Lyon commercial court approved the business continuity takeover plan for Kem One

MOSCOW (MRC) -- The Lyon commercial court has designated the new owner of the company Kem One SAS, and put to an end the insolvency proceedings opened on March 27th 2013, reported Arkema on its site.

The commitment of all stakeholders involved, under the aegis of the public authorities, has enabled the takeover of the company and the continuation of its business as part of a takeover bid validated by the commercial court and with the full support of the French government.

In order to facilitate this takeover, Arkema has in particular waived all its claims on Kem One SAS which had been fully provisioned, adjusted certain commercial services provided to Kem One SAS, and undertaken, under certain conditions, to ensure the internal redeployment of 100 Kem One SAS employees.

On top of the provisions booked in the 1st quarter financial accounts related to the insolvency proceeding of Kem One, Arkema will record in its 4th quarter financial accounts a net exceptional expense of an estimated amount ranging between EUR15 and EUR20 million.

As MRC wrote earlier, at a hearing held on 12th December, the Commercial Court of Lyon was informed of two confirmed takeover bids for KEM ONE SAS, submitted by the private buyout firm OpenGate Capital and the private individual Alain de Krassny. Discussions with KEM ONE’s partners have resulted in agreements that have allowed both candidates to confirm their takeover bids.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.

KEM ONE, a fully integrated vinyl production company, was established mid-2012 following the acquisition of Arkema's vinyl products division by the Klesch Group. The company employs 2,600 people at 22 manufacturing sites, primarily in Europe but also in Asia and North America. Europe’s third-largest producer of PVC with revenues in excess of one billion euros, KEM ONE continues to grow and build on its numerous strengths with a view to becoming market leader for integrated vinyl solutions.
MRC

MOSCOW (MRC) -- PolyOne Corporation, a leading global provider of specialized polymer materials, services and solutions, has announced that its Board of Directors has elected Kerry J. Preete as an independent director effective immediately, according to the company's press release.

He will serve on the Environmental, Health and Safety committee and the Compensation committee. His election expands the number of PolyOne directors to 11.

Mr. Preete, 53, is executive vice president of global strategy for Monsanto Company, a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. He joined Monsanto in 1985 where he has since dedicated his career to successfully leading functional areas and global business divisions of the company. In his current role, Mr. Preete is responsible for setting direction of overall company strategy, business development platforms, management of the lawn and garden business and Information Technology.

"We are extremely pleased that Kerry has joined PolyOne's Board of Directors, and we look forward to his unique perspectives and insights," said Stephen D. Newlin, chairman, president and chief executive officer, PolyOne Corporation. "His track record of developing and executing strategies rooted in innovation that deliver growth provides an excellent complement to our already high-caliber and diverse Board."

As MRC reported previously, the Board of Directors of PolyOne Corporation has recently declared a dividend of eight cents (USD0.08) per share on the common stock outstanding, representing a 33% increase to the quarterly cash dividend.

PolyOne Corporation is a global provider of specialized polymer materials, services, and solutions. PolyOne is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins. The company's full-year revenues in 2012 increased 4.5% to USD3.0 billion, compared to USD2.9 billion in 2011.
MRC

MOSCOW (MRC) -- US supermajor Chevron appealed on Monday to Ecuador's highest court, asking it to cancel a USD9.5 billion fine for polluting the Amazon rainforest in a long-running case, reported Upstreamonline.

Last month Ecuador's National Court of Justice upheld a 2011 verdict by a lower court that Chevron was responsible for pollution in the area caused by US oil firm Texaco, whose assets were bought by Chevron in 2001.

Chevron says that 2011 ruling was obtained by fraud and it is pursuing a case in New York against the US lawyer representing the plaintiffs who it says resorted to corruption to win what it calls an "illegitimate" verdict.

Villagers in the remote jungle region say the pollution has harmed their health. Chevron says Texaco cleaned up the area before handing it to Ecuador's state oil company, Petroecuador, which Chevron says bears the responsibility.

The judge in the 2011 ruling ordered Chevron to pay USD9.5 billion, plus an additional USD9.5 billion for refusing to publicly apologise for the pollution. The National Court of Justice halved the fine last month, saying there had been no legal basis to sanction Chevron for not apologising.

Earlier this month, an Ontario appeals court ruled that a group of Ecuadoreans can seek enforcement in Canada of the judgement against Chevron, overturning a lower court decision from earlier in the year.

The plaintiffs traveled to Canada to target what they say are Chevron's USD15 billion worth of assets in that country. The California-based company no longer has any assets in Ecuador.

We remind that, as MRC informed earlier, this november, Chevron, as expected, finally signed on the dotted line for its USD10 billion deal with Ukraine for the Olesska shale production sharing agreement.
MRC

MOSCOW (MRC) -- Indonesia’s largest petrochemicals company Chandra Asri Petrochemical, has allocated USD965 mln over the next two years for three projects to expand facilities and boost production, as per Plastemart.

The Indonesian petrochem major has been granted a tax waiver facility as the government aims to strengthen the structure of the petrochemical industry from upstream to downstream in a bid to reduce the country’s dependence on imports, which reached USD8.5 billion in 2012. Under the government tax holiday facility, which waives corporate income tax for up to 10 years, Chandra Asri can pioneer petrochemical projects with a total value of over Rp 1 trillion (USD82 mln).

Chandra Asri’s investment plan’s first project, which costs USD150 mln, to construct a butadiene plant in Cilegon, Banten, is expected to be completed by the end of this year. The second project, estimated at USD380 mln, will expand its a new naphtha cracker plant’s production capacity by adding furnaces, as well as modifying the main equipment.

The naphtha cracker plant expansion will increase propylene production to 470,000 metric tons in 2015 from 320,000 metric tons currently, and ethylene to 860,000 metric tons from 600,000 metric tons. The construction of the new plant was initiated in Q4-2013 and will be completed in late 2015. The major will spend USD435 mln to build a new synthetic rubber plant, also in Cilegon, through a joint venture with France-based tire maker Michelin, named Synthetic Rubber Indonesia.

As MRC wrote previously, this summer, German petrochemical company Ferrostaal Industrial Projects GmbH and Jakarta-listed PT Chandra Asri Petrochemical agreed to work on studies for the development of a petrochemical plant. Under an agreement, Ferrostaal and Chandra Asri will develop a methanol-based olefin production complex in Teluk Bintuni in West Papua, with a total investment amounting to USD1.89 billion. The complex is expected to produce up to 400,000 tonnes of polypropylene and 175,000 tonnes of ethylene annually.
MRC

MOSCOW (MRC) -- Formosa Plastics Corp (FPC) is likely to shut an acrylonitrile (ACN) plant for maintenance turnaround, said Apic-online.

A source in Taiwan informed that the plant is expected to be taken off-stream in early February 2014. Located in Mailiao, Taiwan, the pant has a production capacity of 280,000 mt/year.

As MRC wrote before, Formosa Plastics Group, will resume its large-scope investment in construction of manufacturing base of ethylene in Ningbo, eastern China following the decision of the Chinese government to ease restrictions on foreign investment in naphtha cracking in the mainland. The company, the group will resume the investment project by spending USD5 billion to set up the petroleum complex encompassing an ethylene plant with annual output of 1.2 million tonnes and factories of plastics in Ningbo.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company"s chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC