Georgia Gulf to expand its chlorine-based business

(Canadian Plastics) -- Chemical supplier Georgia Gulf Corp. will buy PPG Industries Inc.’s commodity chemicals company for USD900 million in cash and USD1 billion in shares.

The proposed transaction would create one of the largest producers of chlor-alkalis, used to make PVC windows, pipes and sidings, as well as hydrochloric acid, where demand has surged because of its use in extracting shale gas.

"The combined company will be a leading integrated chemicals and building products company that we believe will benefit from significant integration and scale, a broad portfolio of downstream products, as well as the regional advantage of low-cost North American natural gas," Georgia Gulf president and CEO Paul Carrico said in a Georgia Gulf news release.

The acquisition is expected to be completed late this year or early next year. The merged company expects to have an annual revenue of USВ5 billion, according to the statement.

The Georgia Gulf Corporation has historically been a major manufacturer and marketer of chlorovinyls (caustic soda, chlorine, VCM, EDC, PVC resins, PVC rigid and flexible compounds) and aromatics (acetone, cumene, phenol). With the acquisition of Royal Group Technologies the company is now also a major producer of building materials ranging from piping and siding to window profiles, decking, and fencing.
MRC

MOSCOW (MRC) – European PET prices have reached their bottom. Market players are going to raise prices on average by EUR60-80/tonne for August deliveries due to the lack of supply and an expected growth of components cost, as per Price Report of ICIS-MRC.

Last month European makers had to reduce their prices significantly to increase sales amid unstable demand and despite a decrease in PET output and lack of imports. This month prices are growing in the European market following the June price cut when PET prices reached their bottom and made about EUR1,100/tonne, FD Europe.

The lack of supply results in a deficit of the material for granulate converters. Hot weather contributed to the revival of bottlers’ buying activity. Due to that PET makers and traders agree that European PET granulate prices are going to increase.

Last week spot prices grew by EUR30-20/tonne. The prices were voiced in the range of EUR1,150-1,180/tonne, FD Europe.
MRC

(Ineos) -- Ineos reports that EBITDA for the second quarter of 2012 was EUR308 million, compared to EUR576 million for Q2, 2011 and EUR465 million for Q1, 2012.

After a fairly strong April, the impact of steeply declining oil prices during the quarter adversely affected May and June's historical cost results. Non-cash inventory holding losses of approximately EUR141 million were incurred during Q2, 2012, mainly in the O&P segments.

Chemical Intermediates reported EBITDA of EUR119 million compared to EUR267 million in Q2, 2011. Lower feedstock prices during the quarter combined with the general macroeconomic uncertainty have influenced sentiment in the Chemical Intermediates businesses. The heavy industry turnaround schedule has maintained a strong supply side influence on the Phenol business during the quarter leading to healthy margins and volumes.

MRC

(plasticsnews) -- Sabic Innovative Plastics is working on a new production line that will increase capacity for Stamax-brand polypropylene composite resins at its plant in Genk, Belgium.

The new capacity is needed because of increased demand from the automotive market, officials with Pittsfield, Mass.-based Sabic IP said in a July 24 news release. The new line is expected to be operational in the second half of 2013.

Stamax is a long glass fiber-filled PP that allows for lightweight parts that can allow designers to improve fuel efficiency and reduce emissions, officials added. Existing auto applications include front-end modules, door modules, seating structures and tailgate structures. It’s also making inroads in under-hood applications where heat is non-critical, they said.

The Genk plant “was proactively built in scalability in anticipation of customers’ future needs,” Sabic IP European automotive leader Leon Jacobs said in the release. The plant is the largest greenfield PP compounding plant ever built in Europe, according to Sabic IP.

The firm also produces Stamax at a plant in Bay St. Louis, Miss. That plant was modeled on the design and technology of the Genk plant.
MRC

(hydrocarbonprocessing) -- Jacobs Engineering Group was selected to provide technical services for Braskem on portions of the recently-acquired Marcus Hook refinery near Philadelphia, the companies said on Tuesday.

Officials did not disclose the contract value.

Jacobs' operations in Mt. Laurel, N.J. and Conshohocken, Pa. are expected to execute the work, the company said. Braskem acquired propylene splitter assets at the 781-acre refinery complex in late June.

Jacobs' initial scope of work includes retrofitting the new acquisitions so Braskem can “more efficiently process propylene for use in its adjacent polypropylene plant”.

“Since this past December, Pennsylvania officials have tried to identify potential uses for the refinery,” said Jacobs vice president Bob Pragada.

“Braskem's acquisition and capital investment is hopefully the first step in re-purposing the complex as a multi-purpose energy processing facility."
MRC