SK Chemicals holding company intends to become a resident of the petrochemical cluster in Primorye

MOSCOW (MRC) -- The Korean SK Chemicals holding company intends to become a resident of the petrochemical cluster in Primorye, as per press release of official site of the Primorsky Territory Administration.

Alexey Starichkov, the Director of the Department of International Cooperation an Tourism Development of the Primorsky Territory had a meeting with Kim Dae-Su, the Managing Director of the Department of SK Chemicals (the Republic of Korea) global business. The parties discussed petrochemical cluster of Primorye forming progress and a possibility of Korean holding company involving.

According to Alexey Starichkov, the anchor project of a future cluster in the Partizansk district will be “EPCC” company. Also, the Administration of Primorye together with the largest world developer – Singaporean Jurong corporation – will create a site near the “EPCC” plant, which will create re-refining products.

Mr. Kim, in his turn, noted that SK Chemicals today intends to expand business building up production in the Far East of Russia, and the petrochemical cluster in Primorye is an appropriate site for this purpose.

He told that SK Chemicals today is one of the biggest South Korean companies of petrochemical industry and film production, and also holds world leading positions in production of polyols, propylene oxides and polyurethane.

In particular, in Primorye SK Chemicals intends to create products required in automobile manufacturing.

Alexey Starichkov noted that on the basis of Sollers company it is planned to manufacture 75 thousand of motor-cars per year by 2016. Also car parts manufacturing will be conducted on the company basis.

In addition to that in 400 kilometers from Primorye it is located the world leader of motor-car production – the Chinese city Changchun. Over one million of motor-cars is manufactured there per a year.

As MRC wrote before, SK Chemicals will launch a joint venture (JV) with Japan's Teijin Chemicals for developing, producing and marketing a super-engineering plastic, polyphenylene sulfide (PPS). The proposed JV will set up PPS resin production plants to manufacture 12,000 tons per year (tpy) of PPS by 2015. The companies are also considering expanding the manufacturing capacity to 20,000tpy during the second phase of the project.

SK Global Chemical Co., Ltd. develops, produces, and supplies olefins, such as ethylene, propylene, butadiene, MBTE, and butene-1; aromatics. The company also provides polymers, including linear lower, medium, and high density polyethylene products; and home, impact, and random polypropylene products. It serves customers in South Korea and internationally. The company was founded in 1962 and is based in Seoul, South Korea with a sales office in Shanghai, China. SK Global Chemical Co., Ltd. operates as a subsidiary of SK Innovation Co., Ltd.
MRC

MOSCOW (MRC) -- Huntsman Corporation announced that it experienced an unplanned manufacturing disruption on a production unit at its facility in Port Neches, Texas, as per the press release of the producer.

There were no injuries resulting from the incident. The disruption occurred on Thursday August 14 and was caused by equipment failure.

The Port Neches facility manufactures methyl tertiary butyl ether (MTBE), propylene oxide (PO) and propylene glycols (PG). The manufacturing disruption also impacts internal PO supply to downstream MDI systems, amines, surfactants and propylene oxide derivatives. The affected unit is expected to be off-line for two to three weeks, with an estimated negative impact of USD30 million EBITDA for Huntsman’s Polyurethanes and Performance Products divisions.

It is yet to be determined whether this will impact the planned maintenance scheduled for the first half of 2015.

As MRC wrote before, the performance products division of Huntsman will expand its global polyetheramines (PEA) capacity by a minimum of 15% as a result of debottlenecking three of its PEA manufacturing plants globally.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2012 revenues of over USD11 billion. Our chemical products number in the thousands and are sold worldwide to meet the needs of consumers and manufacturers serving a broad range of end markets. We operate more than 75 manufacturing and R&D facilities in 30 countries and employ approximately 12,000 associates within our 5 distinct business divisions.
MRC

MOSCOW (MRC) - Imports of high-density polyethylene (HDPE) to the Russian market fell by 13% in the first seven months of this year.
The greatest decrease in imports occurred for polyethylene film, according to MRC DataScope report.

Russia's HDPE imports seasonally increased to 30,600 tonnes in July. Total HDPE import in Russia decreased to 155,200 tonnes in January - July 2014, compared to 177,500 in the same time a year earlier. The greatest reduction occurred for film HDPE, while the imports of blow moulding and injection moulding polyethylene, on the contrary, increased.

Structure of HDPE imports in the country looked as follows.

Russia's imports of pipe HDPE exceeded 10,000 tonnes in July, compared with 8,400 tonnes in June on the back of the seasonal factor.
Russia's pipe HDPE imports totalled 42,600 tonnes in the first seven months of the year, up by 2% year on year.

Russia's imports of HDPE for extrusion coating of large-diameter pipes decreased almost twofold to 3,200 tonnes in July, compared with 6,100 tonnes in June. Total imports of HDPE for extrusion coating of large-diameter pipes in Russia were 35,700 tonnes in the first seven months of the year, down 20%.

July imports of injection moulding and blow moulding HDPE grew to 5,400 tonnes and 5,100 tonnes respectively. Russia's imports of injection moulding and blow moulding HDPE in the first seven months of the year totalled 29,300 tonnes and 24,400 tonnes, up 3% and 11%, respectively.

July imports of film HDPE in Russia on the the back of the shortage grew three times to 5,700 tonnes, from 1,900 tonnes in June. Total imports film HDPE in Russia were 16,000 tonnes in the first seven months of the year, down 48% year on year.

Russia's imports of HDPE in other sectors of consumption (cable extrusion, rotational molding, etc.) declined to 7,200 tonnes in the first seven months of the year, compared with 7,900 tonnes year on year.


MRC

MOSCOW (MRC) -- Imports of titanium dioxide (TiO2) to Russia rose from January to July 2014 by 5% year on year, according to ICIS-MRC Price report.

TiO2 imports to the Russian domestic market totalled over 49,000 tonnes over the first seven months of 2014.

Polymer converters and paper producers increased their purchasing, whereas shipments to the needs of the paints and coatings industry dropped by 4.5%.

However, paints and coatings producers remained the largest TiO2 consumers (they account for about 77% of the total consumption of titanium dioxide in the country).
Ukraine remained a reliable and the largest supplier of material for the Russian processing industry, despite possible difficulties in shipments through the East of Ukraine. The overall imports of Ukrainian TiO2 totalled 15,000 tonnes over the first seven months of 2014, which equal the same figure of 2013. At the same time, shipments from the United States, China, Finland and Germany increased.

MRC

MOSCOW (MRC) -- Negotiations over September contract prices of Russian suspension polyvinyl chloride (SPVC) began last week. Local producers intend to roll over August prices for next month's shipments, according to ICIS-MRC Price report.

Scheduled shutdowns for maintenance and a major fall in imports, particularly, from the United States, allowed Russian producers to achieve an increase in August contract prices by an average of Rb4,000/tonne from July. The shortage of resin remained in the market because of a number of factors, on the back of which Russian producers intend to maintain August prices for September shipments.

Scheduled outages for maintenance works will continue in September and October. Thus, Bashkir Soda Company (formerly, Kaustic (Sterlitamak) and Kaustic (Volgograd) will shut down their production for turnarounds, which will add to tight supply from Russian producers.

Converters intend to reduce contract prices of Russian polyvinyl chloride (PVC). The current prices are record high for the last few years, despite lower sales in the finished products market. Another powerful argument that converters state during negotiations is a reduction of the import duty for PVC to 6.5% from 1 September. Lower import prices will make imports less expensive for the Russian market, and import quantities will compete with Russian material.
MRC