SOCAR Polymer draws third of Gazprombank credit

MOSCOW (MRC) -- SOCAR Polymer project, which envisages construction of polypropylene and polyethylene plant in Azerbaijan, has so far drawn about a third of funds from the credit issued by the Russian Gazprombank, said Azernews.

Socar Polymer has already drawn some USD150 million from the credit worth USD489 million, while the funds were received within several tranches. The funds were used up for the implementation of engineering processes, purchase of equipment and construction works within the framework of EPC-contract (Engineering, procurement and construction).

The source also mentioned that construction works have already started in the plant on the production of high-density polyethylene. Being located in the territory of Sumgayit chemical industrial park, which is located 30 kilometers north of the capital city Baku, the project is expected to contribute to expanding the national economy of the country.

The Sumgait Park, which provides a number of significant privileges for its residents, is expected to become a major new petrochemicals hub in the region. Along with being the first of its kind and scale in the petrochemical industry of Azerbaijan over the past 40 years, Socar Polymer is considered to be the project of international standing.

The plant on the production of polypropylene is scheduled to be put in commission in the first quarter of 2018, while polyethylene plant is expected to be commissioned in the third quarter. The annual producing capacity of plants upon completion of the project will reach 180,000 tons of polypropylene and 120,000 tons of high density polyethylene. The figure may increase up to 570,000 tons of output by 2021.

Currently, Azerbaijan exports low-density polyethylene and imports high -density one. The products of the SOCAR Polymer will be used for the production of high pressure gas, sewage and water pipes, packaging, textiles, stationery, automotive components, electronic and electrical appliances, and medical industry.

As much as 30 percent of the production output will be directed to the domestic market while the remaining 70 percent will be exported to CIS, Turkey and other European countries. SOCAR Polymer was incorporated on July 16, 2013 in order to reinforce development of chemical industry of the country.

Gazprombank granted a ten-year loan for the project in June 2015.The project is expected to generate approximately 60 permanent jobs when it starts operation.

As MRC informed earlier, output of Socar Polymer LLC from two Sumgait plants under construction will be sold at local and foreign markets through other sub-companies of the State Oil Company of Azerbaijan Republic (Socar). Socar Polymer head Farid Jafarov says that the Socar Marketing & Economic Operations Department will deal with sales of future products of the company (polypropylene and high density polyethylene) at the local market and Socar Trading at foreign markets.

SOCAR is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in domestic and international markets, as well as, supplying natural gas to industry and the public in Azerbaijan. Three production divisions, one oil refinery and one gas processing plant, a deep water platform fabrication yard, two trusts, one institution, and 23 subdivisions are operating as corporate entities under SOCAR.
MRC

Solvay sues Molycorp UK in alleged rare earth oxides patent infringement

MOSCOW (MRC) -- Solvay affiliates Rhodia Operations and Anan Kasei have filed a patent infringement lawsuit in the High Court of Justice of England and Wales against UK-based Molycorp Chemicals and Oxides (Europe) Ltd on April 13, 2016, claiming infringement of Anan Kasei’s patent EP 1435338 B1 by Molycorp, said the company on its site.

The patent covers certain high surface-area ceric oxides and catalysts for purifying automotive exhaust gases containing such ceric oxide.

Solvay has already won, in first instance, two rare earth mixed oxide patent cases against UK-based Molycorp Chemicals & Oxides (Europe) Ltd in the German District Court of Dusseldorf in March 2016. These decisions have been appealed by Molycorp.

Rare earth oxides are used in applications including the manufacturing of automotive catalysts to abate noxious gases from engine exhaust. Ever stricter air quality standards require increasingly complex formulated rare earth oxides. Solvay’s OPTALYS and ACTALYS rare earth oxide product range offers tailor-made solutions for all types of automotive catalysts and contributes significantly to cleaner mobility.

As MRC informed earlier, Solvay has agreed to divest its chlorine and peroxide derivatives site in Italy to Italian chemical company Caffaro, but will continue to market its EURECO organic peroxides, produced on the site, through an exclusive distribution agreement.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries. It generated pro forma net sales of EUR12.4 bn in 2015, with 90% made from activities where it ranks among the world’s top 3 players.
MRC

Westlake closes offering of senior notes due 2026 and senior notes due 2046

MOSCOW (MRC) -- Westlake Chemical Corporation has announced that it has closed its previously announced offering of USD750,000,000 aggregate principal amount of 3.600% senior unsecured notes due 2026 and USD700,000,000 aggregate principal amount of 5.000% senior unsecured notes due 2046 to qualified institutional buyers in the United States, said the producer on its site.

