LDPE production in Russia remained in H1 2014 at the level of 2013

MOSCOW (MRC) -- The overall output of low density polyethylene (LDPE) in Russia remained over the first six months of 2014 at the last year's level and totalled 327,800 tonnes, according to MRC ScanPlast.

June LDPE production rose to 54,700 tonnes from 48,600 tonnes in May. Kazanorgsintez and Ufaorgsintez reduced their output in the first half of 2014, while Tomskneftekhim and Angarsk Polymer Plant increased their polyethylene (PE) production.

The structure of LDPE production by plants looks the following way over the stated period.

Tomskneftekhim produced 22,700 tonnes of PE in June (22,600 tonnes in May). The plant's overall LDPE production rose to 132,800 tonnes over the first six months of the year versus 130,700 tonnes a year earlier.

Angarsk Polymer Plant produced about 6,000 tonnes of LDPE last month. Angarsk PP's overall output surged by 43% from January to June 2014 and totalled 32,700 tonnes.

Gazprom neftekhim Salavat mantained its production at the last year's level, the plant's total LDPE output was 19,300 tonnes in the first half of the year.

Kazanorgsintez increased its LDPE production to 15,900 tonnes in June. The plant's overall LDPE output fell to 100,000 tonnes over the first six months of 2014, down by 8% year on year, because of long outages in April and May.

Ufaorgsintez increased its LDPE production to 7,100 tonnes last month. The overall plant's PE output dropped to 44,000 tonnes from January to June 2014 versus 47,400 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Alternative investment firm Strategic Value Partners (SVP) Global is looking to sell Germany-based polyvinyl chloride (PVC) producer Vestolit for approximately USD407m, as per Chemical Technology.

SVP has appointed investment bank Jefferies to search for a potential buyer, reported Reuters citing three sources familiar with the matter.

The investment firm acquired Vestolit in 2006 from private investor Candover.

Formerly part of chemicals group Degussa-Huls, Vestolit produces PVC used in window frames, floor coverings, tarpaulin fabric and under-body coating for passenger vehicles.

The company generates annual revenues of about EUR500m and earnings before interest, tax, depreciation and amortisation (EBITDA) of around EUR40m.

SVP is seeking Vestolit to be valued at around eight times its expected earnings, the source said.

Chemical producers such as Braskem and Axiall could be potential buyers of the PVC business. Westlake Chemical, which acquired PVC producer Vinnolit earlier this year, may also enter the race for Vestolit, the source added.

As MRC wrote before, in late May 2014, Westlake Chemical Corporation as signed a definitive agreement to acquire German-based Vinnolit Holdings GmbH and its subsidiary companies from Advent International, a private equity firm.
Vinnolit is an integrated global leader in specialty polyvinyl chloride (PVC) resins. The acquisition price of EUR490 million will be financed using existing Westlake cash and credit facilities. The transaction is expected to close in the third quarter of 2014, subject to standard closing conditions, including regulatory review.

Vestolit GmbH operates in Marl (North Rhine-Westphalia, Germany) the largest fully integrated PVC (polyvinyl chloride) production plants in Europe, with a capacity of 400,000 tonnes per annum. Integration means that, from the starting point of energy and the raw materials ethylene and rock salt via the intermediate products EDC (ethylene dichloride) and VCM (vinyl chloride), the production of PVC all takes place at one location. Vestolit is market leader as raw material supplier for the manufacture of window frames, as well as paste-making PVC for floor coverings, tarpaulin fabrics and underbody coatings.
MRC

MOSCOW (MRC) -- The polyurethane systems house Bayer Pearl has broken ground for construction of its new headquarters in the Dubai Investments Park, which will be the site of the regional offices and production facilities, as per the company's press release.

The site will feature research, development, and application laboratories as well as a demonstration centre for the use of high-quality materials. The construction contract has been awarded to Amana Constructing and Steel Buildings, and the work is scheduled for completion next year.

Bayer Pearl was established in 2007 as a joint venture between Bayer MaterialScience AG (BMS) and Pearl Insulation Materials Industries LLC.

"The Middle East is one of the fastest growing economies in the world, and Dubai serves as the ideal base for us to further strengthen our presence in the region," said Thorsten Eschmeier, CEO of Bayer Pearl. "Our new site makes it possible to expand our competence in developing new applications and improved manufacturing processes for polyurethane products in close collaboration with our customers." The site at Dubai Investments Park is strategically located close to the port of Jebel Ali and the new Dubai World Central airport.

The joint venture is part of the global network of polyurethane systems houses of Bayer MaterialScience. Bayer Pearl develops solutions for the insulation of buildings and piping, and for the automotive industry. Such challenges can be met with polyurethane rigid foam, for example, which thanks to its good thermal insulation properties makes an important contribution to conservation of scarce natural resources, says the company. Polyurethane materials also make it possible to design cars that weigh less and are therefore more fuel-efficient.

As MRC wrote previously, BMS plans to invest EUR 15 million in the construction of a production line at its Dormagen site, which will use CO2 to produce a precursor for premium polyurethane foam. The line will have an annual production capacity of 5,000 metric tons. The permit application will be submitted to the Cologne district authority in the next few weeks. The greenhouse gas carbon dioxide can be used as a basic building block for plastics.

With 2013 sales of EUR 11.2 billion, Bayer MaterialScience is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. At the end of 2013, Bayer MaterialScience had 30 production sites and employed approximately 14,300 people around the globe. Bayer MaterialScience is a Bayer Group company.
MRC

MOSCOW (MRC) -- Xinjiang Tianye Group is likely to start a new monoethylene glycol (MEG) plant, according to Apic-online.

A Polymerupdate source in China informed that the plant is likely to be started in August 2014.

To be located in Xinjiang province, China, the plant will have a production capacity of 250,000 mt/year.

We remind that, as MRC reported earlier, Xinjiang Tianye Group Co started up a new 400,000 tonne/year carbide-based polyvinyl chloride (PVC) plant in China's northwestern Xinjiang province in 2010 and achieved on-spec production on 6 October. With the start-up of the new plant, Xinjiang Tianye’s PVC production capacity has increased from 700,000 tonnes/year to 1.1m tonnes/year, making it the largest PVC producer in China.

Another Chinese petrochemical producer Hubei Chemical Fertilizer started a new monoethylene glycol (MEG) plant in late 2013. Located in Hubei, China, the plant has a production capacity of 200,000 tonnes per year.
MRC

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