SIBUR successfully closes order book exchange-traded bond placement

MOSCOW (MRC) -- SIBUR Holding, Russia’s largest integrated petrochemicals company, has successfully closed the order book for its BO-01 and BO-02 exchange-traded bond issues, worth RUB 10 bn and RUB 5 bn, respectively, said the company.

The final semi-annual coupon rate was fixed at 5.50% per annum, which is the lowest coupon among market placements by Russian corporate issuers historically. The par value of the bonds is RUB 1,000 each. The offering price is 100% of the par value. With a coupon period of 182 days, the bonds have a tenor of 10 years and a put option after 2.5 years.

The placement enjoyed a strong interest from investors, with demand reaching around RUB 45 bn. Leading Russian public and private banks, institutional investors and asset managers, brokers and retail investors participated in the placement.

Alexander Petrov, member of the Management Board and Managing Director for Economics and Finance at SIBUR, commented: "We keep a close eye on opportunities to optimise our debt portfolio, and now see the market as favourable for rouble bond offerings, with the aim of diversifying our borrowings and reducing the weighted average rouble borrowing rate. The proceeds will be used to refinance existing debt. Strong investor appetite attests once again to SIBUR’s robust financial policy and our reputation as a reliable borrower, which is underpinned by high credit ratings from the leading rating agencies."

The placement was organised by Gazprombank and Sberbank CIB, with Gazprombank also acting as the placement agent. The technical listing of the bonds on the Moscow Exchange will take place on 28 May 2020, and they are expected to be included in the Level 2 List.

As MRC informed earlier,SIBUR has completed the start-up and commissioning work at key production facilities at ZapSibNeftekhim (ZapSib), its flagship petrochemical complex at Tobolsk. ZapSib in the first quarter of 2020 produced 115,000 metric tons of PP and 259,000 metric tons of PE, part of which is en route to clients and was not reflected in the sales volumes for the reporting period. Sales of PP grew by 87.3% to 243,000 metric tons and of PE by more than 100% to 132,000 metric tons. In January 2020, Sibur completed construction of its new thermoplastic elastomers production facility at Voronezh and launched trial production.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

MRC

MOSCOW (MRC) -- Berry Global Group (Evansville, Indiana) says it will establish its first meltblown nonwoven fabric production line in South America by the first quarter of 2021, said Chemweek.

The latest capital investment in its worldwide meltblown manufacturing capacity, based on its Meltex technology, will be made to support continued demand for health and wellness products such as face masks, it says. The investment will add more than 400 metric tons of meltblown nonwoven material to the region, which will enable production of over 500 million surgical-grade masks per year, according to the company.

The new asset will be operational in the first quarter of next year and be sited at an existing company production facility, although it does not clarify the country location. The company has existing premises in Brazil and Argentina, according to its website. The new line will focus on the production of materials for ASTM L2, L3, and N95 masks, and will be upgraded with Berry’s patented charging technology post-installation, it says.

“As customers prepare for future outbreaks or protection demands, we will be ready to serve,” says Daniel Guerrero, executive vice president and general manager/Latin America in Berry’s health, hygiene, and specialties segment.

Earlier this week Berry revealed plans to invest USD8 million to expand production capacity of spunmelt nonwovens at its Statesville, North Carolina, facility. Earlier in May it also said it would expand its melt-blown nonwovens capacity in Europe with the addition of a new production line in Germany to help meet demand for protective face masks due to the coronavirus disease 2019 (COVID-19) pandemic, in addition to announcing in April an upgrade to a melt-blown production line at its manufacturing facility in Biesheim, France.

As MRC informed earlier, Berry Global Group announced a collaboration with SABIC to drive the innovation and use of polyolefin resins made from chemical recycling. The companies boast a long partnership and focus on their shared values of sustainability and promotion of a circular economy. The partners will focus on innovation and use of polyolefin resins from chemical recycling. The move is a part of Berry’s sustainability strategy Impact 2025 announced earlier this year.

According to a MRC's DataScope report, April PP imports to Ukraine decreased to 8,100 tonnes under the pressure of quarantine restrictions due to coronavirus against 10,500 tonnes a month earlier.Due to the partial shutdown of capacities, local companies have seriously reduced purchases of all types of propylene polymers. Overall imports of propylene polymers reached 39,100 tonnes in January-April 2020, compared to 45,000 tonnes a year earlier.
Only supplies of stat propylene copolymers (PP random copolymers) increased, while the demand for propylene polymers decreased.
MRC

MOSCOW (MRC) -- Broanmain Plastics has seen a significant number of new enquiries for its flexible interlocking Trudec floor tile system as manufacturers, educators, retailers, offices, the hospitality sector and gyms start taking tentative planning steps to emerge from lockdown, said Britishplastics.

Used in indoor areas, including factories, warehousing, corridors, shop floors, changing rooms, garages and even high footfall dining areas, such as work and school canteens, employers can swiftly introduce directional messages, reinforce two-metre distancing measurements and safety warnings, which can be easily changed as COVID-19 guidelines evolve.

The bespoke, REACH-compliant interlocking Trudec floor tile system can be designed to meet the most stringent Health & Safety and wellbeing requirements. Available in multiple colours and textures, leaders and facility managers can clearly mark out one-way walkways and queuing systems. Colour zones can also be used to delineate collaborative workspaces.

Made to order in the UK from hygienic, easy clean polyvinyl chloride (PVC), providing the existing flooring is level, the Trudec tile system can even be laid on top of existing tiles and hard surface areas - even heritage tiles and parquet flooring.

