South Korean Hyundai Heavy wins USD850 million order from Petronas

MOSCOW (MRC) - Hyundai Heavy Industries Co said on it had won a USD850 million order to build four liquefied natural gas (LNG) carriers from Malaysia's Petroliam Nasional Bhd (Petronas), said Reuters.

The South Korean shipbuilder said in a statement the carriers are scheduled to be delivered from the second half of 2016. Hyundai Heavy Industries has won a contract reportedly worth RM850mil from Petronas to build four 150,200-cubic metre, Moss-type liquefied natural gas (LNG) carriers to help meet its expanding global LNG business.

The contract, signed on Oct 10 in Seoul, South Korea, also includes options exercisable by Petronas to order four additional LNG carriers of the same class.

The spherical-type, new generation LNG carriers are scheduled for delivery from the second half of 2016. Petronas did not give any figures in its press statement but AFP reported that the contract was worth USD850mil.

Petronas said in its statement that MISC Bhd would act as the project manager and technical consultant to PETRONAS for the construction of these LNG carriers.

Hyundai Heavy Industries, set up in 1972, has become the world’s leading heavy industries company with diversified businesses that include shipbuilding, offshore engineering, industrial plant and engineering, engine and machinery, electro-electric systems, construction equipment, and green energy businesses.

Its shipbuilding division leads the global shipbuilding industry with a 15% share of the market.

As MRC wrote before, Petronas has signed an agreement with Eni-controlled Versalis to jointly own, develop, construct and operate elastomer plants within Petronas" proposed refinery and petrochemical integrated development (RAPID) complex in Pengerang, Johor.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, has announced commercialization in 2014 of Forane 1233zd, a new molecule for use as a low global warming potential (GWP) blowing agent for polyurethane foams, reported the company on its site.

Arkema has patented the use of Forane 1233zd as a blowing agent in the manufacture of polyurethane
foams. Forane 1233zd blowing agent provides exceptional energy performance and environmental benefits
over existing blowing agents, such as HCFC, HFC, and hydrocarbon molecules.

As a leading refrigerant gas and liquid blowing agent producer with global reach, Arkema is adapting to a world of ongoing regulatory changes, seeking for competitive, environmental-friendly solutions, and eager to bring effective support and dedication to its customers.

Fundamental to this commitment is Arkema’s wellestablished strategy to bring next-generation, low GWP technology to its global markets. The development of the Forane 1233zd blowing agent, in addition to Arkema’s recent announcement of planned production for the next-generation refrigerant, HFO-1234yf, are the latest milestones in this strategy.

Forane 1233zd blowing agent is a liquid, non-ozone depleting, non-flammable, high performance blowing
agent with a global warming potential of 7. Its target markets include polyurethane foams used in the manufacture of household refrigerators and freezers, commercial refrigeration, spray foam, and polyurethane panels for commercial and residential building and construction applications.

As MRC wrote previously, this summer, Arkema announced a comprehensive range of PEKK (Poly Ether Ketone Ketone) ultra high performance polymers comprised of three families of products whose properties meet the requirements of aerospace, oil exploration and electronics applications. These new materials significantly expand Arkema’s high performance materials offerings to high added value markets.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. As MRC reported previously, Moody's Investors Service had upgraded Arkema S.A.'s senior unsecured rating to Baa2 from Baa3. The outlook on the rating was changed to stable from positive.
MRC

MOSCOW (MRC) - September of imports of polycarbonate (PC-granulate) to Russia grew by 68% compared to the August level to 4,600 tonnes, according to MRC DataScope report.

The largest suppliers of PC to Russia in September remained Sabic Innovative Plastics with 63,3% of total imports and Bayer Material Science AG with share of imports 18.2%. The supplies of Chi Mei Samsung and Cheil Industries also increased over the reported period.
The main consumers of PC granulate in Russia at the moment are two companies - "Samsung Electronics Rus Kaluga" (production of household and electrical) and "SafPlast" (production of PC sheets).

Imports of PC-granulate to Russia totalled 23,600 tonnes in January-September 2013, which is almost half as much than the volume of imports during the same period in 2012.

MRC analysts expect that imports of PC-granulate to increase in the autumn-winter period. According to statistics, about 40% of imported to Russia PC is used for the production of polycarbonate sheets.

PC-sheets are widely used in the construction sector.

MRC

MOSCOW (MRC) -- European polystyrene (PS) producers have reduced October contract prices for high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) by EUR70-85/tonne, including buyers from the CIS countries, according to ICIS-MRC Price report.

Lower import prices in the local market went down following falling prices for styrene monomer (SM). As reported previously, October SM prices dropped by EUR92/tonne from September. New contract SM prices are EUR1,450/tonne FOB ARA (Amsterdam-Rotterdam-Antwerp).

European producers have made concessions to buyers this month amid decreased production costs and weaker demand in the PS market in September. At the same time, PS consumers in Europe said prices for HIPS and GPPS dropped not as much as SM prices.

Despite lower prices, demand in Europe remained at the same level and did not meet sellers' expectations. Many converters use stock residues. Buyers are waiting for further price reductions to boost purchases.
MRC

MOSCOW (MRC) -- The talks between INEOS Grangemouth (UK) and Unite the Union opened at 1.00p.m. on Tuesday 15th October and closed at 6.00a.m. on Wednesday 16th, as the Union had agreed to cancel the current industrial action and proposed strike, reported the company on its site.

INEOS, in its turn, had agreed to restart all plants as quickly as possible provided that the Union agreed not to take further industrial action before the end of March.

The Union had refused, offering a limit of a 24-hour strike per month during Q1 2014. This was not acceptable to INEOS, due to the significant safety risk (especially in the winter months) of having to shut down and restart plants multiple times.

INEOS had asked the Union to stop the wave of protest actions against INEOS’s customers, suppliers and financial lenders. The Union had refused.

INEOS had agreed to follow a proper consultation process for the changes to Terms and Conditions that it had announced in its Survival Plan and had committed to fully engage with the Union and to involve ACAS.

INEOS had asked the Union to accept that the Site is in serious financial distress. The Union had refused.

The Union had offered to drop the dispute over Mr Deans entirely and had agreed that the Company could continue its investigation without further interference. In addition the Union had agreed there would be no further industrial action over this matter regardless of outcome.

The Union had asked that INEOS withdraw its defamation claim against Unite. INEOS had agreed provided that the Union issue an apology for the defamatory statements. The Union had refused.

As MRC wrote previously, the Grangemouth site employs 1,400 people, including 700 at the petchem operations. Ineos under its ‘survival plan’ proposal is seeking to reduce the number of workers at the petchem operations by an unspecified number and make changes to the pension benefits. The proposed job cuts would not affect the refining operations, which are run by a joint venture between Ineos and PetroChina.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC