Tasnee and SAIC sign JV agreement for polyol plant

(Arabian Oil and Gas) -- National Industrialization Company ⌠Tasnee and Saudi Advanced Industries Company ⌠SAIC have signed a joint venture agreement to establish a project to produce 120 KTa of polyether polyol, a product used in the production of polyurethane. The two partners said that the total investment of the project worth USD 122.65m (SAR460m), and 70% of the project financing will be from bank loans.

The project is slated to start commercial operations in the fourth quarter 2013, and will be owned 50/50 basis between the two partners.

Tasnee and SAIC signed last February a technology licensing agreement with the US based Carpenter Company.


In July 2010, Tasnee and SAIC signed a deal with Petro Rabigh to procure 100 KTa of propylene oxide, the feedstock for the production of the polyether polyol, which is the precursor of polyurethane, it is used in various industries such as furniture, automotive as well as in manufacturing construction materials.

MRC

(Plastemart) -- In view of the current unfavourable climate vis a vis petrochemical projects and the environment, Formosa Plastics Group (FPG) may indefinitely postpone the fifth-stage expansion of its petrochemical complex in Mailiao industrial zone, in southern Taiwan`s Yunlin County, according to the Chinese-language Economic Daily News (EDN).

Currently, the presentation of the fifth-stage expansion project may make it a target of political cross fire, due to the approaching presidential election. Yunlin County government, for instance, strongly objected the fifth-stage expansion project, due to the frequent occurrence of public-safety incidents at FPG`s petrochemical complex.

As a result, FPG seems more inclined to place priority on pushing the fourth-stage expansion project, environmental assessment statement of which has been approved. The fourth-stage project, however, still has to undergo assessment of difference for environmental impact, due to revision of its contents. To ensure the passage of the revised fourth-stage expansion project, FPG plans to abandon some items, such as oil refinery, involving higher pollution, and add new items for the production of higher value-added products, such as hydrogenated rubber.

MRC

(Downstream Today) -- China has set obligatory targets for the petroleum and chemical industry in 2011 to 2015, according to a report by China Securities News on Thursday. The targets are spelled out in the Guideline on the Development of the Petroleum and Chemical Industry during the 12th Five-Year Plan Period (2011-2015), which was unveiled at a recent meeting of the China Petroleum and Chemical Industry Association.

According to the guideline, China's petroleum and chemical industry should aim for an annual growth rate of over 10 percent in the next five years. The aggregate output of the industry is expected to reach 15 trillion yuan (USD 2.31 trillion) by 2015.

Major enterprises will be required to invest at least 3 percent of their total sales revenues on R&D and make breakthroughs in some 80 to 100 key technologies.

The proportion of fine and specialty chemicals should reach over 45 percent, while the number of companies with over 100 billion yuan of sales revenue should exceed 15.

By 2015, the energy consumption per 10,000 yuan of industrial added value and the CO2 emissions should be both reduced by 15 percent from the levels at the end of 2010.

MRC

(ICIS) -- Several polyethylene (PE) and polypropylene (PP) buyers in Europe expressed concern on Thursday over increases in upstream ethylene (C2) and propylene (C3) contracts.

⌠The market is not going to be able to support this, one PP buyer said, commenting on producers' targets to cover the EUR 35/tonne (USD 51/tonne) increase in the May propylene contract price. The contract settled on Wednesday at EUR 1,245/tonne FD (free delivered) NWE (northwest Europe).

Another PP buyer felt the new propylene contract price was too high and failed to reflect market fundamentals. ⌠We've been robbed again, he added.

PE buyers are no less frustrated. ⌠The best they can get from this plus EUR 25/tonne is a rollover in PE, one buyer said.

The ethylene contract for May settled on Wednesday, up EUR 25/tonne, at EUR 1.230/tonne FD NWE and producers have already made it clear they will seek at least to cover the EUR 25/tonne increase in the monomer contract, with some sellers gunning for more.

MRC

(Bayer) -- ⌠All three subgroups contributed to the strong start to the year with sales and earnings increases, Bayer CEO Dr. Marijn Dekkers explained on Thursday when the company's first-quarter results were released. He was especially pleased at how well the season had begun at CropScience. MaterialScience achieved significant growth compared with the prior-year quarter, which was still hampered by the financial and economic crisis, and HealthCare also posted a solid performance. Dekkers expressed his optimism for the year as a whole: ⌠We are raising our Group sales and earnings forecast for this year, mainly because of the improvement we expect at CropScience.

Sales of the Bayer Group climbed by 13.2 percent in the first quarter of 2011, to EUR 9.415 million (Q1 2010: EUR 8.316 million). Despite the positive business trend, the operating result (EBIT) improved by only 4.0 percent to EUR 1.148 million (Q1 2010: EUR 1.104 million).

Earnings were diminished by special charges of EUR 442 million (Q1 2010: EUR 77 million). Of this figure, the restructuring measures already announced at CropScience and HealthCare accounted for EUR 248 million. Charges of EUR 194 million were taken mainly for an intended settlement program in connection with litigations concerning genetically modified rice in the United States.

MRC