Sunoco Logistics to acquire Energy Transfer Partners

MOSCOW (MRC) -- Sunoco Logistics Partners L.P. and Energy Transfer Partners, L.P. today announced that they have entered into a merger agreement providing for the acquisition of ETP by SXL in a unit-for-unit transaction, said Hydrocarbonprocessing.

The transaction was approved by the boards of directors and conflicts committees of both partnerships and is expected to close in the first quarter of 2017, subject to receipt of ETP unitholder approval and other customary closing conditions.

Under the terms of the transaction, ETP unitholders will receive 1.5 common units of SXL for each common unit of ETP they own. This equates to a 10% premium to the volume weighted average pricing of ETP’s common units for the last 30 trading days immediately prior to the announcement of the transaction.

As SXL will be the acquiring entity, the existing incentive distribution rights provisions in the SXL partnership agreement will continue to be in effect, and Energy Transfer Equity, L.P. will own the incentive distribution rights of SXL following the closing of the transaction. As part of this transaction, ETE has agreed to continue to provide all the incentive distribution right subsidies that are currently in effect with respect to both partnerships.

The transaction is expected to be immediately accretive to SXL’s distributable cash flow per common unit and is also expected to allow the combined partnership to be in position to achieve near-term distribution increases in the low double digits and a more than 1.0x distribution coverage ratio.

As MRC informed earlier, Sunoco, Inc. completed the previously announced sale of the stock of its subsidiary Sunoco Chemicals, Inc., comprised of its polypropylene business, to Braskem S.A., for approximately USD350 million.
MRC

MEGlobal announces MEG contract prices for December 2016

MOSCOW (MRC) -- MEGlobal, a wholly-owned subsidiary of Equate Petrochemical Co., has announced its December 2016 Asian Contract Price (ACP) for monoethylene glycol (MEG) of USD900/MT CFR Asian main ports for arrival December 2016, as per the company's press release.

In making this announcement, MEGlobal offered the following observations on the current market situation. The December 2016 ACP reflects the short term supply/demand situation in the Asian market.

As MRC informed before, MEGlobal, plans to construct a new world-scale monoethylene glycol (MEG) manufacturing facility at Dow’s Oyster Creek site in Freeport, Texas. The new Oyster Creek MEG facility will be owned by MEGlobal and is the company’s first manufacturing unit in the US. The new MEGlobal plant will create 1,400 construction jobs at the project’s peak, and the company will employ approximately 50 new workers when it goes on stream in mid-2019.

MEGlobal is a world leader in the manufacture and marketing of merchant monoethylene glycol and diethylene glycol (EG). Established in July 2004, MEGlobal is a wholly-owned subsidiary of EQUATE Petrochemical Company and is headquartered in Dubai, United Arab Emirates. With approximately 200 employees worldwide, MEGlobal serves customers around the world, and has production facilities in Fort Saskatchewan and Prentiss, Alberta, Canada. EG is used as a raw material in the manufacture of polyester fibers, polyethylene terephthalate resins (PET), antifreeze formulations and other industrial products.
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Borouge highlights its latest plastics solutions for infrastructure applications at Big 5 tradeshow

MOSCOW (MRC) -- A portfolio of latest sustainable and value-added polyolefin grades for utilities and construction industry were showcased by Borouge, a leading petrochemical company that provides innovative plastics solutions, at the Big 5, an international building and construction tradeshow, being held in Dubai from 21-24 November 2016, said Zawya.

"Big 5 tradeshow provides Borouge with a new opportunity to demonstrate our differentiated range of polyethylene and polypropylene products used to manufacture water, gas and heating piping systems for various domestic and industrial infrastructure projects," said Hazeem Sultan Al Suwaidi, Senior Vice President Middle East Africa (MEAE). “The event is an ideal platform where we can meet with our partners in the infrastructure industry value chain to share thoughts on the latest trends moving the industry forward and learn about successes achieved and best practices from the leaders in the industry."

At Big 5, Borouge demonstrated its grades of PP-R, PE100, PP-B and PE-RT polypropylene and polyethylene raw materials used in manufacturing domestic applications such as hot and cold water plumbing and drainage solutions. Being non-metallic, these corrosion resistant materials are used to make plastic pipes that are rapidly replacing metal ones in buildings throughout Europe, Asia and the Middle East, providing long maintenance free operation at extreme temperatures.

"The plastic piping solutions we showcased are produced under the Borstar proprietary technology that allows us to engineer our raw materials as per the highest quality standards, thus providing reliable and sustainable solutions," said Youssef Taha, Vice President Marketing Centre Infrastructure, Borouge. "The plastic pipes manufactured using Borouge’s resins are used for distribution of drinking water, providing safe, pure, odourless and leak-free fresh water."

As MRC informed before, last summer, Borealis and Borouge announced the dedicated roll-out of the technology platform Borlink in Russia, according to the company's press release. Borlink was introduced by Borealis and Borouge as a technology platform offering a complete global package of power cable compounds and expertise serving applications for medium and high voltage (MV, HV), including extra high voltage (EHV) and high voltage direct current (HVDC).

