EU court halves Sasol cartel fine

MOSCOW (MRC) -- A EUR318 million (R4.6 billion) antitrust fine levied on Sasol has been cut by more than half after judges said EU regulators had wrongly blamed the petrochemicals firm for the behaviour of a unit, as per Plastemart.

The fine for fixing the price of paraffin wax was cut to EUR150 mln by the EU’s General Court in Luxembourg. The court said officials were wrong to hold Sasol and its German unit responsible for price-fixing by Hamburg-based wax business Schumann. Sasol bought a stake in the firm in 1995 and acquired the rest of the company in 2002.

As MRC wrote before, INEOS Olefins & Polymers USA and Sasol last year announced the signing of a Memorandum of Understanding (MOU) with the intent to form a joint venture to manufacture high-density polyethylene (HDPE). The envisioned facility would produce 470,000 tonnes per annum of bimodal HDPE using Innovene S process technology licensed from INEOS Technologies. The intention is to produce a limited number of grades allowing high grade efficiencies.

Sasol Limited is an integrated energy and chemical company based in Johannesburg, South Africa. It develops and commercialises technologies, including synthetic fuels technologies, and produces different liquid fuels, chemicals and electricity.
MRC

MOSCOW (MRC) -- BASF has inaugurated its new production plant for mobile emissions catalysts in Sroda Slaska, a Special Economic Zone near Wroclaw, Poland, reported the company on its site.

Construction of the new 40,000 square meter manufacturing facility - BASF’s largest emissions catalysts plant in Europe - began in late 2012, supported by an initial EUR90 million investment. The plant began production trials in April 2014, and last month started up two emissions catalysts manufacturing lines, with an initial employee base of 100.

Additional expansions will follow, raising the total investment for the plant to approximately EUR150 million. Once all ten planned light duty and heavy duty catalysts production lines are operating at full capacity by 2016, BASF expects to employ more than 400 people at the Sroda Slaska site.

The emissions catalysts produced in Sroda Slaska will be used by manufacturers of light duty gasoline vehicles and light and heavy duty diesel vehicles to meet more stringent Euro 6/VI emissions regulations.

"The launch of this new production plant provides a vital addition to our global manufacturing network for innovative automotive emissions control technologies," said Kenneth Lane, President of BASF’s Catalysts division. "Tightening emissions regulations will be a key growth driver for our business. Our investment in Sroda Slaska will provide the capacity we need to meet increased customer demand in the most efficient way possible."

Among the advanced technologies that will be produced at the Sroda Slaska facility are Selective Catalytic Reduction (SCR) systems, cutting-edge SCR on Filter (SCRoF) solutions as well as PremAir-branded ozone destruction catalysts for automotive applications.

"Due to its attractive location and its positive economic development, Poland is an attractive place for BASF to invest," said Dr. Joachim Meyer, Head of BASF Business Center Europe Central. "This new facility strengthens our position as a supplier of innovative solutions to the markets of Central Europe."

As MRC wrote previously, in late 2013, BASF also unveiled it plans to modernize and expand its emissions catalyst production operation in Nienburg, Germany. Thus, according to Xavier Susterac, vice president for BASF's European mobile emissions catalysts business, the new plant in Poland will provide geographic diversity for the company's manufacturing operations and a strong complement to BASF's existing production hub in Nienburg.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

Moscow (MRC) - Scheduled maintenance works at Russian plants have just begun, but polypropylene (PP) prices soared. Given the turnarounds of another three producers in August it is clear that next month will also be difficult in the Russian PP market, according to ICIS-MRC Price Report.

July - September are traditional period of scheduled maintenances at Russian producers. The first in the queue was Tobolsk-Polymer, which shut its 500,000 tonnes/year PP production on a month long turnaround on 30, June.
The shutdown of the largest PP producer in Russia immediately led to a serious rise in prices.

The shutdown of other Russian PP productions in Tomsk, Omsk and Ufa will aggravate the situation in the market further.

