Ivanovo supports textile industry under Russia`s accession to WTO

(yarnsandfibers) -- Ivanovo region Governor Mikhail Men delivered a report on the support of textiles under Russia's accession to the WTO. The governor presented his report on July 16th, at the meeting of the Federation Council Committee on Economic Policy in Moscow.

Mikhail Men stressed out that the industries working for domestic demand may find themsevles in the least favorable situation during Russia's accession to the WTO. The regions, where these industries are concentrated, may therefore face serious problems. As for the Ivanovo region, it goes about the textile industry. "Textile companies will come across aggressive price competition with imported goods. If we do not take measures to support domestic producers, the Russian market of light industry goods may fall sharply," said the Governor.

The head of the region emphasized the importance to support the basic, large textile corporations. "In the region, there are, in fact, holding companies, which forms the textile industrial cluster around themselves. These companies may become the points of growth, which will make our textile industry develop into a highly competitive innovative industry," said Mikhail Men. He also spoke about the project to build a synthetic fiber factory in the region.

As for additional measures of support, the Governor proposed the provision of state guarantees for the implementation of complex innovative projects in textiles, as well as a moratorium on cutting the budgets for the companies of the light industry. The budgets are used to compensate a part of the companies' spending on raw materials and equipment. Mikhail Men supported the maximum participation of Russian companies in the implementation of the state order, especially in the defense sector. The head of the region mentioned the provision of subsidies from the federal budget to the organizations of textile and light industry for 2013-2017 to reimburse the costs on heat and energy resources.

At the end of his speech Mikhail Men said that the key players of the textile market do not see any considerable minuses in Russia's WTO membership. "Russia has never had a tangible competitive advantage for the development of the textile industry. Raw materials, equipment and yarn - we buy all that for the same price as our foreign competitors do. If support measures are determined, if this issue is solved, then we have every reason to hope that the Russian textiles will exist," said the Governor.
MRC

Textiles to recover from demand slump this year

(yarnsandfibers) -- The textile industry should recover from the demand slump witnessed last financial year to post a 6% growth in yarn production and 5.7% growth in fabric production in 2012-13, says the Centre for Monitoring Indian Economy (CMIE). The steep rise in prices hit production of both yarn and cloth in 2011-12 and yarn production fell 5.1%. The expectation this time round is that better domestic demand and addition of fresh capacity will boost growth.

Cotton yarn, which saw an 8% fall last fiscal, should revive and post 8.5% growth in output this year. Synthetic yarn will grow by a more modest 3% says CMIE. In April, synthetic yarn production fell sharply by 7.6% pulling down overall yarn production with it. As a result, April 2012 saw yarn production down 3.2% although cotton yarn output remained flat at 0.4% growth.

As for fabrics, it showed fabulous growth in April. Fabric production was up 18.5% though some of that growth is attributable to the low base effect - last April saw fabric production down 13.5%. Synthetic fabric production grew fastest in April at a 24% clip while cotton fabric production grew at 12%. According to CMIE, a likely 12% drop in cotton prices should revive the fortunes of the fabric industry and fabric production should grow by 5.7% thanks to a pick-up in domestic demand and addition of new capacity. Synthetic fabric and cotton fabric will clock 5.4 and 4% growth respectively, says CMIE.
MRC

OMV hit with USD172m loss

(upstreamonline) -- Austria’s OMV has said its production in Libya is close to returning to pre-crisis levels, but warned its quarterly bottom line would be hit with a USD171.59 million charge.

The explorer said the loss to be booked in its results for the second quarter due on 8 August was mostly over an impairment on the domestic Strashoff gas field.

The company also lost some USD39.21 million on hedging in the past three months.

OMV incurred the loss after making oil price swaps that locked in 50,000 barrels per day at USD101.50 on a euro to dollar exchange rate of USD1.36.

Quarterly production rose to 305,000 barrels of oil equivalent per day from 299,000 boe in the first quarter and 275,000 boe a year earlier, an increase which the explorer credited to its resurgent Libyan operations as well as higher output in New Zealand.

The rise was offset by lower production at two Romanian fields and a planned shutdown at Austria’s Aderklaa.
MRC

Solvay starts the production of specialty polymers compounds in China

(plastemart) -- Solvay’s specialty polymers compounding plant located in Changshu, province of Jiangsu in China, has started to serve the local growing demand for specialty polymers compounds. The plant is mainly serving China's customers in the electronics, automotive, consumer and industrial applications markets with compounds of AmodelR polyphthalamide (PPA), IxefR polyarylamide (PARA) and KalixR (modified PARA).

This plant required an investment of EUR 21 million and is fully adaptable for future expansion of overall capacity as well as production of compounds made out of other high performance polymers. It is adjacent to another specialty polymers plant which is currently under construction for the production of SOLEFR Polyvinylidene Fluoride (PVDF), TECNOFLONR Fluoroelastomers (FKM) and their essential monomer VF2.

"The start-up of our compounding plant in Changshu is an important step in the development plan of Solvay's growing industrial base in China where the Group is committed to increase its customer base. Sales of Specialty Polymers in Asia have already increased to over 30% of total sales and we see this trend continuing," comments Augusto di Donfrancesco, General Manager of the Global Business Unit Specialty Polymers.
MRC

Eni, Petronas to develop Malaysia elastomer plants

(hydrocarbonprocessing) -- Petronas has signed an agreement with Eni-controlled Versalis to jointly own, develop, construct and operate elastomer plants within Petronas’ proposed refinery and petrochemical integrated development (RAPID) complex in Pengerang, Johor.

The proposed joint venture will produce and market synthetic rubbers using Versalis’ technology license and technical know-how, the companies said.

Headquartered in Milan, Italy, Versalis manages the production and marketing of a wide portfolio of petrochemical products, using a range of proprietary technologies and production systems and a wide-reaching distribution network.

The agreement signed with Versalis is the fourth-such arrangement secured by Petronas for RAPID, and the engineering activities will commence immediately, officials said.

Prior to this, Petronas inked similar agreements with Germany-based BASF, ITOCHU Corp. of Japan and Thailand’s PTT for various high value-added downstream chemicals.

Petronas says it is currently evaluating other potential partners and licensors for the various facilities to be developed within RAPID.

The proposed RAPID project is the largest liquid-based green-field downstream undertaking in Malaysia, according to the company.

It will have a 300,000 bpd refinery to supply the petrochemical complex, apart from producing a host of refined petroleum products, including gasoline and diesel that meet Euro 4 and Euro 5 fuel specifications.

The petrochemical component of the project will allow Petronas to expand its product portfolio from commodity petrochemicals to premium differentiated and specialty chemicals, the company said, capitalizing on the growing demand for these products in the Asia Pacific region.

MRC