Radius Group and Austrian district heating Leader KE KELIT form new JV

MOSCOW (MRC) -- Radius Group, the multinational market leader in PE pipe and fittings, and KE KELIT the leading Austrian pipe systems manufacturer based in Linz, have announce the formation of new joint venture between Radius and the District Heating business of KE KELIT, as per Radius' press release.

Radius will take a majority position in the new company which will trade under the name, Radius-Kelit.

Andy Taylor, Radius CEO, said: "we are overjoyed to be partnering with KE KELIT and the Egger family in establishing such an exciting new opportunity. District Heating is a core segment for the Radius Group and this move will provide all the right combinations to establish a springboard for European growth. The market experience, position and routes to market which KE KELIT, a pioneer in the European District Heating market, provide, combined with the innovative product proposition and the manufacturing and technology expertise from Radius will create a potent market participant. We look forward to working with our partners and their skilled and dedicated workforce to bring to the wider European market a unique offering of reinforced, flexible, pre-insulated plastic pipes designed specifically for high temperature and high pressure networks. This move is the latest in Radius' strategy to complement our core pipe and fittings business with closely associated products, services and technologies and in so doing enhancing our value added proposition to our customer base".

As MRC informed previously, in August 2013, Radius Systems announced the acquisition of 100% of the issued share capital of Aeon Group Holdings Ltd. Radius Systems, the UK's leading supplier of PE pipes and fittings to the Gas and Water utilities sector, has announced the acquisition of 100% of the issued share capital of Aeon Group Holdings Ltd

KE KELIT is a 100% family owned company in Linz, Austria. It is one of the leading manufacturers of pipe systems for hot and cold water, heating, ceiling cooling, pipe insulation and compressed air. KE KELIT has been active in international markets for over 60 years and has manufacturing facilities at five locations and more than 20 offices in Europe, the Middle East and Asia/Pacific region.

Radius Group is the market leader in engineered polymer products in the CIS and the largest producer of polyethylene pipes and fittings in Europe. The Group is the market leader in polymer composite materials supply to the automotive, white goods and building materials sectors in the CIS where it is also the leading manufacturer of District Heating Solutions. In Q1 2013, Polyplastic Group, the Russian and CIS market leader in plastic processing, completed the acquisition of Radius Systems. Radius Group operates from 20 plants and exports to more than 50 countries worldwide with an annual turnover of about EUR1bn and employs in excess of 7,000 people.
MRC

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 10% over the first seven months of 2014. Shipments of polyvinyl chloride (PVC) from Europe accounted for the main fall in the total imports, according to MRC DataScope report.

Seasonal factors led to a steady growth of PVC imports to Ukraine in the second quarter of 2014 after a major fall in imports in the first quarter. SPVC imports to the local market exceeded 18,600 tonnes in July versus 11,000 tonnes in May. Local companies were actively building up additional inventories for the peak months. The overall PVC imports totalled 66,100 tonnes from January to July 2014 versus 73,800 tonnes a year earlier.

The structure of PVC imports to Ukraine by regions looks the following wasy over the stated period.

Last month's PVC imports from the United States surged to 12,900 tonnes from 4,900 tonnes a month earlier. Thus, imports of North American PVC reached 38,500 tonnes over the said period versus 35,800 tonnes a year earlier. Relatively low export prices of North American producers in comparison with the European was the main reason for the increased shipments.

July imports of European PVC to the Ukrainian market dropped to 5,600 tonnes from 6,100 tonnes in June. The overall imports of resin from Europe totalled 26,200 tonnes over the first seven months of 2014 versus 35,400 tonnes over the same period of 2013. Producers from Hungary, Poland and Germany remained the key SPVC suppliers to the Ukrainian market because of geographical factors.

PVC imports from other regions (Asia, Turkey, Russia) was sporadic.

MRC

MOSCOW (MRC) - Imports of polyethylene in Kazakhstan decreased by 23% in the first seven months of this year. The fall in demand occurred for high density polyethylene (HDPE), while the need for other types of polyethylene increased, according to MRC.

July imports of PE in Kazakhstan seasonally increased to 12,500 tonnes, compared with 7,800 tonnes in June. Total PE imports in the country decreased to 54,800 tonnes in January - July 2014, compared with 70,700 tonnes in the same time a year earlier.

Demand for HDPE from the local pipe producers has weakened, while demand for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) increased. Structure of PE imports into the country looked as follows.

