Faurecia warned its operating income could decrease

(polyestertime) -- Faurecia, the world's biggest maker of car interiors and exhaust systems, confirmed its full-year outlook but warned that its operating income could be at the lower end of its previous forecasts if weakness in the European market persists.

Faurecia, which also makes seats and plastic car body parts for clients including Volkswagen's Audi brand, posted an 8.4 percent gain in quarterly sales, as strong demand in North America and Asia offset a slight decline in Europe.

"The general idea is that we're quite in line with our guidance but that if Europe continues to develop at a substantially lower level than last year, we would be more at the low end of the guidance," Chief Financial Officer Frank Imbert told analysts in a conference call.

"We have no reason to modify the range, the key is still to know where we stand within the range and that depends largely on Europe," he added.

Faurecia said in February that it forecast full-year operating income of between Eur 610-670 million. The higher end of the range would mean an increase of 3 percent from last year's EUR651 million, while the lower end would signify a 6 percent drop.


MRC

(Reuters) -- Celanese Corp (CE.N) expects weakness in Europe and much of Asia to linger longer than initially anticipated this year, news that sent the chemical maker's stock down more than 3 %.

The company, which reported lower-than-expected quarterly profit on Tuesday, is the world's largest producer of acetyl intermediate chemicals, which are used to make paints and glues. Celanese also is a large producer of acetate tow, used to make cigarette filters.

"We expect the current challenging market conditions in Europe and Asia outside of China to continue further into 2012 than originally anticipated," Chief Executive Mark Rohr said in a press release.Celanese shut an acetic acid plant in Singapore during the first quarter because of tough market conditions in Asia, the top executive for the US-based acetyls producer said on Tuesday.

New Celanese chief Mark Rohr said the 600,000 tonne/year acetic acid plant was taken down at the end of the quarter because of declining margins and demand there.
MRC

(en.rian) -- Hungary's oil and gas firm MOL and other project participants have not confirmed their withdrawal from the Western-backed Nabucco gas pipeline project, European Commission energy spokesperson Marlene Holzner said.
Hungarian Prime Minister Viktor Orban said earlier on Monday that MOL was leaving the Nabucco project.

MOL has not confirmed the report of its withdrawal from Nabucco, Holzner told reporters. "The Nabucco shareholder in Hungary is FGSZ, a MOL subsidiary, and we have not had any indication that this will change," the Nabucco Consortium said on Tuesday afternoon.

Nabucco, which is intended to pump 31 bcm of natural gas, is part of the EU's effort to diversify its natural gas supplies and reduce the region's dependence on Russian gas.

MRC

(Reuters) -- Fears that a shortage of a nylon resin used in auto manufacturing will cut deeply into production worldwide are easing some, but there is still a danger that output may be curtailed, according to an industry executive.

The shortage stems from a March 31 blast at a German chemical plant owned by Evonik Industries AG. The explosion killed two workers and shut production of a key material used to produce PA-12. Evonik is a leading producer of both P-12 and the material used to produce it, called cyclododecatriene, or CDT.

Two auto suppliers, Eaton Corp and Delphi Automotive , on earnings calls this week said the shortage of PA-12 has not hit their production and company executives were optimistic that auto output will not be greatly affected.World supplies of nylon 12, constrained by a plant explosion, may last for four to six weeks, a US-based automobile group said.

In response to the potential shortage in PA 12 supply, AIAG facilitated a critical multi-stakeholder workshop
to fast-track the approval process for replacement materials for use in multi-layer tubing assemblies, metal
tubing and other automotive applications.

MRC

(chemicals-technology) -- Belgian chemical company Solvay is planning to construct a new fluorinated polymers plant in Changshu, Jiangsu, China.

Solvay Specialty Polymers growth and development head Maurizio Gastaldi was quoted by China Daily as saying that the project needs an investment of EUR120m and is scheduled to be operational in 2014.

"It will significantly boost Solvay's global production capacity and meet the growing demand for high value-added specialty polymers in Asia," Gastaldi added. "Our focus is to manufacture products for end-use markets such as photovoltaic and lithium batteries, contributing to wider global demand."

Solvay's investment also includes EUR 21m to build a compounding plant in Changshu, Jiangsu, China, which is expected to start up in the summer of 2012.

"The facility will be fully adaptable for future expansion for both overall capacity and for other high performance engineering and fluorinated polymers," Gastaldi added.

MRC