2011 investments in plastics processing industry reached last year's total

MOSCOW (MRC) -- Over the first five months of 2011, Russian companies invested in plastics processing equipment USD 175 mn, which equals to the total sum of investments over the last year period, according to MRC DataScope: Equipment.

"After rather slow expansion during the previous two years, this year the situation looks quite promising," commented Olga Sinelnikova, MRC analyst. "Total capacity growth for January-May 2011 made around 300 KTa," she added.

Investments in injection molding equipment reached USD 75.5 mn. USD 14 mn was invested in PET preform production. Foreign producers of electrical goods, such as LG Rus, Bosch und Siemens, Samsung Electronics RUS Kaluga, Beko, Vitek, continued to expand their capacities in Russia. Healthy investment activity was also observed among producers of packaging, automotive parts, and household goods.

In the pipe extrusion sector investments were USD 34 mn, which is twice as much as over two previous years. The largest capacity growth (+ 56 KTa) was achieved by producers of PE pipes, while last year PP pipes sector was holding a leading position. Tekhstroy and Polyplastik became this year's leaders in investments in pipe extrusion.

"Energy saving will be a key factor in the development of polymers market over the next decade," said Olga Sinelnikova. As an example, she cited investments in XPS panel production. In 2011, total sum of investments went far beyond the most optimistic expectations (USD 26 mln, as against USD 2.5 and USD 5 mln in 2009 and 2010, respectively). Tehnolog Group and Technonikol Group are heading the list of the largest investors.

A detailed analysis of capital expenditures on plastics processing equipment by technologies, sectors, end products, equipment suppliers and converters can be found in MRC DataScope: Equipment.

TOP-20 rating of investors in plastics processing industry is shown in Table 1. The rating of equipment suppliers is shown in Table 2.

MRC

(Arabian Oil and Gas) -- Venezuela's proven reserves of crude oil surpassed those of Saudi Arabia in 2010, the Organization of Petroleum Exporting Countries said in its annual statistical bulletin, according to a Dow Jones Newswires report.

However, there are concerns over whether much of the sticky, extra-heavy crude proven in Venezuela will be economically viable, even at current high prices.

The bulletin also stated that Iran's oil-refining capacity increased 18 percent last year, the biggest gain among OPEC members, according to a report by the 12-member group. This dovetails with Tehran's ambition to be more self-sufficient on petroleum following the implementation of UN sanctions.

MRC

(DSM) -- Royal DSM N.V., the global Life Sciences and Materials Sciences company, today announces that it has successfully acquired a 51% stake in AGI Corporation of Taiwan (AGI) through a subscription for newly to be issued shares combined with a public tender offer for about ┬ 41 million in total. The acquisition was announced in December 2010 and is consistent with DSM's strategic focus on high growth economies, sustainability, innovation and partnerships.

AGI offers a broad range of environmentally friendly UV (ultraviolet) curable resins and other products. These products are used in coatings and inks for wood, flooring, plastic and graphic arts applications.

MRC

(ICIS) -- US polyvinyl chloride (PVC) export prices appeared to have reached a bottom after a decline since late May, sources said on Monday. However, buying interest has not yet returned from China, and US participants held mixed views on when Asian demand would return.

PVC export prices are at USD 980-1.010/tonne (EUR 696-717/tonne) FOB (free on board) USG (US Gulf), as assessed by ICIS.

Discussions clustered around USD 1.000-1.010/tonne FOB USG, although some prices were heard at levels under USD 1.000/tonne. One source said those parcels were destined for Egypt and locations in South America.

Meanwhile, US PVC participants are waiting for the August offer from Formosa Plastics Corporation (FPC), Asian market, as the offer is typically considered a key benchmark for PVC trade.
Early indications are leaning toward stable or firm pricing in Asia, which would influence direction of the US market, sources said.

MRC

(ICIS)--Butadiene (BD) spot prices in Asia may have peaked at an all-time high of USD 4.300/tonne (EUR 3.053/tonne) as downstream synthetic rubber makers vow to resist a further increase in raw material values, industry sources said on Tuesday.

BD surged to USD 4.250-4.300/tonne CFR (cost & freight) NE (northeast) Asia on 15 July, the highest on record since ICIS started tracking its prices in 1990.

Prices have more than doubled since the start of the year because of extremely tight regional supply and an open arbitrage opportunity to sell to the US, market sources said.

Some suppliers plan to hike offers to USD 4.500/tonne FOB (free on board) Korea, to which Asian buyers are expected to pose a strong resistance by significantly cutting down on consumption.
Some of the producers in downstream synthetic rubber and acrylonitrile-butadiene-styrene (ABS) sectors in South Korea, Taiwan, China and Indonesia are planning to cut operating rates or shut down their plants for maintenance.

MRC