RusVinyl Project Finance is announced Deal of 2011

(Sibur) -- The RusVinyl project finance deal between RusVinyl, SIBUR, SolVin and a group of international banks was recognised as the stand-out European deal in the petrochemical sector of 2011, according to the renowned British finance publication Project Finance International.
In June of 2011, RusVinyl signed a credit agreement for the provision of project finance to the order of 750 million Euro for a period of 12.5 years for the construction of Russia's largest integrated polyvinylchloride (PVC) production plant with the capacity to produce 330,000 tonnes a year. Financing is provided by a group of banks representing the largest global financial institutions, including Sberbank of Russia, the European Bank of Reconstruction and Development, BNP Paribas, ING Bank N.V. and HSBC.

As part of the signed agreement, 150 million Euro has been made available by Sberbank of Russia and the European Bank of Reconstruction and Development each, 450 million Euro by BNP Paribas, ING Bank N.V. and HSBC, against the security of COFACE and ONDD, the French and Belgian export credit agencies. The insurance provided by these export agencies ensures the supply of equipment, licences and the services of OSJC RusVinyl's French and Belgian partners.


RusVinyl LLC is a joint enterprise established on the basis of a partnership between CJSC SIBUR holding and SolVin for the purposes of the construction of a polyvinylchloride (PVC) production plant in Kstovsky area, Nizhny Novgorod region, with the capacity to produce 330,000 tonnes a year.


MRC

Dow and Aksa Akrilik to form a joint venture

(BUSINESS WIRE) -- The Dow Chemical Company, through its wholly-owned subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii A.S signed a definitive agreement to form a joint venture to manufacture and commercialize carbon fiber and derivatives.


The joint venture will develop and globally market a broad range of products and technical service support in the rapidly expanding carbon-fiber based composites industry. Very strong and lightweight, carbon-fiber based materials are used in a variety of applications in growth industries such as wind energy, construction, transportation, and infrastructure, where weight savings, emissions reduction, durability and energy efficiency are key performance factors.


Under terms of the agreement, Dow and Aksa will each hold a 50 percent stake in the joint venture. Following initial equity investments from the two companies, the JV will finance its growth through cash flow from operations and financial institutions. Total investment in the project, including third party investments, is expected to reach USD1 billion U.S. dollars in five years and create up to 1,000 employment opportunities.


The JV will expand on Aksa's existing carbon fiber production assets in Yalova, Turkey, and will capture growth by creating a large-scale, integrated production capability for the manufacture and supply of advanced carbon fiber technologies. The venture will have a particular focus on bringing solutions to market that reduce overall costs, thereby enhancing economics and driving adoption in a broader array of markets.


MRC

Total to restart its onshore operation in Libya

(Arabian oil and gas) -- French supermajor Total is to restart its onshore operation ⌠in a few days, according to a Reuters report. Michel Seguin, special advisor to the president of Total Exploration & Production, Yves-Louis Darricarrere, told Reuters.

There are still some logistical issues that need to be sorted out" but Libyan onshore production ⌠will resume in a few days.


Seguin was speaking on the sidelines of a visit to Libya by French Trade Minister Pierre Lellouche.


Before the Libyan civil war Total produced a total of 55,000 barrels a day in Libya. It's main onshore asset is the 19,000 bpd Mabruk field. Production at Total's offshore Al Jurf field has been continuing since 25 September at a rate of 41,000 barrels per day.


MRC

Octal Petrochemicals plans an expansion of over USD 200 mln

(Plastemart) -- Oman's PET producer and sheet extruder Octal Petrochemicals is planning an expansion at an outlay of over USD200 mln. Capacity will be increased at its Salalah, Oman, production plant by June 2012. Two more reactors and will be added in the expansion Octal has 880 mln lbs of PET capacity of which 770 mln lbs can be used for on-site sheet production.

MRC

GSFC to set up an integrated fertiliser and petrochemicals complex at Gujarat

(Plastemart) -- Gujarat State Fertiliser Corporation (GSFC) is setting up an integrated fertiliser and petrochemicals complex at Dahej, Gujarat, at an investment of Rs7,000 crore with an aim to consolidate its position in specialty chemicals. The detailed project report is ready and the process of land allocation and tendering is in progress. Project capacities will include: 1 mln of urea, 0.1 mtpa of caprolactum and 40,000 mtpa of melamine. Any major impact on the company's topline could be visible only after four years when the complex is ready.
⌠The advantage with GSFC is that it has an integrated complex which helps it in manufacturing caprolactum and melamine at highly cost-effective prices which helps in clocking higher margins. With yet another integrated facility coming up, GSFC's leadership in these two chemicals will be unchallenged, said Salil Garg, director at Fitch Ratings.


According to the company's presentation, GSFC currently holds 60% market share in caprolactum and 40% in melamine and experts say it enjoys virtual monopoly in these two chemicals.


MRC