Blavatnik denies rumors from Lyondell creditors

(Reuters) -- Investor Len Blavatnik and his company Access Industries have refuted claims that he was aware of a US$12 bln leveraged buyout in 2007 that created LyondellBasell would fail. They claim that they had every reason to believe the merger between Basell and Lyondell would succeed. Blavatnik had led the merger in 2007 to create the world's third largest petrochemicals maker, by crafting a leveraged buyout of Lyondell through Basell, which his company acquired in 2005.

A trustee acting on behalf of Lyondell's creditors sued Blavatnik, Access and other executives and advisors responsible for putting together the deal, claiming they set the company up to fail by leaving it with too much debt and unreasonably small capital.

MRC

(prw) -- The World Banks' Multilateral Investment Guarantee Agency (MIGA) is considering making a $5m guarantee for financing a new PET bottle preforms factory in Baghdad. It would be Iraq's first - operated by the country's Sebeel Al Safa Manufacturing Petrochemicals and Water Filling Company - and would supply drinks companies.

Because of Iraq's continuing instability, private guarantors are often reluctant to provide such assurances. The plant would initially produce preforms for half-litre water bottles. The investor requiring the five-year guarantee against transfer restriction, expropriation, war and civil disturbance is Turkish shareholder Karo Dis Ticaret ve Sanayi.

MRC

(prw) -- Manfred Reichel is stepping down as CEO of KraussMaffei Berstorff and head of extrusion at KraussMaffei Technologies after 45 years with the company. He will be replaced by Dr Hans Ulrich Golz who also joins the managing board.

Dietmar Straub, CEO of KraussMaffei, said: "In his 45 years with the company, Manfred Reichel has made an outstanding contribution to the development of both the KraussMaffei group and KraussMaffei Berstorff. He himself, his work, and his achievements have always been highly valued by customers and business partners, and by his colleagues at KraussMaffei."

MRC

(prw) -- Polish plastic packaging and car accessories producer Suwary has agreed to acquire an 80% stake in Kartpol Group of Wolomin, Poland, a specialist in packaging for construction chemicals.

Under the ┬5m deal, Pabianice-based Suwary, an offshoot of Canadian packaging and mould making group Wentworth Technologies, has the option to acquire the remaining 20% of Kartpol shares at a later stage.

The transaction will expand Suwary's portfolio into the construction chemicals packaging market in Poland and Europe, and provide the merged group with valuable synergies including raw materials and energy cost savings, extra machinery and moulds and extended distribution channels, the partners stated.

MRC

MOSCOW (MRC) -- In the second half of September, pipe-grade polyethylene shortage got tighter in the Russian market - according to MRC analysts.

Traditionally, Russian pipe producers become more dependent on the domestic production and availability of free black pipe-grade polyethylene in international markets in summer and autumn. In July, black pipe-grade polyethylene production was under capacity at Stavrolen due to technical issues, which led to first small wave of pipe-grade material shortage in the market.

In August, Russian producers expanded black pipe-grade HDPE production to 17,5 kt. Production increase partly stabilized the market situation; however, polyethylene supply was still tight. Only market majors could afford to import the material from Europe and Asia due to serious difference in price with Russian polyethylene.

Kazanorgsyntez, the biggest Russian HDPE producer, was shut down for scheduled maintenance in mid-September. The manufacturer produces more than half of total black pipe-grade HDPE volumes in Russia. Russian pipe producers increased raw material purchase in international markets in September; over the 20 days they imported over 6 kt of polyethylene. However, in international markets supply is also tight: export pipe-grade polyethylene quotes of many suppliers, particularly, of producers from Northeastern Asia, are contracted up to November.

Prices for small volumes of Russian black pipe-grade HDPE last week were fixed in the range of RUB 60.000 - 65.000/mt, including VAT, FCA. More Russian pipe producers are forced to temporary switch to natural HDPE due to tight black material supply. Natural material is offered at an average of RUB 56.500 - 58.500/mt, including VAT, FCA.

Russian polymers market prospects will be discussed at Russian Polymers Summit on October 14, 2010 organized by ICIS and MRC. For more information please refer to http://www.icisconference.com/russianpolymers/ Summit official web page.

MRC

More information about polyethylene market in Russia is available in MRC Price reports.