Bayer invests big in new plastics projects in China

(Plastics Today) -- The chemicals and plastics supplier intends to invest ┬110 million in projects designed to help increase its presence in the China's plastics industry.

The investment, slated for completion by 2012, will see Bayer Material Science build five new facilities which comprise three polyurethanes (PUR) systems houses, a new polycarbonate (PC) sheet facility and a polycarbonate color compounding and design center.

China has become Bayer Material Science's second largest market worldwide. More than 40% of the supplier's PUR sales in China are from supplying PUR systems to the construction, appliance and automotive sectors.

MRC

(European Plastics News) -- The Chinese government has issued long-awaited rules detailing how companies can import whole PET scrap bottles. The rules have been closely watched globally, as China is the world's largest importer of scrap plastics.

China had previously allowed only imports of recycled PET that had already been ground or processed in some way, because government officials said they were concerned about the country in effect importing materials that were not clean and polluted the country.

But with China's huge demands for new sources of raw materials, particularly in its polyester fiber manufacturing industry, officials had said last year they planned to relax the rules.

The new rules require that importers have existing facilities and a current license to import recycled plastic, that they be located in a district designated for recycling and have imported at least 10,000 tonnes of material in each of the last three years.

For companies outside those existing recycling districts, they must have imported at least 30,000 tonnes of materials in each of the last three years. Licenses will be given by China's Ministry of Environmental Protection.

MRC

(LUKOIL) -- LUKOIL conducted an anti-terror exercise aimed at the disposal of an explosive device and response to a terrorist attack at the petroleum tank farm facility in Sofrino (the Moscow region).

All technological operations at the facility were suspended, the employees and transportation vehicles were evacuated to a safe distance, and the area of the hypothetical explosion was closed off by the security services of the tank farm.

The results of the maneuvers testified to the fact that LUKOIL, as well as all respective law enforcement, rescue and emergency organizations and services, possessed sufficient forces and means to prevent and respond to the consequences of terrorist attacks at petroleum product supplying facilities.

MRC

(Plastics News) -- Plastic packaging manufacturer Silgan Holdings Inc. announced Nov. 16 that it acquired Ipec Global Inc., a plastic closure molder that specializes in the North American dairy and juice markets. Terms were not disclosed. Ipec, based in New Castle, Pa., had sales of about $35 million for the last twelve months, according to Silgan.

Ipec, founded in 1994, has plants in New Castle and Brewton, Ala., and it operates KraussMaffei, Husky and Sandretto presses. From 2002-05 Ipec was publicly traded, until its owners took the company private once more. Now, as part of Silgan, the company will once again be part of a publicly traded company.

The Stamford-based Silgan makes blow molded bottles and injection molded closures, and it also makes metal food containers. Company had 2009 sales of about $3.1 billion, including $541.5 million in North American blow molding sales and an estimated $138 million in injection molding, from the Silgan White Cap Americas unit.

MRC

(ICIS) -- European styrene prices this week have dropped significantly, in line with falls in crude prices, despite healthy demand in the fourth quarter ahead of an anticipated quiet December and lengthening supply, market sources said on Wednesday.

Following the steep drop in crude values that began late last week and a subsequent dip in styrene prices in Asia, styrene prices in Europe have fallen by up to $40/tonne (┬30/tonne).

After styrene prices closed last week at $1,220-1,240/tonne FOB (free on board) Rotterdam, November spot values were at $1,180-1,200/tonne on Wednesday.

Crude values have fallen by almost $5/bbl since last week as the US dollar gained ground against the euro, which was suffering from concerns about Ireland's debt crisis.

Even before crude prices began to fall, sources said styrene prices were already fundamentally too high. Several buyers said that they had been content to remain on the sidelines, believing there was still room for prices to come down even further.

MRC