Romanian insolvent chemical producer Oltchim gets new GM

MOSCOW (MRC) -- Romania’s insolvent chemical producer Oltchim has been appointed a new general manager, said Romania-insider.

Mihail Talpasanu is the new general manager of the factory, taking over from the former manager Mihai Balan, whose mandate ended on March 15.

The Romanian Government approved Oltchim’s insolvency on January 23, with a consortium made of Rominsolv SPRL and BDO Business Restructuring RPRL as judiciary administrator. This was soon after the state failed to privatize Oltchim in a first privatization stage, which was won by media mogul Dan Diaconescu, who failed to pay the pledged amount (see MRC news).

The state announced it was seeking European Commission (EC) approval to grant the factory state aid. The government is requesting approval for some EUR 45 million in state aid for Oltchim in the much delayed and still ongoing privatization process of the state owned facility.

Oltchim S.A. manufactures and exports a wide range of diversified chemical products. The Company has five main segments: chloro-alkali products, macro- molecular products, chlorinated solvents, and pesticides. Oltchim's primary products are caustic liquid soda and solid chlorine, hydrochloric acid and sodium hypochlorite.
MRC

MOSCOW (MRC) -- Production shutdowns at major PVC supplies in the US have helped keep the domestic market as well as global markets firm for the past few months, said Apic-online.

After Westlake announced that it was lifting its force majeure on PVC supplies late last week, more producers are expected to return to normal production by April if they finish their maintenance turnarounds as scheduled.

As MRC wrote earlier, Westlake Chemical has agreed to acquire the PVC pipe and fittings unit of Compagnie de Saint-Gobain SA's CertainTeed Corp. for USD175 million.

After having declared force majeure on output from Geismar, Louisiana on Feb 13 due to equipment failures related to the VCM unit, Westlake restarted its 300,000 tons/year PVC plant by early March. However, the company kept its force majeure in place and only lifted the force majeure on March 15.

Market sources also said that Formosa was planning a shutdown at its 575,000 tons/year PVC plant in Point Comfort, Louisiana in late January or early February. The shutdown was delayed several times, with the last reported delay taking place in late February. The producer is expected to keep the plant shut for three weeks, according to market players.

Shintec also reportedly shut its PVC plant in Freeport, Texas for three weeks for maintenance. The shutdown started in late February, according to market players. Georgia Gulf was also scheduled to have a two week shutdown at its PVC plant in Plaquemine, Louisiana within March.
MRC

MOSCOW (MRC) -- Ukraine will hold a new tender for two semisubmersible rigs after a USD1.23 bilion deal with construction giant Keppel was called off last week, according to Upstreamonline.

The Singapore firm disclosed last week that the contract with Naftohaz Ukrainy would not go forward as "certain conditions in the timeline set were not met," according to Keppel.

Energy Minister Eduard Stavytsky said the company was not able to line up financing in time, accordint to a Reuters report.

"We need drilling rigs and we will soon hold a new tender," Stavytsky said according to the news wire.

Naftohaz did not immediately respond to a request from Upstream to confirm the report.

One source suggested to Upstream this week that discussions were still continuing for the contract though the previously negotiated agreement was off the table.

The Ukraine company previously said it intended a longterm programme to drill at least 200 development wells in the Black Sea at water depths between 120 metres and 1000 metres.

Four companies submitted bids in the tender, including Latvia’s Rigas Kugu Buvetava and two little-known companies headquartered in Belize.

Naftohaz was reportedly willing to pay up to USD1.4 billion for the units.

But Upstream reported some sources as doubtful that company would be able to muster the funds given its debt and a difficult road to finding large oil reserves in the Black Sea.

As MRC wrote earlier, Russian gas giant Gazprom and Ukrainian national oil and gas company Naftogaz previously started setting up a joint venture to develop the Black Sea shelf.
MRC

MOSCOW (MRC) -- In February, Russian converters of polymers increased production of the finished goods. Last month, the increase in production made on average 25%, according to MRC analysts.

After the unsuccessful January due to the long New Year holidays, Russian plants raised production of the finished polymer products in February. Last month, the increase in production ranged from 12% to 31% depending on the consumption sector.

Traditionally, the largest increase in production accounted for the construction sector, namely, the production of plastic windows and window sills. According to Rosstat, in February 2013, the total output of these products made 1,3 million square metres, up 31% from January. In January-February, the total production volumes of plastic windows and window sills amounted to 2,3 million square metres, up 24% year-on-year.

In January-February 2013, the output of doors and plastic boxes reached 91,600 tonnes, an increase compared to the same period last year made only 2%.

The production of plastic pipes and fittings rose to 42,000 tonnes in February, up 12% from January. Over the first two months of this year, the total output of plastic pipes and fittings went up to 79,700 tonnes, up 9% year-on-year.

Last month, the output of plates, polymer nonporous and unreinforced films made about 65,000 tonnes, up 27% from January. In January-February 2013, the total volumes of production of these products amounted to 112,000 tonnes, up 7% year-on-year.
MRC

MOSCOW (MRC) -- Imports of PET to Russia grew by 78% compared to January 2013, according to MRC ScanPlast.

Following the preparation for the season, in February, Russian companies increased their import purchases of the material for the production of PET preforms. Also the market received the volumes of the material purchased last December in anticipation of the growth of granulate quotations in Asia. Last month, total imports of PET to Russia amounted to 16,000 tonnes, up 78% from the previous month. In comparison with the same period last year, imports of PET decreased by 1,200 tonnes.

The share of PET of Chinese brands in the structure of supplies made about 52%. Totally over the past month, Russian consumers of PET granulate received about 8,200 tonnes of Chinese PET. At the same time Korean imports increased significantly. If compared to the previous month, supplies of Korean PET made more than 5,600 tonnes, which is equivalent to 35% increase in January.

The volumes of export deliveries of Russian bottle PET remained relatively stable compared to January and made about 1,400 tonnes in February. Meantime, if compared to sales in the foreign markets last year, exports of Russian PET fell by 75% in February.

MRC