Homan plans petrochemical production plant in Indonesia

(process-worldwide) -- Korean Homan Petrochemical plans the construction of a million-tons-per-year petrochemical production in Idonesia. A memorandum of understanding with a local steel firm for the acquisition of needed building area is already underway, insiders say.

Jakarta/Indonesia - Homan Petrochemical, the second-largest petrochemical producer in Asia, plans the construction of a new USD 5 billion petrochemical complex in Cilegon, Indonesia, reported the local Jakarta Post. Construction works are planned for 2013, Honam's senior managing director of business development, Kim Gyo-hyun is quoted. "We anticipate that the construction will be completed by 2016, but the Industry Minister (MS Hidayat) expects it can be finished faster," Kim told the press.

Only recently Homan had signed a memorandum of understanding (MoU) with Indonesian public steel company Krakatau Steel, which would provide 40 hectares of land out of the total of 60 needed to set up the compound. Currently, the project undergoes a first feasibility study, with financial issues remaining open for later, more detailed plans.

According to Kim, the facility would use local supplies of raw materials whenever possible. Due to the limited domestic production, imports were nevertheless inevitable, Kim is quoted. Based on the firm's proposal, an annual production of one million tons of ethylene, 550,000 tons of propylene, 600,000 tons of polyethylene, 700,000 tons of mono ethylene glycol, 600,000 tons of polypropylene and 140,000 tons of butadiene is expected.

MRC

US compounder and distributor PolyOne increased by 33% year-on-year in 2011

(plasteurope) -- Operating profit at US compounder and distributor PolyOne (Cleveland) increased by 33% year-on-year in 2011 to USD 233m on sales up 9% year-on-year at USD 2.9 bn. However, operating profit in the specialty engineered materials segment fell to USD 45.9m from USD 49.7m in 2010, on sales of USD 575m, up 11% year-on-year.

Operating profit in the company's specialty platform, which includes the specialty engineered materials and colour, additives and inks segments, reached a record high of USD 89.3m, up 2% year-on-year, on sales of USD 1.12 bn, up 7%. Operating profit in the distribution segment also reached a high, up 33% at USD 56m on sales up 9% at USD 996m.

Stephen Newlin, PolyOne chairman, president and CEO said that 2011 was a ⌠critical inflection point in the company's transformation into a specialty producer. During the year, it completed the acquisitions of Brazilian specialty engineering plastics producer and distributor Uniplen Industria de Polimeros (Uniplen, Sao Paolo) - and leading liquid colorant, additive and fluoropolymer producer ColorMatrix (Berea, Ohio / USA). The company also divested chlorine and caustic soda commodity manufacturer SunBelt during 2011.

"Looking at 2012, we expect another year of record adjusted earnings per share. However, growth rates may decelerate given the current economic environment,"Newlin said. "While a slowdown in the European economy and a weaker euro pose near term headwinds, we remain extremely optimistic about our medium to long-term growth prospects."


MRC

Imports of suspension PVC to Ukraine reduced nearly by twice

MOSCOW (MRC) -- In January Ukrainian companies expectedly reduced imports of suspension PVC by twice. Severe frosts at the beginning of the month and a serious growth of PVC prices in the external markets will affect February imports, according to MRC analysts.


In January there is a traditionally lowest demand for PVC. Though the beginning of this year appeared more than modest for the Ukrainian market. In January Ukrainian companies imported nearly 3,764 tons of suspension PVC that was nearly twice as less as in December 2011. More significant import was in January 2011 - 7,231 tons.


The main reason for such low imports was a low demand for PVC in Ukraine. Despite expected growth of PVC prices in the external markets in February, Ukrainian converters didn't make inventories. Many local converters resumed their operation only in February. The domestic producer - Karpatneftekhim (Lukoil group) - also affected the situation in the domestic market.

Last year some trading companies made serious purchases of PVC in US, but this year the situation changed. The bottom of export prices in USA fell at November, nevertheless, Ukrainian companies didn't hurry to make significant purchases of PVC.


Severe frosts at the beginning of the month and the growth of export prices for PVC in Europe (EUR70-100/tonne) will also affect suspension PVC imports to Ukraine in February. Preliminary resin import will make 6,500 tons this month.

In 2011 the Ukrainian market of suspension PVC grew by 7% and reached 134,550 tons. Because of the launch of the resin production at Karpatneftekhim, import supplies of suspension to Ukraine reduced by 5% last year and made 118,530 tons. Over the incomplete 7 months of operation, the Ukrainian producer gained 12% of the market of suspension PVC.


MRC

In January production of PP in Russia decreased by 12%

MOSCOW (MRC) -- In January, Russian producers reduced the volume of polypropylene by 12% to 48,653 tonnes. The decline in production resulted from the outage of the petrochemical complex Stavrolen due to the accident in December 15, 2011, according to MRC ScanPlast. In January, Russian producers made 48,653 tonnes of polypropylene, which was 12% less in comparison with the previous month. The main reason of the decline in production was the outage of petrochemical complex Stavrolen (Lukoil Group) due to an accident in December 2011.


Lukoil plans in March-April to resume production of polypropylene from external supplies of feedstock (PPF or propylene). Before that Stavrolen produced on average about 10,000-12,000 tonnes of polypropylene monthly.
Last month, other Russian producers expectedly reduced the volumes of polypropylene, the exception made only Ufaorgsyntez. The output grew by 9% (9,600 tonnes). Nizhnekamskneftekhim has reduced production volume in January by 6%compared with December, to 17,200 tonnes. Tomskneftekhim and Neftekhimiya cut the output by 2% and 5%, respectively, to 12,100 tonnes and 9,700 tonnes.


The share of homopolymers of propylene in the total production made 77%. The output of block copolymers of propylene increased by almost half due to an increase in output by Ufaorgsyntez, while the production of stat- copolymers of propylene, by contrast, was cut almost in half on the back of not operating them by Nizhnekamskneftekhim.


MRC

Solvay Q4 profit slips on weak European vinyl sales

(Reuters) - Belgian chemicals and plastics maker Solvay said on Thursday that a poor performance at its vinyls division in Europe contributed to it missing profit expectations for the fourth quarter.

Solvay said sluggish conditions in Europe, where the sovereign debt crisis is starting to filter through to the real economy, made customers cautious about the amount of stock they held of vinyls, a plastic used in building and consumer goods, knocking 10 percent off quarterly sales of the product in the region.

Solvay's fourth-quarter recurring core profit fell 23 percent to 355 million euros (USD464 million), including results from French specialty chemicals group Rhodia for the first time. Analysts in a Reuters poll had on average expected 411 million euros.

The results pushed Solvay shares down as much as 5 percent in early trade, though they had recovered most of the losses to stand down 1.2 percent at 77.46 euros at 0842 GMT.

"Europe is still weak, and Europe is really key for their PVC business as well, so ... it shows the vulnerability of the portfolio," said a London-based analyst. "It will be challenging this year."

Dutch peer AkzoNobel NV also reported a fall in fourth-quarter figures on Thursday, hit by materials cost rises, and warned about the impact of a shaky global economic environment, while Belgian chemicals and plastics group Tessenderlo swung to a surprise loss on tough conditions in southern Europe.

Solvay said that while conditions in Europe were uncertain, it expected a gradual recovery globally.

Its buy-out of Rhodia last year lifted its exposure to faster growing markets such as China and Brazil to 40 percent, and allowed it to further tap into higher-margin specialty chemicals.

MRC