China initiates anti-dumping investigations on SM imports from S Korea, Taiwan and US

MOSCOW (MRC) -- China's Ministry of Commerce has initiated anti-dumping investigations on styrene monomer (SM) imports from South Korea, Taiwan and the US, following a recent petition filed by Chinese SM producers, as per a Plastemart with reference to the ministry's statement.

The investigations came on the heels of a notice sent to South Korea's embassy in Beijing dated June 12, S&P Global Platts reported previously. The petition was filed collectively on May 25 by six Chinese SM producers, namely Changzhou Donghao Chemical, Tianjin Dagu Chemical, Jiangsu Leasty Chemical, New Solar, Ningbo Keyuan Plastic and Shandong Shengyuan Petrochemical. They are further supported by 6 other major private and state enterprises including PetroChina Daqing Petrochemical, PetroChina Dushanzi Petrochemical, Shandong Heze Yuhuang Chemical and Shanghai Secco Petrochemical.

The statement acknowledged that the six producers as well as the 6 companies supporting the petition collectively produced more than 50% of China's total SM output in each of the last four years starting 2013, and hence the petition is legitimate and congruent with China's current antidumping guidelines. The investigations, covering SM imports from South Korea, Taiwan and the US over January 1-December 31, 2016, are expected to be concluded before June 23, 2018 but may be extended to December 23, 2018 under special circumstances, the statement added.

China imported 3.5 mln mt of SM last year, of which 1.23 mln, or 35%, came from South Korea - making it the largest SM supplier to China, according to Chinese customs data. Meanwhile, China's total SM demand has gradually increased from 8.49 mln mt in 2013 to 9.1 mln mt in 2016, at an average annual growth rate of 2.38%. China's domestic styrene monomer production is currently about 8.39 mln mt/year, according to industry sources, and is expected to rise by 2.3 mln mt/year to 10.7 mln mt/year by 2019. New capacity coming on stream later this year includes Qingdao Soda Ash's 500,000 mtpa SM line and Ningbo Keyuan's expansion by 100,000 mtpa to 150,000 mtpa.

As MRC informed previously, in late March 2016, the US Department of Commerce (DOC) has imposed anti-dumping duties (ADD) on polyethylene terephthalate (PET) resins imported from Canada, China, India and Oman.
MRC

MOSCOW (MRC) -- SPOLANA (part of Unipetrol) from Neratovice has been granted an approval to change the integrated permit and extend the utilization of amalgam electrolysis for the production of chlorine and caustic soda until November 30, 2017, as per Unipetrol's press release.

The company also undertook proper steps to carry out a subsequent ecological remediation of the shutdown operation.

"We appreciate the forthcoming attitude of all stakeholders. Extension of the current permit by five months will enable us to complete preparations for launching an alternative way of PVC production and then proceed smoothly without any limitations affecting quality and safety," explained Karel Pavlicek, CEO of Spolana, adding: "The site will then undergo extensive remediation. We will thus make another significant step in greening of our production."

Spolana, which has been part of the Unipetrol Group since 2016, is the only Czech producer of caprolactam and PVC, basic feedstock for manufacturing a wide range of products, such as building and textile materials. For its production, the company uses the principle of amalgam electrolysis which is to be replaced by an alternative production method using externally purchased material EDC. Introduction of alternative manufacturing process would be the next step. Spolana is currently evaluating the membrane electrolysis project.

"Our priority is production safety and minimization of environmental impacts. Recently, we have invested several dozens of millions of crowns in modernizing production technologies as well as optimizing energy efficiency," concluded Pavlicek.

Spolana a.s. is one of the largest chemical manufacturing companies in the Czech Republic and the only manufacturer of PVC and caprolactam also producing sodium hydroxide and ammonium sulphate. It currently employs over 700 people.

Unipetrol, a.s. controls companies, which are active in the petrochemical industry in the Czech Republic. In 2005, Unipetrol became part of PKN ORLEN Group, the largest processor of crude oil in Central Europe. Unipetro Group is mainly focused on processing of crude oil, distribution of fuels and petrochemical production. In all of these areas, Unipetrol Group is an important player in the Czech Republic and also on the market in Central Europe. In the Czech Republic, the group is one of the most important companies with regards to turnover and employs almost 4,500 people. Unipetrol is 63%-owned by Poland’s state-controlled PKN Orlen petrochemicals and oil group.
MRC

MOSCOW (MRC) — Petroleo Brasileiro SA is reviving an initial public offering of fuel distribution unit BR Distribuidora to cut the Brazilian state-controlled oil company's debt and investment in low-return activities, said Reuters, citing Chief Executive Officer Pedro Parente.

Pedro Parente said at an event in Sao Paulo that a proposal would be delivered for board approval as soon as next month. While terms of the deal remain under analysis, he said an initial public offering would create "more value" for Petrobras, as the oil firm is known.