Price offers for PP in mid-July rose to a record high over two years ago (since April - May 2012). This week spot prices for raffia grew to Rb68,000-73,000/tonne FCA, including VAT. Price offers for injection moulding homopolymer PP were heard in the range of Rb71,500-76,000/tonne FCA, including VAT.

At the same time, many market participants refrained from PP purchases for such high prices, hoping for the stabilisation of the situation in the market.

Ufaorgsintez announced an increase in contract PP price from 15, July, citing reduced inventories and nearing to the turnaround. Other Russian producers did not adjust their prices this week.

As many market participants said the situation will only get worse in the near future. Tomskneftekhim will shut down 140,000 tonnes/year production on 20,July; Ufaorgsintez will shut down 100,000 tonnes/year production in mid August; Poliom will also shut down 210,000 tonnes/year in mid August.

There are not imported PP available, except Turkmen raffia; price for European and Asian homopolymer PP will be close to the level of Rb77,000/tonne.
MRC

MOSCOW (MRC) -- INEOS Group Holdings S.A.announces its trading performance for the second quarter of 2014, said the producer in its press release.

Based on unaudited management information INEOS reports that EBITDA for the second quarter of 2014 was EUR447 million, compared to EUR365 million for Q2, 2013 and EUR401 million for Q1, 2014.

North American markets have continued to be strong, taking full benefit from their current feedstock advantage. Market conditions in Europe have shown further signs of improvement in the quarter. In contrast, markets in Asia have generally remained soft.

O&P North America reported EBITDA of EUR236 million compared to EUR221 million in Q2, 2013. The business has continued to benefit from its flexibility to be able to utilise cheaper NGL feedstocks to maintain healthy margins. The US cracker business environment was strong with top of cycle margins and high operating rates throughout the quarter. Polymer demand was very robust, with tight markets and high margins supported by an improving US economy.

Chemical Intermediates reported EBITDA of EUR132 million compared to EUR104 million in Q2, 2013.

O&P Europe reported EBITDA of EUR79 million compared to EUR40 million in Q2, 2013. Demand for olefins in the quarter was balanced, with industry cracker operating rates remaining trimmed. Margins were relatively steady in the quarter, with a solid aromatics performance offset by weak butadiene margins. Polymer demand was firm with good volumes and stable margins in the quarter. The partial closure of the cracker in Lavera during Q2, 2013 adversely impacted the results for that quarter. The results for Q2, 2013 were also adversely impacted by the poor performance at O&P UK. The Group disposed of the O&P UK business on October 1, 2013.

The Group has continued to focus on cash management and liquidity. Net debt was approximately EUR6.2 billion at the end of June 2014. Cash balances at the end of the quarter were EUR1,087 million, and availability under undrawn working capital facilities was EUR271 million. Net debt leverage was approximately 4.0 times as at the end of June 2014.

As MRC wrote before, Solvay SA and Ineos Group AG have given a name to their chlorovinyls joint venture, Inovyn, as the two firms prepare the launch the company by the end of 2014. The new company will officially open following divestments by both companies required by the European Commission. Until completion, Solvay and Ineos will continue to run their businesses separately.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

MOSCOW (MRC) -- Henan Jiyuan Fangsheng Chemical is in plans to restart a polyvinyl chloride (PVC) plant following maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant is planned to be restarted in early August 2014. It was shut on July 8, 2014 for maintenance turnaround.

Located in Henan province, China, the plant has a production capacity of 100,000 mt/year.

As MRC informed earlier, Xinxiang Shenma Zhenghua Chemical shut its PVC plant for a one-month maintenance turnaround on April 16, 2014. Located in Henan province, China, the plant has a production capacity of 50,000 mt/year.

Besides, Erdos Chlor-Alkali Chemical took off-stream its PVC plant for a one-month maintenance turnaround on April 1, 2014. Located in Inner Mongolia, the plant has a production capacity of 300,000 mt/year.
MRC