Eastman increases plasticizer prices on 1 September 2013

MOSCOW (MRC) -- Eastman Chemical Company is increasing prices on the following products starting from 1 September, or as contracts allow, reported the company on its site.

These increases are due to elevated operating costs, particularly in raw materials, as follows:

- Eastman 168 non-phthalate; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOP; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOA; all packaging and grades : Off-list price increase of USD 0.03/lb (USD 0.07/kg) in North America;
- Eastman TOTM; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman TOTM-CA; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman TEG-EH; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America;
- Eastman DOM; all packaging and grades : Off-list price increase of USD 0.05/lb (USD 0.11/kg) in North America.

As MRC informed previously, Eastman Chemical Co.'s first-quarter earnings rose 56% as the chemical and materials manufacturer was helped by a last year's acquisition of its peer specialty-chemicals firm Solutia Inc.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC

MOSCOW (MRC) -- Thai refineries have been asked to boost production in order to offset a supply shortage caused by temporary shutdown of PTT’s Map Ta Phut unit at Rayong, as per Plastemart.

The Ministry has requested cooperation of the refineries in reducing their LPG supply to the petrochemical sector, which will also be asked to use naptha as a raw material, instead of LPG. The meeting was held to seek ways to deal with the impact of the shutdown following a lightning strike on the facility.

Last week, lightning struck the waste-heat recovery unit at the Map Ta Phut facility, which supplies natural gas to PTTGC's I4-2 plant. The PTTGC plant has an olefins production capacity of 450,000 tpa.

Unit 5 of PTT's gas-separation plant is expected to take between three and five months to resume operation. The shutdown will result in the loss of LPG supply of between 70,000 and 75,000 tons per month, which represents up to 25% of the country's overall production capacity of 300,000 tons.

Around 220,000 tons of the normal production is from PTT's gas-separation plant units, and the rest from the refineries. PTT will also boost its LPG imports by 40,000 tons per month, from the present 140,000 tons, and cut the LPG supply to the petrochemical sector by 30,000 tons per month.

As MRC wrote previously, in June 2013, Indonesian state-owned energy company Pertamina signed an agreement to purchase petrochemical products from Thailand’s PTT Global Chemical. The agreement serves as a pre-marketing strategy for Pertamina and PTT’s joint Indonesian petrochemical business. Under the agreement, PTT will deliver at least 5,000 tonnes of polyethylene and polypropylene products each month to Pertamina for sale in Indonesia.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- The Dow Chemical Company has announced the reshuffle of its leaders in the Asia-Pacific region, which represents a major growth area for the company, said Nationmultimedia.

Pat Dawson, president of Dow Asia Pacific, has been named senior vice president for Dow's global epoxy business and corporate project development; Peter Sykes, president of Dow Greater China, will assume the role of president of Dow Asia Pacific; and Peter Wong, Asia-Pacific commercial vice president for packaging and speciality plastics, will now serve as president of Dow Greater China.

The transition will be completed in the coming one or two months.

Since 2008, Dow Asia Pacific has doubled its number of plants and employees, with the revenue from the region increasing from USD6.2 billion (Bt180 billion) to USD10.2 billion (Bt320 billion) in 2012, and now making up 18% of Dow's global sales.

Dow says its strategy in this region is to cultivate key partnerships with customers, local governments, and valuable external stakeholders, recruit and develop local talent, penetrate key markets, and broaden the impact of its leading innovation capabilities.

In the past year, Dow has continued to expand its regional coverage, including office openings in Chengdu and Harbin in China, and new manufacturing facilities in Vietnam, Thailand, China and South Korea.

The Shanghai Dow Centre, a state-of-the-art research-and-development facility, is now home to more than 80 laboratories and employs more than 500 scientists, who through world-class expertise and collaboration with key partners, including customers and universities, focus primarily on delivering applications for solutions for Asia-Pacific and global markets.

In his new role as president of Dow Asia Pacific, Sykes will assume responsibility for identifying new business opportunities, ensuring organisational vitality, and supporting the implementation of Dow's business strategies across the entire region. He will be located in Shanghai, with a second office in Hong Kong.

As president for Dow Greater China, Peter Wong will lead all geographic activities in mainland China, Hong Kong and Taiwan. He will assume responsibility for developing business opportunities, engaging and cultivating critical stakeholder relationships key to business success, attracting and retaining talent, and implementing Dow's business strategies in Greater China. Wong will report to Sykes.

