Total to meet unions to end French refinery strike

February 23 (Bloomberg) -- Total SA, the French refiner grappling with a nationwide strike, will meet with unions today in an effort to end a dispute that threatens fuel shortages.

Michael Crochet-Vourey, a spokesman for the Paris-based company, confirmed the meeting in a telephone interview yesterday. The strike started Feb. 17 in an effort to secure jobs at an idled plant near Dunkirk. Workers at Exxon Mobil Corp.'s French plants are scheduled to join the walkout today.

The Confederation Generale du Travail union said yesterday it wouldn't advise members to return to work until management resumes talks to seek a ⌠global settlement, representative Philippe Saunier said by telephone.

Total, Europe's largest refiner, has six French plants with a total capacity of 1.08 million barrels a day. Some filling stations have run dry as drivers rush to buy diesel and gasoline before shutdowns stop refinery production.

⌠We have operational reserves of seven to 10 days, Jean- Louis Schilansky, head of industry group Union Francaise des Industries Petrolieres, said on BFM radio today. ⌠Should the situation become really critical, there are still strategic reserves.

Total said it would hold a works council meeting with unions on March 8, three weeks earlier than scheduled, to discuss plans for the Flanders site as well as refining in France. The Confederation Francaise Democratique du Travail union said that advancement was a ⌠step forward, and recommended members end their six-day strike.

Today's meeting was arranged ⌠at the Elysee's request, Energy Minister Jean-Louis Borloo said on Europe1 radio, referring to the presidential palace. Greater consumption of alternative fuel meant the oil market was changing, and the ⌠change must be accommodated, he said.

Unions had called on Total management to arrange a meeting earlier to give workers more details about the future of the Flanders plant, which was idled in September amid a drop in fuel demand. Total, which has faced government pressure to maintain jobs in the run-up to March's regional elections, said Feb. 1 it was delaying a final decision on the site even as management said refining would be permanently halted.

French President Nicolas Sarkozy met with Total Chairman Thierry Desmarest yesterday to discuss the strikes, an Elysee Palace official said. Regional elections will take place on March 14 and 21.

Besides Flanders, Total's plants are at Gonfreville in Normandy, Donges, Provence, Feyzin and Grandpuits. The refineries supply about 50 percent of French fuel demand, while its 4,000 gasoline stations have about 25 percent of the market.

Total reiterated it won't close or sell any of its other French refineries and said all employees at the Flanders plant will retain jobs with the company.

⌠As we have said no refineries are under consideration as far as closures are concerned, Chief Executive Officer Christophe de Margerie said in New York yesterday. ⌠Our priority is to stop this conflict and certainly not use the fear of consumers to put pressure on workers, he said.

Ineos Group Holdings Plc's Lavera oil refinery in France ⌠continues to operate as normal, spokesman Richard Longden said today in an e-mailed statement. Workers at Petroplus Holdings AG's two French refineries have no immediate plans to join the strike by Total employees, according to a CFDT union representative.

MRC


PetroChina plans capacity increase at Dushanzi refinery

February 23 (plastemart) -- In 2010, PetroChina, a subsidiary of China National Petroleum Corp plans to increase output of the Dushanzi refinery in Xinjiang Uygur Autonomous Region that commenced operations in September 2009. The company plans to raise refining capacity by 50%, while ethylene output is expected to rise 114% from levels seen in 2009. The RMB 30 bln refining and petrochemical project comprises ten refining machines, 11 chemical units and other supporting facilities. The complex is capable of processing 10 mln tpa of crude oil by distillation and 2 mln tpa of crude oil by hydrocracking, and producing 1 mln tons of ethylene, 900,000 tons of polyethylene and 550,000 tons of polypropylene.

MRC

Sabic infromed customers of price hike for engineering thermoplastics

February 23 (plasteurope) -- Sabic Innovative Plastics has sent out letters to its European customers informing them that it will raise the prices of several engineering thermoplastics. Specifically, the hike of EUR 220/t, which comes into effect on 15 March 2010, involves all polycarbonate resins, the ⌠Lexan copolymer grade, the ⌠Cycoloy blend (PC/ABS) and the ⌠Cycolac (ABS) styrene range. The group also is planning to raise the price of its ⌠Ultem range.

As part of the same announcement, Sabic also communicated price increases of EUR 150/t for its ⌠Noryl (PPE/PS), ⌠Valox (PBT) and ⌠LNP resins and compounds.

MRCMRC Reference

Sabic. The share in the Russian market in 2008:
PE - 0.2%;
PP - 0.4%;
PS - 0.2%.

Annual sales growth in Russia over the last 5 years:
PE - 33%;
PP - 62%.

PVC-S imports up 30% in Russia in January

MOSCOW (MRC) -- PVC-S imports went up by 30% in Russia in January 2010, compared to the same period last year - MRC DataScope reports. Russian window profile producers began to import American resin actively. The share of North American PVC-S exceeded 50% of overall suspension imports.

Overall imports of resin produced by America's Georgia Gulf and Oxyvinyls moved at 2.2 kt. The share of 225P/Oxyvinyls and PVC-1091/Georgia Gulf grades exceeded 90% of overall imports of material produced by those companies.

Russian companies were not importing PVC-S from Taiwan in January. Formosa's resin was imported only from the USA (726 mt). Imports of Chinese PVC-S amounted only to 1.1 kt (whereas average monthly imports of Chinese feedstock during the second half of 2009 exceeded 10 kt).

MRC

For more detailed information, see DataScope.

Dow to charge customers more for polyethylene

February 22 (plasteurope) -- Citing the need to recover its margins, Dow Europe has announced a EUR 80/t price increase for polyethylene resins in Europe, the Middle East, Africa and India.

The hike applies to all the group's LDPE, LLDPE and HDPE grades and will go into effect on 1 March 2010.

MRCMRC Reference: