Kaneka to form a joint venture with Mitsui & Co for CPVC production

(IBNlive) -- Chemical manufacturer Kaneka Corp has signed an agreement with Meghmani Organics and Japan's Mitsui & Co to form a joint venture to conduct feasibility study for constructing a chlorinated polyvinyl chloride (CPVC) production facility at Dahej in Gujarat.

The JV, Trience Speciality Chemicals, is scheduled to start production in 2014 with an initial annual capacity of 20,000 mt, which is expected to be scaled up in relatively early stages of production, a Kaneka release said here today.

An initial investment of USD 120 million has been planned - of which 41 per cent will be contributed by Kaneka, 39 per cent by Meghmani and the remaining 20 per cent by Mitusi, the release said.

"Demand for CPVC has been growing globally. In the domestic market, galvanised iron pipe has been replaced by CPVC and the trend has been accelerating in recent years. To grasp such market opportunity, Kaneka has been seeking for a chance to build a CPVC plant," the release said. Ahmedabad-based Meghmani manufactures agrochemicals, pigment and other speciality chemicals and has a facility at Dahej. Under the JV pact, it will supply chlorine to Trience.

The Japan-based international trading and investment firm Mitusi will handle raw material PVC procurement and will play a key role in CPVC sales and marketing in the Indian market, it said.

MRC

(Dow Jones)--Russian oil company OAO Lukoil Holdings said a fire Thursday at the Stavrolen chemical plant in southern Russia injured six people and partly disrupted production.

It was unclear when the fire, that broke out around 1400 local time (1000 GMT), would be put out and to what extend it would affect production, a spokesman said.

The Stavrolen plant produced 684,000 metric tons of petrochemicals, mainly polyethylene, last year.

MRC

(MRC) -- Low demand for polypropylene (PP) in the domestic market amid oversupply makes European producers increase exports at any cost, even by means of a serious decline in prices. The weakening of EUR against USD makes the task easier for European producers, according to ICIS-MRC Price Report.

PP prices in Europe reached the peak in May, followed by their gradual decline. The debt crisis in Europe and the subsequent decline in demand for PP forced European producers to cut back production volumes significantly.

However, by mid-December, despite a significant reduction in PP production loading, European market had demonstrated a surplus in supply.

Excess of PP in the domestic market forces European producers to increase export sales by a serious decline in prices.

By this week the European export prices of PP for CIS markets had achieved the following levels: raffia was offered on average for EUR1,000-1,030/tonne, FCA, injection molding PP-homo - on average for EUR1,030-1,080/tonne, FCA. Export quotations of copolymers of propylene seriously decreased too. Prices of block copolymers of propylene start from EUR1,100/tonne, FCA, statistical copolymer of polypropylene - on average by EUR20-40/tonne more expensive.

MRC

MOSCOW (MRC) -- By the year end, the calculated consumption of PET granulate in the Russian domestic market continues to decline. In November, this figure fell by 23% compared with the previous month and made about 24 thousand tonnes, according to MRC analysts.


The peak of consumption was in March and made 72.6 thousand tonnes, and then it had gradually been decreasing during the year. This trend resulted from falling sales in the sectors of final consumption, which prevented converters from getting rid of accumulated inventories.

In November, production volumes significantly reduced. Following the month's resultes, domestic producers of PET made 25.6 thousand tonnes of granulated polyethyleneterephthalate, which was 4 thousand tonnes less than October output. In general, this was equivalent to 60% of the total loading capacity of domestic plants for the production of granulate.

The fall of the total production resulted from the suspension for a scheduled turnaround of Senezh and Polief. In November, due to the continuing maintenance works, Senezh stood idle for about 20 days, Polief - about 10 days. During the turnaround PET granules were not produced at these enterprises.

The imports were lowering too. In November, the Russian domestic market imported about 6 thousand tons of PET, against 6.7 thousand tonnes in the previous month. At the same time, export shipments of PET increased by 2.5 thousand tonnes in comparison with October and made 7.7 thousand tonnes.

MRC

(4-traders) -- Songwon Industrial Group has announced it has acquired Additives Technology Greiz (ATG), one of Europe's largest manufacturers of One Pack Systems (OPS) products for the polymer industry. ATG's manufacturing plant is located in Greiz (Germany) and has produced dust free polymer additive packages since 2006. The terms of the acquisition were not disclosed.

One Pack Systems (OPS) products combine several additives into an integrated dust free, pellet form. Songwon's OPS products, which are sold under the Songnox OPS brand, are custom formulated and offer a number of key advantages such as uniformity and certified composition.

The market for OPS has been enjoying consistent growth as compounders and polymer producers continuously search for added value and more efficient production technology. Demand for Songnox OPS has increased in applications which require highly dispersed additives that result in improved product performance.

"This acquisition is a landmark step for Songwon", stated Jongho Park, Chairman and CEO of Songwon Industrial Group. "We promised our customers that we would meet their demands and we will now be able to deliver Songnox OPS in significant volumes immediately with the ability to expand the annual capacity up to 12.000 tons in the future. Our customers will also benefit from a broader range of technologies which we will combine with our own expertise to deliver new and more cost effective solutions based on our fully backward integrated stabilizer production."

MRC