Henkel lifts guidance following better-than-expected Q2 results

MOSCOW (MRC) -- Henkel has reported a Q2 operating profit growth of 6.6 percent year on year reaching EUR819 million (USD912.13), beating Reuter’s estimates of EUR786 million, said Globalcosmeticsnews.

As a result this the German personal care manufacturer has lifted its full year guidance of EBIT to rise from ‘approximately 16.5 percent’ to ‘above 16.5 percent’. The company has said the adjusted earnings per preferred share rose by 8.5 per to EUR1.40, while it reported record highs on its adjusted return on sales, which rose to 17.6 percent.

Results were buoyed by strong demand in emerging markets, in particular Latin America and Eastern Europe, lower input costs and marketing expenses as well as a better global distribution chain.

The Schwarzkopf maker saw sales gains across all three sectors, beauty, home care and adhesives.

As MRC informed earlier, in 2015, Henkel Russia opened a new dry building mixes plant in the Novosibirsk region.

Henkel operates in three business units, including laundry and home care, beauty care and adhesive technologies.
MRC

Husky makes another investment in hot runners and controllers

MOSCOW (MRC) -- In a move to further expand its hot runners and controller customers, Husky Injection Molding Systems Ltd. has opened state-of-the-art, automated manufacturing line at its Luxembourg facility, said Canplastics.
This is the third straight year that Bolton, Ont.-based Husky has made what it calls a "significant investment" in new manufacturing equipment to support its base of hot runner and controller customers. In January of this year, Husky said in an earlier statement, it began producing hot-runner manifolds on one of the most advanced automated manufacturing lines in the industry.

"As our global customer base for hot-runner and controller systems continues to grow so does the complexity of the molded parts for which we help find solutions," said Stafano Mirti, Husky’s president of hot runners and controllers. "I’m very excited about where we are taking our business and how this significant technology investment will enable us to support our customers and help them to grow their businesses. Our new manufacturing line will enable shorter lead times and provide even more capability to produce highly repeatable manifolds of the best quality."

Husky currently produces hot runners and controllers on three continents in more than 54,000 square meters of manufacturing space. Additional investments are planned for hot runner manufacturing in its U.S. and China facilities, the company said.

As MRC informed earlier, Husky Injection Molding Systems Ltd. continues to build its mold-making stable, purchasing Schottli Group, a Swiss maker of molds for medical parts such as syringes, closures and food packaging.

Husky Injection Molding Systems Ltd. is a leading supplier of injection molding equipment and services to the plastics industry.
MRC

PC production in Russia grew 11% in first seven months of 2016

MOSCOW (MRC) -- Russia's production of polycarbonate (PC) rose to 41,600 tonnes in the first seven months of 2016, up by 11% year on year, according to MRC's ScanPlast report.


Kazanorgsintez, Russia's sole PC manufacturer, produced 4,300 tonnes of PC in July, compared to 6,040 tonnes a month earlier. Last month's lower output was caused by the unscheduled short shutdown because of technical problems.

Thus, overall PC production grew to 41,600 tonnes in the first seven months of the year, compared to 37,400 tonnes a year earlier. Such a significant growth over the stated period was caused by the increased capacity utilisation and absence of scheduled outage this (in the previous years, turnarounds were conducted in July-August, which is a period of weak demand).

The production structure remained the same - sheet extrusion grades accounted for over 80% of the total production, which corresponds to the consumption structure of the Russian market.

PJSC "Kazanorgsintez" is one of the largest plants of the Russian Federation (part of TAIF). It produces more than 38% of all Russian polyethylene (PE) and is its largest exporter. Currently, the plant produces PE, polycarbonate (PC), PE pipes, phenol, acetone, bisphenol A. Kazanorgsintes is Russia's sole PC producer. Overall, the plant produces 170 items of products. Its annual output is 1.6 million tonnes.

MRC

Hanwha Chemical reports record Q2 profit

MOSCOW (MRC) -- Hanwha Chemical, a unit of conglomerate Hanwha Group, on Thursday reported that operating profit in the second quarter grew more than threefold from last year, reaching a record-high quarterly result, said Koreajoongangdaily.

The chemical company posted 293.6 billion won (USD267 million) in operating profit and 2.39 trillion won in revenue during the second quarter, largely on the back of its two major business pillars, petrochemicals and solar energy.

The petrochemicals business, in which the company sells basic materials for fiber, plastics and film, grew 135 percent year on year, posting 142.9 billion won in operating profit.

"The downward stabilization of production costs due to an international oil price drop and expanded sales of high value-added products such as ethylene vinyl acetate provided major lifts for company profits," Hanwha Chemical said in a statement Thursday.

The solar energy business was another big contributor. The company began supplying solar modules to a unit of U.S.-based NextEra Energy, one of the world’s largest energy companies, after signing a contract last year to supply 1.5 gigawatts of solar modules.

In spite of the positive second-quarter results, the company’s shares closed at 26,100 won on Thursday, 1.14 percent lower from the previous trading day, on concerns that the company’s increased profit came from temporary favorable conditions in oil prices and solar equipment demand that might not last throughout the year.

"The second-quarter result was a surprise, especially with almost double the expected earnings on its solar businesses," said Hwang Kyu-won, an analyst at Yuanta Securities.

"However, an oil price recovery and rapid drop in solar module prices are risk factors for the company that could affect its records through the third and fourth quarter this year."

As MRC informed earlier, Hanwha Chemical has announced that it has succeeded in developing high value-added chlorinated polyvinyl chloride (CPVC), which has the improved heat and corrosion resistance, with its domestic technology.

Hanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc., the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial services.
MRC

Petronas Gas, Linde form joint venture for USD172m Pengerang project

MOSCOW (MRC) -- Petronas Gas Bhd has executed a shareholders agreement with Linde (Malaysia) Sdn Bhd for a joint-venture company to undertake the development of an air separation unit plant in Pengerang, Johor, a project that is estimated to cost USD172 million (RM692 million), said the Sundaily.

Petronas Gas will hold a 51% stake in the joint-venture company, with its portion of the cost to be an estimated USD88 million. Linde will hold the remaining 49%.

The source of funding for the project is expected to be via a combination of equity and debt from the respective parties. Construction on the project is to start by the third quarter of 2016 and the plant is expected to achieve commercial operation by the fourth quarter of 2018.

The principle activities of Linde are manufacturing and distribution of industrial gases, special gases, medical gases, welding equipment and consumables and related products and services. It is also involved in the installation of gas equipment and pipeline systems for the industrial, high tech and medical sectors.

Petronas Gas's involvement in the project is an expansion to its existing business of providing industrial gases from the centralised utility facilities in Kerteh, Terengganu, and Gebeng, Pahang, which will eventually contribute to the growth of Petronas Gas's bottom line.

"The strategic partnership with Linde will provide Petronas Gas with the opportunity to leverage on the technical capabilities of a world renowned industrial gases producer in the development of an industrial gases facility at a strategic location," Petronas Gas said in a stock exchange filing on Friday.

The execution of the agreement does not have any effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholding of Petronas Gas for the financial year ending Dec 31, 2016. It is expected that the project, once operational, will contribute to Petronas Gas's earnings.

As MRC informed earlier, Petronas Chemicals Group Bhd (PCG) has cancelled a proposed elastomers project at the Refinery and Petrochemicals Integrated Development (Rapid) project in Johor.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC