Russian producers of PVC in February cut capacity utilization by 2%

MOSCOW (MRC) - The capacity utilization of the production of polyvinyl chloride (PVC) in February fell by 2%. However, the current loading is still quite high. In February, the total output of PVC made 51,500 tonnes, according to MRC ScanPlast.

Capacity utilization of the production of a unmixed PVC (suspension and emulsion PVC) in Russia in February decreased by 2% compared with the January figure. However, the Russian makers of unmixed PVC continue to work at the maximum of their capacity. In February Russian producers loaded their capacities almost by 100%, the only exception was Kaustik (Sterlitamak). The total production of PVC made 49,800 tonnes, where emulsion PVC - 1,900 tonnes. In January this year, the total production of PVC made 56,600 mln tonnes (February's decline was due to the calendar factor), emulsion - 1,900 tonnes.

A leading maker of PVC SayanskKhimPlast last month produced 23,700 tonnes of resin. SayanskKhimPlast's facilities are loaded by almost 100%, at the same time by the end of this year the producer plans to boost production of resin to 280,000 tonnes. In 2012, total production amounted to 273,100 tonnes.

Kaustik (Sterlitamak) in February reduced the capacity utilization by 8% compared with the January. The output of PVC last month was 15,900 tonnes. Kaustik (Volgograd) in February increased by 1% its level of capacity utilization, the output of the resin made 7,400 tonnes.

Sibur-Neftekhim (Sibur Group) in February kept the capacity utilization at the January level. The output of resin was 2,84 tonnes. In July 2012 Sibur began stopping chlorine production at its subsidiary "Caprolactam". The production of PVC is planned to be stopped in April 2013.

In general, in January - February this year, the total volume of PVC in Russia amounted to 106,400 tonnes, while in January - February 2012, the figure was 106,700 tonnes.

The only producer of emulsion PVC in Russia - Khimprom (Volgograd) in February increased capacity utilization by 8%, production of the resin at the plant made 1,900 tonnes. During the first two months of this year, the total volume of emulsion PVC made 3,800 tonnes, an increase of 3% compared to the same period a year ago.


MRC

MOSCOW (MRC) -- Condor Compounds announced investment in a new 150 mm 20d co-kneader line to manufacture Conlink crosslinkable halogen free and flame retardant cable insulation and sheathing compounds as well as Conguard thermoplastic LSFOH compliant compounds, reported GV.

The new manufacturing line is installed at Condor Compounds existing wire+cable compounds facility in Braunschweig, Germany.

The line adds about another 5000 tonnes to the company’s capacities of Conguard LSFOH compliant compounds as well as opening the door for further growth in a number of segments including PP, thermoplastic elastomer compounds, silane or e-beam cross-linked systems or peroxide crosslinked rubber compounds. The Conguard compounds are well-suited for extrusion applications such as wire, cable and conduit.

Strategically located in Central Europe, from March 2013 Condor Compounds is running five co- kneader lines, two internal mixers Banbury-type, one with tangential rotor system, and one with intermeshing rotor system, and one twin screw extrusion line with a total capacity of about 50.000 t/y depending on portfolio.

We remind that, as MRC wrote previously, in October, 2012, Teknor Apex Company named Nordmann, Rassmann GmbH (NRC) to distribute its engineering thermoplastic (ETP) compounds in Germany and six other nations in Central and Eastern Europe. Earlier last year, Teknor Apex had restructured and expanded its portfolio of engineering thermoplastic (ETP) compounds.

Condor Compounds is a privately-held company founded in 1982 and located in Braunschweig, Germany. This is a diversified material science company using complementary technologies to serve the Wire & Cable Industry, the Construction Industry, the Pipe Industry and other markets consuming compounded modified plastics.
MRC

MOSCOW (MRC) -- Milacron LLC and Mold-Masters have announced they are combining to form a leading global solutions provider positioned to serve the full range of customer needs, according to USindustrysourcing.

Milacron is backed by its private equity investor CCMP Capital Advisors.

