Solvay Q1 profit up on recovery

BRUSSELS (Reuters) -- Belgian chemicals and plastics maker Solvay on Tuesday targeted more savings of up to 120 million euros and said profit should improve in 2010 with an industry-wide recovery.

The company posted first-quarter recurring earnings before interest and tax (REBIT) from its chemicals and plastics operations of 115 million euros, up 80 percent and matching the average forecast in a Reuters poll. Solvay said sales grew significantly in specialties cluster and pointed to global economic improvement, particularly in Asia, echoing specialty peers Arkema and Lanxess.

"These are strong results. We were a little afraid on the chemicals unit due to lower soda ash prices, but Solvay seems to have made some additional cost savings following on the measures taken in 2009," Rabo Securities analyst Fabian Smeets said. Solvay said if rising demand so far in 2010 continued, the chemicals business should report REBIT over 2010 in line with 2009, despite declines in its prices. At plastics, the company said volume growth should support an increase in REBIT.

MRC

Cereplast enters exclusive distribution agreement with CRS Technologies to supply bioplastic resins

EL SEGUNDO (Business Wire) -- Cereplast, Inc., a leading manufacturer of proprietary bio-based, sustainable plastics, today announced that it has entered into an exclusive distribution agreement with Kuala Lumpur-based CRS Technologies Sdn. Bhd. to supply bioplastic resins in Malaysia. This new agreement supports CRS Technologies' goal of expanding its product line by offering its custom sustainable solutions for functional plastic coatings in various applications.

Under the agreement, CRS Technologies will utilize both Cereplast Compostables and Hybrids Resins in its manufacturing process for customers throughout Malaysia. All Cereplast resins replace a significant percentage of petroleum-based additives with starches made out of corn, wheat, tapioca and potatoes or Ingeo PLA, allowing bioplastics to return back to nature within 180 days of disposal for the Compostables or offering a more sustainable alternative with Hybrids resins for durable applications. Malaysia is a net importer of resins from the United States, which provides 10% of the country's supply. Cereplast's bioplastic resins allow CRS to supply its customers with new bio-based materials and fulfill their demand for more environmentally sustainable solutions.

⌠CRS Technologies' decision to choose Cereplast's bioplastic resins highlights its commitment to innovation by offering its customers an alternative to traditional petroleum-based plastics, that is functionally equal and reduces the impact on the environment, stated Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. ⌠This follows on our recently announced expansion into China and is an important part of our growth strategy, as we engage strong Asian distribution partners such as CRS that are promoting increased awareness regarding the benefits of our bioplastic/compostable resins within key geographic regions around the world.

According to estimates by market research group Freedonia, the global demand for bioplastic resins that are biodegradable will rise more than fourfold to 900,000 metric tons in 2013, valued at $2.6 billion. Within the next decade, the global bioplastics market share is expected to jump up by 25% to 30%.

MRC

Ineos Nova offers new styrenic copolymer

(Plastics News) -- Ineos Nova LLC has launched Clearblend -- a new entry to the firm's lineup of styrenic copolymers.

Clearblend is a clear, impact-modified styrene acrylic copolymer that's intended for injection molding applications. The material has been designed to provide a cost-effective balance of clarity and toughness, North American polymers vice president Ed Barnes said in a May 3 news release. "Potential applications for Clearblend include housewares, drinkware, toys and device components, officials with Channahon, Ill." - based Ineos Nova said. The material also is made without bisphenol A or phthalates.

Clearblend shares some similarities with Ineos Nova's Zylar and NAS styrenic copolymers, but the material is offered as a dry blend instead of as a fully compounded product, according to styrenic copolymer product manager Marty Spatz. As a result, the material is ⌠a lower-cost offering, Spatz said by phone May 11.

Alleged health risks surrounding BPA ≈ commonly used as a feedstock in polycarbonate ≈ have led some plastics processors to seek out BPA-free materials. Clearblend and other styrenic copolymers made by Ineos Nova also can provide source reduction and lower energy consumption, officials added.

Clearblend is made at an Ineos Nova plant in Springfield, Mass. The firm ≈ a 50-50 joint venture between Ineos Group of Fribourg, Switzerland and Nova Chemicals of Pittsburgh ≈ also makes solid polystyrene in Springfield, as well as at plants in Joliet, Ill.; Decatur, Ala.; and at four sites in Europe.

MRCMRC Reference

Ineos is a petrochemical group.
In Russia Ineos's interests are represented by Ineos Polyolefins and IneosChlorVinyls.

The share in the Russian market in 2008:
PVC - 4.5%;

polyethylene - 1.9%
(HDPE - 2.8%, LDPE - 1.2%);
polypropylene - 1.4%
(PP-random - 22.1%, PP-impact - 2.0%);
polystyrene - 0.9%.

Imports by polymers processing technologies:
profile extrusion;
pipe extrusion;
film extrusion;
injection molding.


Borouge sets up logistics hub in Singapore

ABU DHABI (Khaleej Times) -- Abu Dhabi Polymers, or Borouge, has set up a mega logistics hub in Singapore to boost its plastics export business in the South-East Asia region.

The logistics hub would be the third such facility in Asia established by the Abu Dhabi-based polymer maker, after it successfully launched warehouses in Shanghai and Guangzhou in China, its main export market.

Set up in association with CWT, one of the largest logistics company in South East Asia, the warehousewill handle up to 10 per cent of Borouge's total production capacity, an official told Khaleej Times from Singapore.

MRC

MRC 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.


Saudi-Chinese JV petchem plant starts production

(prw) -- Saudi Basic Industries Corporation, one of the world's largest chemical makers, says commercial production has begun it the joint-venture petrochemical complex it operates with China's SINOPEC.

SABIC said in a statement Tuesday that preproduction operations at the plant in Tianjin, China, began in January. The complex, which has a capacity of 3 million tons per year, was set up as a 50-50 venture with SINOPEC in November 2009.

In January, SABIC said it had secured almost $2.7 billion in financing agreements from Chinese banks and institutions for the project. The project is one of several between China and the oil-rich Gulf Arab nations. The Asian giant has been increasingly turning to the region for oil to fuel its growth.

MRC