In a statement, Petrobras said the unit IPO will consist of existing shares, in a mechanism known as a secondary offer. Parente did not specify terms or a timetable for the IPO, but if the board approves the plan in July, it could be priced as early as October, based on standard IPO calendars in Brazil.

"We see market conditions that are extremely favorable, with investors willing to pay high valuations to encourage good companies to list their shares," Parente said.

Petrobras is increasingly relying on cost reductions, asset sales, spinoffs and capital-spending cuts to trim debt of about USD100 B and turn the page on a massive corruption scandal.

Rio de Janeiro-based Petrobras has gone back and forth on plans to spin off or list BR Distribuidora over the past 2 yr, backing off in part due to legal and operational challenges and investor skepticism.

BR Distribuidora, which controls Brazil's largest gasoline, ethanol and diesel-station network, was valued at around USD10 B by UBS Securities analysts two years ago.

Earlier this year, Petrobras unveiled a two-year, USD21 B asset sale and partnership program.

During the event, Parente said improving operational profitability in the face of low oil prices highlights how recent cost-cutting efforts have bolstered the finances of the state behemoth.

As MRC informed earlier, Petroleo Brasileiro SA reduced on Wednesday its average prices at refineries by 2.3% for gasoline and 5.8% for diesel.

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) -- Celanese Corporation, a global technology and specialty materials company, and funds managed by Blackstone, one of the world's leading investment firms, has announced a definitive agreement to form a JV that will create a global acetate tow supplier, as per the company's press release.

Celanese and Blackstone will own 70% and 30% of the JV, respectively.

Under the terms of the agreement, Celanese will contribute its Cellulose Derivatives business unit, including its equity interest in existing JVs with China National Tobacco Corporation, and Blackstone will contribute its Rhodia Acetow business unit, which it recently acquired from Solvay. The new company is expected to generate 2017 annual pro forma revenue of approximately USD1.3 billion with around 2,400 employees. The JV will have an extended global footprint that includes eight wholly-owned manufacturing facilities and three existing JV sites.

The new company will be well positioned to meet customers' current and evolving needs efficiently while providing the highest level of quality and service. The complementary nature of the tow businesses and a combination of technology expertise will result in synergies mainly from optimization of supply chain networks and procurement of raw materials, energy, equipment, and other services.

"This is an exciting opportunity for Celanese to partner with Blackstone in a way that creates significant value for all stakeholders. The combination of these tow assets will enhance our ability to serve customers more efficiently and reliably from a global production footprint while also creating growth opportunities for employees," said Mark Rohr, chairman and chief executive officer of Celanese. "Celanese has delivered strong results in the last several years through differentiated business models. This transaction gives us the opportunity to partially monetize Cellulose Derivatives and reallocate significant capital to higher growth businesses within Celanese to accelerate our growth momentum."

Lionel Assant, Head of Private Equity Europe at Blackstone, said: "The combination of these two companies provides an excellent opportunity to create a new, international business focused on innovation and growth to the benefit of its customers and employees. We are excited to work with Celanese on this strategic development."

Upon closing, the JV will be governed by a Board of Directors consisting of three directors appointed by Celanese and two by Blackstone. The board, management team, and name of the new company will be decided at a later date.

As MRC wrote previously, in mid-June 2017, Celanese Corporation announced that it would increase prices for emulsions sold in Europe. Effective July 1, 2017, or as contracts otherwise allow, the following price increases will apply:

- EVA - EUR75/tonne;
- VAM Homopolymers (PVAC) - EUR75/tonne;
- VAM Copolymers - EUR75/tonne;
- Pure Acrylics - EUR180/tonne.

Rhodia Acetow, headquartered in Freiburg, Germany, is a global leader in cellulose acetate tow used in the manufacturing of cigarette filters. It operates plants in Germany, Brazil, France, Russia and the USA.

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, Celanese employs approximately 7,300 employees worldwide and had 2016 net sales of USD5.4 billion.
MRC

MOSCOW (MRC) — Canada's Competition Bureau said on Tuesday it would allow a planned merger between DuPont and Dow Chemical Co after both firms agreed to dispose of some assets, said Reuters.

The announcement is similar to those made by US and European Union regulators, who also allowed the merger to go ahead as long as the firms made divestitures they already have outlined.

"The agreement reached today ensures that consumers and businesses continue to benefit from a dynamic marketplace," competition commissioner John Pecman said in a statement.

DuPont will sell a significant part of its global herbicides business and research and development branch to FMC Corp. Dow will sell its global business of certain specialized plastics products to SK Global Chemical Corp, the Competition Bureau said in a statement.

The bureau said the asset sales were needed to prevent a substantial lessening of competition in the supply and development of some crop protection products and specialized packaging plastics.

As MRC informed earlier, The Australian Competition and Consumer Commission (ACCC) will not oppose the proposed merger of The Dow Chemical Company (Dow) and E.l. Du Pont de Nemours and Company (DuPont).

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.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
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