Braskem and Pequiven to assess new model for Venezuelan petrochemical projects

(plastemart) -- Braskem and Pequiven had planned an investment outlay of US$1 bln, for petrochemical projects in Venezuela. In a bid to adjust project facets to the new global market scenario, the two companies plan to assess a new model for Venezuelan petrochemical projects through the joint ventures Propilsur and Polimerica. To meet this end, the two have signed a memorandum of understanding (MOU) in Brasilia, during a meeting between the presidents of Brazil and Venezuela. The polypropylene project under the purview of Propilsur will see changes in location as well as production capacity. These changes will allow the JV to maintain the project's schedule and reduce investment required by approximately 60%. In December 2009, Venezuela's PDVSA presented an alternative feedstock source, the Paraguana Refinery Complex in the state of Falcon, leading to a change in PP plant location. Capacity has also been altered to 300,000 tpa, eliminating the need for investment in an intermediate propane dehydrogenation unit. This will bring down total investment to approx. US$500 mln. Studies of the new configuration for the Propilsur project will begin in 15 days, with the plant still expected to start up operations in 2013, provided the conditions proposed by Pequiven, PDVSA and the Venezuelan government are ultimately confirmed.

As a result of this, the future supply of ethane gas and/or other feedstock sources coming from PDVSA's Refinery Complex in Paraguana will be impacted. Hence the two partners have agreed to postpone by one year, developments related to the Polimerica project, which initially was planned for the Jose Industrial Complex. The project envisages the construction of three polyethylene production units with combined production capacity of 1100000 tpa, integrated with an ethylene production unit with capacity of 1300000 tpa, for investment of approximately US$3 bln. The units could start up operations by early 2015.

MRC

(Dow) -- Dow reports first quarter results. The main Dow's Q1-2010 figures are:

-- Reported sales rose 48% versus the same period last year. On a pro forma basis excluding divestitures, sales were up 33% and up in all geographic areas, with a 27% improvement in North America, and a 35% improvement in EMEA (Europe, Middle East and Africa). Sales were also up in all operating segments excluding Health and Agricultural Sciences. Sequentially sales were up 8%, with volume and price each up 4 percent.

-- EBITDA excluding certain items was US$1.8 bln, up US$877 mln vs the same quarter last year on a pro forma basis, and up US$356 mln vs last quarter. EBITDA in the combined Performance segments was up more than 60% vs the year-ago period. EBITDA margin at the Company level expanded year-over-year and sequentially.

-- Synergies related to the acquisition of Rohm and Haas and structural cost reductions were US$275 mln in the quarter. This was achieved while increasing R&D spending 10% year-over-year on a pro forma basis. And the Company exceeded its growth synergy targets, delivering US$530 mln in sales on a run-rate basis.

-- The Company continued to make significant progress toward its goal of divesting US$2 bln of non-strategic assets in 2010 with the signing of a definitive agreement to sell the Styron business unit for US$1.63 bln. Proceeds from the sale will be used to reduce debt.

Andrew N. Liveris, Dow's chairman and chief executive officer, stated: "The earnings power of Dow's new portfolio was evident this quarter with our robust sales growth driven by significant volume and price increases in all geographic areas, with notable improvements in North America and Europe. When combined with broad-based EBITDA margin expansion and record equity earnings, this enabled us to achieve greatly improved operating results.

"Our focus on delivering against our commitments, especially on structural cost reductions while continuing to invest for growth in our new portfolio, was on full display again in the quarter. I am particularly pleased with the accelerated growth in our Performance businesses, as well as the continued growth in emerging geographies. This is right on strategy for the new Dow."

MRCMRC Reference

Share in the Russian market, 2008:

polyethylene - 2.5% (including LLDPE - 33.1%);

polypropylene - 0.8% (including PP-impact - 1.1%);

polystyrene - 2.6%.

Annual sales growth in Russia, recent 5 years:

polyethylene - 55%;

polypropylene - 28%;

polystyrene - 2%.

Imports by processing technologies:

pipe extrusion;

film extrusion;

sheet extrusion;

foaming.

