Central Bank of Russia registers additional issue of SIBUR shares for TAIF acquisition

Central Bank of Russia registers additional issue of SIBUR shares for TAIF acquisition

MOSCOW (MRC) -- On 10 August, the Central Bank registered an additional issue of ordinary shares of PJSC SIBUR Holding, the largest petrochemical holding in Russia and Eastern Europe, reported BusinessOnline, citing Interfax.

Now the authorized capital of PJSC SIBUR Holding is Rb21,784, 791. There are 2,178,479.1 ordinary shares in circulation with a par value of Rb10 each one.

In accordance with the decision on the additional issue, the issuer is placing 384,437,000.489 new ordinary shares by private subscription.

The shareholders of TAIF PSC and their affiliates participate in the placement of shares.

As MRC informed earlier, on 23 April 2021, SIBUR announced a merger with TAIF by exchanging 15% of its shares for 50% + 1 share in TAIF. The scope of the transaction includes only TAIF's petrochemical and generating companies. This merger will increase the scale of SIBUR's operations and strengthen its market leadership. SIBUR and TAIF expect to reach final terms and close the deal in the second half of 2021. TAIF together with SIBUR will spend more than Rb1 trillion for the implementation of joint projects. In total, the companies plan to realize over 30 projects.

It was also reported that the petition for the acquisition of 100% of the voting shares of TAIF PJSC by SIBUR Holding PJSC was received by the FAS of Russia on 26 May, and on 20 July the FAS granted SIBUR's petition to acquire 100% of the voting shares of TAIF.

As a result of the merger, the total capacity share of the new SIBUR-TAIF group will be 100% for linear low density polyethylene (LLDPE) production, 87.4% - for polypropylene (PP), 80.8% - for high density polyethylene (HDPE) and 59.3% - for low density polyethylene (LDPE).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

SIBUR manufactures and sells petrochemical products in the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.).

PSC "TAIF" was established in 1995 and is the parent company of the group with the same name, which includes enterprises structured in four business areas: oil and gas processing, chemistry and petrochemistry (energy); investment and financial services; building; telecommunications and complex services, including trade. TAIF Group of Companies is a large Russian holding that controls 96% of the chemical, petrochemical and oil and gas processing industries in Tatarstan. The most important of its areas is the Chemical, Petrochemical and Oil and Gas Processing Divisions, which include the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.
MRC

Gazprom Neft to redeem two bond issues of Rb15 bln ahead of schedule

Gazprom Neft to redeem two bond issues of Rb15 bln ahead of schedule

MOSCOW (MRC) -- Gazprom Neft will redeem BO-01 and BO-04 series bonds ahead of schedule on 24 August, said Finam with reference to the company's statement.

Bonds are repaid ahead of schedule at the outstanding part of the par value, while the coupon yield is paid for the coupon period, on the date of payment of which the securities are repaid ahead of schedule.

Bond issues with a total par value of Rb15 bln. were placed in 2016 with maturity in 2046.

As MRC reported before, Gazprom Neft's net profit as per IFRS totalled Rb84.16 bln in the first quarter of 2021 versus a loss of Rb13.8 bln a year earlier. Gazprom Neft's revenue for the reporting period increased by 18.7% to Rb610.98 bln.

Gazprom Neft (headquartered in St. Petersburg, part of Gazprom, which owns 95.68% of its shares) is one of the largest Russian oil companies. In 2015, Gazprom Neft remained one of the leaders in the oil industry in terms of key performance indicators - the level of operating profit and return on invested capital. In 2015, Gazprom Neft produced 79.7 mln tonnes of hydrocarbons, increasing production by more than 20% compared to 2014 and thus achieving the highest production growth in the Russian oil industry.

Gazpromneft - Moscow Oil Refinery is a subsidiary of Gazprom Neft. The plant's production capacity is 12.15 mln tonnes/year of hydrocarbons. The company produces motor gasolines, diesel, marine and aviation fuel, fuel oil, high-octane additives to motor gasoline, bitumen and gases for various purposes, as well as polypropylene (PP). And in 2010, Moscow Oil Refinery and SIBUR created a joint venture for PP production - NPP Neftekhimiya LLC.
MRC

Aurora Plastics acquired by private equity firm Nautic Partners

Aurora Plastics acquired by private equity firm Nautic Partners

MOSCOW (MRC) -- Aurora Plastics LLC, a U.S.-based supplier of PVC compounds with operations in Quebec, has been acquired by private equity firm Nautic Partners for an undisclosed amount, said Canpastics.

Prior to the ownership change, Aurora Plastics was majority owned by Chicago-based Wind Point Partners (WPP) and the Toronto-based Ontario Teachers’ Pension Plan (OTPP). WPP and OTPP purchased Aurora Plastics in August 2016.

Aurora Plastics CEO Darrell Hughes and the senior executive team will continue to lead the company, which is headquartered in Streetsboro, Ohio. "Together with our investors, employees, and suppliers, we have created a strong polymer compounding platform, supporting the growth of our key customers, accelerating the release of new strategic products, enhancing our long-term customer partnerships, and increasing our overall levels of quality, service, and profitability. In doing so, we have delivered an excellent return for our investors,” Hughes said in an Aug. 11 news release. “We thank our previous owners – WPP in Chicago and OTPP in Canada for being tremendous sponsors over the last five years, and we are happy to have fulfilled their vision."