Westlake intends to use the proceeds from the proposed offering, together with the proceeds from other financing transactions and cash on hand, to finance the previously announced proposed acquisition of Axiall Corporation, to repay certain indebtedness of Axiall and pay related fees and expenses. The Notes are guaranteed, jointly and severally on a senior basis, by certain of Westlake’s subsidiaries.

The Notes and related guarantees have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act.

As MRC informed before, Axiall and Westlake have received all regulatory approvals required for the transaction, including clearance from both the U.S. and Canadian competition authorities. On August 1, 2016, Axiall filed a definitive proxy statement with the United States Securities and Exchange Commission to notify Axiall"s shareholders of a special meeting to be held on August 30, 2016 to vote on the transaction. Assuming the Axiall shareholders approve the transaction at that meeting, the closing is expected to occur on August 31, 2016.

Westlake Chemical Corporation is a U.S. manufacturer and supplier of petrochemicals and polymers, headquartered in Houston, Texas. The range of company"s products includes ethylene, polyethylene, styrene, propylene, caustics, polyvinyl chloride and plastic products. Westlake is one of the major ethylene producers in the US and its Calvert City operation is a large integrated PVC site. Westlake"s 2015 financial results showed sales of USD4.46 billion and profit of USD646 million. The sales total was up 1% vs. 2014, while the profit level was down almost 5%. Lower selling prices - particularly for polyethylene and ethylene feedstock - impacted Westlake in 2015.
MRC

Bayer to go hostile with Monsanto bid

МОSCOW (MRC) -- Bayer AG is considering a hostile bid for Monsanto Co. if the company rejects friendly offers, according to a report in the German business newspaper Handelsblatt, said Chemweek.

"Bayer is prepared to turn directly to the shareholders" to acquire Monsanto, the paper reports, citing anonymous sources. Bayer CEO Werner Baumann said in a July statement that Bayer is "absolutely determined" to acquire Monsanto, a quote that the paper says "was a clear signal that Baumann was prepared to force through a deal, with or without the Monsanto board."

Monsanto rejected a USD125/share offer from Bayer on 19 July. That offer, revised slightly upward from Bayer’s original USD122/share offer, valued Monsanto at USD63.5 billion. Monsanto says it remains open to negotiating a deal, but analysts note that Bayer would likely need to raise its offer by several billion dollars to entice Monsanto to agree to a deal. Analysts also said in July that Bayer may go hostile with its offer.

Bayer shareholders have voiced skepticism about a Monsanto acquisition. A survey of Bayer shareholders in June found widespread dissatisfaction with the proposed deal, and one Bayer investor has called for a shareholder vote on it.

Reports in mid-July also linked BASF SE to Monsanto in a possible agchems combination. It is not currently clear whether Bayer intends to put forth another friendly offer for Monsanto, or when it may go hostile.

Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen.
MRC

Shell lifted force maujeure on petrochemical products from complex in Singapore

MOSCOW (MRC) -- Royal Dutch Shell, the world's petrochemical major, on 17 August 2016 lifted force majeure on shipments of verious petrochemical products from the company's site at Pulau Bukom (Singapore), said the producer in its press release.

According to the company's statement, the Ethylene Cracker Complex at Pulau Bukom Manufacturing Site has now resumed production.

"We have informed our customers and suppliers about the end of the force majeure on our ability to supply a number of chemical products from Singapore, with effect from 17 August 2016. The force majeure had been declared in December 2015," - the company said in its press release.

We remind that, as MRC wrote before, Shell restarted its ethylene cracker in Bukom, Singapore, in the second half of January 2015, following a three-month maintenance and expansion works to raise the unit's capacity. Shell said the expansion work would increase the capacity of the cracker by 20%. The cracker originally had a capacity of 800,000 tonnes per year (tpy) of ethylene. The cracker uses a range of feedstock including naphtha and liquefied petroleum gas (LPG) to produce ethylene, a building block for plastics.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC