Polyplastics completes acquisition of LCP monomer supplier

(specialchem4polymers) -- Polyplastics Co., Ltd. announced recently the completion of the acquisition of 100% ownership of LCP Leuna Carboxylation Plant GmbH, a German supplier of p-HBA (p-hydroxybenzoate, a key monomer for liquid crystal polymer), from Infatrade (UK) Ltd., London.

The liquid crystal polymer ("LCP") is one of the super engineering plastics and has excellent properties such as heat resistance, dimensional stability, flowability and moldability. In recent years, LCP is mainly applied to key electronic parts of cutting-edge IT devices such as smart phones and tablet computers.

Thanks to their booming popularity, an exponential increase in demand is expected. Polyplastics is the leading manufacturer of LCP and has the biggest production capacity in the world. Polyplastics believes that the acquisition will help strengthen the technical advantage of its LCP business through the research and development process to the production process, i.e., from raw material monomers to finished resin products, and will enable a stable supply of higher-quality products to customers.

Regarding the business operation of LCPG, the present LCPG management team will carry on the business with existing valued customers as before. Furthermore, LCPG will maintain the responsibility for supply of p-HBA and related products with required investments in quality improvement and expansion of productivity.

Polyplastics, Tokyo, is a joint venture between Daicel Corporation Japan, and Ticona.
MRC

BP: transformation takes time

(seekingalpha) -- BP is in the process of transforming itself by emphasizing safety and focusing on high margin market segments. As an example, the company recently agreed to sell its Carson, California refinery business to Tesoro (TSO).

BP has been through the wash since the 2010 Deepwater Horizon disaster in the Gulf of Mexico. On a positive note, the company noted in its Q2 2012 earnings call held on July 31, 2012 that it has contributed nearly USD18 billion to the disaster trust with the final payment scheduled for the fourth quarter of this year, which will complete the USD20 billion fund. However, if the U.S. Department of Justice (DoJ) has its way, the USD20 billion might not be enough to take care of the situation, as the DoJ believes it can prove gross negligence, which could up the cost. The U.S. DoJ trial is scheduled for January 14, 2013, so we'll have to wait a while to determine the final outcome.

BP's problems are not confined to the Gulf of Mexico, as it has been having problems related to its join ownership of Russian oil company TNK-BP. TNK-BP is Russia's third largest oil company, and due to Russian law, BP is limited to 50% ownership of the company.

In the second quarter, BP's net income attributed to TNK-BP was 58% lower than last year and 61% lower than the previous quarter. BP noted it has received unsolicited indications of interest regarding the acquisition of shares of TNK-BP, so with a sale of TNK-BP, BP could relieve itself of its TNK-BP problems. However, BP noted that even with a sale of its interest in TNK-BP, it intends to continue to be involved in the Russian energy sector.
MRC

Rosneft to invest USD2.2 billion in Russian Far East

(bloomberg) -- OAO Rosneft, Russia’s largest oil producer, plans to invest more than 70 billion rubles (USD2.2 billion) this year in Russia’s Far East on a refinery upgrade, a petrochemicals plant and oil exploration.

The planned Komsomolsk refinery upgrade to improve fuel quality, which includes building a hydrocraker, reformer and coker by the end of 2015, will cost 108 billion rubles, Rosneft said today in an e-mailed presentation. It plans annual output of polymers from a Far Eastern petrochemicals plant at 3.6 million tons a year for 2017.

President Vladimir Putin has called for fines against refiners who fail to carry out upgrades and continue to produce substandard fuels. State-run Rosneft has responded by boosting spending 23 percent this year, mainly on refining.

Rosneft laid a ceremonial cornerstone for the construction of the petrochemicals plant today as Putin meets with leaders of nations in the Asia Pacific Economic Cooperation group in Vladivostok, Russia, according to the statement.
“Its a very good location for petrochemicals products distribution,” Nazarov said. “China, for example, consumes the lion’s share of rubber exported from Russia.”
MRC

Foster Wheeler awarded contract for new Terrace Wall steam reformer in Russia

(yourpetrochemicalnews) -- Foster Wheeler AG announced today that a subsidiary of its Global Engineering and Construction Group has been awarded a contract by JSC Gazprom Neftekhim Salavat, for the engineering and material supply of a new double-cell Terrace Wall steam reformer heater and air preheating system to be built at the Salavat Refinery, in the Republic of Bashkortostan, Russia.

The value of Foster Wheeler's contract was not disclosed and was included in the company's second-quarter 2012 bookings.

The Terrace Wall steam reformer will be part of a hydrogen production unit being built by Gazprom Neftekhim Salavat. The plant is designed to produce up to 27,500 Nm3/h of hydrogen and it is based on Foster Wheeler's hydrogen technology and process design package, which package has been recently completed by Foster Wheeler.

Foster Wheeler's scope of work for this award is expected to be completed in November 2013.
MRC

Players upset with higher customs duties in Turkey

(apic-online) -- Turkish cabinet agreed to lift the customs duties on LDPE, HDPE and homo PP imports from developing countries.

According to the new decision, customs duties on LDPE imports from developing countries have been increased from 3% to 6.5%. Duties on HDPE and homo PP imports from the same group of countries were raised from 3% to 4.8% and duties on these origins will be lifted from 4.8% to 6.5% as of January 1, 2013.

This news caused frustration amongst many Turkish players as it took effect immediately without any warning. All buyers who have material on the way or at the port are also subject to the recent rise in duties unless they started their customs clearance procedure before September 6.

As a result of this development, many import suppliers find themselves at a sudden disadvantage and higher customs duties, needless to say, mean rising costs for Turkish buyers.

A source from an Indian producer commented, "We are upset with the recent upward adjustment in customs duties. Some of our customers are now asking for discounts while we were planning to lift our PP offers due to rising costs. So we are considering holding our offers for a while in protest." He added, "European origins are likely to be most competitive now that there is no country left to offer to Turkey with 3% duties."

A Turkish converter also expressed his disappointment with the recent decision. "At first, Iranian LDPE was subject to additional charges of 7% and now all origins with 3% customs duties for LDPE are up to 6.5%." A distributor said he thinks that the local LDPE market is set to record further increases in the near term given higher customs duties.
MRC