"This transaction is a major step in Milacron’s strategic growth plan which reinforces our support of the Company’s exciting prospects and our commitment to leveraging our extensive experience in the plastics industry to help Milacron maximize its global market opportunities and increase its value to customers."

The transformative transaction will create a rapidly growing company with world-class capabilities across five businesses: Milacron (Plastics Machinery), Mold-Masters (Hot Runners), DME (Mold Base Technologies), Aftermarket (Parts and Service) and CIMCOOL Fluid Technology (Metalworking Fluids and Services). Each business will continue to focus on the unique, value-added solutions they bring to their respective customers while leveraging the tremendous synergies that exist among all the businesses.

The combined entity will provide its customers with market-leading technologies, superb global engineering and R&D leadership. Through their complementary product lines, Milacron and Mold-Masters will be able to offer a broader portfolio of exceptional products and services, providing solutions for customers’ complex plastics needs.

Under the terms of the transaction, Milacron will acquire 100% of the shares of Mold-Masters for an enterprise value of CUSD975 million. The transaction, subject to customary closing conditions, is expected to close in the first half of 2013. In Russia and CIS countries, Mold-Masters' interests are represented by Portmold company.
MRC

MOSCOW (MRC) -- Brazilian state-run energy giant Petroleo Brasileiro, or Petrobras, expects the Abreu e Lima refinery project in Pernambuco state to start operations in November 2014, said Foxbusiness.

During a conference call with analysts to discuss the company's 2013-2017 investment plan Chief Executive Maria das Gracas Foster said that Petrobras had completed construction on about 70% of the refinery project. Petrobras is building the refinery, Brazil's first new oil processing plant since 1980, in partnership with Venezuelan state oil company Petroleos de Venezuela SA, or PdVSA.

PdVSA, however, has not yet obtained loan guarantees for its 40% stake in the project.

Petrobras estimates the final cost of the refinery, which has been subject to repeated delays and cost overruns, will be USD17.35 billion, Ms. Foster said.

As MRC wrote earlier, Petrobras has one of the largest investment budgets of any firm in the world at USD236.7 billion for the next five years, as it seeks to develop some of the biggest oil discoveries the world has found in decades. But its ambitions have weighed heavily on its share price in recent years, as production increases have failed to materialize and some projects have been mired by delays and cost overruns.

Petroleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 revenues.
MRC

MOSCOW (MRC) -- PetroChina Co., the country’s biggest oil and natural gas producer, posted full-year profit that missed analysts’ estimates as refining losses and import costs outpaced growth in oil and natural gas production, said Bloomberg.

Net income dropped 13% to 115.3 billion yuan (USD18.6 billion) last year, the state-owned company said in a statement to the Hong Kong stock exchange today. That compares with the 119.8 billion yuan mean of 27 analyst estimates compiled by Bloomberg.

China, the world’s second biggest economy, has capped retail fuel and natural gas prices to contain inflation. PetroChina and its parent China National Petroleum Corp. have spent around USD5 billion this year to add oil and gas fields in Australia and Africa to counter losses in refining and on natural gas imports.

The earnings are "driven by better-than-expected marketing offset by weaker-than-expected profitability from natural gas and the pipeline division," analysts at Barclays Capital Asia Ltd., including Scott Darling, said in a research note.

PetroChina’s refining business posted an operating loss of 43.5 billion yuan in 2012, compared with a loss of 60.1 billion in 2011, according to the statement.

Operating expenses in the refining and chemical segment increased 1.9 %. PetroChina refined 1 billion barrels of crude in 2012, an increase of 2.8% from a year ago.

Full-year revenue rose 9.6% to 2.2 trillion yuan. Output rose 3.4 percent to 916.5 million barrels, while gas production increased 6.8% to 2.6 trillion cubic feet, according to the statement.

As MRC wrote earlier, its state-owned parent CNPC announced it will spend USD4.2 billion to buy a stake in Eni SpA (ENI)’s African natural gas assets in Mozambique on March 14, Asia’s biggest acquisition this year.