JSR and MOL get European Commission approval for new Hungarian S-SBR venture

MOSCOW (MRC) -- JSR Corp. and MOL have received European Commission approval to form Vierium Investment, a new joint venture company to produce 60,000 t/y of solution polymerized styrene butadiene rubber (S-SBR) in Tiszaujvaros, Hungary, according to GV.

The venture, owned 51% by JSR and 49% by MOL, will utilize MOL's existing plant infrastructures and JSR's S-SBR production technologies.

Commercial operations are scheduled for 2017 and a capacity expansion is under study and will be implemented based on demand.

The commission concluded, under the simplified merger review procedure, that the proposed acquisition would not raise competition concerns given the parties' limited market share and the presence of a number of strong competitors producing S-SBR in the European Economic Area.

As MRC wrote before, Hungarian largest oil and gas company MOL Nyrt. laid the cornerstone of a butadiene plant in a move that may decrease Hungary's dependency on imports of the chemical. MOL is set to invest EUR120 million (USD162.7 million) in the plant of its petrochemical arm TVK, part of the company's 300-billion-forint (USD1.37 billion) three-year investment scheme.
MRC

MOSCOW (MRC) - Russia's imports of polypropylene (PP) in January fell by 21% on the back of weak seasonal demand and sufficient supply, according to MRC DataScope.

Long New Year's holidays traditionally lead to a significant reduction in demand for polymers. January 2014 was no exception for the Russian PP market. The average capacity utilisation rate at Russian PP plants exceeded 95% in January 2014. All these factors resulted in the reduction of Russia's PP external supplies to 10,600 tonnes in January against 13,400 tonnes in January 2013 (in December 2013 it was 20,400 tonnes).

The structure of January PP imports looked as follows. Imports of homopolymer PP decreased by 5% to about 4,800 tonnes in January 2014, from 5,100 tonnes in January 2013. Imports of homopolymer PP in 2013 was about 88,500 tonnes.

January imports of PP block copolymers decreased to 2,500 tonnes, which was by third less than in January 2013. Imports of PP block copolymers in 2013 totalled about 56,400 tonnes.

Imports of stat-propylene copolymers (PP-random) in January fell to 1,300 tonnes, from 2,300 tonnes in January 2013. Total imports of PP-random was about 38,700 tonnes in 2013.

Imports of other polymers of propylene in January 2014 was 2,000 tonnes, from 2,400 tonnes in January 2013. The depreciation of the Russian rouble against the major world currencies in January and low seasonal demand for finished goods in February will put pressure on PP imports in Russia.

MRC

MOSCOW (MRC) -- Technip was awarded by Open Joint Stock Company (OJSC) Kazanorgsintez a contract to provide technology and services for a grassroots furnace at Kazan, Republic of Tatarstan, Russia, said the producer in its press-release.

The project consists of the engineering and procurement of an SMK double-cell cracking furnace. This is preferred for cracking high-capacity, low-cost ethane and propane gas feedstock.

In the framework of the cracking furnaces replacement program of Kazanorgsintez, the project follows the successful start-up and operation of a Technip SMK double-cell cracking furnace supplied in 2007. The furnaces are part of the ethylene plant at the site, with the output used as feedstock for other downstream units.

Technip’s operating center in Zoetermeer, The Netherlands, will execute the project, which is scheduled for mechanical completion in 2015.

Stan Knez, Technip’s Senior Vice President, Process Technology, commented: "We are pleased that Kazanorgsintez has selected again Technip’s SMK coil technology for this new furnace. With more than 100 installations around the world, this technology is recognized for giving clients reliable, flexible and highly selective solutions to improve operational efficiency."

Technip has widened its range of services and has reinforced its leadership in the downstream business since the acquisition of Stone & Webster process technologies in 2012.

Kazanorgsintez , a wholly owned subsidiary of the TAIF group, is the largest Russian PE producer. The company produces more than 40% of Russian polyethylene. It also produces polyethylene pipes.
MRC

MOSCOW (MRC) – Styron, the global materials company and manufacturer of plastics, latex and rubber, announced today that it will be doubling its Solution Styrene Butadiene Rubber (SSBR) production capacity of one train, after reaching an agreement with material supplier JSR, to acquire its current production capacity rights at Styron’s world-scale rubber production hub in Schkopau, Germany, said the producer in its press-release.

SSBR is used in producing high performance tires and green tires with lower rolling resistance. Styron’s Schkopau production site currently hosts eight world-scale rubber trains that supply tire customers around the world. Prior to this agreement, JSR held the capacity rights to 50% of one of Styron’s three SSBR production trains in Schkopau.

As a result, as from April 1, 2014 Styron will have full capacity rights to this train, enabling it to increase its capabilities to serve the global tire market. As owner of the Schkopau rubber complex, Styron is uniquely positioned to capitalize on this expansion opportunity, which is strongly in line with its rubber business growth strategy, and is a cost-effective solution to meet increasing customer demands.

In today’s market, tire producers need to develop sustainable products with long life, fuel savings and safe technology. SSBR is a key enabling technology for tires with low rolling resistance combined with excellent wet grip and abrasion resistance in the tread.

As MRC informed before, Styron, the global materials company and manufacturer of plastics, latex and rubber, has presented new flooring solutions to help carpet backing and artificial grass manufacturers meet today’s market challenges.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. Styron’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD 5.5 billion in revenue in 2012, with 20 manufacturing sites around the world, and 2100 employees.
MRC

MOSCOW (MRC) -- Rosneft and General Electric (GE) have agreed to set up a series of joint ventures, with emphasis on expanding the science and technology cooperation between the companies, said Hydrocarbonprocessing.

The first phase of the partnership would involve the creation of two specialized research and training centers, with investment of up to USD400 million through 2020. One center, known as the application engineering and training center, will focus on the development of Rosneft projects through the application of the broad GE Oil & Gas portfolio of products and technologies.

The key functions of the center will include the cooperation between Rosneft and GE to build and upgrade Rosneft oil and gas projects, including concept selection and support to project front-end engineering and design (FEED) work, equipment localization initiatives for Rosneft projects, and providing training on application engineering and other technical topics to enhance capabilities of Rosneft engineers and technical managers.

The center will focus its activity on the development of gas sales solutions, including LNG and CNG, power generation solutions, production enhancement including artificial lift technologies, offshore and subsea equipment, and refining and petrochemical technologies.

The second project, known as the research and development (R&D) center, will focus on the development of joint technologies and upgrading of existing technologies of the companies.

The companies will initially contribute USD20 million in investment to the centers on a parity basis, with additional aggregate financing of USD50 million to be made by the companies upon the agreement of future, specific projects. Rosneft and GE plan to jointly invest up to USD400 million in the centers through 2020.

As MRC informed before, Rosneft and Mitsui have signed an agreement to jointly develop the massive Far East Petrochemical Company (FEPCO) project. Processing capacity of the petrochemical complex is planned at 3.4 million tpy of hydrocarbon feedstock, predominantly naphtha. The capacity of ethylene and propylene production unit is planned at 2 million tpy.

Rosneft is currently buying competitor TNK-BP in deals worth USD55 billion that will create the largest listed oil producer in the world and will hand BP a 19.8% stake in the oil giant.
MRC