Mitsui Chemicals and Prime Polymer to expand polypropylene production in US

MOSCOW (MRC) -- As part of a fundamental company's strategy Mitsui Chemicals, a leading Japanese producer of performance materials, petro and basic chemicals and functional polymeric materials, and Prime Polymer, dedicated Japanese maker of polyethylene (PE) and polypropylene (PP), have intensified an ongoing collaboration by
increasing polypropylene (PP) production in the United States to meet growing demands of the automotive materials sector, reports the company's press release.

The augmentation of polypropylene production will make 14,000 tonnes and is expected both to strengthen the company's position in the expanding North American market and boost Mitsui Chemical's global supply network.

Although the North American automobile industry was negatively impacted by the global economical crisis, the Mitsui Chemicals Group is aiming at strengthening and further production expansion of its already global top class competitive PP for automotive materials on the forecasts of significant economical growth in the future. At present the company produces in eight major world markets (Japan, United States, Mexico, Brazil, Europe, India, Thailand, and China).

Mitsui Chemicals and Prime Polymer will continue to strategically intensify and expand operations through ongoing collaboration and reinforcement of production, sales, and technological support structures necessary in providing state-of-the-art, performance-driven materials.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials. With the growth of opportunities in India, Mitsui Chemicals has decided to establish its first polypropylene compounding plant in India at 'Japanese Investment park' Neemrana phase III. The unit being set up will be the manufacturing base of Mitsui Chemicals Group in India in which Mitsui Chemicals holds 80% equity and 20% equity is with another subsidiary, Prime Polymer Company of Japan.

Prime Polymer Co., Ltd. was established in April 2005 as part of a comprehensive tie-up with Mitsui Chemicals, Inc. and Idemitsu Kosan Co., Ltd. The company's activity is focused in polyolefins business to produce different grades of polythylene (PE) and polypropylene (PP).
MRC

MOSCOW (MRC) -- A petrochemical major, Saudi Basic Industries Corporation (SABIC), has prolonged its contract with energy services company Cape for another three years - till 2015, reported Plastemart.

Cape is providing support services to SABIC sites located in north east England's Teesside.

Managing Director of Cape UK and Europe, Steve Connolly, said: "We are delighted to be awarded this extension to Cape's existing maintenance contract in recognition of our commitment to continue to deliver value to SABIC's facility through our focus on HSEQ performance, efficiency and sustainability. Through this landmark contract, delivered within an integrated alliance we are pleased to continue our successful relationship with SABIC Petrochemicals."

As MRC informed earlier, SABIC plans to invest in companies in the U.S and elsewhere that have technology to turn shale gas into chemical products. The amount of natural gas produced from shale is a "game- changer" that will have a large impact on worldwide supplies, according to Mohamed Al-Mady, chief executive officer of the company.

Sabic is ranked among the world's largest petrochemicals manufacturers. It is the largest public company in Saudi Arabia. The comany manufactures chemicals and intermediates, industrial polymers, fertilizers and metals. It is currently the second largest global ethylene glycol producer. Among its products are propylene, paraxylene, styrene, vinyl chloride monomer.

Cape Plc is a United Kingdom energy services company based in Uxbridge, West London. Cape provides "non-mechanical" multi disciplined integrated support services covering such disciplines as access, scaffolding, insulation, fire protection, specialist cleaning, asbestos removal, refractory linings, project management and other essential services to major industrial clients in the energy sector.
MRC

MOSCOW (MRC) -- Last week, PET spot prices grew by Tenge11.5-15.5m/tonne in Kazakhstan, which is by 3,5-5% higher than the price level announced in the first half of January, according to MRC Price report.

Last week, the price offer for bottle PET in the domestic Kazakh market increased by Tenge11.5-15.5m/tonne from the previous week. The reason of the price increase was a rise in the cost of feedstock in China and good consumer activity from Kazakh converters of granulate. The price dispersion voiced by traders made Tenge330.5-331.5m/tonne, CPT Almaty, including VAT.

According to sellers, the PET market in Kazakhstan had perked up noticeably by mid-January. Market players did not expect a noticeable improvement in sales at the beginning of the year. However, this year, sales of the material in January improved significantly when compared with the indices of the past years, a source said. Market participants also noted that producers of sunflower oil are showing the high consumption of preforms.

According to a trader, the market demand was due to a price hike of PET for the past two months. Many buyers anticipate that PET bottle prices will have been even higher by the beginning of the season. It is worth noting that last week, purchasing prices of Asian PET granulate rose by USD30-40/tonne, following the growth of prices in foreign markets.
MRC

MOSCOW (MRC) - In December the imports of polyethylene (PE) to Ukraine increased to 33,800 tonnes. Total imports of PE in 2012 into the Ukrainian market exceeded 331,000 tonnes, up 10% year on year, according to MRC DataScope.

In December, imports of polyethylene to Ukraine increased by 18% from November and exceeded 33,800 tonnes. Market participants hurried to replenish inventories on the back of anticipation of price increases. In general, in 2012 imports of polyethylene to Ukraine grew by 10% and exceeded the level of 331,000 tonnes.

Imports of high-density polyethylene (HDPE) to Ukraine in December in fact were at the November level and exceeded 14,200 tonnes. Ukrainian companies did not managed to form additional inventories due to the limited supply of HDPE from major suppliers in Europe and Russia.

The imports of HDPE did not grow so notably in the first eight months of 2012 due to the production of domestic maker Karpatneftehim (Lukoil Group), but in September, after the stoppage of the Ukrainian producer, imports began grow seriously. In 2012, the total imports of HDPE increased by 5% and amounted to 132,300 tonnes.
External supply of low-density polyethylene (LDPE) to Ukraine in December increased to 11,000 tonnes, from 9,000 tonnes in November. This significant increase in imports resulted from the desire of some market participants to replenish inventories in anticipation of the January price increases on international markets. Total imports of LDPE last year amounted to 114,300 tonnes.

The high dynamics of growth of demand remains in the market of linear polyethylene (LLDPE). In December, imports of LLDPE increased by 63% in anticipation of price increases and 7,600 tonnes. Last year, the demand for LLDPE in the Ukrainian market increased by 39% compared with the 2011 and amounted to about 74,000 tonnes.



MRC

MOSCOW (MRC) -- Czech petrochemical company Unipetrol AS said it expects to post a significant pretax loss in the fourth quarter because of a deteriorating external refining environment and charges taken as part of the company's plan to sell refining segment subsidiaries, as per Reuters.

Unipetrol, in which PKN has a 63 % share,said on Friday its 4.5-billion-crown (USD236 million) impairment
charge reflected a drop in asset values due to a tough refining environment as well as its intention to sell some assets.

As MRC wrote earlier, Poland's top oil refiner PKN Orlen posted an unexpected fourth-quarter operating loss of 700 million zlotys (USD227 million) due to a writedown in the refining part of Czech unit Unipetrol.

Unipetrol added its earnings before interest and tax were flat excluding the writedown. Refiners across Europe are seeing their margins squeezed as a slowdown in demand due to a faltering economy has left the
industry with excess capacity.

The company will release its full 2012 financial earnings on Jan. 23.

Accordinig to MRC data, in 2012, Czech Unipetrol increased supplies of PP and PE to Ukraine by 34% and 23% respectively. In total Ukrainian converter delivered more than 21 tons of polyolefins by Unipetrol production.


MRC