SIBUR summarizes the results of visit to Saudi Arabia and Iran

MOSCOW (SIBUR) -- SIBUR summarized the results of the working visit of the Company's representatives to the Kingdom of Saudi Arabia and to the Islamic Republic of Iran made for acquaintance with existing petrochemical operations and those under construction.

In Saudi Arabia, SIBUR's managers visited the world's largest individual ethylene, polyethylene, ethylene oxide and ethylene glycol capacities. Location of the sites makes allowance for potential increase in capacity, and displays maximum attention to environmental and industrial safety issues. New complexes may use not only ethane but also heavier cuts as raw materials, thus increasing the production capabilities.

Following the results of the analysis, the visitors noted that the rapid development of the petrochemical industry of the two countries was a good example of organization of rational use of existing natural resources and a direct result of the state support in supply of cheap raw materials, creation of a favorable legal regime, and due attention to infrastructural problems.

MRCMRC Reference

Sibur Holding is the largest Russian petrochemical group.

Shareholders:
Gazprombank (70% minus 1 share);
Gazfond (25% plus 1 share);
5% reserved for option program.

The share in the Russian market in 2008:

polyethylene - 11.1%;

polypropylene - 16% (including PP-random - 11.2%);
ABS - 5.2%;
PVC - 8.1%.

(prw) -- Plysolene, based in Partridge Green, West Sussex, has doubled its polystyrene sheet capacity by investing in a second extrusion line. The new machine is capable of producing high-quality high-impact polystyrene sheet in either a matt or gloss finish, says the company, and complements its existing production line.

Managing director Steve Ratcliffe commented: ⌠It was a very easy decision to invest in a second line, because of the outstanding success of our first machine. We believe that the UK sheet market needs a flexible UK-based supplier offering excellent customer service. The tremendous growth we have seen in our business vindicates this view.

The line was purchased from Trans-XL and formed part of a ?300k plant investment made by the Watts Group at Plysolene.

Plysolene sales director Tom Duxbury is excited at the opportunities which the new capacity will bring: ⌠It will ensure that we maintain our excellent service levels, and will give us the potential to grow our business in 2010.

MRC

LONDON (ICIS news)--LyondellBasell has declared force majeure on polypropylene (PP) from its joint venture Basell Orlen Polyolefins (BOP) 400,000 tonne/year plant in Plock, Poland, market sources said on Wednesday.

In a statement, the company said that ⌠as a result of unforeseable technical production problems due to low polymerisation in the Plock PP plant, it was unable to supply PP grades from Plock.

The company gave no time frame as to how long the restrictions would remain in place but assured customers that it was analysing the root causes of the situation to be able to restore normal supply as soon as possible.

This news came as a blow to some PP buyers who were already under force majeure restrictions from Total Petrochemicals.

MRCMRC 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.

(plasteurope) -- At the onset of May 2010, the newly founded Toray Films Europe (TFE, Saint-Maurice-de-Beynost / France) started up a plant for biaxial polypropylene film (BOPP) in Saint Maurice, near Lyon - see also Plasteurope.com of 11.02.2008. The EUR 70m extension of the plant brought 80 more jobs, bringing TFE's workforce up to 540. The new line mainly produces high barrier films for food packaging applications. A part of Toray Plastic Europe, TFE belongs to the Japanese chemical group Toray.

MRC

Development of construction sector turned out to be a strong stimulus for low and middle voltage cable production expansion. At the same time, 110/220/330kV power cable production had been already been existing in the domestic market for a long time. Major volumes of 110-500kV cables were imported from NKT cables, Brugg cables, Nexans, Prysmian, Zud cables. However, domestic producers have been actively winning their market share by expanding power cable production (Kamkabel, Sevkabel etc.), recently.

Tatkabel, Invent group project, became an unbeatable investment leader in 2009 (over USD11 mln.). The plant is finishing installation of the equipment. One of the strategic goals of the company is to win a niche in the market of up to 330kV, including, power cables. Four lines were installed at the plant's production site: 2 Rosendahl Maschinen lines to make cables with PVC and PE shells; 2 Finland's Maillefer lines to make cables with cross-linked shells: one line for 10-20kV cables and the second one for 10-35kV cables. The plant is planning to produce 5670 km of all cable types annually.

Kirskabel and Sibkabel are also among investment leaders who use 110 and 15kV cable production lines, respectively.

MRC

Detailed analysis of events happened in the Russian polymers market in 2009 and development forecast for this market for 2010-2013 can be found in MRC Annual reports.