Husky plans to build new manufacturing plant in China

(Husky) -- Husky Injection Molding Systems Ltd. has announced plans to build a new facility in China to meet growing demand for its beverage packaging and hot runner systems.

The area of land is located in the Suzhou New District and is a Greenfield site that has significant opportunity for further expansion beyond the existing land area. The site, to be built on 53,000 square meters of land, is expected to be fully operational in 2014.

"Husky has enjoyed longstanding relationships with many customers throughout China. Strong increase in demand for plastics in the region has helped fuel customer growth and we have been fortunate enough to grow with our customers. Today, Asia Pacific represents one of the largest and most dynamic markets the company serves,” John Galt, Husky’s president and CEO, said in a statement.

"Our investment in Suzhou is a step toward ensuring we are able to meet the growing expectations of customers in this region. Our goal is to be increasingly nimble and agile to provide the best, most responsive service and support – not only to China, but to markets globally."

Husky Injection Molding Systems is the world's largest brand name supplier of injection molding equipment and services to the plastics industry. With one of the broadest product lines in the industry, Husky equipment is used to manufacture a wide range of plastic products such as bottles and caps for beverages, containers for food, medical components and consumer electronic parts.
MRC

Formosa Petrochemical and FCFC both posted losses

(Plastemart) -- Units of Formosa Group-Formosa Petrochemical Corp. and Formosa Chemicals & Fibre Corp. have both posted unexpected Q2-2012 losses after a drop in oil and chemical prices drove down their inventory values.

A decline in oil prices cut the value of stockpiles held by Formosa Petrochemical, which imports all its crude needs.

Crude oil in New York dropped 18% between April and June on concern demand would be hurt by the global economic slowdown and Europe’s debt crisis.

Formosa Petrochemical reported a pretax loss of NT USD15.6 bln (USD523 mln) for the three months ended June 30. Formosa Chemicals posted a pretax loss of NT USD6.14 bln.

Plastics processor Nan Ya Plastics Corp. reported a loss of NT USD2.72 bln. Polyvinyl chloride maker Formosa Plastics Corp. posted a pretax profit of NT USD270 mln in the second quarter.

Formosa Petrochemical halted its No. 2 and No. 3 naphtha crackers on June 20 because of a power failure. The incident affected 42 of the group’s 66 plants at Mailiao.
MRC

Russian market is short of DOP

MOSCOW (MRC) -- By the end of June, Russian market had run short of plasticizer DOP due to unscheduled stop of Roshal plant of plasticizers. The situation in the market is expected to be improved by the end of July, according to MRC analysts.

In mid-June Roshal plant of plasticizers had to suspend its operation due to the lack of phthalic anhydride. As a consequence, in the last decade of June the Russian market experienced difficulties with the supplies of plasticizer DOP. Spot quotations by the beginning of July had risen on average by Rb3,000/tonne, compared to the June level. Currently, small volumes of DOP from Salavat are offered on average at Rb78,000/tonne, including VAT, FCA Salavat.

Roshal plant of plasticizers plans to resume its work on July, 15, however, due to a serious shortage of DOP the market is expected to be stabilized by the end of the month.

Market participants are sure that with the start of production the prices begin to grow.

MRC

Prices of HDPE began to grow in Russia

MOSCOW (MRC) -- In early July, prices of injection moulding HDPE unexpectedly began to rise, which resulted in a shortage of material in the Russian market, as per MRC analysts.

July in the Russian market of HDPE began with the deficit of injection moulding material and the price increase. The deficit was caused by prolonged stop of HDPE production by Kazanorgsintez, as well as Gazprom neftekhim Salavat’s switching to the production of pipe polyethylene.

Before that, Russian market was saved by the imports of polyethylene from Uzbekistan, but in April - May Shurtan GKhK suspended the deliveries of injection moulding HDPE to Russia and resumed them only in mid-June.

There are small volumes of injection moulding HDPE from Salavat in the spot market. The price quotations increased this week on average by Rb1,000/tonne, and started from Rb65,500/tonne, including VAT, FCA.

Market players expect next week the arrival of fresh volumes of Uzbek polyethylene, but it has been already sold out.

This situation is hardly to improve by the end of the month. Kazanorgsintez plans to resume the output of injection moulding HDPE in the end of July.

Gazprom neftekhim Salavat is to stop its PE capacities on the turnaround from July, 23.

MRC

PP in Italy trades at a discount as compared to Turkey

(Plastemart) -- The settlement of the monthly propylene contract with a EUR170/ton decrease in Europe has intensified the downward trend in place in Italy’s PP market for two and a half months.

Sellers are approaching the market with hefty decreases for July while the low end of the local spot market is expected to break below a new threshold. Along with these sustained decreases, Italy’s PP market appears to have lost its traditional premium over the nearby Turkish market, where PP prices have been on a rather stable to soft trend since the beginning of June.

European cargoes are being offered almost at par in both markets although Italy traditionally sees higher levels in its local market. The major reasons behind this situation are the ample supplies and unsatisfactory demand across Europe. demand is not likely to improve in the midst of the approaching summer holidays in August while supply remains long in the region.
MRC