Court decision prompts Pfleiderer AG insolvency proceedings

(ttjonline) -- Pfleiderer AG, the holding company of panels manufacturer Pfleiderer is preparing to file for insolvency after a court hearing went against it.

The company had made an appeal at the Higher Regional Court, Frankfurt, against an earlier court decision in favour of some creditors and shareholders, who were opposed to elements of the company's restructuring plans.
The court decision means the resolutions adopted on debt-laden Pfleiderer's restructuring plans cannot now be implemented as planned. Restructuring implementation had been a prerequisite for the agreed waiver of claims by the company's creditors and the capital injection by investors.

"Therefore, a financial restructuring of Pfleiderer AG is not possible as planned," it said. "In accordance with the law, the management board of Pfleiderer AG is now preparing to file an application for insolvency for Pfleiderer AG."
The company said an insolvency move would have "no direct effect" on operational subsidiaries, as Pfleiderer AG (as parent company) was "purely an investment holding company".
In the event of Pfleiderer AG's insolvency, the company would implement key measures of the restructuring plan by way of an insolvency restructuring procedure as debtor in possession.

MRC

Lukoil plans to resume ethylene production as soon as possible

(lukoil) -- LUKOIL is conducting energetic repair and maintenance operations to cure the effects of the fire outbreak which took place in mid-December of 2011 at the ethylene production unit of the Stavrolen petrochemical complex.

It was expected that the ethylene production unit could resume its operations by April 1, 2012 at the latest, provided that the required equipment was manufactured and delivered in due time.

However, in view of the fact that part of the damaged equipment can be manufactured only abroad due to its unique nature and technical complexity, the repair and maintenance operations schedule has been extended.

The imported equipment is expected to be delivered in July of 2012. The equipment manufactured within Russia will be delivered to the complex from April to May of 2012. It is expected to take about two weeks to install, test and start the long-lead equipment.

Meanwhile, on March 11, 2012, the complex resumed polypropylene production at the polypropylene unit which processes the propylene manufactured by the Karpatneftekhim (LUKOIL subsidiary) and a number of other Russian companies.
MRC

Shell eyes larger polyethylene presence via Pennsylvania cracker

(hydrocarbonprocessing) -- Shell hopes to get back in the global polyethylene (PE) market through its planned petrochemical complex near Pittsburgh, Pennsylvania, the company said on Wednesday.

"We're not entirely out of the PE business, but we're out of it in a reasonable way. We have to get back into it," said Ben van Beurden, executive vice president of Shell Chemicals. "We're very clear about that."

Earlier this month, Shell unveiled the Pittsburgh site where it will process ethane from the abundant natural gas produced in the nearby Marcellus Shale region. The accompanying ethylene cracker would be the first built in the US since 2000.

In that announcement, Shell said it was considering PE and monoethylene glycol (MEG) units to help meet rising demand in the North American market. On Wednesday, van Beurden was even more forward with the company's strategy. "You have to ask yourself what would make the most sense," he said.


In the big picture, van Beurden said Shell is eyeing a larger global presence in the polyethylene market. "Look at how petrochemicals have grown over past 20 years," he said. "It's doubled in terms of demand. There are plenty of forecasts that say it will double again in next 20 years, and there are a lot of fundamental drivers to make that come true. "PE will have to play a role in that, considering 60% of world's ethylene production will end up in polyethylene."
MRC

Dow announces coatings manufacturing investment in Saudi Arabia

(dow) -- The Dow Chemical Company announced plans to invest in a new manufacturing facility for its Dow Coating Materials (DCM) business unit in the Kingdom of Saudi Arabia. Dow Coating Materials is the premier supplier of products and technologies to architectural and industrial coatings manufacturers. The planned facility, which will be located at the Jubail Industrial City, will manufacture a wide range of coating materials for both the Kingdom and export markets worldwide.

"With an unmatched specialty portfolio of advanced materials, we constantly aim at bringing customers differentiation and solving global challenges locally together," said Jerome Peribere, Executive Vice President of The Dow Chemical Company and President and Chief Executive Officer, Dow Advanced Materials Division (AMD). "By investing in a new coatings facility in Saudi Arabia, we are moving closer to our regional customers, and realizing our regional business objectives in a key growth market for Dow."

MRC

In February Ukrainian converters doubled PET imports

MOSCOW (MRC) -- In February import supplies of PET significantly grew in the Ukrainian market. Last month converters and trading companies imported about 20,600 tons of PET granulate that was by 14,600 more than in January, according to MRC DataScope.


At the beginning of the year many local companies announced their intention to increase purchases of the granulate on the back of a more attractive price in the external markets as well as preparation for the season. As one converter said, preforms producers that have available circulating assets decided to use the moment for making purchases.


The growth of contracts from the Ukrainian companies was stipulated by the growing price for the components and PET that allowed to forecast a higher price in March.


Gatronova supplies became record over the whole period of the Ukrainian imports. The biggest Ukrainian converter purchased about 10,000 tons of PET grade A-80 of Pakistani production. There was also a sharp increase in supplies of the Belarusian PET. In general, about 2,300 tons of bottle PET were shipped to Ukraine. Imports from Litva doubled. The Ukrainian converters resumed polymer imports from UAE. Supplies of the Chinese PET decreased, mainly at the expense of shifted purchases in favor of the Middle Eastern material. Imports of the granulate from China made about 2,000 tons that was by 500 tons less than last month.


MRC