Borouge is a leading petrochemical company that provides innovative, value creating plastics solutions. A joint venture between the Abu Dhabi National Oil Company (ADNOC), one of the world’s major oil and gas companies, and Austria based Borealis, a leading provider of chemical and innovative plastics solutions, Borouge is a groundbreaking joint venture at the forefront of the next generation of plastics innovation.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. Borealis is headquartered in Vienna, Austria, and operates in over 120 countries with around 5,300 employees worldwide.
MRC

Clariant Healthcare Packaging facility in India plans production operations in 2017

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has recently announced that the construction of its new greenfield production facility in Cuddalore, Tamil Nadu, India is proceeding as planned and is expected to begin production of dessicant canisters by the second semester of 2017, reported Plastemart.

This plant will be a significant contributor to Clariant’s global desiccant canister production.

Clariant’s business line Healthcare Packaging had conducted the groundbreaking ceremony of this plant in January 2016. This facility will manufacture desiccant canisters, the primary desiccant platform for high-speed, high-volume packaging lines, often the case for generic drug manufacturers. In addition, Clariant is already assessing plans for expanded production, including plans to add high-capacity multi-lane production of its versatile Continu-StripTM desiccant packets, which can be inserted with numerous types of standard dessicant insertion machinery.

Clariant's extensive manufacturing footprint ensures quick delivery and competitive pricing, as well back-up capacity to meet the BCP (Business Continuity Planning) requirements of global players in the pharmaceutical industry. All products produced at the Cuddalore facility will meet US FDA and EU standards for use in pharmaceutical applications and will be USP <670> compliant. The Cuddalore facility is equipped with an ISO Class 8 clean room and will implement GMPs and environmental controls with a path toward ISO 15378 certification.

"The new site will serve the Indian pharmaceutical industry with state-of-the-art desiccant products produced under the strictest quality and compliance standards, and within a secure, truly global manufacturing network," said Matthias Brommer, Head - Clariant Healthcare Packaging. "We are extremely excited that facility construction, and production plans are moving at full speed ahead, according to schedule. The production capabilities at this new facility will add significantly to our global dessicant canister production capacity during 2017."

Ketan Premani, Head - Healthcare Packaging India, adds that, "The facility will also offer the full range of globally produced Clariant protective packaging systems and components and link customers to Clariant’s global packaging design capabilities. The facility and the other Healthcare Packaging facilities around the globe ensure available back-up capacity to meet the BCP (Business Continuity Planning) requirements of our global customers."

Advanced canister mold and assembly designs ensure their ability to withstand the rigors of high speed insertion, packaging, and use. Colored labelling - including bright red - is available to help differentiate desiccant canisters from drug products.

Clariant Healthcare Packaging is the leading supplier of pharmaceutical desiccants in India, with a long history of working with both branded and generic drug manufacturers. The Cuddalore facility, the newest in the rapidly expanding global manufacturing network through which Clariant Healthcare Packaging produces and delivers its desiccant and sorbent products, joins existing production facilities in the U.S.A., France, and China. The new facility is strategically located within the Bangalore/Chennai biopharmaceutical cluster, one of India’s busiest pharmaceutical hubs, and is positioned to leverage Clariant’s existing network and logistics resources to serve customers throughout India.

As MRC informed before, in April 2014, Clariant Chemicals (India ) Ltd., an affiliate of Clariant AG announced the successful closure of the acquisition of Plastichemix Industries - a Gujarat based masterbatches business in India, with production facilities at Rania, Kalol and Nandesari.

Clariant Chemicals (India) Limited and custom color and additive products with production of more than 10,000 color matches which are completed each year. With more than 50 manufacturing plants around the world, Clariant
Masterbatches products, technology and service deliver competitive advantages that foster long-term customer relationships.
MRC

Celanese/Mitsui methanol plant in Texas begins 10-day restart

MOSCOW (MRC) -- The 1.3 million mt/year Celanese/Mitsui methanol plant in Clear Lake, Texas, has begun a 10 day restart, according to Plastemart.

The restart process began Saturday and should last until November 29, the companies said in a filing with the Texas Commission on Environmental Quality.

The unit shut November 12 to allow for repairs to a secondary reformer. This joint-venture facility is the largest methanol production plant in the US.

As MRC wrote before, in October 2015, Mitsui & Co. announced that Fairway Methanol LLC, a 50-50 joint venture between Mitsui and US-based chemicals company Celanese, had commenced production of methanol at its planned annual production capacity of 1.3 million tons. Mitsui says it is utilizing its shale gas business in the US as the starting point for expanding the scope of its downstream activities in the gas value chain, including chemicals and infrastructure.

Mitsui Chemicals,a Japanese chemical company, is a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,500 employees worldwide and had 2014 net sales of USD6.8 billion.
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