SIBUR reports H1 2014 results

MOSCOW (MRC) -- SIBUR has announced that overall sales increased by 32.1% to RUB 171,712m (EUR3.4bn) for the first half of 2014 from RUB 130,030m (EUR2.6bn) in the first half of 2013, said the producer in its press release.

The company states that its sales of basic polymers increased by 58.2% year-on-year to RUB 16,695m (EUR334m) from RUB 10,555m (EUR211m) in the first half of 2013 following the launch of its Tobolsk-Polymer Plant.

Its EBITDA for the period increased by 29.8% year-on-year to RUB 49,486m (EUR991m) from RUB 38,117m (EUR764m) in the first half of 2013.

SIBUR also announced that it is proceeding with the ZapSibNeftekhim project, which is designed to enable the company to operate a steam cracker, with a capacity of 1.5 mtpa of ethylene, along with units with a total capacity to produce 1.5 mtpa of various grades of polyethylene and a polypropylene unit of 500 ktpa. The project sees a total investment of around USD9.5bn (EUR7.3bn).

The cracker, polyethylene and polypropylene units’ feed has been completed. Sibur says that it has signed an agreement to design infrastructure and off-site facilities with NIPIgazpererabotka, Russia's leading engineering centre in the gas processing industry.

Dmitry Konov, CEO of Sibur, said: "SIBUR has a strong financial position. Over recent years, the company has delivered on ambitious projects to expand its gas processing and fractionation capacity, improve transport infrastructure reliability, and build its first large polymer production capacities, providing the basis for a smooth transition into the next stage of the project."

SIBUR says that construction and other works for the project are to be completed within five to five and a half years.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.

As of 30 June 2014, SIBUR operated 26 production sites located all over Russia, had over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide and employed over 26,000 personnel.
MRC

Imports of PC for sheet extrusion to Russia dropped by 4% from January to August 2014

MOSCOW (MRC) -- Imports of polycarbonate (PC) from Europe to Russia dropped from January to August 2014 by 4% year on year and ]totalled 17,800 tonnes, according to MRC DataScope report.
Grades for sheet extrusion accounts for more than 70% of the total imports of PC granules. Extrusion segment is the most developed and promising in the Russian market. About 95% of all delivered quantities are imported from Europe. These are shuch companies, as Sabic Innovative Plastics and Bayer with the shares of 83% and 11%, respectively. The bulk of extrusion grade PC production facilities of Sabic Innovative Plastics is located in the Netherlands and Spain, and those of Bayer - in Belgium.
Kazanorgsintez, the only national PC producer, accouts for an average of 60% in the total consumption of extrusion grade PC. Since recently, Kazanorgsintez has decided to expand its share in the domestic market, particularly, in its extrusion segment. Consumers reacted positively to this because of a perceptible rise in domestic prices of imported material on the back of the rouble devaluation.

MRC

Lanxess expands new plant for inorganic pigments in Ningbo

MOSCOW (MRC) -- Specialty chemicals group Lanxess is strengthening its production network in China to meet the high level of demand for iron oxide pigments and is adding a mixing and milling plant to the pigment plant already under construction in Ningbo, as per the company's press release.

Potential customers for the iron oxide pigments are the coatings, plastics, construction and paper industries. This brings the total investment at the Ningbo site from around EUR 55 million to around EUR 60 million.

The new plant for iron oxide red pigments in Ningbo, which has been built to the latest environmental standards, is being designed for an initial annual synthesis capacity of 25,000 metric tons. On the same site, Lanxess is building the mixing and milling plant for pigments with an annual capacity of 70,000 metric tons. This plant will also process raw pigments from other Lanxess sites for the Asian market. The plants are scheduled to be completed in the fourth quarter of 2015 and to start production in the first quarter of 2016.

At the same time, Lanxess will also close its existing mixing and milling operations in Taopu, Shanghai, with an annual capacity of 35,000 metric tons by the end of 2016. Shanghai City Council will be integrating the vacated plant grounds into a high-tech park in Shanghai’s Putuo District.

"The trend towards urbanization is continuing unabated. Our decision to significantly expand our plant in Ningbo is based on the fact that the global demand for iron oxide pigments is growing at an annual rate of around three percent," says Jorg Hellwig, head of the Inorganic Pigments business unit (IPG) at Lanxess. "In addition to our Jinshan/Shanghai site in China, we will then have another very strong base for our global production network. By doubling our milling capacities in China, we are strengthening our position as a world-leading manufacturer of iron oxide pigments with a wide-ranging product portfolio for customers."

Lanxess already operates a synthesis plant in Jinshan, Shanghai, considered to be one of the largest, most modern facilities for iron oxide pigments in China. The plant has an annual production capacity of 38,000 metric tons of high-quality iron oxide yellow and iron oxide black pigments.

