DuPont to start-up production at low-cost TiO2 facility in early 2016

MOSCOW (MRC) -- DuPont Titanium Technologies, part of the company’s Performance Chemicals segment, announced that it remains on track to complete the planned expansion of its existing high-efficiency, low-cost titanium dioxide (TiO2) facility in Altamira, Mexico, in 2015, and begin production at the plant in 2016, as per the company's press-release.

The new plant will enable DuPont Titanium Technologies to improve the efficiency of its TiO2 production and increase its flexibility to adjust its production output up or down to respond to global demands.

Annual global TiO2 market growth tracks global GDP, requiring about 150,000 to 200,000 metric tons of additional product to serve the marketplace each year. "Based on our current market outlook, we expect demand to increase gradually in the 2016-2018 time frame. DuPont Titanium Technologies will leverage the cost advantage of its Altamira facility at start-up in 2016 and continue to manage its production assets in order to remain well-positioned to deliver high-quality titanium dioxide to meet the ever changing needs of our customers," said BC Chong, president DuPont Titanium Technologies.

As MRC wrote before, for the fourth consecutive year, DuPont has been listed as a Top 100 Global Innovator by Thomson Reuters. DuPont is recognized for its innovation and the worldwide influence of its inventions.

DuPont Titanium Technologies is the global leader in the TiO2 industry, providing innovation, new offerings and the highest quality Ti-Pure products and solutions to the more demanding market segments, helping our customers grow in their specific industries. DuPont is on track to separate the DuPont Performance Chemicals segment, through a tax-free spin in mid-2015.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.

MRC

МОSCOW (MRC) -- Moody's Investors Service has today downgraded Sistema Joint Stock Financial Corporation's (Sistema) corporate family rating (CFR) to B1 from Ba2 and probability of default rating (PDR) to B1-PD from Ba2-PD, as per the agency press-release.

The outlook on all ratings is negative. This concludes the review for downgrade initiated by Moody's on 18 September 2014.

The downgrade reflects the imminent withdrawal of Bashneft's (Ba2 on review for downgrade) shares from Sistema's ownership as a result of the Moscow Arbitrage Court's decision to return the shares to the Russian Federation, and the risk of further negative pressure related to this action and/or continuing investigation of Bashneft's privatisation. The court's decision anticipates no compensation to Sistema from the state. The company indicated that it will not appeal the decision, but will claim the recovery of its damages from entities from which it acquired Bashneft's shares, or their successors. The majority shareholder Mr Evtushenkov remains under house arrest.

Moody's had considered withdrawing Bashneft with no compensation as one of the most extreme outcomes when the ratings were placed on review in September. Sistema's decision not to appeal may be a pragmatic one which successfully brings this issue to closure without further negative consequences. However, the fact that the majority shareholder Mr Evtushenkov remains under house arrest suggests that the issue may not yet be fully closed. There is a possibility of further penalties or claims against Sistema, not least in respect of dividends that have been received since the Bashneft acquisition, which according to Sistema amounted to RUB120 billion (around USD2.6 billion at the current exchange rate).

If negative pressure intensifies, Sistema could struggle to maintain its formerly strong financial market access and debt financing relationships.

MRC

MOSCOW (MRC) - Stavrolen (subsidiary of LUKOIL) has announced an increase in polypropylene (PP) price of Rb1,500/tonne, according to ICIS-MRC Price Report.

The customers of the company said the company announced an increase in its PP price of Rb1,500/tonne effective from 17, November, compared with the level on 1, November. Stavrolen was the third producer, which increased PP prices after SIBUR and Ufaorgsintez.

The rise in PP prices resulted from the devaluation of the rouble, which led to a rise in feedstock price for the production of PP (many producers in the price formation used dollar terms) and increase the attractiveness of exports.

It was reported before, SIBUR announced an increase in PP price from 10, November by Rb1,000/tonne, compared with the level on 1, November. Ufaorgsintez also increased PP prices from 17, November of Rb800-2,000/tonne.
MRC

MOSCOW (MRC) -- BP has planned to invest over USD200 million to upgrade its purified terephthalic acid (PTA) plants at Cooper River, South Carolina and Geel, Belgium, according to Hydrocarbonprocessing.

The investments will position these assets amongst the most efficient PTA manufacturing facilities in the world.

"This allows us to apply our latest proprietary technology and process know-how to existing assets, significantly improving their cost competitiveness and reducing their environmental footprint," said Luis Sierra, president of BP Aromatics - Americas, Europe and Middle East. "It enables Cooper River and Geel to remain the leading PTA manufacturing complexes in the Americas and Europe respectively."

By applying the latest PTA technology to these world-scale production facilities, BP expects to greatly improve feedstock and energy efficiency, thus reducing both variable and fixed cost and greenhouse gas emissions.

PTA is the raw material used to make polyester which is found in a wide range of consumer goods ranging from fabrics to food and beverage containers. The BP Cooper River site is the largest PTA producer in the Americas and BP Geel is the largest in Europe.

Cooper River's PTA1 unit, one of two units at the facility, is expected to be upgraded by middle of 2016. The project expects to create around 200 construction jobs at its peak and indirectly support many more jobs in the region. When the project is completed, the reduction in annual greenhouse gas reductions should equate to eliminating the electricity and heating emissions of about 2,000 typical US households.

The Geel upgrade is expected to create around 100 construction jobs at its peak and will also indirectly benefit other businesses in the area. Geel's PTA3 unit is expected to be upgraded by the end of 2015 with PTA2 following in 2016. The annual greenhouse gas reductions should equate to eliminating the electricity and heating emissions of 1,500 typical Belgium households.

As MRC informed previously, BP Zhuhai is in plans to start a new PTA plant in China. The plant is likely to start in Q4, 2014. The exact start-up schedule of the plant could not be ascertained. To be located in Zhuhai province, China, the plant will have a production capacity of 1.25 million mt/year.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

MOSCOW (MRC) -- French chemicals group Arkema has announced the launch of a share capital increase with preferential subscription rights of shareholders for an amount of around EUR350 million, whose principle had initially been announced on 19 September 2014, reported the company in its press release.

This rights issue is part of the refinancing of the projected acquisition of Bostik.

This rights issue is the second step of the refinancing of this project after the successful issuance of perpetual hybrid bonds on 23 October 2014. The balance will be financed by a forthcoming senior bond issuance.

As MRC informed previously, in September 2014, Arkema offered to buy oil major Total's adhesives business Bostik, which makes Blu-Tack, for EUR1.74 billion (USD2.24 billion).

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.

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