"Greater China is Dow's second-largest international market in terms of sales, and is an incredibly dynamic and strategically significant region. I am looking forward to working together with our energised teams, and our key stakeholders, to find even more ways to be a preferred partner and solutions provider in Greater China," Wong said.

As MRC wrote before, Dow Chemical has signed a long-term ethylene off-take agreement with a new Japanese joint venture that will allow the chemical producer to enhance its performance plastics franchise. The joint venture is being formed between Japanese companies Idemitsu Kosan and Mitsui & Co. to construct and operate a Linear Alpha Olefins unit on the U.S. Gulf Coast.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber. In 2012, Dow had annual sales of approximately USD57 billion. The Company"s more than 5,000 products are manufactured at 188 sites in 36 countries across the globe.
MRC

MOSCOW (MRC) -- PetroChina is reportedly set to gain a stake in the West Qurna 1 oilfield project in Iraq under a deal to be signed with operator ExxonMobil and is also looking to come onboard as partner in a second project in the area, said Upstreamonline.

The offshoot of state-owned China National Petroleum Corporation was earlier this year reported to be in talks for an agreement whereby the US supermajor, which currently holds a 60% interest, would retain operatorship, with minority partner Shell on 15%.

ExxonMobil was earlier said to be likely to exit the USD50 billion project, which produces about 480,000 barrels per day, and offered to sell its stake last year after incurring the wrath of the Baghdad regime by signing contracts with the semi-autonomous Kurdistan region deemed illegal by Iraq.

However, the Texas-based giant has sinced bumped up its investment plans for the 8.7 billion-barrel field, signalling its continued commitment to the project.

ExxonMobil signed a separate deal with PetroChina late last month to jointly study the Changdong tight gas play in northern China’s Ordos basin.

PetroChina is also reported to be in talks with Lukoil to participate in development of the stalled West Qurna 2 project operated by the Russian company.

Lukoil chief executive Vagit Alekperov has said he would like a Chinese player to come onboard to replace former partner Statoil that sold its 18.75% stake last year.

West Qurna 2 is expected to produce 500,000 bpd in 2014, and needs total investment of USD30 billion. Lukoil plans to invest USD5 billion in the project in 2013 alone.

As MRC wrote before, PetroChina in 2012 overtook Exxon Mobil as the world’s biggest publicly traded producer of oil. The company announced it pumped 2.4 million barrels a day last year, surpassing Exxon by 100,000 barrels.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.
MRC

MOSCOW (MRC) -- The Lubrizol Corporation, an innovative specialty chemical company, has officially opened a world-class additives manufacturing facility in Zhuhai, Guangdong, China, according to the company's press release.

The plant is the latest addition to Lubrizol's long-term investment and growing presence in China. It is also the cornerstone of Lubrizol's 10-year phased investment plan, launched in 2010, to upgrade operations and increase global capacity in additives.

"The business climate in Asia is an exciting one, particularly when it comes to the rapidly expanding automotive industry, where the demand for advanced fuels and lubricants has never been stronger," said James L. Hambrick, chairman, president and chief executive officer of Lubrizol, at the opening.

Construction on the 400,000-square-meter site began in October 2010. The plant will offer select additive component manufacturing as well as additive package blending. Over the coming years, additional capabilities and capacity will be phased in to meet market demand.

The site also includes a Zhuhai research, development and testing lab in support of Lubrizol's engine oils, driveline, industrial and fuel additive businesses, and is part of the company's global technical network of labs and experts.

As MRC reported earlier, in March 2013, Lubrizol announced its four-year plan worth USD400 million of global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites. With continued strong global demand for the company"s CPVC compounds, Lubrizol"s expansion efforts will be divided into two phases.

Lubrizol Additives is a pioneering global supplier of chemical additive technologies, including additives for engine oils, driveline and other transportation-related fluids, and industrial lubricants, as well as additives for gasoline and diesel fuel. Extensively tested in the lab and in the field under real-world demands, Lubrizol additives are essential to the proven performance of the finished lubricant. Product lines include Engine Additives, Driveline Additives, Industrial Additives, Fuel Additives and Energy and Water Technologies.

The Lubrizol Corporation is a technology-driven global company that combines complex, specialty chemicals to optimize the quality, performance and value of customers' products while reducing their environmental impact. With headquarters in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 7,000 employees worldwide. Revenues for 2012 were EUR6.1 billion. Lubrizol is providing innovative solutions for its customers' high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
MRC