Subsidiary of Lotte Group acquires UK based PTA and PET plant

February 22 (plastemart) -- A subsidiary of South Korean Lotte Group - KP Chemical, has completed acquisition of UK based PTA and PET plant. Lotte Chemical UK Ltd., the unit of KP Chemical, inked an agreement to buy the Artenius plant in Wilton for 26 bln won (US$22.4 mln). The Artenius plant has capacity to produce 500,000 tpa of purified terephthalic acid and 150,000 tpa of polyethylene terephthalate.

The deal is part of the Korean firm's move to expand its presence in Europe.


Kuwait PIC plans third olefins plant at outlay of US$5 bln

February 22 (plastemart) -- Petrochemical Industries Co. (PIC) plans to build a third olefins plant at an outlay of US$5 bln. The facility is being planned with an estimated production capacity of over 1 mln tpa of ethylene and should be operational in 2015. PIC, a unit of state-owned Kuwait Petroleum Corp., expects to complete plans for the plant this year. PIC's current capacity at olefins I and II is about 1.65 mln tpa of ethylene and its derivatives.


Reliance raises bid for LyondellBasell by US$1.5 billion

February 22 (plastemart) -- Reliance Industries has raised its bid for LyondellBasell to around US$15 bln from an earlier offer of US$13.5 bln, on February 19, the deadline for RIL to submit its revised proposal. In a bid to make the revised offer more lucrative, RIL is reported to have also included stock and cash options for shareholders and creditors in its offer. This revision in RIL's bid comes after the management of LyondellBasell inked a deal with unsecured creditors, raising the amount to be paid out to holders of general unsecured claims by US$150 mln. These creditors had been blocking LB's attempts to emerge from bankruptcy. As per the new terms, US$450 mln will be distributed to the holders of general unsecured claims, millennium bonds and 2015 notes against the earlier offer of US$300 mln. This move could pave the way for the company to emerge out of Chapter 11 bankruptcy.

RIL has raised Rs 25,000 crore from the sale of treasury stock to fund its bid.

MRCMRC Reference

LyondellBasell. The share in the Russian market in 2008:
PE - 1.4% (including HDPE - 2.5%, LDPE - 0.3%);
PP - 4.1% (including block-copolymers - 9.5%).

Annual sales growth in Russia, during the recent 5 years:
PE - 27%;
PP - 88%.

The leader in the following polymers processing technologies:

pipe extrusion;

film extrusion;

injection molding.

Dow to raise prices for polyols and isocyanates in Europe

February 19 (plasteurope) -- Roughly a month and a half after it announced price increases for polyols, toluene diisocyanate (TDI) and methyl diphenyl isocanate (MDI) in the Middle East, Africa and India, Dow Polyurethanes has said it will raise prices for these feedstocks in Europe as well.

Effective 1 March 2010, the group will charge an additional EUR 200/t for polyols and MDI, whereas the price of TDI will be raised by EUR 250/t. Dow said it hoped the hike would help restore its margins.

MRCMRC Reference:

Norway updates action plan to cut emissions from flame retardants

February 19 (plasteurope) -- The Norwegian Climate and Pollution Agency has updated its 2002 action plan to reduce emissions from brominated flame retardants. Under the new terms, in addition to securing a significant reduction in emissions by 2010, Norway has set itself the goal of completely reducing such emissions by 2020.

The new plan has not met with unconditional support. Willem Hofland, chairman of the European Brominated Flame Retardant Industry Panel, said that while his organisation welcomed Norway's increased engagement with EU regulations, ⌠at the same time, EBFRIP firmly believes that Norwegian legislation should not pre-empt the EU's chemicals legislation REACH.