With an annual capacity of over 350,000 metric tons, Lanxess’ Inorganic Pigments business unit (IPG) is one of the world’s leading manufacturers of inorganic iron oxide and chrome oxide pigments. The center of global production operations is Krefeld-Uerdingen in Germany. This business unit has some 1,250 employees and is part of the Performance Chemicals segment.

As MRC informed before, last July, Lanxess celebrated the opening of its first production facility in Russia. In the new plant at the Lipetsk site, Lanxess subsidiary Rhein Chemie manufactures polymer-bound rubber additives for the markets in Russia and the Commonwealth of Independent States (CIS), primarily for the automotive and tire industries. A production facility for the bladders used in tire production is to be added in 2016. The overall investment volume in euros amounts to a seven-digit figure and 40 new jobs will be created at the new plant in the medium term.

Lanxess is a leading specialty chemicals company with sales of EUR 8.3 billion in 2013 and roughly 17,300 employees in 31 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

Novatec Solar and BASF start operations of solar thermal demonstration plant

MOSCOW (MRC) -- Novatec Solar and BASF have successfully commissioned a solar thermal demonstration plant based on a new type of molten salt technology, known as direct molten salt or DMS technology, reported BASF on its site.

The plant is located on the site of the solar-thermal power plant PE1 in southern Spain. The innovative feature of the new plant design is that the solar collector uses inorganic molten salt as heat transfer fluid. Most solar thermal power plants currently use heat transfer oils, which have a limited qualification temperature. Using inorganic salts as heat transfer fluid allows operating temperatures above 500°C, resulting in a significant increase in power yield.

The thermal energy can either be directly converted into electrical power or be stored in large molten salt tanks during periods of low demand. This stored energy can be kept in reserve for times when production is low, for example when the sky is overcast. Solar thermal power plants with storage systems can supply electricity as and when required, which helps to ensure grid stability.

Over the coming months, the demonstration collector will be used to experimentally simulate a large number of different operating conditions and study the impacts on long-term operability. The results will be used to develop the next generation of solar thermal power plants.

"The successful commissioning and the initial results of the DMS demo plant have confirmed our expectations of the technology. We are delighted that we can now offer solar thermal power plants with molten salt technology and thermal storage on a commercial basis," says Andreas Wittke, CEO of Novatec Solar.

As MRC wrote before, Tinosorb A2B is the first UV filter to be included in the positive list (Annex VI) of the new EU Cosmetics Regulation. Therewith, BASF’s highly efficient broadband filter is also the first UV filter with particle sizes smaller than 100 nanometers approved for use in cosmetics in Europe, announced the company in late August 2014.

Novatec Solar is a leading technology supplier for concentrating solar power, specializing in the production, supply, and turnkey delivery of solar steam generators based on Fresnel collector technology. These are suitable for a wide range of applications such as power generation in solar thermal power plants and the production of process steam for industrial processes, for example in more cost-efficient oil production.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

Eastman to acquire Taminco in USD2.8 billion transaction

MOSCOW (MRC) -- Eastman Chemical Company, a global specialty chemical company, has announced that it has entered into a definitive agreement with Taminco Corporation under which Eastman will acquire Taminco, a global specialty chemical company, reported Eastman on its site.

Under the terms of the agreement, Taminco stockholders will receive USD26.00 in cash for each share of Taminco common stock. The total transaction value is USD2.8 billion, including net assumed debt of USD1 billion. The acquisition will be funded with available cash and debt financing.

"The acquisition of Taminco demonstrates Eastman’s continued commitment to accelerating growth throughout the company and around the globe," said Mark Costa, chairman and chief executive officer of Eastman. "As a specialty chemical company with consistent earnings growth and leading positions in attractive niche end markets, Taminco is a strong fit with Eastman’s strategic focus. Taminco will add an attractive alkylamines stream to our chemical portfolio."

The acquisition of Taminco strengthens Eastman’s presence in attractive niche markets such as food, feed and agriculture. In addition, it provides opportunities to accelerate growth in the personal care, coatings, and oil and gas markets. These markets also benefit from global megatrends such as a growing population, demand for high-performance products, and energy efficiency. The acquisition of Taminco will add an attractive, world-class technology platform in alkylamines to Eastman’s portfolio.

Eastman stockholders will benefit from corporate and operating cost synergies and revenue synergies. Total synergies are estimated to be approximately 5% of Taminco’s 2013 sales revenues with the majority expected to be realized over the two years post-acquisition.

Eastman expects free cash flow (defined as cash from operations less capital expenditures and dividends) in the two years following the acquisition to be approximately USD1.5 billion and unlevered return on capital to be between 12-15%, consistent with previous target returns.

As MRC wrote previously, earlier this year, Eastman Chemical Company enhanced its medical packaging portfolio with Eastalite copolyester, the company’s first opaque offering, which is styrene-free and can be a sustainable alternative to high-impact polystyrene (HIPS).

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC