told analysts during a conference call last summer to expect a final investment decision by 4Q2015, the methanol project never came up during subsequent earnings calls.

Valero had also been looking for a partner to help shoulder some of the cost of the methanol plant.

As it was written earlier, in February 2015, Valero Energy Partners LP approved the partnership's acquisition of certain businesses from subsidiaries of Valero Energy Corporation. In the transaction, the partnership will receive the outstanding membership interests in Valero Partners Houston, LLC and Valero Partners Louisiana, LLC for total consideration of about USD671 mln.

Valero Energy Corporation is a Fortune 500 international manufacturer and a marketer of transportation fuels, other petrochemical products, and power. It is based in San Antonio, Texas, United States. The company owns and operates 16 refineries throughout the United States, Canada, United Kingdom, and the Caribbean with a combined throughput capacity of approximately 3 million barrels (480,000 m3) per day, 10 ethanol plants with a combined production capacity of 1.2 billion US gallons (4,500,000 m3) per year, and a 50 megawatt wind farm.
MRC

MOSCOW (MRC) -- Essen-based Evonik Industries, a leading specialty chemicals manufacturer, is expanding its promising membrane business, as per the company's statement.

To this end, the specialty chemicals company will further expand its Austrian site in Lenzing/Schorfling to double the existing production capacities for the hollow-fiber membrane modules of its SEPURAN brand. The membrane offers a particularly efficient method for the separation of gases from gas mixtures such as methane, nitrogen, or hydrogen. Evonik is investing an amount in the mid double-digit million euro range in the plant and its infrastructure.

The production of additional membrane modules is projected to begin in late 2017.

"The investment in Austria creates the basis for the further growth of our membrane business in the very attractive market for efficient gas separation. As a technology leader, we want to benefit in an above-average way from the growth in the global gas separation market with our highly selective and productive membranes," said Dr. Ralph Sven Kaufmann, a member of Evonik’s Executive Board and its chief operating officer.

"We aim to expand the biogas membranes business, which has been well-established for five years. At the same time, we see excellent growth opportunities in the market for helium and hydrogen processing as well as for the efficient nitrogen production from air," noted Dr. Claus Rettig, chairman of the Board of Management of Evonik Resource Efficiency GmbH.

Compared to conventional methods such as cryogenic separation, gas separation via membranes is still a new technology. Because of its higher energy efficiency and lower cost, experts project higher growth for gases from membrane-based separation processes than for conventional gas separation. Nitrogen, with a share of more than 40 percent, has the largest market volume in membrane-based gas separation.

The gas separation modules that Evonik produces in Schorfling are primarily intended for the biogas market and for hydrogen and helium extraction. The new hollow fiber spinning plant will be dedicated to the production of membrane modules for efficient gas separation particularly for nitrogen extraction. The nearby Lenzing plant manufactures polyamide, a high-performance polymer, which is spun and then further processed in Schorfling. The infrastructure in Lenzing will be expanded as well.

SEPURAN Green membranes for biogas processing were successfully launched in 2011. Since then, the membrane technology has been consistently developed further; the product range has been supplemented with the SEPURAN Noble membrane for helium and hydrogen processing. A new hollow fiber membrane for efficient nitrogen extraction - SEPURAN N2 - was added to the membrane portfolio in early 2016. Protection against fire and explosion, for example in ship and aircraft tanks, is an important application area for nitrogen.

As MRC reported earlier, in April 2015, Evonik Industries inaugurated a new application technology center for superabsorbent polymers in Krefeld, Germany. The company invested EUR1 million. The new facility strengthens the position of Evonik as an innovative solutions provider for superabsorbent polymers.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.
MRC

MOSCOW (MRC) -- Argentina's Pampa Energia SA offered Brazilian state-run oil company Petroleo Brasileiro SA about USD1.2 billion to buy its 67.2 percent stake in Petrobras Argentina SA, said Reuters, citing a source with direct knowledge of the bid.

The board of Petrobras, as the Brazilian company is known, has approved exclusive talks with Pampa for up to 60 days. The discussions were announced earlier on Wednesday in a Brazilian securities filing.

Petrobras Argentina is among the four largest producers of oil and gas in the South American country and has extensive downstream operations, including refining, petrochemicals and electricity generation.

A final deal should be complete within two months, said the source, who requested anonymity because a final accord has not been signed.

The proposed transaction comes at a key time for Petrobras and Pampa. If completed, the sale will be one of the first major deals in Petrobras' eight-month old plan to sell USD15.1 billion of assets by the end of 2016.

Petrobras Chief Executive Officer Aldemir Bendine has said the company needs to sell the assets to shore up its troubled finances and pay debt of about USD130 billion, the world oil industry's largest.

For its part, Pampa would widen its range of energy assets, including natural gas and oil rights. It is the largest integrated power company in Argentina, generating about 8 percent of the nation's electricity.

As MRC informed earlier, Iran and Brazil are in talks about a possible Iranian investment in troubled refinery projects controlled by Brazilian state-led oil company Petroleo Brasileiro SA.

Petroleo Brasileiro SA is also known as Petrobras. Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.

MRC

MOSCOW (MRC) -- Evonik Industries acquires the company MedPalett AS, with headquarters in Sandnes (Norway), on March 3, 2016, said the company on its site.

MedPalett AS specializes in food ingredients containing anthocyanins. The acquisition helps Evonik expand the portfolio of its Health Care Business Line in the area of advanced food ingredients. The parties have agreed not to disclose the purchase price.

Anthocyanins are known for their natural antioxidant properties. Numerous international studies suggest broad health-promoting properties including the prevention of cardiovascular disease.

"We are seeing an increase in demand for innovative food ingredients, especially those made from natural substances with scientifically proven benefits, and that’s something we want to be a part of," says Dr. Reiner Beste, chairman of the Board of Management of Evonik Nutrition & Care GmbH.

MedPalett, which previously belonged to the Norwegian Biolink Group, developed a berry extract from wild Scandinavian bilberries and black currants from New Zealand that has a particularly high and stable anthocyanin content. The company manufactures the ingredient itself. The berry extract, which is marketed as a dietary supplement under the brand name Medox®, has been available in Scandinavia since the year 2000.

Evonik has distributed the berry extract since 2015 under the name Healthberry 865, with exclusive distribution rights in Canada, Brazil, China, Japan, Korea, Australia, New Zealand, and South Africa.

"We have been a partner to the food ingredients industry for decades with our high-purity amino acids. Expanding our portfolio with nutritional solutions which promote health is a logical step in the development of our Health Care business," says Dr. Jean-Luc Herbeaux, head of the Health Care Business Line at Evonik. For MedPalett, the integration into the Evonik Group primarily means improved access to international markets and higher R&D resources.

As MRC informed earlier, Evonik launched an additional production area and erected a new building to house research, development, and scale-up operations for fixed bed catalysts at its Marl site, where it has been manufacturing catalysts for the past 75 years. The specialty-chemicals group has made a low double-digit million euro investment to expand its existing production capacities and erect a new building for operations revolving around the continued improvement of fixed-bed catalysts.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.

MRC