"The mission at Aurora Plastics remains the same – we want to be our customers’ first choice in polymer compounds,” Hughes said. “With Nautic as our new investor and majority shareholder, we will benefit from their strong record of creating value with teams just like ours. We look forward to continued innovation and providing the best in service to all our customers."

Last year, U.S.-based private equity firm Nautic Partners LLC added a second plastics company to its portfolio with the acquisition of pipe distribution company Harrington Industrial Plastics LLC.

According to MRC's ScanPlast report, July total production of unmixed PVC fell to 64,600 tonnes from 83,800 tonnes a month earlier, Bashkir Soda Company and SayanskKhimPlast shut their production capacities for scheduled turnarounds. Overall output of polymer totalled 580,500 tonnes in January-July 2021, compared to 556,800 tonnes a year earlier. Only Bashkir Soda Company reduced its production, whereas three other producers showed an increase in the output of resin.

Founded in 1997, Aurora Plastics supplies PVC, TPE, and customized alloy compounds for customers across North America. In addition to the Streetsboro production facility, the company has manufacturing capabilities in North Carolina, Quebec, Massachusetts, and Texas.
MRC

KraussMaffei High Performance will transfer its business to Netstal

KraussMaffei High Performance will transfer its  business to Netstal

MOSCOW (MRC) -- Munich, Germany-based KraussMaffei Group will transfer its KraussMaffei High Performance AG business into an independent unit operating under the Netstal name on 1 October, said Canplastics.

The new subgroup will manage the Netstal new machines and service business worldwide from its subsidiaries, according to KraussMaffei CEO Michael Ruf.

"With this step, we are taking into account the wishes of our customers and reuniting the NETSTAL brand and the Netstal organization under a common name,” Ruf said in an Aug. 13 news release. “We are convinced that in the future Netstal will be able to respond to customers and their applications with even greater focus than before and offer them the added value for which the Netstal brand has stood for many decades."

"The markets served by Netstal have proven to be crisis-proof even during the pandemic,” the news release continued. “KraussMaffei therefore anticipates strong growth in these areas, particularly in the medical as well as the PET segments. Here, Netstal offers a machine series with the new PET Line that provides unique added value."

As MRC informed earlier, in July Krauss Maffei opened its new plant in Jiaxing, with which the company plans to double its production capacity in China. More than 600 customers and partners came to the opening ceremony of the new Chinese plant. In an exhibition, they saw ten different machine types and 16 different applications. These included machines that are developed and manufactured in China for the Chinese market, such as the PX Agile series of electrical injection molding machines, the ZE GP-Agile twin-screw extruders and a mixing and dosing machine. Among the processes presented were LSR processing, colorform and metal injection molding as well as special applications such as precision injection molding, optical lenses and freely sprayed high-gloss surfaces.

As per MRC, Russia's output of chemical products rose in June 2021 by 10.2% year on year. However, production of basic chemicals increased year on year by 8.2% in the first six months of 2021. According to the Federal State Statistics Service of the Russian Federation, polymers in primary forms and synthetic rubbers accounted for the greatest increase in the output in January-June 2021. Production of benzene dropped to 108,000 tonnes in June 2021 from 119,000 tonnes a month earlier. Overall output of this product reached 695,900 tonnes over the stated period, down by 3.3% year on year.

Krauss Maffei, the world's only provider of turnkey equipment for injection molding, extrusion and reaction technology, has merged its business divisions as well as the former brands KraussMaffei, KraussMaffei Berstorff and Netstal, under the auspices of the single brand KraussMaffei.
MRC

LyondellBasell joins post-use plastic feedstock management company Cyclyx as founding member

LyondellBasell joins post-use plastic feedstock management company Cyclyx as founding member

MOSCOW (MRC) -- Cyclyx International, a consortium-based feedstock management company with a mission to increase the recycling rate of plastic from 10% to 90%, has announced that LyondellBasell has joined Cyclyx as a founding member, according to CISION.

LyondellBasell, one of the world’s largest producers of plastics and chemicals, is a leader in the effort to help advance the circular economy and has pledged to produce and market two million metric tons of recycled and renewable-based polymers annually by 2030.

As a founding member of the consortium, LyondellBasell will join the collaborative efforts of a growing list of companies that are working to foster a more sustainable future for plastics. The company has consistently demonstrated their commitment in this area, leveraging their scale and reach to make a positive impact across the value chain. With multiple investments in recycling technologies and collaborations focused on advancing recycling infrastructure and end markets for recycled products, LyondellBasell’s membership brings valuable knowledge and experience to Cyclyx. In addition, Ganesh Nagarajan, associate director, polymers business development and projects at LyondellBasell will bring his expertise to the executive advisory board.

“As a founding member of Cyclyx, increasing the recycling rate of plastic waste is incredibly important to our sustainability journey,”said Ken Lane, LyondellBasell executive vice president Global Olefins and Polyolefins. “LyondellBasell recognizes the challenges plastic waste brings, and we aim to be a part of the solution through our involvement with Cyclyx, which can help us and our industry achieve our recycling ambitions.”

As MRC informed earlier, LyondellBassel's La Porte, Texas, cracker was heard to be offline again after a short-lived restart, reported S&P Global with reference to sources familiar with operations' statement on July 23. The cracker had been confirmed as back online July 20, but, according to one market source, it was shut again not long after.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

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