Clariant closes sale of Textile Chemicals, Paper Specialties and Emulsions businesses

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has announced the closing of the sale of its Textile Chemicals, Paper Specialties and Emulsions businesses to SK Capital, reported the company in its statement.

Starting 1 October 2013, the three former Clariant businesses are now operating under the name Archroma.

After some adjustments for working capital and for the lower operational performance of some parts of the businesses, the total purchase price consideration of the transaction will amount to approximately CHF 425 million, mainly consisting of a cash inflow of CHF 355 million and the transfer of pensions and other liabilities.

Worldwide, 2,900 employees will transfer to Archroma.

"The successful closing of the transaction is the next step in repositioning Clariant’s portfolio towards higher growth, higher profitability businesses", said CEO Hariolf Kottmann.

We remind that, as MRC informed earlier, Clariant and Tasnee, one of the largest industrial conglomerates in Saudi Arabia, have recently announced the signing of an agreement to establish a masterbatches joint venture in Saudi Arabia. Within the framework of the agreement, through its 100% subsidiary Rowad National Plastic Company Ltd., Tasnee will acquire a 40% stake in Clariant’s masterbatches operations in the country, already operating under the name Clariant Masterbatches (Saudi Arabia) Ltd. The joint venture will be operational following completion of customary merger control clearance procedures and will keep its main focus on the Arabic peninsulas core market.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- Polyom has resumed polypropylene (PP) production after a long forced outage, according to ICIS-MRC Price report.

Omsk Polyom (Titan Group) resumed PP production on 2 October after the long forced shutdown. The Omsk plant will resume PP shipments to the domestic PP market on Friday, market participants said.

As it was reported earlier, Polyom shut down its PP production for a two-week turnaround on 1 September. However, the outage lasted more than a month because of a shortage of feedstock (propane-propylene fraction).

The Omsk plant's annual PP output is 180,000 tonnes. According to MRC data, Polyom produced about 73,600 tonnes of polypropylene in less than seven months of 2013.
MRC

MOSCOW (MRC) -- European producers have reduced polyethylene (PE) prices on lower ethylene prices. Offers for October shipments of high density polyethylene (HDPE) were heard by EUR20-30/tonne lower than in September, according to ICIS-MRC Price report.

The October contract price for ethylene in Europe was agreed by EUR35/tonne below the September level. However, European producers did not reduce October PE prices for the CIS countries proportionally.

Negotiations on European PE prices for October shipments to the CIS countries began this week. Offers for HDPE were heard in the range of EUR1,190-1,270/tonne FCA, down by EUR20-30/tonne from early September.

Many companies are slow to accept the current offers. On the one hand, companies intend to get lower prices. On the other hand, the current strengthening of the euro against other currencies partially offsets lower prices offered by European producers.
MRC

MOSCOW (MRC) - Importers of European polystyrene (PS) and styrene plastics in CIS countries expect October prices will be lower than in September on the back of falling contract prices of styrene monomer (SM), as per ICIS-MRC Price Report.

SM contract prices for October, announced in Europe on Tuesday, was cut by EUR92/tonne from the September's level. New contract prices for SM were settled at EUR1,450/tonne FOB Amsterdam-Rotterdam-Antwerp, excluding VAT.

CIS buyers expect European prices of polystyrene and styrene plastics also to go down on the back of the sharp drop in prices of rhe feedstock.

Although, the price of Russian expandable polystyrene (EPS) for October did not change relative to the level of September. SIBUR-Khimprom has left EPS quotation for the Russian market unchanged, while export prices were increased. The price for general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) by Nizhnekamskneftehim's production was not been voiced yet. A trader said Gazprom neftekhim Salavat left its PS prices steady.
MRC

MOSCOW (MRC) -- State oil firm Petroleos Mexicanos (Pemex) said one person was killed while five others suffered injuries on Tuesday afternoon when an explosion rocked its crude oil refinery in the state of Hidalgo, reported Ubalert.

The incident took place at the Miguel Hidalgo refinery which is situated in the town of Tula.

According to a statement issued by Pemex, the explosion occurred at 3:15 p.m. (local time) at the 500-1 unit in the Hidros Plant Unit I while maintenance work was being conducted. The blast came during the start-up of the Hidros 1 Plant, but operations at the facility were not suspended.

Six injured victims received emergency treatment at a Pemex hospital and a clinic of the Mexican Social Security Institute. Unfortunately, one of them died. Three of the victims are Pemex workers while the other three are from contractors.

The exact cause of the explosion is still unknown and authorities have yet to provide further details.

As MRC informed previoulsy, a powerful explosion rocked the Mexico City headquarters of state-owned oil giant Pemex on 1 February, killing at least 37 people, injuring more than 100 and trapping others inside. An accumulation of gas caused the blast.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene, polypropylene, polystyrene.
MRC