Polyplastic Group acquires UK pipes maker Radius Systems

MOSCOW (MRC) -- Polyplastic Group, the Russian and CIS market leader in plastic processing, completed the
acquisition of Radius Systems, the UK pipes and fittings maker, with the help of Eversheds, reported Eversheds on its site.

The sum of transaction is not disclosed.

Global law firm Eversheds has advised the shareholders of Radius Systems Limited on the disposal of Radius Systems to Polyplastic Group. The Eversheds’ team was led by Principal Associate, Alistair Cree.

"We are pleased to have helped the shareholders of Radius complete this significant disposal. The future partnership between Polyplastic and Radius represents a strong alignment between two premium businesses and should provide real growth opportunities for both parties," Alistair commented.

"The completion of this acquisition is exceptionally good news for the Radius Group and should be welcome reassurance for both our loyal employees and those suppliers who have supported the business through a tough two year period. Alistair and his team provided excellent advice, assistance and service throughout culminating in the successful completion of the deal," said Andy Taylor, CEO of Radius Systems.

We remind that, as MRC informed previously, last summer Polyplastic Group (Moscow, Russia) and Talis Group (Rodgau, Germany) announced strategic cooperation with regard to selling Talis production in the Russian market and its inclusion in Polyplastic Group's range of products.

Radius Systems’ business involves the development and manufacture of plastic pipes and fittings for the gas, water and wastewater sectors, as well as the production of solutions for the telecoms market. Radius generated net sales of over EUR100 million in 2012 and employs 370 people at its facilities in Hilcote (Derbyshire), Banbridge and Lurgan (both in Northern Ireland).

Polyplastic Group was founded in 1991 and is today the leading European supplier of thermoplastic compounds and polyethylene piping solutions for infrastructure markets, with production plants in Russia, Ukraine, Belarus and Kazakhstan.
MRC

MOSCOW (ICIS-MRC) -- Russian polypropylene (PP) makers hope to keep February price level for March, though many converters expect lower prices amid low demand and the start of a new plant in Omsk, according ICIS-MRC Price report.

February was quiet enough for the Russian market of polypropylene. Many converters restricted their purchasing volumes amid weak demand for finished goods. In addition, the launch of a new polypropylene plant in Omsk, at the production site of Polyom (Titan Group), also influenced the buying activity.

The information about a new supplier in the polypropylene market foremost put a heavy pressure on importers. Prices of Turkmen raffia went down to the level of Rb60,000-61,000/tonne, FCA Astrakhan, including VAT. Russian producers did not start adjusting PP prices in February.

Last week of February, price offers for Omsk polypropylene appeared in the market. Meanwhile, Polyom does not actively promote its production in the market, the company is more focused on the development of the technology and strategy of promoting polypropylene in the market.

By the end of the month, consumer activity had fallen noticeably. Many converters expect an increased competition among producers in March and, as a result, lower PP prices. Price offers for raffia in the spot market are in the range of Rb62,000-64,700/tonne, CPT Moscow, including VAT. Injection moulding homopolymer propylene is offered on average by Rb1,000/tonne higher.

Russian producers still hope to keep February PP prices for March, citing rising prices in the foreign markets and an increasing demand in the domestic market. Besides, the decline in production of homopolymer propylene at Stavrolen (5-days' outage in early March) and Ufaorgsintez (the production of new grades of propylene copolymer is planned) will also help to reduce pressure on the polypropylene market.
MRC

MOSCOW (MRC) -- In January 2013, the domestic consumption of PET in Russia grew by 11% year-on-year, according to MRC ScanPlast.

In January, the estimated consumption of PET granulate in Russia amounted to about 43,000 tonnes, up 11% year-on-year. The positive dynamics of consumption was achieved by increasing imports amid decline in export shipments of the material and the stability in production of Russian producers of PET granulate.

As it was reported previously, in January 2012, the supply volumes of imported PET to Russia grew by more than 3,000 tonnes year-on-year (which is equivalent to a 50% increase) and made about 9,000 tonnes.

The growth of imports of bottle PET was due to several factors. Firstly, the rise in prices of bottle PET, which began in late November last year, caused an increase in purchases by Russian converters. Secondly, the increase in consumer activity and lack of significant stock residues in Russia resulted in a shortage of the material in the domestic market, which led to the increased purchases of the material from Asia. According to PET converters, this February, imports of the material is also expected to increase from January.

January's export shipments of PET granulate declined due to weak demand for pellets in Europe, as well as unattractive price offers in the European markets, given that demand in Russia remained stable. Therefore, the volumes of Russian PET were sold out in the domestic market.

Production performance of the domestic plants remained relatively unchanged. In general, Russian makers produced about 35,000 tonnes of bottle PET in January, while in January 2012, this index made 35,700 tonnes of PET granulate.

In January 2013, there was a steady demand in the market. PET sellers reported that sales figures in January 2013 were significantly better year-on-year. According to sources, the absence of carryover stocks at the market players' warehouses had a positive impact on sales activity in the first month of the year.
MRC

MOSCOW (MRC) -- In January 2013, the production of caustic soda in Russia decreased by 2.6% compared to December 2012, according to MRC ScanPlast.

Traditionally, the output of caustic soda in January dropped from December indices of the previous years. This January was no exception. Over the first month of 2013, the production of caustic soda at Russian plants made 94,500 tonnes, down 2.6% or 2,500 tonnes from December 2012.

Over the stated period, the production volumes of caustic soda at Kaustik (Volgograd) amounted to about 18,000 tonnes. At the same time, its capacity utilization was 78%.

Kaustik (Sterlitamak) capacities remain significantly underutilized. With the potential capacity of the plant to produce 25,000 tonnes per month, its output made 16,000 tonnes in January, 2013. Meantime, the operating rates of the producer of caustic soda did not exceeded 64%.

Over the stated period, in the structure of the caustic soda production, the share of Kaustis (Volgograd) made 19%, while the shares of SayanskKhimPlast and Kaustik (Sterlitamak) in the total production volumes of the material made 17% each.

MRC

MOSCOW (ICIS-MRC) - Russian producers of low density polyethylene (LDPE) are going to increase price in March further, despite the low demand, according to ICIS-MRC Price Report.

Seasonal factor still puts pressure on the Russian market of low density polyethylene. Demand for finished products is weak, and as a result, converters limit the purchases. After the January decline large converters increased their purchases of LDPE in February, in particular, for the production of shrinkable films, but the demand in the whole is still poor.

In mid-February, many Russian producers raised prices of LDPE by Rb350-2,000/tonne, from January, citing low margins. However, the rise in PE prices has not resulted in increase in consumer activity. Many converters are still not in a hurry to increase the volume of purchases due to the lack of big orders for finished products.

Some Russian makers this week announced increase in PE prices for March. According to unconfirmed information, Kazanorgsintez plans next month to sell the most of its LDPE to the domestic market through the electronic trading system. In addition, the company is going from 18, April to stop its production of LDPE on 30-days turnaround.

The pricespread of LDPE this week was large enough in the market. The offers for 158 PE were voiced in the range of Rb55,500-57,800/tonne, including VAT, CPT Moscow. PE for production of shrinkable films was offered on average at Rb58,000-59,000/tonne, including VAT, CPT Moscow.

MRC