SPVC imports to Russia decreased by 59% in Q1 2014

MOSCOW (MRC) - Total imports of suspension polyvinyl chloride (SPVC) to Russia decreased by 59% in the first three months of 2014 on the back of the weaker demand, according to MRC DataScope.

Russia's SPVC imports in March increased to 19,200 tonnes, compared with 14,300 tonnes in February. In general, total volume of external supplies of SPVC into Russia was reduced to 45,000 tonnes in Q1 2014, compared with 110,000 tonnes in the same period in 2013. The main reason for the sharp decline in imports was weak demand and the devaluation of the Russian rouble.

Geography of import deliveries in the first quarter of 2014 looked as follows. Leaders in SPVC imports remained US producers. Imports volumes of US SPVC in March decreased to 5,500 tonnes, compared with 6,400 tonnes delivered in February. Russia's imports of US SPVC declined to 17,700 tonnes in Q1 20014, down 68% compared to the same period in 2013.
The second largest supplier of SPVC to Russia was China. March imports of Chinese acetylene PVC to Russia rose more than twofold to 7,100 tonnes, compared to February's level 3,100 tonnes. Russia's imports of Chinese acetylene resin fell to 11,800 tonnes in the first three months of 2014, from 44,200 tonnes year on year.

Russia's imports of European PVC was about 4,400 tonnes in March. Imports of European resin to the Russian market reached 10,200 tonnes in Q1 2014, compared with 6,900 tonnes year on year.
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MOSCOW (MRC) -- Brazilian petrochemical company Braskem, the leading producer of thermoplastic resins in the Americas and the world's leading biopolymer producer, said cosmetics company Surya Brasil will use its 'green' polyethylene (PE) for the packaging of four new products in its Sapien Women product line, as per Bnamericas.

Braskem's 'green plastic' is made from ethylene derived from sugarcane ethanol and captures carbon dioxide during its production process.

In addition to the new products from Surya, the company's Sapien Men line already uses the renewable material. The packaging was produced in partnership with C-Pack, and will be marketed in South and North America, Europe, Asia and Africa.

"Using green plastic offers consumers a sustainable packaging alternative. The expansion of the partnership with Surya underscores the company's concern with offering solutions to its clients," said Alexandre Elias, director of Renewable Chemicals at Braskem, in a statement.

Braskem has annual production capacity for 200,000t of PE derived from sugarcane ethanol at its complex in Triunfo, southern Brazil.

As MRC wrote before, Braskem will launch the unprecedented use of green plastic in wine bottle closures made by Nomacorc, the leading U.S. company in the segment.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
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MOSCOW (MRC) -- CEPSA and Sumitomo have entered into an agreement for the Japanese company to acquire 25% of CEPSA Quimica China, until now 100% owned by CEPSA, reported Hydrocarbonprocessing.

The move is expected to give a boost to a petrochemical factory construction project in Shanghai, in which CEPSA has been involved since 2011.

"Welcoming a partner like Sumitomo is, for us, a major opportunity, as their company has built up vast industrial experience in the Asian region and is a leader in the commercialization of various products," said CEPSA chief executive Pedro Miro. "We are convinced that our business activities in China will experience a major boost and that this agreement will allow us greater flexibility to adapt our operations to the requirements of Chinese and Asian markets."

The plant that CEPSA is building in Shanghai through its subsidiary CEPSA Quimica China is currently undergoing the final phases of construction.

Once complete, as well as having the capacity to produce 250,000 tpy of phenol, 150,000 tpy of acetone and 360,000 tpy of cumene, it will also make CEPSA the second largest producer of phenol in the world. This raw material is mainly used in the automotive and construction industries to manufacture plastics and phenolic resins.

The agreement will combine Sumitomo's Asian market trading capabilities with CEPSA's experience in the petrochemical sector, in which it has been active for over 40 years through its subsidiary CEPSA Quimica.

