KraussMaffei and Netstal to combine operations in China

(Plastics Today) -- KraussMaffei, Netstal will combine their operations in China, a country where Netstal hopes to benefit from the much larger staff of KraussMaffei. "Big international customers really wanted us to grow here," explained Bernhard Merki, CEO of Netstal. The change is effective July 1.

Only two weeks ago the companies announced they would merge operations in Brazil, another country with a fast-growing plastics industry. In China, where KraussMaffei has 200+ employees and Netstal only 15, the merged organization should especially help the smaller Netstal (Naefels, Switzerland) expand sales of its high-end injection molding machinery.

KraussMaffei (Munich, Germany) manufacturers extruders, reaction processing machinery and injection molding machines, and although in the past there was some overlap in their portfolios, management at the two companies no longer consider each other as competitors for molders' business.

MRC

(Plastemart) -- The European Commission (EC), through a newly launched public consultation, has invited the public to give their view on reducing use of plastic carrier bags, including an outright ban. Also under consideration is a levy/a tax on bags. Opinions will also be sought on increasing visibility of biodegradable packaging products, and boosting the biodegradability requirements for packaging, improving the way a bag is labelled to indicate how it will biodegrade. Public opinion will help the EC complement its scientific analyses, and drive policies on this issue. The web-based consultation is open until August 2011.

Taxes have been introduced and voluntary agreements reached with retail sector to phase out plastic bags, by individual countries. However, no specific measures exist at EU level.

MRC

(ICIS) -- Prices of methyl tertiary butyl ether (MTBE) in Asia may continue falling in the coming weeks, taking the cue from plunging prices in Europe, as demand in China for the octane booster declines, traders said on Friday. MTBE prices on a free on board (FOB) Singapore basis are expected to slip below USD 1.100/tonne (EUR 770/tonne) this week, traders said.

In the week ended 13 May, Asian MTBE prices were assessed at USD 1.140-1.160/tonne FOB Singapore, down about 5% week on week, according to ICIS.

In Europe, MTBE prices were quoted at USD 1.106-1.110/tonne FOB AR (Amsterdam-Rotterdam) on 19 May, compared with the ICIS-assessed price of USD 1.150-1.162/tonne FOB AR on 13 May.

European MTBE demand has waned because the reintroduction of 5% bioethanol blend (E5) gasoline had led to lower production of 98-octane gasoline in Germany.

MRC

(ICIS) -- Arkema is on schedule to lift its declaration of force majeure on polyvinyl chloride (PVC) supplies from its unit at Lavera, France, while LVM will shut down one PVC line at its unit in Beek, the Netherlands, at the end of June, company sources said on Friday. Arkema plans to resume production at its oxychlorination and vinyl chloride monomer (VCM) unit in Lavera, France, by the end of May, a company source said.

If there are no problems, the company should be in a position to lift its declaration of force majeure on PVC supplies from Lavera at the end of May or early June, the source added.

LVM, part of the Belgium-based Tessenderlo Group, plans to carry out maintenance at its 225 KTa unit in Beek, the Netherlands, which has four lines, a company source said.

One of the lines will be shut down for one week at the end of June, which is unlikely to have any significant impact, the source added.

MRC

(ICIS) -- The market can expect a rollover in the US June methanol contract unless crude prices drop significantly, buyers said on Thursday. The monthly contract range has been perched at 126-128 cents/gal for the past four months as energy prices have seesawed. Front-month natural gas futures have declined about 6% since early February, while crude futures have increased 7%.

Months of listless trading in the spot market have cooled the arguments of sources who often push for contract reductions based on energy prices. One buyer said a rollover was just a better bet right now.

Spot prices currently range from 107-108 cents/gal.

Methanex and Southern Chemical Company (SCC) historically have set the monthly North American contract methanol range with their nominations.

MRC