PE output in Russia grew by 29% in January-September 2013

MOSCOW (MRC) -- The overall output of polyethylene (PE) in Russia rose by 29% in the first nine months of 2013. "Gazprom neftekhim Salavat" and Stavrolen accounted for the largest increase in production this year, according MRC ScanPlast.

PE total in Russia grew to about 1,245,000 tonnes in January-September 2013 from 963,000 tonnes during the same period a year earlier. "Gazprom neftekhim Salavat" increased significantly its capacity utilisation this year, the production of high density polyethylene (HDPE) rose by 78%. Stavrolen was shut down during nine months because of the failure in 2012, the plant produced about 228,500 tonnes of PE in 2013.

The total output in terms of PE grades is, as follows.

The overall HDPE production was around 764,000 tonnes in January-September this year, while a year earlier it was 502,300 tonnes. "Gazprom neftekhim Salavat" accounted for a major growth of production (+78%) up to 51,500 tonnes this year. The largest producer Kazanorgsintez increased HDPE production by 4% to 346,300 tonnes. Nizhnekamskneftekhim reduced its HDPE output by 2% to 152,000 tonnes because of scheduled and unscheduled outages at the ethylene unit.

The output of low density polyethylene (LDPE) grew up to 466,500 tonnes in the first nine months of the year from 446,300 tonnes in the previous year. All Russian producers increased their LDPE capacity utilisation with the exception of Tomskneftekhim. The Tomsk plant reduced its LDPE production by 14% to 159,000 tonnes because of a long outage for maintenance in July-August.

The Angarsk Polymer Plant raised its LDPE production to 27,600 tonnes, an increase of 24% year on year, despite a prolonged turnaround (about 50 days). Kazanorgsintez increased its LDPE output to 163,400 tonnes (up 11% year on year), "Gazprom neftekhim Salavat" raised its production to 26,000 tonnes (an increase of 7%). Ufaorgsintez produced about 69,000 tonnes of LDPE, up by 2% year on year.

Nizhnekamskneftekhim produced about 14,400 tonnes of linear low density polyethylene (LLDPE) in January-September 2013, which virtually equals its LLDPE output in 2012.

MRC

MOSCOW (MRC) -- The privatisation of the Oltchim chemicals works will be completed in June 2014 if working capital can be raised or else the deadline will be February 2014, said Iliaspapageorgiadis, citing Economy Minister Andrei Gerea.

'If we manage to raise 15 million euros, the equivalent of the working capital, we can extend through June. If we fail, the next February we will shake hands with investors," said Gerea.

He mentioned he would like the former, because finding serious investors takes time and for the time being there are some problems with securing the working capital.

"The most pressing factor is the working capital, which is absolutely necessary for the conduct of business and also to win time, because an action such as the one started by us to find an investor takes time. We need this money, which we are trying to raise from banks. Yet, unfortunately banks are not much eager to fund, which is a problem nationwide not just in the Oltchim's case,' said Gerea.

He added that there are three international consortiums having voiced interest in taking over Oltchim, but the campaign to win investors for the privatisation of Oltchim continues. On the other hand, talks will resume with representatives of OMV Petrom for the sale of the Petromedia refinery currently under conservatorship.

'We have a meeting this week with OMV because six months ago they voiced intention to sell the refinery. This would certainly be a plus for Oltchim, but it is not as essential to it as the Bradu Petrochemicals Division is. The absence of the refinery could be offset, but to Oltchim as it is today there is no future without what goes on in Pitesti. Things are clear to everybody that privatisation will be performed integrated,' said Gerea.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating PVC for panels, doors and window frames.
As per MRC, Oltchim at the present does not supply PVC to the Russian market. Insignificant amounts of PVC-S had been delivered from 2005 to 2009 and on average made 1,900 tonnes per year.

MRC

MOSCOW (MRC) - Total output of polymer products in Belarus grew by 6.2% in January - September 2013, according to MRC analysts.

The largest increase in production showed producers of plastic windows, window sills, pipes and fittings. According to Belarus National Statistical Committee, production of windows, window boxes and sills declined to 45,500 sq. m in September, down by 16.3% from the August level. The total production of above mentioned products has increased to 366,000 sq. m in the first nine months of 2013, up by 18.9% compared with the last year figures.

The production of pipes, hoses and fittings made of polymers in September remained practically at the level of August and was about 1,300 tonnes. Total output of these products exceeded 10,700 tonnes in January - September of this year, up by 15.1% compared to the same period in 2012.

The production of plastic boxes and trays rose to 59.7 mln units in September, an increase of 3% compared to August. Total production of these products reached 517.4 mln units in the first nine months of this year, a 9.4% increase compared to the same period in 2012.

Production of unreinforced and uncombined polymer films in September remained at the level of August - about 7,240 tonnes. Total production of the films exceeded 66,500 tonnes in January - September of this year, down by 1.6% year on year.

Production of plastic doors and door boxes fell to 4,400 sq. m in September, compared with 4,600 sq.m m in August.
Total production of above mentioned products decreased by 4.6% and amounted to 29,100 sq. m in the first nine months of this year.
MRC

MOSCOW (MRC) -- Paints maker Akzo Nobel has strengthened its footprint in India with the commissioning of a new plant in Gwalior to make decorative paints, said Thehindubusinessline.

The greenfield facility, Akzo’s sixth plant in India, has been built at an investment of Rs 140 crore. It has an annual capacity of 55 million litres.

Amit Jain, Managing Director, Akzo Nobel India, said that the plant will provide cost-effective access to key markets in the northern and central parts of the country. It will reinforce their strategy to expand distribution of its Dulux brand, he added.

The sustainability features of the new facility include rain water harvesting, energy efficient pumping systems and 20 per cent of the roofing area designed to let natural light in, reducing the requirement of artificial lighting.

As MRC wrote before, AkzoNobel N.V. said it received a binding offer from Swiss-based Sika AG to buy its Building Adhesives business for 260 million euros. The deal is expected to be completed in the fourth quarter. The proceeds from the deal will be used to repay short-term debt and improve liquidity.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- Xinjiang Tianye Group is in plans to start a new monoethylene glycol (MEG) plant, reported Apic-online.

A Polymerupdate source in China informed that the plant is planned to be started in August 2014.

To be located in Xinjiang province, China, the plant will have a production capacity of 250,000 mt/year.

We remind that, as MRC reported earlier, Xinjiang Tianye Group Co started up a new 400,000 tonne/year carbide-based polyvinyl chloride (PVC) plant in China's northwestern Xinjiang province in 2010 and achieved on-spec production on 6 October. With the start-up of the new plant, Xinjiang Tianye’s PVC production capacity has increased from 700,000 tonnes/year to 1.1m tonnes/year, making it the largest PVC producer in China.

Another Chinese petrochemical producer Hubei Chemical Fertilizer is likely to start a new monoethylene glycol (MEG) plant in late 2013. Located in Hubei, China, the plant has a production capacity of 200,000 tonnes per year.
MRC