Russia became a net PS exporter in 2014

MOSCOW (MRC) -- Russian companies increased exports of general purpose polystyrene (GPPS) to foreign markets from January to October 2014 by 2.6 times year on year to 36.5 tonnes, whereas exports of high impact polystyrene (HIPS) rose by 1.8 times - up to 36,800 tonnes. For the first time in its history, Russia became a net exporter of polystyrene (PS), according to MRC ScanPlast.

Net PS exports totalled 26,200 tonnes over the first ten months of 2014. HIPS grades accounted for 16,100 tonnes of the total exports, whereas GPPS grades were 10,100 tonnes. Such results were achieved simultaneously because of the increased production and expansion into foreign markets, as well as the overall fall of imports. The rouble devaluation will give further advantage to Russian PS before imported material.

Yet we can not speak about the full imports substitution. Critical imports remained in the market, it will be difficult for Russian producers to remove it from the market. Korean HIPS of LG Chem retains its strong position in the market. Imports of these HIPS grade were 4,000 tonnes over the first ten months of 2014, which is equals the figures of the same period a year earlier.

Relatively strong demand remained for Styrolution's HIPS grades. Imports totalled 5,000 tonnes over the first ten months of the year versus 5,400 tonnes from January to October 2013. Polimeri Europa's GPPS also retained its share in the market, its imports totalled 1,750 tonnes versus 1,880 tonnes a year earlier.

At the same time, there was a significant fall in shipments of Styrolution's GPPS grades. The importer's imports slumped by 34% over the said period. It is worth noting weaker demand in purchasing Polimeri Europa's HIPS, the producer's imports fell by 32% over the stated period.

MRC

MOSCOW (MRC) -- BIAXPLEN, part of SIBUR, a leading Russian petrochemical company, has launched a new type of biaxially oriented metallised heat sealable film, said the producer in its press release.

The technology used in the production of the new film (HMIL.M grade) allows consumers to apply printing within 30 to 45 days after the manufacturing date, while the previous technology limited the guaranteed printing period to 15 days.

A new polymer not only extends the guaranteed printing period and enhances adhesion when laminated, but also substantially improves barrier properties of the film. The film preserves aromatic and flavour properties of the packed product better.

"If a consumer failed to use the film within 15 days previously, the surface activation capacity would drop significantly requiring additional technical treatment for the film to be used. The treatment, however, would not always succeed in restoring the original capacity. Launch of a film with extended activation period gives our consumers an opportunity to mitigate risks related to potential changes in the product's technical specifications. It makes larger film batches possible streamlining logistics costs. Purchase of the new BOPP film does not mean extra costs as the price remained the same," said Ilya Papusha, BIAXPLEN Sales and Marketing Director, commenting on the advantages of the new film.

Currently, the new film is being produced at BIAXPLEN facilities in Kursk and Novokuybyshevsk. The extended film activation period makes it possible to arrange shipments from the above facilities to non-CIS markets.

As MRC wrote before, BIAXPLEN in May 2014 launched a new biaxially-oriented polypropylene (BOPP) film production line in Novokuybyshevsk. Following the launch of the new 30.5 ktpa production line manufactured by Bruckner Maschinenbau, a German company, BOPP-film annual nameplate production capacity of Biaxplen's Novokuybyshevsk branch increased to 55.5 kt. Investment in the project exceeded RR 1.9 billion.

BIAXPLEN a subsidiary company of SIBUR Holding is a leading biaxially-oriented polypropylene (BOPP) film producer in Russia. BIAXPLEN's facilities consist of five production sites located in Novokuybyshevsk, Kursk, Balakhna (Nizhegorodsky region), Zheleznodorozhniy (Moscow region) and in Tomsk.

MRC

MOSCOW (MRC) -- Tasma, an 80-year-old Russian producer of technical industrial films which supported the USSR war effort during World War II, has assumed a new role as an extruder of barrier food packaging film, as per Plasticsnews.

Following doubts over the financial future of the business, the firm, which previously specialized in making X-ray, defense and aerospace films, invested 6.3 million euros (USD7.9 million) in its latest project to launch new shrinkable multilayer ‘Mealguard’ packaging films at a plant in Kazan, Tatarstan.