July HDPE imports in the country grew to 9,600 tonnes, compared with 6,400 tonnes in May. Such a serious increase in the imports resulted from the larger purchases from Russia, South Korea, Saudi Arabia and Finland. Total HDPE imports in Kazakhstan decreased to 41,000 tonnes in the first seven months of this year, compared with 59,6000 tonnes in the same time a year earlier. More than 80% of the total HDPE consumption in Kazakhstan occurred for pipe producers.

July LDPE imports in the country grew to 2,400 tonnes (in June it was 1,300 tonnes) on the back of increased purchases in Russia (Kazakh producers shrink films formed additional inventories). Total LDPE imports in Kazakhstan increased to 11,300 tonnes in January - July of this year, compared with 8,800 tonnes year on year.


Key suppliers of LDPE in the country were Russian producers, their share in total imports this year rose to 93%. July LLDPE imports rose to 462 tonnes, compared with 173 tonnes in June. Total LLDPE imports in the country grew to 2,400 tonnes in the first seven months of the year, up 2% year on year. Key suppliers of LLDPE in the country were producers from Asia and Uzbekistan.


MRC

MOSCOW (MRC) -- The Dow Chemical Company has announced that Jack Broodo, president of Dow Chemical Canada ULC and director of feedstocks for the Company’s North and Latin America regions has been named vice president of Investor Relations for the company, reported Dow on its site.

Broodo succeeds Doug May, who will become business president of the Company’s Olefins and Aromatics business unit. Broodo will report to William Weideman, Dow’s executive vice president and chief financial officer, and will work with May to ensure a smooth transition.

"Dow has driven a series of strategic actions over the past several years to reposition the Company and maximize returns for shareholders," said Weideman. "During this time, Doug’s leadership and focus on the investment community has strongly supported our efforts to maintain regular and transparent dialogue with the investment community regarding our progress against key strategic and financial milestones. Jack’s business leadership experience, together with his broad background on the Company’s integrated portfolio and key growth projects, will be instrumental in our efforts to maintain this focus and the quality of this dialogue moving forward."

In 2009, Broodo assumed the senior leadership role for Dow’s business and site operations in Canada - driving results for the company and maintaining positive relationships across the communities in which Dow operates. In 2013, he took on additional responsibility as director of feedstocks for Dow’s North and Latin America regions, where his leadership was instrumental in enhancing Dow's position in Latin America. Notably, during this time, he has served as a key member of the team leading the advancement of the Company’s US Gulf Coast investment program.

As MRC informed before, Hanwha Chemical, one of South Korea's leading polyethylene and polyvinyl chloride producers, has picked Credit Suisse to advise on possible purchases from Dow Chemical"s chloro-alkali business but its interest is still in the early stages.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Total, Europe’s biggest refiner, plans to adapt its French processing capacity as fuel demand drops, reported Hydrocarbonprocessing with reference to the company's chief executive officer.

"Refining has to be adapted to demand and demand is dropping," CEO Christophe de Margerie said at a meeting of the French employers’ group Medef outside Paris. "When demand drops, producers have to deal with it."

Total has borne the brunt of lower refining margins and a slump in consumption in Europe, where it operates eight plants. In its home market of France, it has joined LyondellBasell and Petroplus in halting surplus capacity, and peers elsewhere in the region have followed suit.

Total doesn't plan to pull out of refining altogether, de Margerie said.

While he said there is no "urgency" in Total’s plans for French refining, he declined to give details on how and when capacity will be cut in France.

The company has already shut a refinery at Dunkirk and a steam cracker at Carling in eastern France to lower capacity. Refiners in France lost EUR00 million (USD951 million) in 2013 as margins shrank and the country imported more than half the diesel it used, the Union Francaise des Industries Petrolieres has said.

Total has a target to reduce its European refining and petrochemicals business by 20% from 2012 to 2017. The Courbevoie-based company faced opposition from workers and the state over the closing of the Dunkirk plant, and it promised the government in 2010 it wouldn’t shut another site for five years.

As MRC wrote before, last year, Total intends to invest EUR160m before 2016 to adapt its petrochemical platform in Carling, in the Lorraine region of eastern France, and to restore its competitiveness. The Carling plant, which makes petrochemicals such as ethylene and propylene at the site near the German border, employs 350 Total workers as well as sub-contractors. These chemicals are used to make plastics.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC