Petronas Chemicals IPO to raise US$4b

SINGAPORE (Business Times) -- Petronas Chemicals Group is looking to raise as much as US$4 billion in a Malaysian initial public offering, exceeding earlier estimates of over US$2 billion as it hopes to tap strong global investor demand for Asian stocks.

Petronas Chemicals, which manufactures olefins and polyolefins, fertilisers, industrial and specialty chemicals, will have started "pre-marketing" its IPO yesterday with formal investor roadshows slated to begin on October 27.

The deal is expected to be priced on November 12, according to an e-mail sent to investors by one of the advisers.

Petronas Chemicals has an annual production capacity of more than 10 million tonnes. It posted operating profit of US$2.3 billion in fiscal 2009, according to its prospectus.

MRC

MOSCOW (ICIS) -- Sibur has completed a rouble (Rb) 1.6bn ($53.4m, ┬38.5m) project to increase a plant's capacity of light-hydrocarbon gases to service downstream facilities, the Russian petrochemical major said on Tuesday.

Sibur increased the capacity of its Gubkinsky plant from 284,000 tonnes/year to 434,000 tonnes/year, it said.

In July, Sibur started building a new pipeline to transport light-hydrocarbon gases to the Tobolsk-Neftekhim petrochemical plant, which is operated by its subsidiary.

The 400-kilometre pipeline, which has a capacity of 7m tonnes/year, would be used for Sibur's project to build a new 500,000 tonne/year polypropylene (PP) facility at the premises of the Tobolsk-Neftekhim subsidiary.

The PP facility is expected on stream in 2012.

MRC

(Plastics News) -- Chinese chemical manufacturer Tianjin Daju Chemical Co. Ltd. has signed an agreement with German supplier Bruckmann & Kreyenborg Granuliertechnik GmbH for pelletizing systems to produce ABS resin.

The Chinese firm, which also makes PVC resin and plastic parts for doors and windows, plans to purchase underwater pelletizing systems to manufacture 200,000 metric tons of ABS a year.

BKG said it was its largest order ever in China.

Tianjin Dagu, based in Tianjin City, employs 6,000 and also makes hydrochloric acid, caustic soda and other materials. Tianjin Dagu declined further comment.

MRC

MOSCOW (Market Report) - From the beginning of the year impact modifiers supply for PVC from China has reached the level of 3 kt that is 135% more than that of the analogue period in 2009 - MRC Monthly Report says.

For 8 months of 2010 impact modifiers imports volume for PVC in Russia made up 13,25 kt. The main supply volumes fall at modifiers produced by Rohm and Haas as well as Weifang Yaxing, whose supply volumes made up 0,54 kt and 0,47 kt respectively or 46% of the total volume.

August was marked by the change of the leader in the structure of impact modifiers supply for PVC to the Russian market. During the last years the biggest import volumes fell at modifiers from Germany (total supply volumes this year has made up 2,82 kt). Though in July a share of impact modifiers for PVC from Chinese producers has started a vigorous growth and in August it reached 30%. In total summarizing the results of 8-month modifiers imports from China made up about 3 kt.

In 2009 the impact modifiers supply for PVC were made mostly from France (26%), Germany (22%) and Belgium (21%). From the beginning of 2010 the market situation has changed and now the market leaders are as follows: China (23%), Germany (21%) and France (17%).

MRC

SINGAPORE (ICIS) -- India's Reliance Industries may cut operating rates at its 1.9m tonne/year polypropylene (PP) facility at Jamnagar, Gujarat state in November as a result of reduced on-site propylene supply, a source close to the company said on Tuesday.

"Propylene feedstock supply will be reduced because of lower throughput at its upstream fluid catalytic cracking (FCC) units," the source said.

The source didn't know how much production would be cut at the PP and FCC units but that the lower operating rates would be maintained for four to five days.

Reliance operates two FCCs at Jamnagar, each with a 200,000 bbl/day capacity.

MRC