Sterling Chemicals acquired by Eastman Chemical Company

(Plastemart) -- Eastman Chemical Company has completed acquisition of Sterling Chemicals, Inc., a single site North American petrochemical producer, for USD100 mln in cash. This acquisition includes Sterling's plasticizer and acetic acid manufacturing assets in Texas City, Texas. Eastman plans to modify and restart the currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers. This additional capacity will enable the company's Performance Chemicals and Intermediates segment to serve the growing market demand for non-phthalate alternatives.

MRC

(Plastemart) -- State-owned Indian Oil Corporation's (IOC) Paradip Refinery in Orissa is expected to be completed one year after the pre-decided schedule in Q1-2013. This delay could pose some tax problems for IOC. The seven year income tax holiday for the refining sector ends next year.

Refineries commissioning after March 31, 2012 will not be eligible for exclusion from payment of income tax on revenues earned for first seven years of operations. IOC had previously stated that the refinery will start producing fuel by March 2012 when it will commission the primary units like Crude Distillation Unit. Secondary units will be commissioned by July, 2012, and operations stabilised by November 2012.

Paradip refinery is being planned with production capacity of 5.97 mln tons of diesel, 3.4 mln tons of petrol, 1.45 mln tons of kerosene/ATF, 536 KT of LPG, 124,000 tons of naphtha and 335 KT of sulphur, all of which will be for sale in the domestic market rather than export as it was earlier thought, due to steep rise in fuel demand at home. Some 200 KT of propylene to be produced by the unit may be exported.

MRC

MOSCOW (MRC) -- Over January-July 2011, the EPS imports to Ukraine increased by 36% year on year, according to MRC DataScope.

Since the year start, trading companies have been increasing EPS import expecting consumption growth in April-May. But the low demand for finished products made of EPS forced suppliers to reconsider their plans. In June - July, the volume of deliveries decreased compared to May figures. In July, the main share (55%) of foreign EPS still fell at Loyal products.

The most popular grades were F-MS and F-SA (Loyal). The supply of those grades in January-July made 4.2 KT and 1.6 KT respectively.

The price reduced by the European producer Dwory for June - July shipment made its products more attractive for Ukrainian buyers. Among Dwory's grades assortment the leaders are FS0513 and FS0816, while the supply of FS0308 and FS1325 grades have decreased greatly.

A significant increase in Chinese EPS prices in July, amid more stable European products, can change the structure of consumption in the Ukrainian market in the nearest future.

MRC

(SOCAR) -- In July 2011, 2 million 856 thousand 326 tons of Azerbaijani oil were transported via the Baku-Tbilisi-Ceyhan main export pipeline. 19 million 867 thousand 408 tons of oil were transported through this pipeline during January-July 2011. The transportation via BTC has made up 163 million 423 thousand 350 tons of Azerbaijani oil since the moment of its operation until August 1, 2011. Besides, 191 thousand 494 tons of Turkmen oil was transported via BTC during July.

MRC

(CRIENGLISH) -- Authorities in east China's Dalian city will decide whether to relocate a petrochemical project following fears of toxic spill sparked by a dike breach earlier this week.

Sea waves whipped up by tropical storm Muifa off the coast of northeast China's Liaoning Province broke a dike in the Jinshan Industrial Zone in Dalian on Monday and threatened to hit the Fujia chemical plant just 50 meters behind the dike.

The two breaches, which measured at least 20 to 30 meters long each, were later temporarily blocked, but there was still fear that the strong waves might wash away the loosely piled rocks and breach the dike again. Trucks dumped rocks and concrete to reinforce the newly repaired parts, Xinhua News Agency said in an earlier report.

The Fujia chemical plant is a producer of paraxylene, a carcinogenic petrochemical used to create raw materials for the production of polyester film and fabrics.

Residents in nearby areas were evacuated, and plant employees transported the toxic chemicals from the tanks near the dike.

Dalian Mayor Li Wancai said at a meeting on Tuesday that the dike breaches had been blocked and no chemical spills had occurred, Xinhua reported. The government will form a team to investigate the breach incident and hold those responsible to account, Li said.

MRC