(prw) -- Global polyolefins giant LyondellBasell is emerging from bankruptcy on 30 April, with new ownership, plans for a stock offering and only a fraction of the debt it was struggling with just 15 months ago.

The firm now will be known as LyondellBasell Industries NV and will continue to be based in Rotterdam, the Netherlands, with a North American headquarters in Houston. Its reorganisation plan was confirmed 23 April in US Bankruptcy Court in New York.

⌠We emerge from Chapter 11 as a stronger company and business partner, said ceo Jim Gallogly. ⌠Our industry-defining technologies, global reach and focus on operational excellence will provide LyondellBasell with a bright future.

⌠Through this reorganisation we have solidly positioned the company to be an industry leader with a significantly improved balance sheet, excellent liquidity, a more efficient organisational structure, and a new management team.

When it filed for Chapter 11 bankruptcy in January 2009, LyondellBasell had debt of almost $24bn (┬18bn). Now, $18bn (┬13.5bn) of that debt has been converted into equity in the firm, spokesman David Harpole said by phone 28 April. The firm now has roughly $7bn (┬5.3bn) in debt.

After debt conversion, New York private equity firm Apollo Management is the largest stakeholder in the firm, with a share of about 25%, Harpole said. Former owner Access Industries, a New York-based investment firm, will be among the five largest stakeholders, he added.

The public stock offering ≈ for shares on the New York Stock Exchange ≈ will take place during the third quarter of the year, Harpole said.

MRC

MRC Reference

LyondellBasell. The share in the Russian market in 2008:
PE - 1.4% (including HDPE - 2.5%, LDPE - 0.3%);
PP - 4.1% (including block-copolymers - 9.5%).

Annual sales growth in Russia, during the recent 5 years:
PE - 27%;
PP - 88%.

The leader in the following polymers processing technologies:

pipe extrusion;

film extrusion;

injection molding.

(BASF) -- BASF's business continued to develop favorably in the first quarter of 2010. In conjunction with the recovery of the economy and some restocking of inventories by customers, demand has risen strongly in almost all divisions. At the same time, some chemical products were in short supply. Thanks to these improvements in the market environment, sales increased by 26% to ┬15.5 billion.

Income from operations before special items rose by 98% to ┬1.95 billion, primarily as a result of higher capacity utilization. Earnings improved significantly in almost all divisions. Measures to reduce costs and increase efficiency, as well as synergies from the Ciba integration, also contributed to improved earnings. Sales and earnings increased further compared with the fourth quarter of 2009.

BASF's Chairman overall sees the further development of 2010 positively. However, he points out that ⌠the recovery remains shaky. Risks result mainly from the continuing financial and debt crisis, which is intensifying in some areas, the winding down of national stimulus programs, volatile raw materials markets, excess capacities, growing geopolitical tensions, and protectionism.

MRCMRC Reference

BASF. The share in the Russian market in 2008:
PS - 9.1% (GPPS - 5.9%, ABS - 11.4%, EPS - 10.6%).

Annual sales growth in Russia over the 5 years:
PS - 15%.

Imports by polymers processing technologies:
foaming;
injection molding.

(plastemart) -- Taiwan's largest petrochemical conglomerate- Formosa Petrochemical Corp has announced that its net profit soared more than threefold to NT$10.97 bln in Q1-10 from NT$2.66 bln in Q1-09. Revenue for the quarter grew 67.2% year on year to NT$198.27 bln, and its operating profit rose 21.6% year on year to NT$11.9 bln.

In 2009, the firm's net profit was NT$39.19 bln, 158% more than the NT$15.19 bln it recorded for 2008, while its revenue fell 27.6%, according to an earlier report from China Knowledge.

MRCMRC Reference

Formosa

The share in the Russian market in 2008:
PVC-S - 3.0%;

PP - 0.4%.

Annual growth sales in Russia :
PVC - 79 % (over the last year) ;

PP - 272 % (over the last 3 years).

Supply by processing technologies:
profile extrusion

film extrusion