Lukoil and Rosneft to build up cooperation

(LUKOIL) -- Vagit Alekperov, President of Lukoil, and Eduard Khudainatov, President of Rosneft, in the presence of Igor Sechin, Deputy Prime-Minister of the Russian Federation, signed an Agreement on Long-term Cooperation between the two companies, in Moscow.

In view of the efficient and mutually beneficial cooperation on gas transportation from the Vankorskoye field and the Bolshekhetskaya Depression and also the logistics of hydrocarbons supply from the fields of the Nenets Autonomous District and the exploration operations on the shelves of the Caspian Sea and the Sea of Azov, Lukoil and Rosneft are going to look into opportunities of expanding cooperation in areas of exploration, field development and transportation of hydrocarbons from the license areas of the Nenets Autonomous District; geological exploration in the license areas of Rosneft on Russia's shelf and development of fields already discovered; developing the market of home-produced petroleum products, petrochemicals, products of gas processing and oils; etc.

The parties agreed to establish joint working groups in the above areas before May 15, 2011.

MRC

MOSCOW (MRC) -- As a result of limited offer and high level of prices in the external markets imports of suspension PVC to the Ukrainian market reduced by 26% in March, according to MRC DataScope.

In March more than 10 KT of suspension PVC were delivered to the Ukrainian market which was 26% less than February supplies. A considerable reduction of suspension imports fell at North American producers. Overall imports of resin to the Ukrainian market in QI of 2011exceeded 31 KT.

Under the conditions of high dynamics of the growth of export prices for PVC from USA (more than USD 100/mt per month), as well as limited exports offers many Ukrainian companies temporarily suspended purchases of resin in March-April.

Now and till the first half of May the resin from North America contracted in February-March will come to the Ukrainian market. In the second half of next month PVC deliveries from USA may cease.

In May-June reduction of resin imports from Europe is expected because of restrictions from European producers but a serious deficit is not forecasted. Current PVC stocks in the Ukrainian companies may compensate expected reduction of imports in May-June.

MRC

MOSCOW (MRC) -- In March supplies of PET-granulates to Ukraine reduced almost by third and made about 10 KT, according to MRC DataScope.

Most of deliveries were made in February. At the end of Q I overall volume of PET supplies to the Ukrainian market made almost 30 KT.

Because of suspension of PET production last month there were no supplies form Belorussia. Starting from mid-last year Belorussian PET had lost its position in the Ukrainian market.

There were no serious changes in the structure of PET granulates imports. In April a serious growth of imports is expected which is stipulated by a seasonal growth of demand.

MRC

(Plastics Today) -- The plastic bottle blowmolding giant is adding to its presence in the machine manufacturing market with its decision to purchase Techne, an Italian manufacturer of extrusion blowmolding machinery. The extrusion blowmolding machinery manufacturers' space has been a tough one for years and Techne was not spared; it has been operating under liquidation proceedings since last year.

Graham Packaging used to manufacture its own rotary wheel extrusion blow molding machinery but divested that business many years ago; that business continues to operate as Graham Engineering Corp, and like Graham Packaging also is based in York, PA. The deal for Techne was announced little more than a week after packaging processor Silgan announced that it had agreed to purchase Graham Packaging. As we have previously reported, Graham Packaging has an agreement with Japan's Tahara to manufacture and market that company' all-electric blowmolding machinery in Europe.

The actual purchase of Techne is being conducted by Graham subsidiary, Graham Packaging Company Italia S.r.l., which will pay EUR 8.8 million for Techne (Bologna, Italy). Graham Packaging intends to acquire intellectual property, inventory, fixed assets, customer relationships, and trade agreements, and says it will continue to operate Techne's manufacturing site in Bologna.

MRC

(PressTV) -- Toyota said Wednesday that it would reduce its production by 70% from April 26 to June 3, the state-funded BBC reported. The company's North American plants now operate on four-hour shifts, three days a week, from Tuesday to Thursday. The manufacturer is likely to cut its US sales target for the current year. According to Toyota spokesman Mike Goss, nearly 30.000 employees would still be paid during the slowdown in productions.

Reports say the company lost the production of 150.000 parts in North America and 80.000 parts in China from March 11 to June 3. Toyota says its plants in Japan would be operating at 30% to 50% of their capacity from April 21 to June 3 due to the shortage of spare parts. The spare parts that are in short supply are mostly absorbers, body panels and pillar subassemblies.

MRC