SIBUR plans NPP Neftehimia reconstruction

(SIBUR) - SIBUR is considering a possibility of NPP Neftehimia Ltd. (Moskovsky NPZ associate) reconstruction and development of polypropylene production capacities.

In early June 2010 Russian FAS (Federal Antimonopoly Service) announced about a permission to purchase 50% stake of NPP Neftehimia Ltd. given to SIBUR. The deal is scheduled with an investment into authorized capital stock for creation of a JV on an equal footing with Moskovsky NPZ.

Scientific production enterprise Neftehimia Ltd. Is a fully integrated unit with Moskovsky NPZ; it uses self-produced propane-propylene fraction. The capacity is 100.000 tpa of polypropylene. Stock holders: GAzprom-neft Ltd. And Moscow Government.

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Sibur Holding is the largest Russian petrochemical group.

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

(prw) -- Polish plastics profile moulder Elmark Tarnow plans to expand its production operation in Krakow Technology Park in Poland.

The family-run company, which has been operating in the park since 2003, has been granted a new business activity consent to extend its manufacture of plastics and rubber based products there.

Tarnow, Poland-based Elmark which employs 40, extrudes cable ducting and pipe for electrical, telecoms, computer and TV networks. It also operates injection and blow moulding lines.

The company is reported to be investing the equivalent of ┬242,000 in the expansion project which will create an unspecified number of additional jobs.

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(Kaustik) - From January to May 2010 production at Volgograd-based Kaustik in financial figures formed 2.259.744.000 rubles, which is 7,2% more than same period in 2009.

In first 5 months in 2010 compared with same period last year the production increase of liquid caustic soda (+5,7%), hydrochloric acid (+0,5%), granular caustic soda (+4,6%) and liquid chlor (+18,6%) was observed.

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(prw) -- Polish oil group PKN Orlen is seeking new bidders to buy its PVC subsidiary Anwil after exclusive talks with the Polish chemical company Zaklady Azatowe Pulawy (ZAP) broke down.

Negotiations over the sale of an 85% stake in Anwil with ZAP, one of three original would-be buyers, began in April, but collapsed this month (June) when Orlen rejected a revised ZAP bid.

The parties decided to terminate discussions because of differences between their respective views ⌠on price and non-price conditions of a transaction, according to Plock-based Orlen.

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At the same time, in the market of some types of polyethylene in Europe lowering of prices on EUR 10/mt was observed as the situation with supply improved. In Asian market PE prices continue to decrease due to uncertainty in global stock market and falling ethylene prices. The decrease in Asia formed average USD 20-40/mt.

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For more detailed information about PE market in Russia please refer to MRC Price reports.