BASF to complete carve-out of styrenics business by 1 Jan

SINGAPORE (ICIS) -- BASF will complete the spin-off of its styrenics business, named Styrolution, by 1 January next year, the company said in a statement on Thursday.

The introduction of Styrolution would see BASF transferring its styrenics businesses at production sites in Germany, Belgium, South Korea, India and Mexico to the new firm, BASF said.


Separate companies would also be established in other countries, for instance in the US , Italy or China , where BASF has other styrenic activities, such as marketing and sales.

BASF's styrenics business posted sales of ┬2.5bn ($3.47bn) in 2009.

⌠Through this action, we will be able to sustain and improve our global business in an environment characterized by volatile demand, high pressure on margins and intensive competition, said Martin Brudermuller, member of the board of executive directors of BASF and responsible for BASF's plastics business.

The company plans to carve out its businesses in styrene monomers (SM), polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene butadiene copolymers (SBC) and other styrene-based copolymers and establish separate companies, according to BASF.


MRC


Saudi Arabia's Yansab achieved full output at PE, PP units

SINGAPORE (ICIS)--Yanbu National Petrochemical Company (Yansab) has achieved full output at its polyethylene (PE) and polypropylene (PP) plants at Yanbu, Saudi Arabia, after restarting them at the end of last week, a source close to the company said on Thursday.

The plants were taken off line on 10 September due to an outage at Yansab's 1.3m tonne/year cracker due to technical issues. The cracker was restarted on 25 September.

The unscheduled shutdown had exacerbated the tightness of PP and some grades of PE in the Middle East market in September but supply was now easing, traders and end users said.

Yansab produces 400,000 tonnes/year each of high density PE (HDPE), linear low density PE (LLDPE) and polypropylene (PP).

Yansab, a joint-stock company, is 51%-owned by petrochemical giant Saudi Basic Industries Corp (SABIC).

MRC


India's Haldia halts exports of PE, PP due to outage

SINGAPORE (ICIS) -- India's Haldia Petrochemicals halted exports of polyethylene (PE) and polypropylene (PP) this week due to an unscheduled shutdown at its cracker complex in West Bengal state, a source close to the company said on Thursday.



The company would likely resume shipping out the polymer products when the petrochemical complex restarts on 9 October, the source said.



⌠Currently, the company has limited inventories of PE and PP, which have to be targeted at key domestic customers, so there's no export availability, the source added.

The company's complex at Haldia, in West Bengal state, houses a cracker with a nameplate capacity of 700,000 tonnes/year of ethylene. It also includes derivative plants that produce 700,000 tonnes/year of PE and 370,000 tonnes/year of PP.

MRC


Ineos Group Holdings to switch focus to establishing ventures in Asia and Middle East

(Plastemart) -- Ineos Group Holdings Plc, the world's sixth-largest chemical company, is switching its focus to establishing ventures in Asia and Middle East from disposals after reducing debt, Group Director Tom Crotty said. "Debt ratios are falling "very fast" and there is no financial need to sell a stake. We are down to around 4.5 times leverage. There's nothing serious in terms of an equity sale." The company is looking to expand its derivatives business, and disposals have been struck off the agenda.


Ineos, which owns a refinery in Grangemouth, Scotland, is still in talks with PetroChina Co. about cooperation. It is also planning to build and operate a 400,000 ton phenol plant with partner Sinopec Yangzi Petrochemical Co. Ltd. Ineos agreed to sell a fluoro-chemical unit to PVC pipe and resin maker Mexichem SA in February for US$350 mln. Ineos moved its headquarters to Switzerland to cut tax expenses. It had debt of ┬8.6 bln (US$11.9 bln) as of June 30.

MRC


Meager impact of recently imposed duties by EU on Lotte Pakistan's PTA sales

(Plastemart) -- The recently imposed duties on PET (Polyethylene Terephthalate) by the European Union, is not likely to have any sizeable impact on Lotte Pakistan's PTA sales, according to The Express Tribune. Over 30% of Purified Terephtalic Acid (PTA) production is sold to the PET sector, while the rest goes to others. Any drop in demand from the PET sector is expected to be soaked by the PSF (Polyester Staple Fibre) segment which remains well in demand as Pakistan is a net importer of almost 100,000 tpa.


The European Union (EU) imposed countervailing duties of ┬44/ton on PET imports from Pakistan, in addition to imposing the same on Iran and UAE. The three together account for about 39% of total PET imports into the EU.

MRC