Rockwood to control Sachtleben

MOSCOW (MRC) -- Specialty chemicals company Rockwood Holdings Inc. ( ROC ) has agreed to buy Kemira Oyj's 39% stake in their titanium dioxide (TiO2) joint venture "Sachtleben" for EUR97.5 million (USD130 million), said Nasdaq.

The transaction, which will provide Rockwood full ownership of Sachtleben, is expected to complete by Feb 19, 2013.

Sachtleben, a leading producer of high-quality TiO2, was formed in Sep 2008 through the union of Rockwood's TiO2 pigments and functional additives business and Finland-based specialty chemicals maker Kemira's TiO2 business. Its major products include TiO2 in anatase grade, TiO2 in rutile grade and titanium specialties.

Sachtleben caters to a bevy of industries including synthetic fibers, plastics, paints, packaging inks, coatings, cosmetics and pharmaceuticals. The entity, in July 2012, purchased specific assets of German TiO2 producer crenox GmbH, bringing its total capacity to roughly 340,000 metric tons.

The weak TiO2 market conditions appear to have triggered Kemira's decision to divest its interest in the joint venture. Weak performance of Sachtleben led to a decline in its operating profit in fourth-quarter 2012.

Rockwood is also contending with a deteriorating TiO2 market. Its third-quarter 2012 profit (from continuing operation) fell roughly 19% year over year to USD61.6 million or 77 cents per share on lower sales. Revenues slipped roughly 8% year over year to USD862.8 million, hurt by negative currency translation and weak demand in the TiO2 business.

While the company recorded higher sales from its lithium business, it saw declines across surface treatment, performance additives, TiO2 pigments and advanced ceramics businesses.

Rockwood expects demand for TiO2 to remain soft in the fourth quarter. However, it sees continued strength in its lithium franchise.

Rockwood makes titanium dioxide (TiO2), a major ingredient in architectural paints and coatings and considered a good chemical indicator of the health of the US housing market.

As MRC wrote earlier, UK mining group Rio Tinto has abandoned plans to build new TiO2 facilities in Canada and Madagascar, on-going decline in global titanium dioxide prices.
MRC

MOSCOW (MRC) -- Asahi Kasei Plastics has announced a new long glass fiber reinforced polypropylene for improved impact performance and 20% cost savings compared to traditional long glass fiber reinforced polypropylene, said
Plastemart.

Thermylene I provides a proven balance of stiffness and toughness over a broad range of temperatures positioning it to replace metal, long glass and many other engineering resin applications. "Automakers will find Thermylene I especially appealing as it offers excellent mechanical and cost performance compared to traditional long glass fiber reinforced polypropylene," said Ramesh Iyer , vice president of commercial operations at Asahi Kasei Plastics.

"Applications that currently use long glass polypropylene will benefit from a cost savings and improved impact resistance, knit line strength, and better flow," said Iyer. "Thermylene I also provides high strength and stiffness at elevated temperatures, isotropic mechanical and dimensional properties and improved fatigue and creep resistance."

Key automotive applications include front-end modules, instrument panel retainers, battery trays, luggage racks and accelerator brake clutch modules. It is also ideal for a wide variety of other structural, functional and appearance parts as the glass content can be tailored to the specification for best performance. Key non-automotive applications include water filtration reverse osmosis units and office furniture.

As MRC wrote earlier,Asahi Kasei Plastics North America, Inc. is undergoing a major expansion program to accommodate increased business with the Leona and Xyron engineering plastics product families.

Asahi Kasei Plastics is a leading custom compounder of advanced engineered polymers. AKCC is a leading producer of high performance engineered thermoplastics, petrochemicals and monomers and performance chemicals.

MRC

MOSCOW (MRC) -- Oil & Natural Gas Corp. is considering the possibility of setting up a terminal to handle liquefied natural gas in the south Indian city of Mangalore in a joint venture with Bharat Petroleum and Mitsui & Co., reported Hydrocarbonprocessing with reference to the state-run explorer's chairman.

India is increasing its import of liquefied natural gas to meet a domestic supply shortfall. Many companies are setting up LNG terminals, which are specialized ports used to handle such imports.

ONGC, India's largest producer of crude oil, and Mitsui had last year signed an initial agreement to cooperate in the gas business.

The amount to be invested in the proposed LNG terminal is not disclosed, but a typical terminal which can handle 5 million metric tpy of LNG usually takes around USD1 billion to build.

We remind that, as MRC informed earlier, in summer 2011, ONGC was in talks with Russia's Bashneft and RussNeft to merge its Russian assets, but no approval had been received from the Indian government. ONGC has long eyed a deal with Bashneft, a unit of telecoms-to-oil group Sistema as well as involvement in the Arctic fields of Trebs and Titov, as it seeks to broaden its oil and gas base in Russia, the world's top energy exporter. But a merger of Bashneft and RussNeft is a long way off. Sistema President Mikhail Shamolin said the company may consider merging Bashneft and RussNeft once the latter's debt falls below USD 4 billion, but it may be a few years before that debt falls to the required level.
MRC

MOSCOW (MRC) -- State oil company Pertamina has requested a guarantee from the government concerning the company’s plan to build petrochemical refineries capable of producing 1 million tpa, said Plastemart.

Pertamina is seeking that the government restrict similar industries from entering the sector, as per TEMPO Interactive. This request is being reviewed by the government.

As MRC wrote earlier, Pertamina anticipates to boost sales of its petroleum-derived chemical products in 2013 after establishing a new joint venture focusing on the petrochemical business in the first half of this year.

Pertamina would start focusing on marketing activities both in the domestic and regional markets following the formation of the joint venture, which will construct a USD5 bln petrochemical facility. In December, the company signed a memorandum of understanding with Mitsubishi Corp. for the constructtion of the said petrochemical unit in Indonesia.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of Liquefied Natural Gas (LNG).

MRC

MOSCOW (MRC) -- The German speciality chemicals group Evonik Industries plans to expand its capacities for precipitated silicas worldwide by about 30 % by 2014, as compared to 2010, as per GV.

The company says it is investing funds in the upper double-digit million EUR range. Half of the expansion plans have already been realised, says Evonik.

The facilities for Ultrasil and Sipernat precipitated silicas in Asia and Europe have already been expanded. According to the company, the market development for precipitated silicas is carried primarily by the trend toward low-rolling-resistance tyres.

The company is also currently investing in a new development centre in Wesseling, Germany, which will pool knowledge of silicas and silanes and drive developments. The company produces precipitated silicas at ten sites in nine countries.

Evonik also produces the fumed silica Aerosil for such applications as silicone rubber, paints or adhesives and sealants. In all, the company has a worldwide annual capacity of about 500,000 tonnes in precipitated and fumed silicas, as well as matting agents.

We remind that, as MRC informed previously, Evonik's new polyamide 12 line is planned to be built in Singapore by 2014 to increase the availability of this specialty plastic. Besides, Evonik invested over EUR100m (GBR131m) in a new hydrogen peroxide plant in Jilin, China. The plant is scheduled to be completed by the end of 2013 where it will annually produce 230,000 tons of hydrogen peroxide, which is mostly used as a bleaching agent in the textile and pulp industry.

Moreover, as part of the company's strategic portfolio expansion, Evonik has recently announced its plans to launch a new generation of PVC plasticizers. Apart from its product lines expansion, the company will also develop a new brand of products. Thus, Evonik is broadening its range of sustainable plasticizers.

Evonik Industries is an industrial corporation in Germany and one of the world?s leading specialty chemicals companies. Company's specialty chemicals activities focus on high-growth megatrends, especially, health, nutrition, resource efficiency, and globalization, and on entering attractive future-oriented markets.
MRC