"There are many different markets in China that are growing at a remarkable pace, such as the automotive sector," said Kuniharu Nakamura, CEO from Sumitomo. "Participating in this company is, for us, an opportunity to form part of a major, exciting and ambitious project and we are looking forward to seeing how it develops."

As MRC reported previously, Japan-based Sumitomo Chemical will permanently wind up the operations of an ethylene plant at its Chiba Works in Ichihara, Chiba, in or before September 2015, following a decline in domestic demand for ethylene derivatives.

Sumitomo Chemical is a Japanese based manufacturer of a diverse range of products, including basic chemicals, petrochemicals and plastics, fine chemicals, agricultural chemicals, IT-related chemicals and pharmaceuticals.
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MOSCOW (MRC) -- The performance products division of Huntsman plans to close its commodity surfactants plant in Patrica, Italy, said Hydrocarbonprocessing.

It is expected that all site activities will cease by the end of October 2014.

Last October, the company stated that it was transitioning away from a number of surfactant assets and product lines in Europe that had become commoditized and would focus instead on developing and growing the remaining differentiated surfactants businesses in Huntsman’s chosen strategic markets.

Huntsman has also signed an agreement to sell its European commodity surfactant business to Wilmar International, which includes Huntsman’s ethoxylation facility at Lavera, France, and additional sulphated chemicals capacity from two of Huntsman’s other European surfactant plants in St. Mihiel, France and Castiglione delle Stiviere, Italy.

That deal is expected to close in about three months, subject to completion of national regulatory procedures.

"We regret to announce this planned closure of Patrica but the increasing lack of profitability of this site’s products together with the absence of an appropriate buyer has left us with no choice," said Stu Monteith, president of Huntsman’s performance products. "We very much regret the impact on the site’s 74 employees but we are committed to treating everyone with dignity and respect and to provide support."

Huntsman will now be entering into the consultation process with employee representatives and regulatory authorities. A detailed transition plan is being put in place for customers and suppliers.

As MRC wrote before, Huntsman Corporation acquired Russian joint venture Huntsman NMG (HNMG) in July 2012. HNMG is a leading supplier of polyurethane systems to the adhesives, coatings and footwear markets in Russia, Ukraine and Belarus.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
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MOSCOW (MRC) -- Taghleef Industries has entered an agreement to acquire Derprosa Film, based in Spain, which will add to Taghleef’s growing capacity for production of biaxially orientated polypropylene (BOPP) film, as per Plastemart.

Taghleef, which is headquartered in Dubai, is buying Deprosa from UK investors 3i Group, Baring Private Equity and other minority shareholders for an undisclosed amount. The transaction is expected to close by the end of April.

Taghleef’s current nominal capacity is 385,000 tpa for producing BOPP, BOPLA and cast polypropylene films for packaging. Its eight production plants are in Italy, Hungary, UAE, Oman, Egypt, Australia, US and Canada. Derprosa’s one facility is in Alcala la Real, Spain. According to the company’s website, the plant’s capacity is “greater than 30,000 tpa” of BOPP film.

During the period of ownership by 3i Group and its investment partners, Derprosa was restructured to focus on international expansion and developing high margin products. Maite Ballester, managing director at 3i Spain, said:

"We have worked with the management team to accelerate the business by focusing on product development and entering new markets. In the last four years alone, the company has developed and launched more than 14 products and it also has a strong pipeline of products to launch. We are pleased to have supported the business and look forward to seeing the company’s continued growth."

In March, Taghleef said its Hungarian plant is upgrading its BOPP line to 5-layers, increasing its film capacity at the plant to a total of 60,000 tpa.

As MRC informed before, Treofan Group, a global leader in BOPP films headquartered in Raunheim, Germany, aims for considerable global growth in the coming years. First of all, Treofan wants to further strengthen its traditional close relationships with leading brand manufacturers so that they can develop a shared understanding of future challenges and possible ways of solving them.
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