The use of interlocking translucent tiles means that as social distancing messages change, the tiles can be lifted, new instructions or directions printed and inserted, and each tile re-laid. By using it successfully in its own production facility, Broanmain staff have continued to operate productively throughout the entire crisis while maintaining social distancing.

Sustainable eco-friendly options are available, using reground plastic materials within the PVC mix that doesn’t compromise the robustness or durability of the tiles’ performance. When the flooring reaches the end of its lifespan, the tiles are fully recyclable.

Broanmain’s managing director Jo Davis, said: “Clearly people need a sign that their employers are invested in their wellbeing. And flooring is one of the first visual things that people see.”

According to MRC's ScanPlast report, Russia's estimated consumption of unmixed PVC was 249,190 tonnes in January-March 2020, up by 5% year on year. Shipments of emulsion and suspension PVC to the market grew both due to domestic producers and higher imports.
MRC

MOSCOW (MRC) -- Qatar Petroleum, one of the world’s biggest energy companies, plans a new wave of job cuts and spending reductions to cope with the slump in oil and gas demand which has hit global economies, reported Reuters with reference to two sources familiar with the matter.

Economic lockdowns brought on by the coronavirus pandemic look set to cut global energy demand sharply with business activity stalling across much of the globe as the containment measures hammer the world economy, cementing economists’ views of a deep global recession.

Qatar Petroleum’s (QP) Chief Executive Saad al-Kaabi told the company’s employees in an internal memo of the planned staff cuts which would be finalised after Eid-al-Fitr religious holiday for Muslims, which is towards the end of May, the sources said.

"Like all oil and gas companies QP is looking at reducing expenditure due to the market downturn which... will be weak for some time," one of the sources said, adding that QP’s planned cuts would not impact its energy development plans.

Qatar, a tiny but wealthy country is one of the most influential LNG market players with annual production of 77 million tonnes. It plans to increase its LNG production to 126 million tonnes a year by 2027.

QP will postpone the start of production from its new gas facilities until 2025 following a delay in the bidding process, but is not downsizing the world’s largest LNG project, the North Field expansion, Kaabi told Reuters earlier in April.

The planned job and cost cuts will be the third wave of restructuring by QP over the past 6 years. In 2015, the company said it has reduced its staff numbers in a restructuring and decided to exit all non-core businesses after a plunge in oil and gas prices increased financial pressures on Qatar.

In 2018, it has also merged state-owned LNG producers Qatargas and RasGas into one company.

Kaabi told Reuters in 2018 that QP’s operating costs would be 4 billion Qatar riyals ($1.1 billion) a year lower due to its earlier restructuring, which included cutting as many as 8,000 jobs to create a more streamlined operation.

As MRC informed earlier, Qatar Petroleum said Monday it joined with France's Total to acquire a 45% participating interest in exploration blocks offshore of Cote d'Ivoire. The blocks CI-705 and CI-706 are located in the Ivorian-Tano basin, covering an area of about 3,200 sq. kilometers, Qatar said in a statement. The farm-in agreement marks QP's first foray into Cote d'Ivoire. Terms were not disclosed.

We remind that Total has recently disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.
MRC

MOSCOW (MRC) -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, has recently announced a USD1.3 million donation to support the COVID-19 response efforts of the Global FoodBanking Network and United States local food banks, according to the company's press release.

"Even in the best of times, hunger and food insecurity is a challenge. The COVID-19 pandemic has made this need even more severe as food banks around the world have experienced an increase in demand and a decline in food donations," said LyondellBasell CEO Bob Patel. "In addition to the work our team is doing to supply materials that are used in medical applications, we wanted to help those who are finding it difficult to put food on the table by supporting these vitally important organizations."

LyondellBasell's donation will support food banks in 17 countries and communities where the company has major operations.

"The pandemic has disrupted various facets of our lives and millions of people, many who have not needed relief before, are depending on our food banking organizations to keep food on the table," said Lisa Moon, President and CEO of The Global FoodBanking Network. "Our network of food banks all over the world is on the front lines of this international pandemic. LyondellBasell's support will help ease the strain food banks are currently feeling and help us reach more people facing hunger during this difficult time. "

Donating funds to supply food for those in need is just one way LyondellBasell has responded during this pandemic. The company recently donated isopropyl alcohol to Huntsman for production of 5-tons of hand sanitizer to help protect health care workers treating COVID-19 patients.

Additionally, LyondellBasell's materials are found in many applications critical to protecting and preserving health and safety such as medical devices, protective equipment, cleaning products, and various pharmaceutical applications. The company continues to supply its customers with a variety of materials including polypropylene resins, which are used to produce melt-blown fibers that provide filtration in facemasks; masterbatch products are used in breathable films for protective suits; and, polypropylene, ethylene oxide, and propylene oxide are used to make medical syringes, medical test kits, soaps, disinfectants, and many other products.

As MRC reported earlier, global petrochemical producer LyondellBasell has reduced rates across its system to accommodate lower demand wrought by shutdowns around the globe to stem the spread of the coronavirus pandemic, said the company's CEO Bob Patel. LyondellBasell's overall global petrochemical and refining assets were expected to operate at 60% to 80% of nameplate capacity through the second quarter, Patel said during the company's first-quarter earnings call. European crackers were seen running at 80% to 85%, while US crackers were expected to run at about 75%, he said.

We also remind that to further aid in the fight against the COVID-19 pandemic, LyondellBasell (LBI) donated a key ingredient to Huntsman Corporation to produce hand sanitizer for US first responders.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC