Shin-Etsu PVC proceeeds down by 25%

(Plasteurope) -- Shin-Etsu, the world's leading PVC manufacturer, has counted the results of the recently ended financial year. Sales of the PVC business division fell by about 25% to JPY 242.7 bn (about EUR 1.85 bn) the group reports. This means that Shin-Etsu's PVC business, part of the ⌠Organic and Inorganic Chemicals division, generated about 26% of total group revenues of JPY 916.8 bn (2008: JPY 1,200.8 bn).

Low demand and rising feedstock costs put a damper on PVC business in Japan, where the overall operative result of PVC activities dropped to JPY 17.4 bn (JPY 36.7 bn).

At JPY 83.9 bn (JPY 154.7 bn), group net profit declined by almost half. Shin-Etsu is planning further cost reductions. Despite the signs of a global economic recovery, the group says this is no reason to be confident about the future. In Japan, for example, unemployment figures and fears of a possible deflation are dampering spirits - one of the reasons why management for now has declined to give a forecast. The group currently is in the midst of liquidating its Mexican subsidiary Shin-Etsu Polymer Mexico.

MRC

TOMSK (SIBUR) -- SIBUR chemical technological and scientific centre NIOST has made first industrial tests of new ⌠N catalyst, which is to essentially reduce operational costs.

In rubber polymerization process its insoluble fraction remains on the surface of reactor equipment. Today cleaning of reactor equipment is made manually. New ⌠N catalyst promotes the destruction of insoluble part of rubber into small fragments with their further solution. Time of reactor cleaning using new catalyst will shorten from 14 to 4 days.

MRC
MRC 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%.

(Nizhnekamskneftehim) -- Another meeting of the board of Nizhnekamskneftehim took place on May 28 with the chairmanchip of ⌠TAIF CEO A. Shigabutdinov, which was regarding executive and board activities.

The board has accepted the new staff with the chairmanship of V. Busygin. The board has also assigned the duties of activity management between tthe board members of ⌠Nizhnekamskneftehim and the business plan of ⌠Nizhnekamskneftehim executive board.

MRC

In 2009 PP market in Russia has shown a desirable crisis steadiness getting a 2% development (totals 634 kt). In Q1 2010 the demand for this polymer was lower than in Q4 2009 on the level 160 kt (-3%). However, this is a seasonal factor, in total PP consumption in Russia shows stable positive trends. So, in Q1 2010 comparing with same period in 2008 the growth formed 6%. Packaging and film production sectors served as drivers of growth in 2009.

By year results, the production has grown by 20% to the volumes of 595 kt. Production capacities of the domestic producers are almost 100% charged last times. Supplies into the domestic market increased 4% in Q1, and exports formed about 26 kt this period. However, imports into China, Turkey, Ukraine and other countries almost totally disappeared in March and April (see mrcplast.com from May 13).

During year 2009 many companies invested into PP processing equipment (total investments formed about USD 86 mln. There are many projects in packaging and multilayer film (see mrcplast.com from April 16) among them. Auto and geotextile production and others are also actively developing. This defines the active PP demand provoking imports increase (see mrcplast.com from May 14), promoted by falling EURO.

MRC

For more detailed event analysis and PP market development forecasts please refer to MRC Annual reports.

(NOVA) -- In the first quarter of 2010, NOVA Chemicals generated net income of $94 million as compared to a net loss of $123 million for the first quarter of 2009 and net income of $17 million in the fourth quarter of 2009 as margins and demand for products improved.

The Olefins/Polyolefins business unit generated $185 million of operating income in the first quarter of 2010 versus an operating loss of $38 million during the first quarter of 2009. The year-over-year improvement was due to higher sales volumes and selling prices that increased more than feedstock costs.

The INEOS NOVA joint venture operating income improved from breakeven in the first quarter of 2009 to operating income of $16 million in the first quarter of 2010.

MRC