Germany's Masterflex announced its expansion into Asia

(Masterflex) -- Following intensive preparations, the Masterflex Group is now starting its expansion into Asia. The Asian lead company Masterflex Asia Pte Ltd is currently in the process of being established in the city-state of Singapore. Another subsidiary is also being set in motion near Shanghai in China. While the operation in Singapore will focus on the expansion of distribution in the region, as well as the management of all business in Asia, plans for China also include production from 2012 onwards.

With this move to the East, Masterflex, the global specialist for hoses made from high-tech plastics, is driving its growth strategy forwards. "In Asia, and particularly in China, we see a potential for our hose and connector systems in the medium and long term", says Dr Andreas Bastin, Group CEO. "Alongside our wide range of products for industrial applications, such as in mechanical and plant engineering, our solutions for the medical as well as food technological expertise for applications in the aviation and automotive industries are in increasing demand on the Asian markets."

After the successful expansion in Brazil and Russia in 2010, this step means that Masterflex will serve all four BRIC countries in future. Bastin adds: "With an annual growth forecast of 8%, the BRIC countries hold much greater growth potential than Europe and North America. That is something that we cannot ignore, nor do we have any intention of doing so."

The move into Asia was preceded by intensive preparations in terms of market research. As Bastin explains, "We spent more than a year analysing market data and competitors, holding extensive talks with existing or potential customers from Asia, conducting research in the field, visiting trade fairs and speaking to German SMEs with a presence in the area - not least to avoid teething problems as best we can. And now it's all happening."

Some Masterflex customers from Europe and North America have production facilities in the region. There is also an array of potential new customers, including both companies from the West and Chinese manufacturers that wish to export their products and are therefore very interested in high-quality connector elements.

MRC

(Plastemart) -- Purnendu Chatterjee, promoter-investor in Haldia Petrochemicals Ltd (HPL) is believed to have approached Mr Agarwal, who owns the USD12 bln mining and metals Vedanta group, to bail him out of the Haldia Petrochemicals imbroglio, as per telegraphindia.com. Chatterjee is trying to protect his position in HPL - the petrochemical joint venture in which his TCG Group and the Bengal government hold the largest stakes. Bengal state government intends to auction its entire holding of 67.5 crore shares in HPL - a 43.29% stake.

The planned auction - a transparent bidding process is expected to yield the best valuation for its stake. Chatterjee holds a right of first refusal before any share transaction can take place. The Bengal government is expected to ask him to match the highest bid thrown up in any auction. TCG has already contested the Bengal government's right to conduct an auction and insists that the shares should be sold at a mutually agreed valuation. At the same time, he is trying to draw a subtle distinction between the 15.5 crore shares held by the government that the Left Front regime had offered him in 2002 and the remaining 52 crore shares.

The first tranche had been offered to him at extremely favourable terms. The transfer of this stake will make TCG the majority shareholder in HPL. TCG wants this transfer to take place immediately. Purnendu Chatterjee wants the remaining 52 crore shares transferred at a price discovered through a process of valuation by an independent firm.

MRC

(Plastemart) -- Earnings of GCC (Gulf Cooperation Council) petrochemical companies increased 62.4% yoy to USD 3.57 bln in Q3-2011, vs USD2.19 bln in Q3-2012, the Kuwait-based Global Investment House (Global) said in its GCC Petrochemical Sector quarterly report. Overall, performance of regional petrochemical companies was mixed with SABIC, IQ, SAFCO, YANSAB, TASNEE, Sipchem and Dana Gas reporting better than expected earnings while other stocks such as Saudi Kayan Petrochemical Co., Rabigh Refining and Petrochemical Co., Saudi Petrochem and Nama Chemicals Co. continued to extend their losses as they are yet to start full throttle commercial production.

Within the GCC petrochemical companies, Global Research Petrochemical Universe witnessed a sizable growth of 61.5% during Q3 in the profitability. Prices of petrochemical products increased by an average by 31.5% during Q3. Producers passed on the impact of sharp rise in the prices of naphtha and other raw materials used in petrochemical products to the consumers as the prices of various petrochemical products rose in the range of 15-55%. In addition, strong increase in demand from Asia, particularly China, has resulted in upward pressure on end-products prices.

According to the Global report, the petrochemical sector's sales and net profitability to show limited QoQ growth as the oil prices are expected to stay in the range of USD90-100 a barrel in Q4. In the first nine months of 2011, the petrochemical sector's profitability went up by 54.9% to USD9.7 bln. SABIC continued to remain the lead contributor to the sector profitability at 65.5% followed by Industries Qatar and SAFCO at 17.6% and 7.7% respectively.

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(HIP Petrohemija) -- The Government of the Republic of Serbia on its session Thursday, December 15, 2011, adopted a Budget Act proposal for 2012. This proposal contains, among other issues, guarantee issuance by the Republic of Serbia in the favour of the business bank as a security for providing a loan for financing the first phase of the investments program in 2012, which includes capacity expansion of HIP Petrohemija's polyethylene plants, the amount of investment being EUR 27 mln.

Providing the loan for HIP Petrohemija with the guarantee of the Republic of Serbia is just a part of the Agreement on Strategic Partnership between NIS (Oil Industry of Serbia) and Serbian Government in a field of increasing production efficiency and financial stability of HIP-Petrohemija, which was signed on November 21, by NIS CEO Kirill Kravchenko and Minister of Economy and Regional Development, Nebojsa Ciric.

Since the adoption of the Republic Budget by the National Assembly is expected to take place before December 30, 2011, at the latest, the adopted proposal for the budget act is the first step in the investment program realization and also presents confirmation by Serbian Goverenment of their intention to support the business and financial recovery to HIP-Petrohemija - as judged by the company management who also express their expectation that the Government will also support HIP-Petrohemija in 2013, for additional amount of EUR 35 mln, as predicted by the investment program.

MRC

(ICIS) -- Asian butanediol (BDO) appears poised to hit a new 10-month low in early next year because of weak demand in key China market as construction slows in the country and a regional supply overhang, industry players said on Wednesday.

On 20 December, bulk-based BDO cargoes were offered at USD2,450-2,500/tonne (EUR1,862-1,900/tonne) CFR (cost and freight) CMP (China Main Port). The offer level represented new nine-month low for BDO, and it was the sixth consecutive week that BDO prices had fallen. Industry players, however, said that the worst is yet to come.

On Wednesday morning, one regional producer said that it was prepared to continue reducing its offers in order to control its inventory levels. ⌠Since early November, we have not received a single enquiry for spot BDO cargoes. We don't foresee any improvement moving into the first quarter of 2012, given the terrible state of the Chinese real estate market, said the producer.

A downturn in real estate development slows down BDO sales because it is a feedstock for polyurethane (PU), which in turn is used in products for the construction industry in the form of flexible, high-resilience foam seating, rigid foam insulation panels, high performance adhesives, surface coatings, surface sealants and hard-plastic parts.

The last time BDO prices plummeted below USD2,500/tonne CFR CMP was on 8 February 2011.
Local media in China reported that government-sponsored land auctions in cities nationwide have slowed in recent months, reflecting shrinking consumer demand and what one executive called a ⌠winter mode strategy of major developers.

The China Index Academy said home prices fell by an average 0.28% month on month in November, the third monthly decline in a row.

MRC