Engel completes plant expansion in South Korea

MOSCOW (MRC) -- Engel, the largest producer of injection moulding machinery worldwide, intends to almost double the present output of injection moulding machines at its plant in Pyungtaek City, South Korea, according to GV.

Thus, the company plan to produce around 1,200 injection moulding machines every year at its South Korean plant.

In March, Engel completed the expansion and modernisation of the facility. The company has invested a total of EUR8 million in South Korea.

"Engel wants to lead the world when it comes to generating customer benefit. To achieve this, customer proximity has to be a firm priority. We also need to ensure our injection moulding machines and system solutions are of a consistently high quality around the world. Our considerable success in Asia has shown that we're on the right track with this strategy", emphasised Dr. Peter Neumann, the CEO of Engel Holding in Austria.

In recent years, Engel has succeeded in steadily raising its market share in Asia. In fiscal year 2011/2012 the figure approached 10% for the first time as an Asian sales record of EUR125 million was achieved.

On the fast-growing markets of Asia, the Pyungtaek City subsidiary plays a key role for Engel. The company has been producing small and medium-sized machines in the clamping force range of 25-400 tonne in Korea since 2001, including machines for the Engel victory, e-mac, e-motion, and insert series. 30% of these machines stay in Korea, with 70% exported to China and other Asian nations. Clients include high profile global players (especially in the automobile and electronics industries) alongside smaller local plastics processing firms.

Engel's production plant in Shanghai was also significantly expanded just last year. The company has been producing large-scale machines for the duo series in China since 2007. According to Engel, the company is now the only western producer of injection moulding machines with two production sites in Asia.

Also, as MRC wrote previously, in late 2012, Engel invested EUR2.3 mlm in its facility in Dietach, Austria in order to introduce synchronised line assembly and modernise the machine farm in its robot plant. The latest investment in Dietach sees the third Austrian production facility follow suit.

Engel is, as a single brand, the largest producer of injection moulding machinery worldwide and a leader in the field of injection moulding technology. Engel's integrated systems solutions include injection moulding machinery, automation, process technology, tool design, training and service. Engel supplies 50% of all large-scale machines and 35% of the small to medium-sized machines with automation included, and the figures are still rising.
MRC

MOSCOW (MRC) -- Oil major BP PLC is seeking to sell its US. wind energy business as part of efforts to refocus on oil and gas and position the company for growth in the future, reported The Wall Street Journal.

BP has built one of the largest wind businesses in the USA. As such, any subsequent divestment will be the subject to attractive offers being received, according to BP's statement. The company didn't say how much it expected to get. A report in U.K. newspaper the Financial Times estimated the assets to be worth about USD1.5 billion.

In the last five years, BP has invested more than USD55 billion in US. energy development, almost USD15 billion more than its nearest competitor, and more than BP invests in any other country.

We remind that, as MRC informed previously, in october 2012, BP announced an agreement to sell its refinery in Texas City, Texas, and a portion of its retail and logistics network in the southeast US to Marathon Petroleum for USD2.5 billion. With this agreement, the total value of the divestments that BP has agreed since the beginning of 2010 made more than USD35 billion. BP expects this total to reach USD38 billion by the end of 2013.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

MOSCOW (MRC) -- Saudi Industrial Investment Group (SIIG) announced that it has resumed operations of its Jubail Chevron Phillips project after completing the required maintenance works on Apr 3, 2013, said Mubasher.

The company is currently working on increasing the production gradually till reaching the regular production capacity.

Chevron is the only large international energy company to have a continuous upstream presence in the Kingdom of Saudi Arabia for more than seven decades. Chevron Phillips Chemical Company LLC (CPChem) and its affiliates have interests in Saudi Chevron Phillips Company, Jubail Chevron Phillips Company, Saudi Polymers Company and Petrochemical Conversion Company. All four companies have facilities in Al-Jubail.

As MRC wrote earlier, Chevron Phillips Chemical mulls expansion of its normal alpha olefins (NAO) capacity by, at least, 20% at its Cedar Bayou Chemical Complex in Baytown, Texas.
MRC

MOSCOW (MRC) - Russian producers and traders have left polystyrene prices for April at the March level, according to ICS-MRC Price Report.

This week market participants were focused on the price formation of Russian PS for April. As per MRC analysts, the price of Russian polystyrene for the first half of April was left at the rollover from March.

Nizhnekamskneftekhim's price remains at Rb75,000-79,000/tonne for general purpose polystyrene (GPPS) and Rb77,000-82,000/tonne, CPT Moscow, for high impact polystyrene (HIPS).

Gazprom neftekhim Salavat's price of polystyrene also unchanged in April. Traders keep prices at Rb68,500-72,000/tonne for GPPS and Rb75,000-78,000/tonne for a natural HIPS.

At the same time, according to a trader, the price for natural HIPS can be reduced in the second half of April. One of the traders said: "The price of GPPS is unlikely to change in the Russian market, as the current price is at a fairly low level. "

At the same time, the European contract price of styrene monomer in April decreased by EUR64/tonne to EUR1,411/tonne, FOB ARA (Amsterdam-Rotterdam-Antwerp). MRC analysts think that this can increase pressure on the PS makers in Europe, making them reduce the price offers. In its turn, the decline in European material price may affect the prices of Russian polystyrene in April and May. European material in 2012 made about 20% of total consumption of the GPPS.

MRC

MOSCOW (MRC) -- Prices of DOP plasticizer for April grew in the Russian market on the back of increased feedstock costs. The oncoming turnaround of Gazprom neftekhim Salavat and a seasonal increase in demand give grounds to think that DOP prices will grow further, as per MRC analysts.

The cost of the main feedstock of dioctyl phthalate plasticizer (DOP) - diethylenglycol (DEG) and phthalic anhydride has grown in April, which resulted in increase of Russian DOP prices on average by Rb3,000/tonne to Rb70,000-72,000/tonne, including VAT, with delivery.

The exception made DOP plasticizer by Gazprom neftekhim Salavat production, which was left at the rollover from March: Rb65,000-66,000/tonne, FCA Salavat, including VAT.

The company plans to stop its capacities for DOP production on the turnaround from 20, April.

Some market participants said that the stoppage of Gazprom neftekhim Salavat's facilities and a seasonal increase in demand in the near future could result in increase of DOP prices.

MRC