Ukraine group may have to sell TiOx plant in Crimea

MOSCOW (MRC) -- Group DF, the industrial business of Ukrainian tycoon Dmitry Firtash, may be forced to sell off Eastern Europe’s biggest producer of titanium oxide, Crimea Titan following the Russian invasion of the Crimea, said Europeanplasticsnews.

Crimea Titan, a supplier of the plastics industry intermediate chemical to customers across Europe, is one of two group companies isolated by the territory’s occupation. The TiOx producer has been unable to obtain vital feedstock supplies of ilmenite concentrate from companies across the new border with Ukraine.

Since the Russian takeover, Group DF has also had major difficulties trying to manage the Titan plant in Armyansk in northern Crimea, as well as soda ash producer Crimea Soda Plant, its other local business incorporated in Crimea.

"We are a Ukrainian group and that’s why we will certainly act according to Ukrainian laws. In any case, if we cannot manage these companies, we will be forced to sell them," commented Group DF’s managing director Borys Krasnyanskiy.

He admitted the group is experiencing problems in paying salaries to its Crimean employees. "As you know, the hryvnia (the Ukraine’s currency) is no longer in circulation. As a Ukrainian company registered as a legal entity in Kiev, Crimea Titan, for instance cannot make payments in Russian currency," he explained.

In April, the local subsidiary, formerly registered in Armyansk, was re registered in the Ukraine capital Kiev because of the Russian occupation. Crimea Soda Plant kept its legal address in the Crimea.

Private Joint Stock Company "Crimean Titan" was found in August, 2004. 100% of the shares belong to Ostchem Germany GmbH, a member of the Group DF. The main activity of PJSC "Crimean Titan" - the production of titanium dioxide pigment grades, which is used in paint, rubber industry, plastics industry and many other industries.
Titanium dioxide accounts for about 90% of the companie's total exports. The company supplies its products to more than 60 countries.
MRC

MOSCOW (MRC) -- LyondellBasell, the world’s biggest maker of polypropylene plastic, has delayed the start-up of expanded production at its ethylene plant in La Porte, Tex., until later this year, as per Plastemart.

A mechanical issue with a compressor at the plant was partially to blame for the extended turnaround at La Porte, as per the company.

The revised timeline for the newly expanded plant project, which was scheduled to begin production this summer resulted from a delay in the completion of extensive scheduled maintenance at the La Porte plant during the second quarter. The company expects to begin production from its 800 million lb/year La Porte ethylene during this year’s third quarter.

While the company said its third-quarter earnings would be negatively impacted by the delayed start-up at La Porte, it did not disclose a firm date for when production at the plant would begin.

The La Porte project is the first of three ethylene expansions LyondellBassel has under way, which include projects at its plants in Channelview and Corpus Christi, Tex., all of which are benefitting from rising North American shale gas production.

As MRC informed previously, LyondellBasell Industries has posted second-quarter earnings that topped analysts’ estimates as margins widened on higher prices. Net income was USD2.23/share, compared with USD1.61 a year earlier, London-based LyondellBasell said in a statement Friday. Income from continuing operations was USD2.22, which exceeded the USD1.92 average estimate of 18 analysts compiled by Bloomberg. Sales were USD12.1 billion, compared with USD11.1 billion a year earlier, beating the USD11.5 billion average estimate.

LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

MOSCOW (MRC) - Polyethylene terephthalate (PET) imports in Kazakhstan were 30,500 tonnes in the first half of 2014, up 15% compared to January-June 2013, according to ICIS-MRC Price Report.

The share of Chinese PET chips occurred for about 58% from the total imports in Kazakhstan over the reported period. Total imports of PET from China in the first half of the year reached 17,900 tonnes. Chinese PET was popular among local converters first of all because of its lower prices compared with other Asian material.

However, demand for South Korean PET has improved this year. Imports of Korean PET reached 12,700 tonnes in the first half of the year, up 40% compared with the same time a year earlier.

Buying activity was seasonally strong in July. Traders have increased prices on price rise in China.

Spot prices for PET in Kazakhstan were heard in the range of tenge (Tenge) 350,000-358,000/tonne CPT Astana, including VAT.
MRC

MOSCOW (MRC) -- Jakarta-listed PT Chandra Asri Petrochemical (TPIA), the country’s largest petrochemical producer, has made the assets of its two subsidiaries, PT Styrindo Mono Indonesia and PT Petrokimia Butadine Indonesia, collateral for loans worth USD533 million, reported Plastemart with reference to The Jakarta Post.

Chandra Asri, along with its two subsidiaries, signed a security sharing agreement with nine lenders, including DBS Bank Ltd., Bank Central Asia (BCA) and Bank Danamon Indonesia. Since last year, Chandra Asri has been looking for financing to partly expand its naphtha cracker facility from 600,000 kilotons of ethylene to 860,000 kilotons.

The naphtha cracker expansion, which requires USD380 mln in investment, is necessary to support Chandra Asri’s other expansions on other products, like ethylene, propylene, pyrolysis gasoline and mixed C4. Apart from higher ethylene production, the project will also see a boost in its annual production capacity of propylene by 150,000 tons to 470,000, pyrolysis gasoline by 120,000 tons to 400,000, and mixed C4 by 95,000 tons to 315,000.

As MRC wrote before, last June, German petrochemical company Ferrostaal Industrial Projects GmbH and Chandra Asri Petrochemical agreed to work on studies for the development of a petrochemical plant. Under an agreement, Ferrostaal and Chandra Asri has been developing a methanol-based olefin production complex in Teluk Bintuni in West Papua, with a total investment amounting to USD1.89 billion. The complex is expected to produce up to 400,000 tonnes of polypropylene and 175,000 tonnes of ethylene annually.
MRC

MOSCOW (MRC) -- Munich-based chemical company Wacker is expanding its product range with a new liquid silicone rubber for the production of automotive gaskets, reported the company on its site.

Molded parts made from the new silicone are resistant to heat and coolant and exhibit low compression set even under permanent stress. Car radiators and cooling-system components can thus be reliably sealed. ELASTOSIL RT 728, as the new silicone grade is called, can be injection molded or mechanically dispensed straight onto the part to be sealed.

ELASTOSIL RT 728 has been chiefly developed for the production of fluid- and heat-resistant gaskets for the automotive industry. The liquid silicone is characterized by high coolant resistance. Gaskets made from ELASTOSIL RT 728 exhibit no more than 30% compression set after 1000 hours in coolant at a temperature of 105 C. After 1000 hours at 125 C, the permanent deformation is still less than 65% as soon as the stress is removed. The elastomer’s high resilience delivers constant contact pressure and optimum leaktightness in the seal groove. Moreover, even long-term stress has very little effect on the overall property profile of ELASTOSIL RT 728. Vulcanizates of the new liquid silicone meet delivery specifications of leading car manufacturers concerning gaskets for use in engine cooling systems.

ELASTOSIL RT 728 supports cost-efficient series production of parts by injection molding. However, the liquid silicone can also be applied by dispensing equipment straight onto the part to be sealed - automotive subcontractors use this method to produce two-component parts. ELASTOSIL RT 728 meets all the key requirements of this application. By virtue of its shear-thinning properties, it can be applied by dispensing equipment and is self-adhesive. Automotive suppliers, such as Stuttgart-based MAHLE, uses the product to make radiator components.

As MRC reported earlier, Wacker Polymers, a division of Wacker Chemie AG, is to raise its prices for vinyl acetate-ethylene (EVA) and ethylene-vinyl chloride-based (EVCL) copolymer dispersions of the VINNAPAS and VINNOL brand in the regions Americas and Greater China. As customer contracts allow, effective August 1, 2014, prices will be raised by USD0.03 per pound in the Americas. In Greater China, prices will increase by CNY300 per ton.

In Europe, the temporary surcharge of EUR140 per ton for vinyl acetate-based homopolymer dispersions as well as for vinyl acetate-ethylene and ethylene-vinyl chloride-based copolymer dispersions implemented on May 1, 2014, will persist, as customer contracts allow, until further notice.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC