Tongkun to start a new PTA plant in China

MOSCOW (MRC) -- China's polyester maker Tongkun is in plans to start a new purified terephthalic acid (PTA) plant, reported Apic-online.

A Polymerupdate source in China informed that the plant is planned to be started in 2017.

To be located at Zhapu in Zhejiang province, China, the plant will have a production capacity of 1.5 million mt/year.

As MR informed before, Tongkun has shut its No.1 PTA on August 5, 2014 on account of feedstock shortage and technical issues. It remained off-stream for around 10 days. Located at Zhapu in China, the plant has a production capacity of 1.5 million mt/year.

We remind that Tongkun Group said its net profit for 2013 slumped by 72.1% year on year to yuan (CNY) 72m (USD11.6m), amid the sluggish domestic chemical fibre market. In 2013, the chemical fibre industry developed weakly, as well as oversupply in some regions which made the industry into the predicament, the company said.
MRC

MOSCOW (MRC) - French oil company Total is to step up plans to sell off assets, cut investments and reduce operating costs to deliver on a promise to generate USD15 billion in free cash flow in 2017, Reuters.

The oil group, which has struggled with production outages in Libya, Kazakhstan and Nigeria, said on Monday it had reduced its 2017 output goal to 2.8 million barrels of oil equivalent per day from a previous 3 million.

"We have more than 15 major projects to fuel the future growth ... Two thirds of those projects are operated by us so that gives us confidence we will achieve the targets," chief financial officer Patrick de La Chevardiere said at a presentation to investors.

De La Chevardiere declined to comment on what assets the company could sell, adding that during the previous asset sale plan it had sold both upstream and downstream businesses.

Total, like other big oil companies, has been under pressure from shareholders to cut costs and raise dividends. It has been selling off businesses, such as its adhesives division Bostik, which French chemicals group Arkema has offered to buy for 1.74 billion euros (2.24 billion US dollar).

Total said it now planned to sell USD10 billion worth of assets in 2015-17, having achieved a target of USD15-20 billion of sales in 2012-2014.

France's biggest company by market value and the West's fourth biggest oil and gas company said last year it would engage in what Chief Executive Christophe De Margerie called a "soft-landing" in capital investments.

Organic investments would fall to USD25 billion in 2017 from a peak of USD28 billion in 2013 while operating expenses would fall by USD2 billion per year by 2017.

The company reiterated an earlier target to generate free cash flows of USD15 billion in 2017 but cut the target for next year to USD7 billion from a previous USD10 billion. It had free cash flows of USD2.6 billion in 2013.

As MRC wrote before, Total, Europe’s third-largest oil company, 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. Total plans indeed to develop new activities on the platform in the growing markets for hydrocarbon resins (Cray Valley) and for polymers, while shutting down the acutely loss-making steam cracker in the second half of 2015.

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

MOSCOW (MRC) -- Melitek, the Danish compounder celebrated the finishing of its expansion project and the start-up of a new production line on 15 September, as per GV.

During the last year, the company headquartered in Alslev, expanded its plant with new buildings for additional production area and an extra warehouse.

"The expansion has proceeded according to plan and budget and the new production line is installed and ready for start-up in October 2014," says Kim Laursen, Managing Director.

"The new line is in essence a true duplicate of our current line with same brands and sizing making it redundant to our current large medical line. It will however have many new features making production even more efficient and safe so indeed we are looking forward to take it into use," continues Kim Laursen.

The company said, that is experiencing increased sale from existing customers as well as from new customers. "We are expecting continued growth from our current customers and we also enjoy start of supply to new customers that will yield a strong demand for our products and services dedicated to the healthcare segment. Our growth is both on our elastomer for PVC replacement and on modified polymer plus systems," informs Jesper Laursen, Melitek’s Business Director.

With the new line in operation, Melitek has three lines dedicated to meliflex compounds for healthcare market yielding a total capacity of 25 000 tonne. The company expects that the turnover, due to the additional production line, will double within the next 5 years.

As MRC reported earlier, the value of the global medical polymer market is set to rise by more than half in the next five years, boosted by an ageing population and developing markets. The market is estimated to grow from USUSD2.3 bln to over USUSD3.5 bln, a rise of more than 52%, between now and 2018.

Melitek is a private owned Danish company specialised in medical compounds based on 30 years of experience servicing the healthcare market. Under the brand name Meliflex the company offers a broad range of materials (PE, PP, TPE, TPO and COC based compounds) that are produced according to GMP and ISO with an extensive medical service package. The compounds are PVC-free and do not contain any phthalate plasticizers.
MRC

MOSCOW (MRC) - Total imports of high density polyethylene (HDPE) in Ukraine decreased to 62,700 tonnes in the first eight months of this year, down 36% year on year. The main decrease occurred for film HDPE, according to MRC DataScope.

Ukraine's HDPE imports decreased to 6,400 tonnes in August 2014, compared with 10,200 tonnes in July because of the almost complete cessation of supplies from Russia, as well as a major drop in the supply film HDPE from Europe and Middle East. Total HDPE imports in the country were 62,700 tonnes in January - August, compared with 98,500 tonnes year on year.

The decline in deliveries were seen in all sectors of consumption, but the greatest decrease occurred for the film and pipe HDPE. Structure of delivery over the reporting period looked as follows.

August's imports of film HDPE in Ukraine were 2,700 tonnes, compared with 4,400 tonnes in July. Ukraine's imports of film HDPE totalled 24,500 tonnes in the first eight months of the year, down 41% year on year. The main import supplies of film HDPE occurred for the producers from Europe and the Middle East.

Ukraine's imports of pipe HDPE were 1,900 tonnes in August, compared with 1,700 in July. Pipe HDPE imports in the country totalled 12,000 tonnes in January - August 2014, compared with 19,600 tonnes year on year. Local converters reported a significant reductions in export quotas from European and Middle Eastern producers along with weak demand in the domestic market.

August imports of blow moulding HDPE in Ukraine decreased to than 900 tonnes, almost three times less from the July level. Total imports of blow moulding HDPE in Ukraine were 12,000 tonnes in January-August 2014, compared with 18,200 tonnes year on year.

August's imports of injection moulding HDPE decreased to 700 tonnes, compared with 1,600 tonnes in July. Ukraine's imports of injection moulding HDPE decreased to 12,000 tonnes in January - August 2014, down 5% year on year.

Total HDPE imports in other consumption sector for the period were 2,400 tonnes, compared with 6,300 tonnes year on year.


MRC

MOSCOW (MRC) -- French chemicals group Arkema has offered to buy oil major Total's adhesives business Bostik, which makes Blu-Tack, for EUR1.74 billion (USD2.24 billion), as per the company's press release.

Total, under pressure from shareholders to improve its cash flow and raise dividends, has embarked on a major divestment program. A sale of Bostik at that price would increase its announced disposals this year to near USD20 billion - at the top of its target range of USD15-USD20 billion.

For Arkema, which said it hoped to finalize the deal in the coming months, buying Bostik would expand its position in a fragmented global adhesive and sealants market.

Bostik, which makes adhesives and sealants used in products ranging from aircraft components and building materials to diapers, had 2013 sales of EUR1.5 billion and has 4,900 staff worldwide. The company, whose main rivals are Henkel and H.B. Fuller has been a Total unit since 1990.

As MRC reported previously, in July 2014, Arkema and Omya, a Switzerland-based global provider and distributor of specialty chemicals, entered into an exclusive pan-European distribution agreement. Under this distribution agreement, Omya will market Arkema's plastic additives range for various polymer markets (impact modifier and processing aid solutions).

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
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