Chemtura completes sale of PVC additives business

(chemie.de) -- Chemtura Corporation, debtor-in-possession, completed the sale of its PVC Additives business to Galata Chemicals ("Galata") on April 30, 2010 for cash consideration of $16.2 million and the assumption by Galata of certain liabilities, including certain pension obligations and environmental liabilities. Advertisement

"This divestiture was the best way for us to maximize the value of the PVC Additives business and is in the best interests of Chemtura and of the business itself," said Craig A. Rogerson, Chairman, President and CEO of Chemtura. "It is part of our plan to focus on maximizing the total value of our portfolio of businesses as we continue working to strengthen the Company and position it for long-term success."

Galata is a partnership between Aterian Investment Partners, a New York-based private equity firm, and Artek Surfin Chemicals Ltd., a Mumbai, India, family-owned company whose business includes textiles, metal finishing and chemicals.

As previously disclosed, the sale is the result of an auction pursuant to Section 363 of the Bankruptcy Code involving a number of qualified bidders held in February 2010 in New York under the auspices of the U.S. Bankruptcy Court. This is a customary process for companies selling businesses or assets while operating in Chapter 11. The sale includes Chemtura's ownership interest in Chemtura Vinyl Additives GmbH and certain assets used in the manufacture and distribution of PVC additives.

The transaction will provide all full-time employees of the PVC Additives business with the opportunity to continue in their current positions under new ownership.

MRC

(adsalecprj) -- Bayer AG raised its 2010 earnings growth forecast as demand for plastics offset a slowdown in crop chemicals and lower sales of medicines.

Bayer expects more than 15% growth in core earnings per share, compared with an earlier forecast of 10%. Net income increased to 693 million euros (US$916.7 million) from 425 million euros a year earlier.

Sales at the MaterialScience plastics unit climbed 36% to 2.22 billion euros as demand from the automotive and manufacturing industries helped Bayer emerge from the chemicals-industry slump that had followed the global economic downturn, the company said.

On the other hand, the company lowered its sales forecast for the drug unit after revenue from the Yaz family of birth-control pills, Bayer's top-selling prescription medicines, dropped 10%.

MRCMRC Reference

Bayer is an international chemical and pharmaceutical concern. Founded in 1863.

The share in the Russian market in 2008:
PS - 0.7% (ABS - 7.2%).

Annual sales growth in Russia over the last 5 years:
PS - (-10%).

Polymers processing technologies:
injection molding.

(plastemart) -- Indian Oil Corp (IOC) plans to augment capacity at Panipat by 25% to meet growing fuel demand. Capacity will be raised to 300,000 bpd by October at an investment of US$226 mln. A 120,000 bpd crude distillation unit, a hydrocracker unit, and a delayed coker unit will be shut for 45 days for the requisite alterations. IOC plans to shut down the refinery during the lean monsoon period of August.

MRC

(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.