Eastman increases dividend by 17%

MOSCOW (MRC) -- The Board of Directors of Eastman Chemical Co, a global specialty chemical company, has increased the quarterly cash dividend by 17% to USD0.35 per share on the company’s common stock, according to the company's statement.

The dividend is payable January 2, 2014, to stockholders of record as of December 16, 2013.

"With this increase, the dividend has been raised for three consecutive years, which demonstrates the Board’s confidence in our ability to generate continued earnings growth and strong cash flows," said Curt Espeland, senior vice president and chief financial officer. "We remain committed to maintaining a strong financial position as we execute our strategy to deliver consistent, superior value."

As MRC informed earlier, Eastman Chemical is expanding capacity of its Eastman 168 non-phthalate plasticizers at its manufacturing facility in Texas City, Texas, USA. The expansion at the site will increase the overall capacity of Eastman 168 by approximately 15% and is expected to be operational by mid-2014.

In October 2013, Eastman Chemical announced the expansion of its non-phthalate plasticizer portfolio with the addition of Eastman Effusion plasticizer. In flooring, Eastman Effusion is the ideal plasticizer for use in resilient sheet, luxury vinyl tile, vinyl composite tile, and PVC-backed carpet.

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) -- Evonik Industries and LanzaTech have signed a three year research cooperation agreement which will see Evonik combining its existing biotechnology platforms with LanzaTech’s synthetic biology and gas fermentation expertise for the development of a route to bio-processed precursors for specialty plastics from waste derived synthesis gas, reported Evonik on its site.

In this route, microorganisms placed in fermenters are used to turn synthesis gas into chemical products. Synthesis gases comprise mainly of either carbon monoxide or carbon dioxide and hydrogen and can come from a variety of gasified biomass waste streams including forestry and agricultural residues and gasified municipal solid waste.

"Industrial biotechnology is one of the core competences of Evonik. It enables new approaches to specialty chemicals and processes," explains Prof. Stefan Buchholz, the head of Creavis. Creavis, Evonik’s strategic innovation arm, is committed to developing alternative bio-based pathways for the production of such specialty chemicals, to not only reduce dependence on fossil fuels, but also reduce the greenhouse gas emissions associated with their manufacture. "The use of renewables and specific waste streams is one of the main focuses of our research and development work, and LanzaTech offers an additional interesting approach," says Buchholz.

As MRC reported before, in early 2013, Evonik Industries began operating a pilot plant for amino lauric acid (ALS) in Slovenska Lupca, Slovakia. The effort represents Evonik’s next step forward in the production of sustainable high-performance plastics. The biobased amino-lauric acid is an alternative to petroleum-based laurin lactam (LL). ALS replaces the monomer LL in the manufacture of sustainable high-performance plastics and yields an identical compound polyamide 12 (PA 12). Whether in automobiles, sports, crude oil production or photovoltaics, Evonik produces a complete range of polyamide products with customized properties.

LanzaTech is a leader in gas fermentation technology that provides novel and economic routes to fuels and high value chemicals from waste gas streams. LanzaTech’s unique process, certified by the Roundtable on Sustainable Biomaterials, creates sustainable fuels and platform chemicals that serve as building blocks for everyday products such as rubber and plastics.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2012, the company generated sales of around EUR13.6 billion and an operating profit (adjusted EBITDA) of about EUR2.6 billion.
MRC

MOSCOW (MRC) -- Representatives of Russian Rosneft, Pirelli Tyre Russia and Rosneft- Armenia signed in Yerevan a memorandum of understanding today to establish a joint venture for production of butadiene- styrene rubber, said Arka, citing press service of Armenian president.

The memorandum and several other agreements aimed at enhancing cooperation were signed after the meeting of Armenian President Serzh Sargsyan with Rosneft head Igor Sechin.

At the order of Russian President Vladimir Putin a special delegation has arrived in Armenia to assess the available opportunities and develop specific action program to modernize Nairit chemical plant in Armenia.

In 2006, 90% of Nairit’s shares were sold to British RHinoville Property Limited for $40 million. The remaining 10% belong to the Armenian government. RHinоville Property Lim ited was set up by Polish Samex, US Intertex and Russian Eurogaz . In April 2010 the plant stopped producing rubber. Before the halt, it sold its products chloroprene rubber- to EU countries, Russia (about 30% of the exports), the United States and 20 other countries.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time. This week Rosneft has taken over an oil unit of US bank Morgan Stanley’s commodities division for an undisclosed sum. The acquisition-hungry oil giant is getting the global oil merchanting unit that includes access to and international network of oil storage facilities, crude oil and oil products inventories and freight agreements.

MRC

MOSCOW (MRC) -- Venezuela and India have agreed to build a naphtha production unit in the South American OPEC nation in the latest sign of widening energy ties between the two countries, said Bisiness-standard.

Foreign Minister Elias Jaua did not give further details about the deal, nor the size of the proposed unit. Several big Indian energy firms, including Reliance Industries , already work with Venezuela's state oil company PDVSA.

In brief comments carried by Venezuelan state TV, Jaua said the unit would be built in the Orinoco extra heavy oil belt. The naphtha, a liquid mixture of hydrocarbons, would then be mixed with the area's tar-like crude to produce lighter oil for export.

The joint construction of a naphtha unit would deepen trade ties that have grown in recent years as an increasing supply of Venezuelan crude flows to India. According to PDVSA's official figures, crude sales to India more than doubled to 366,000 barrels per day (bpd) in 2012, compared to 165,000 bpd the previous year.

Venezuela boasts the world's biggest crude oil reserves, much of them in the vast Orinoco belt. But its output of processed fuels was curbed by a gas leak and deadly explosion that struck its biggest refinery, Amuay, in August 2012.

Partly as result, Venezuela's imports of refined fuel products from the United States rose by almost a quarter to an average of 87,000 bpd between January and September this year, compared with the same period in 2012, according to the U.S. Energy Information Administration (EIA).

We remind that earlier this year RIL announced that it would invest over Rs 100,000 crore in expansion of its petrochemical capacities and adding value to its refining business. Besides, in October last year the company unveiled its plans to expand capacity at its refineries in the western state of Gujarat.

MRC

MOSCOW (MRC) -- A Turkish petrochemicals group, Polisan Holding plans to restart the former PET polymer plant of Spanish group La Seda de Barcelona in Volos, Greece by the end of this year, said Palstemart.

The 80,000 tpa Artenius Hellas facility, which was mothballed by the insolvent Barcelona-based group early this year, was bought in September by Polisan of Ankara for EUR8.6 mln. The Greek plant, which employed almost 100, has been renamed Polisan Hellas.

Polisan has been negotiating with potential PET customers for the PET and bottle preforms unit and local news reports the group’s CEO, Necmettin Bitlis, is confident that the market will accept more than 90% of the Volos output. The group is targeting sales in Greece, the Balkans and Turkey. The former La Seda plant suffered from a cutback in production capacity and dwindling local demand. The Spanish group has been seeking buyers for its PET operations and originally looked at possibly closing down the Greek unit altogether if it was unable to sell it.

We remind that La Seda has been in talks with creditors since last September after high material costs and excess supply of the PET plastic containers it makes put pressure on the business. As MRC wrote before, Invista Performance Technologies has acquired from La Seda de Barcelona SA intellectual property relating to its leading purified terephthalic acid (PTA), polyethylene terephthalate (PET) and related process technologies, including the full rights to exclusively license the technologies in the region comprising Europe, the Middle East and Africa.
MRC