JV between Formosa Petrochemical and Kraton Performance Polymers got approval

(Plastemart) -- The Fair Trade Commission (FTC) has approved a joint venture between Formosa Petrochemical Corp and Kraton Performance Polymers Inc. The joint venture will include the construction of a plant to produce hydrogenated styrenic block copolymer (HSBC). Located in Mailiao, the plant is expected to cost between US$165-200 mln and to be operational by H2-2013. Because Formosa Petrochemical has more than a 25% share of Taiwan's ethylene, propylene and gasoline markets, it had to seek permission from the FTC for the project to go ahead because of monopoly concerns.

As per an FTC statement, although Formosa Petrochemical is the leading provider of petrochemical ingredients, Taiwanese suppliers are still able to import such ingredients from abroad and the deal would therefore not limit their sourcing choices. Further, the joint venture will not lead to any dramatic change in market share and has therefore been approved.

MRC

(Plastemart) -- PTT Global Chemical (PTTGC) Plc will invest aggressively in Asean, mainly Indonesia, through all types of projects - green field, joint ventures and merger and acquisition. The new investment will focus on petro-based chemical and bio-based chemical businesses, under the investment plan until 2020. The investment plan was completed after the merger of PTT Chemical (PTTCH) and PTT Aromatics (PTTAR) and Refining. PTTGC was created from the merger.
As per CEO Veerasak Kositpaisal, "PTTGC is designed as a petrochemical business flagship of PTT Group. Our focus from now rests on the petrochemical business, not refining.

Indonesia is in the focus, mainly because of its large the population size. The Philippines and Vietnam are highlighted as the interesting markets for petrochemical exports, with a population of nearly 200 mln population. "PTTGC will earn more revenue from overseas business. Our new investment will be overseas and Asean is our main destination," Veerasak said.

Veerasak expects the upward cycle of the global petrochemical industry next year, with tight supply and demand. As no new output is expected until 2014, the price of petrochemical products as well as spread will be lucrative.

MRC

(Arabian oil and gas) -- Total annual expenditure on ROV support of underwater operations is expected to grow from $891 million in 2010 to $1,692 million in 2015. New research published by international energy business advisors Douglas-Westwood shows that the fundamental market drivers for the ROV business are in growth and this is likely to continue for the foreseeable future.

Douglas-Westwood's latest edition of the World ROV Market Forecast 2011-2015 details the market for the operation of work-class ROVs. Europe is the largest market by a small margin over Africa with its strong growth driven by deepwater oil & gas activity.

The world fleet of work-class ROVs consists of 641 units operated by 21 companies and Oceaneering is by far the largest player with 241 units, 32% of the global total. The Douglas-Westwood report shows the present industry structure is the result of a series of mergers and acquisitions over some 30 years and M&A activity still continues.

MRC

(ICIS) -- Acrylonitrile (ACN) makers in Asia have cut production in the hope of halting an unabated decline of product prices that is now on its sixth month, industry sources said on Monday. Spot ACN prices have tumbled by more than $1,000/tonne (┬720/tonne) from early May to $1,700-1,750/tonne CFR (cost and freight) northeast (NE) Asia in the week ended 21 October, ICIS data showed.

Regional ACN producers such as Asahi Kasei in Japan, Tongsuh Petrochemical in South Korea and Formosa Plastics Corp in Taiwan are currently running their plants at about 80% of capacity, industry sources said. ⌠We will continue to run at about 80% of our total production capacities at our plants in Japan and South Korea until demand recovers, said a company source at Asahi Kasei.

Asahi Kasei can produce a total of 765,000 tonnes/year of ACN at its plants in South Korea and Japan. Its fully-owned subsidiary, Tongsuh Petrochemical has an ACN capacity of 315,000 tonne/year at Ulsan in South Korea, while its other two plants at Kawasaki and Mizushima in Japan have a combined capacity of 450,000 tonnes/year.

In China, Jilin Petrochemical has shut down two lines in Jilin that each have 106,000 tonne/year capacity. One line was shut in early October, with no firm date when the unit will resume production, a source at the company said. The other line has been shut since April. Jilin has two other ACN lines, each with a capacity of 120,000 tonnes/year at the same site, that are running at normal rates.

In Taiwan, China Petrochemical Development Corp (CPDC) has brought forward a 40-day turnaround at one of its two ACN lines in Kaohsiung to early October from its original date in November because of the current weak prices, a company source said.


MRC

(ICIS) -- Cytec is looking at ⌠all options to get value from its underperforming coating resins business, including a possible divestment, the CEO of the US-based specialty chemicals firm said on Friday. Cytec's coating resins business is seeing a slowdown in demand in a number of its markets, particularly in Europe, its largest market, chief executive Shane Fleming said. ⌠We are currently reviewing all options for this business, Fleming told analysts during Cytec's third-quarter results conference call.

Fleming would not rule out a divestiture. Other options may include shutting down portions of the business. However, given that the various segments of Cytec's coating resins business share equipment, it would be challenging to ⌠disentangle the assets, he said.

In a step to improve the business, Cytec is closing its powder coating manufacturing site in Brazil, Fleming added. While Brazil remains an important growth market, Cytec did not benefit from having local production there, he said.

MRC