Arkema strikes more optimistic tone for 2010

PARIS (Reuters) -- French specialty chemicals maker Arkema struck a more optimistic tone for its outlook this year as the first quarter showed a significant improvement against the year-ago when the recession fully struck.

Arkema said on Tuesday its core earnings or earnings before interest, tax, depreciation and amortisation were close to the level pre-crisis levels, partly thanks to fixed cost cuts and growth in Asia, but that volumes were still lower.

The more favourable market conditions seen in the first quarter carried on into the second quarter, Arkema said, leading it to forecast core earnings in the second quarter to be better than in the first quarter. At the earnings presentation in March, Arkema said it targeted a significant improvement but remained cautious on making any market assumptions after the credit crisis dented demand from clients such as the car and building industries.

Arkema swung to a first-quarter net profit of 40 million euros against a loss of 35 million. EBITDA surged to 137 million euros from 57 million euros on sales up nearly 20 percent at 1.308 billion. Volumes in the quarter increased more than a fifth, supported by strong demand in Asia, signs of a recovery in North America, and expanding new energy markets.

For growth, Arkema's focus remained on Asia, the development of high performance polymers and bolt-on acquisitions.

MRCMRC Reference

Arkema.

The share in the Russian market in 2008:

PVC - 0.2%;

EVA - 1.1%.

Annual sales growth in Russia, during the recent 5 years:

PVC - 69%;

PE - 121%.

Imports by polymers processing technologies:

coating;

cable extrusion.

(plastemart) -- The Koream ambassador met Friday with leadership of Azerkimya (within SOCAR). He has expressed an interest by Korean companies in different economic spheres of Azerbaijan, particularly investments in petrochemical industry.

He has expressed interest in prospects of a petrochemical complex of the country, Azerbaijan's demand in chemical production amid intention of the Korean companies to cooperate with Azerkimya.

MRC

(plastemart) -- Celanese Corporation's Advanced Engineered Materials business has completed a transaction to acquire two product lines, DuPont Zenite liquid crystal polymer (LCP) and Thermx polycyclohexylene-dimethylene terephthalate (PCT), from DuPont Performance Polymers. "This acquisition will continue to build upon Celanese's position as a global supplier of high performance materials and technology-driven applications as we continue to expand our innovative offerings in growth-oriented segments to support our customers," said David Weidman, chairman and CEO, Celanese. "These two products broaden the company's Ticona Engineering Polymers offerings, enabling Celanese to respond to a globalizing customer base, especially in the high growth electrical and electronics application segments." "As the leading supplier of high performance engineering resins, DuPont Performance Polymers is fully committed to growing and strengthening its broad product portfolio," said Diane Gulyas, president, DuPont Performance Polymers. "DuPont Performance Polymers has concluded that this opportunity to divest Zenite LCP and Thermx PCT is in the best long-term interests of our portfolio and customers. We will work closely with Celanese to make the transition period as effective as possible for our customers.

MRC

(plastemart) -- A series of unplanned cracker and derivative issues in Europe are driving ethylene (C2) and propylene (C3) markets in opposite directions. Currently, cracker reductions are reported at Priolo, Italy; Tarragona, Spain; Carling, France; Cologne, Germany; and Grangemouth, UK. However, none were officially confirmed by the companies concerned.

Borealis' cracker at Porvoo, Finland with capacity to produce 380,000 tpa ethylene and 220,000 tpa propylene, is confirmed to be running at reduced rates due to a furnace issue. Dow Chemical's No 2 cracker at Terneuzen, Netherlands has been out of action after having tripped on 5 May. The cracker has the capacity to produce 590,000 tpa ethylene and 295,000 tpa propylene. Feedstock constraints triggered some production difficulties at Dow's cracker in Spain that has now been sorted and the cracker is currently running at near full rates. Scheduled maintenance continues at Dow's cracker at Boehlen in Germany and a restart is not due for another two to three weeks. LyondellBasell's Berre, France cracker continues to run at reduced rates following its restart after planned maintenance a week or so ago. Its butadiene (BD) force majeure had been extended into May because of feedstock crude C4 constraints.

MRC

(Borealis) -- Borealis, a leading provider of chemical and innovative plastics solutions, announces a net profit of EUR 54 million for the first quarter of 2010, compared to a net loss of EUR 56 million in the first quarter of 2009. Despite an increase in net debt, the company's financial position remains solid with a gearing ratio of 49% at the end of Q1, compared to 43% in Q1 2009, within Borealis' target range of 40-60%.

In line with the general market trend, both feedstock prices and polyolefin market prices continue to increase. Due to this development as well as some delays in expansion projects in the Middle East, industry margins improved during the first quarter of 2010. Borealis' positive result was also driven by an increase in sales of value added products within the company's portfolio.

In the base chemicals business group, Borealis saw some recovery with sales volumes in melamine and plant nutrients as well as in phenol. The results of Borealis' joint venture Borouge also contributed positively to the results of the first quarter.

In an effort to stay competitive, Borealis closed, as planned, its high-density polyethylene plant in Beringen, Belgium on March 31.

MRCMRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE - 8.7%);
polypropylene - 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene - 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding.