LANXESS focuses in Russia on the megatrend of mobility

(LANXESS) -- The German specialty chemicals group LANXESS is focusing on the megatrend of mobility on the Russian market too. At its new site in Lipezk, LANXESS subsidiary Rhein Chemie will produce rubber additives and release agents for the Russian and CIS markets, especially for the automotive and tire industries.

Construction of the new production plant is due to start in early 2012, with the launch of production scheduled for the first half of 2013. In 2016, a production facility for bladders used in tire production is to be added. Total investment will amount to around EUR 5 million, creating 40 new jobs in the medium term.

Every year, the company will produce up to 1,500 metric tons of Rhenogran rubber additives and around 500 metric tons of Rhenodiv release agents at the new plant in Lipezk. These products are used primarily in the manufacture of car tires and technical rubber products such as hoses and seals. In 2016, a facility able to produce up to 80,000 Rhenoshape bladders annually is to be added to the complex. Bladders are used in the tire industry to give tires their ultimate form and properties.

MRC

(ICIS) -- Westlake Chemical has made a USD30/share (EUR23/share) bid valued at more than USD1bn (EUR780m) to acquire all outstanding shares of Georgia Gulf, the US chemicals firm said on Friday. Westlake said it first approached Georgia Gulf on 20 September with its proposal.

However, Georgia Gulf has been ⌠unwilling to provide us with information that would allow us to explore these opportunities or to enter into substantive discussions, Westlake added. Georgia Gulf did not immediately return a call seeking comment. Georgia Gulf had nearly 34m outstanding shares, according to a regulatory filing made in March, 2011.

Westlake said its bid reflects a 51% premium to Georgia Gulf's 30-day volume-weighted average share price of USD19.82, and a 66% premium to Georgia Gulf's volume-weighted average closing share price of USD18.02 since the initial offer from 20 September. Georgia Gulf's shares were up USD8.81 to USD33.29/share at 09:49 hours New York time (14:49 hours GMT). Westlake, which already holds 4.8% of Georgia Gulf's shares, said its all-cash proposal is not subject to financing conditions.

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(ICIS) -- The European January orthoxylene (OX) contract has settled at EUR960/tonne (USD1,215/tonne) - a rise of EUR40/tonne from the previous month, two producers and two consumers confirmed on Monday. The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis. Buyers and sellers said the increase is being attributed to the euro-dollar exchange rate, as well as pricing trends in the US and Asia and current market conditions.

⌠The price went up based on the euro exchange rate and energy costs, a producer said.
A buyer said that in addition to the above reasons, prices had increased because producers want to reclaim some margin. The buyer also said: ⌠January demand has been fine, not a very good month, but better than December.
A lack of transparency prevails in the OX spot market. However, prices are firming on export demand, with traders notionally assessing values at USD1,330-1,400/tonne FOB (free on board) Rotterdam.

Despite weak domestic consumption because of poor macroeconomic conditions, derivative phthalic anhydride (PA) demand is also firmer than in December because of restocking. Additionally, exporters say overseas buying interest for European material is growing, and exports to the Middle East, Asia and Africa have increased sharply in January.

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(ICIS) -- Shares of petrochemical companies in Asia tumbled on Monday on concerns over a worsening debt crisis in Europe after Standard & Poor's (S&P) lowered the credit ratings of nine countries in the eurozone. Asia is vulnerable to the economic woes of the industrialised West because Asia is reliant on exports for growth. Exports from Asia will be badly affected if another recession were to hit the US and the eurozone.

At 12:44 hours Singapore time (04:44 GMT), Mitsubishi Chemical was down by 0.95%, Mitsui Chemicals slipped by 2.57% and JX Holdings declined by 2.39%, with the benchmark Nikkei 225 index dipping by 132.26 points or 1.56% to 8,367.76.

In South Korea, Kumho Petrochemical declined by 5.72%, SK Innovation fell by 3.22%, LG Chem slipped by 0.87% and SK Innovation eased by 2.23% as the KOSPI composite index retreated by 27.56 points or 1.47% to 1,848.12.

In Hong Kong, Shanghai Petrochemical was down by 0.67% and PetroChina fell by 2.0% as the Hang Seng index declined by 182.57 points or 0.95% to 19,021.85.

The China Shanghai composite index decreased by 12.60 points or 0.56% to 2,231.98.
Recession risks have heightened in the eurozone after France and Austria lost their AAA investment grade sovereign rating, while Italy, Spain and Portugal received a two-notch downgrade last Friday.

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(ICIS) -- Saudi Aramco has signed a joint venture agreement with China's state-owned oil refiner, Sinopec, to build a 400,000 bbl/day refinery in Yanbu on the kingdom's Red Sea coast, the country's official news agency said over the weekend.

The project, named Yanbu Aramco Sinopec Refining (YASREF), will begin production in the second half of 2014, Saudi Press Agency (SPA) said in a report on its website. YASREF will process Arabian heavy crude oil to produce refined products for the domestic and global markets, according to a separate statement by Sinopec.

The refinery will be able to produce 90,000 bbl/day of gasoline, 263,000 bbl/day of ultra-low sulphur diesel, 6,300 tonnes/day of petcoke and 1,200 tonnes/day of sulphur, Sinopec said. State-owned Saudi Aramco will hold a 62.5% stake in the refinery and Sinopec will own the remaining 37.5%, SPA said.

The cost of the project should be within USD10bn (EUR7.9bn) including debt, Khalid al-Falih, Aramco's CEO and president, was quoted as saying by Reuters at the project's signing ceremony.
Meanwhile, Saudi Aramco is planning to invest in capacity additions abroad as well as new refineries in Al-Jubail and Jizan and the revival of a plan to expand the refinery in Ras Tanura, the report said.

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