SK Group and Sinopec JV to produce synthetic fiber precursor

(privateequitykorea) -- SK Group will be setting up a USD588 million joint venture with China's state oil firm Sinopec. The new venture will e led by unlisted SK subsidiary SK Global Chemical and will produce butanediol, a synthetic fiber precursor. The butanediol JV is a part of a Sinopec petrochemical complex in which BP is also participating. Last year SK also started another JV with Sinopec to produce ethylene.


China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group is a state-owned company solely invested by the State, functioning as a state-authorized investment organization in which the state holds the controlling share. Headquartered in Beijing, Sinopec Group has a registered capital of RMB 182 billion.
MRC

(kunststoffe) -- Lanxess AG, Leverkusen, is strengthening its commitment to renewable raw materials by investing USD 10 million in U.S. company BioAmber, Inc., based in Minneapolis, MI, as part of a private placement.

BioAmber is a global leader in succinic acid produced from renewable resources such as corn. Together, the two companies have developed plasticizers, whose cost-effectiveness and safety profile make them sustainable alternatives to phthalate-containing formulations. Market entry is expected later this year. In addition, both companies are in talks to extend their partnership into further product areas in the future.

As part of the investment, Lanxess has received a minority shareholding in BioAmber and a seat on the Board of Directors, which will be filled by Jorge Nogueira, head of Lanxess' Functional Chemicals business unit that manufactures phthalate-free plasticizers. BioAmber was founded in October 2008 and has 40 full-time employees.

MRC

(basf) -- German chemicals company BASF SE is increasing the prices of ethanolamines in Europe by EUR70 to EUR90 a metric ton because of higher raw material costs, a spokesman said Wednesday.

The increase comes on top of a EUR60 a ton hike in January, and a EUR50 rise in December, bringing the total increase to EUR180-EUR200 a ton over the past three months.

BASF said Wednesday the price of monoethanolamine will rise by EUR70 a ton, and the prices for diethanolamine and triethanolamine by EUR90 a ton. "There are various reasons, but primarily the increase is due to higher raw material costs," the spokesman told Dow Jones Newswires.

The price hike will affect all new contracts in Europe. "The price increase will also apply to current supply agreements as soon as, and to the extent, permitted by their terms and conditions," BASF said in a statement. Ethanolamines are used in the manufacture of agrochemicals, wood protectants, cleaning products, process chemicals, lubricants and cement additives, as well as active pharmaceutical ingredients.

MRC

(bayer) -- Bayer MaterialScience can begin construction in Dormagen of a new world-scale plant for a key plastics precursor. The Cologne regional administration has now granted the permit for an early start to construction, clearing the way for the extensive construction work to begin promptly.

The final operating permit is expected in the spring. Plans call for the construction of a EUR 150 million high-tech plant in Dormagen for the particularly ecological production of the chemical TDI (toluene diisocyanate), which is required for flexible polyurethane foam.

"We are pleased that the construction for this important project can now begin and be completed within the next two years as planned," says Dr. Joachim Wolff, head of the polyurethanes business and member of the Executive Committee of Bayer MaterialScience. "With an annual capacity of 300,000 metric tons, the future world-scale plant is the final building block of a long-term investment strategy in Dormagen in addition to being a key element for optimizing our isocyanate production in Europe."


In the medium term, it will replace the existing plants for the production of TDI in Dormagen and Brunsbuttel. Bayer MaterialScience expects demand for this precursor for flexible polyurethane foams to continue to grow.

MRC

(reuters) -- Austria's energy company OMV AG expects the consortium in charge of the Shah Deniz II gas field in Azerbaijan to decide definitively on a pipeline partner by mid-2013 to transport its gas to Europe, OMV's Chief Executive said on Wednesday.

BP operates the Shah Deniz II gas field, containing some 1.2 trillion cubic metres of gas, and holds a 25.5 percent stake, as does Statoil, with the rest divided between SOCAR, LUKOIL, NICO, Total and TPAO.

"It appears the pipeline decision will be made in the middle of 2013," Gerhard Roiss told a news conference in Vienna.

But Roiss added that the timing of a decision was up to Shah Deniz, and not the pipeline projects competing to transport its gas.

The 4,000 km Nabucco pipeline project would transport central Asian gas through Turkey, Bulgaria, Romania and Hungary into Austria and western Europe.

MRC