The new plant is located in the Khimgrad Technology Park for SME businesses at the heart of the Tatarstan petrochemicals cluster. Partially funded by Russia’s Sberbank banking group, the unit features an Italian supplied GAP 48 linear meters per year triple bubble film extrusion line. Tasma has production space to accommodate up to four similar lines.

Production of the multilayer film for packaging fresh and processed foods, for storage up to 60 days and in some cases, for cook-in pouch application, represents new technology for Russia. During its first year of operation, the Tasma plant will import raw materials from Germany, Italy and Israel. But in the future, the firm expects to receive its polymers directly from the Russian producers Kazanorgsintez and Nisknekamskneftekhim.

Tasma aims to capture a Russian market share of 8% to 1% with its new products worth around 6.8 million euros (USD8.5 million), substituting European and other foreign imports. Replacing packaging imports is significant for Russia today in the face of international trade sanctions over Ukraine.

Today, the market for shrinkable multilayer barrier packaging in Russia is reported to be worth around 76.5 million euros (USD95.9 million) and is expected to rise to almost 102 million euros (USD127.9 million) by 2020.

Tasma employees have been retrained and now represent a proportion of the 35-strong high technology workforce at the new facility, which was officially opened by Rustam Minnikhanov, president of the Tatarstan semi-autonomous republic.

Following the inauguration, Tasma signed a deal to supply its new packaging to the poultry farming business of the Russian bank and holding group AK Bars.
MRC

MOSCOW (MRC) -- Refiner and petrochemical group Ineos will invest around GBR 640m (USD1 billion) in shale gas exploration in the United Kingdom, according to Reuters.

The company plans to use the gas as a raw material for its chemicals plants, including Grangemouth in Stirlingshire. Grangemouth is currently running at a loss, but Ineos believes shale gas will transform the economics of the plant.

Shale gas extraction is promoted as an important potential energy source, but has prompted environmental concerns. In September, the Swiss-based group acquired a stake in a shale oil and gas licence in Scotland, and Britain's energy ministry said it planned to pay a share of revenues from any production to landowners and communities.

As MRC reported earlier, Ineos had announced plans to give 6% of its shale gas revenues to homeowners, landowners & communities who live above its shale gas operations. Ineos anticipates being a major player in the shale gas industry and believes it will give away over GBP2.5 billion over the life of its business.

The group entered the UK fracking industry in August, when it announced it would acquire a majority stake in the shale portion of a licence covering 329 sq km of Scotland’s Midland valley from BG Group.

It extended its interests in the sector last month by buying a majority stake in a neighbouring licence covering 400 sq km across four exploration blocks to the north and west of Glasgow.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.

MRC

MOSCOW (MRC) - Russia's consumption of polycarbonate (PC) was 66,500 tonnes in the first ten months of 2014, up 5% in the same period a year earlier, according to MRC ScanPlast.

Despite a weaker economy in the country and rouble devaluation, the consumption of PC granules for sheet extrusion showed steady growth.
In line with the reduction of imports (down 5% year on year) Russian converters increased the consumption of PC from the national producer Kazanorgsintez (KOS).

The share of the producer PC sheet extrusion sector increased from 63% to 67% in January-October 2014. Kazanorgsintez adopted a strategy of import substitution, and refrained from the deliveries to foreign markets and changed the production structure.

Kazanorgsintez increased the production of extrusion PC grades to 45,300 tonnes in the first ten months of the year, up 7% year on year.
The producer delivered 97% of the extrusion PC grades, made over the reported period.

At the same time, the company decreased the output of injection moulding PC almost two times in the first ten months of the year. Russian PC became more competitive compared to imported products because of the rouble devaluation.

Despite the increase in the delivery costs by Rb4/kg in November the Russian PC prices are significantly lower than the European or Asian material. The producer also gives convenient ways of payment for converters.

Kazanorgsintez recently signed an agreement with German BASF for delivery of stabilizing additives for PC production. With this connection, we can expect an expansion of the range of products and higher quality, which improves the sales.


MRC