Petrobras delays Argentine petrochemicals sale amid corruption probe

MOSCOW (MRC) -- Petroleo Brasileiro SA is delaying its exit from Argentina’s petrochemical business as it focuses on a graft case in Brazil, two people familiar with the process said, as per Hydrocarbonprocessing.

Petrobras, as the Rio de Janeiro-based producer is known, received a joint offer for its 34% stake in Cia. Mega SA from partners YPF and Dow Chemical, said the people, who asked not to be named because the talks are private.

Buenos Aires-based YPF owns 38% of Mega and Dow has 28%.

An expanding investigation into Brazilian contractors that allegedly bribed Petrobras officials is cutting off its access to debt markets, slowing signing of new contracts and has helped push down the stock by 63% since September.

Mega had 1.9 billion pesos (USD222 million) in sales last year.

Alejandro Di Lazzaro, a YPF spokesman, declined to comment when contacted by phone. Petrobras, which operates Mega, and Dow Chemical spokeswoman Rebecca Bentley didn’t immediately respond to e-mails and phone calls seeking comment.

The oil producer began marketing assets in Argentina -- including a refinery, petrochemical plants and oil and gas fields -- in March as part of a global divestment plan intended to focus on its Brazilian oil fields.

We remind that, as MRC wrote previously, Petrobras kept its five-year investment plan flat for the first time in years. The company's new investment plan is a relief to those investors who'd feared another increase. Petrobras has one of the largest investment budgets of any firm in the world at USD236.7 billion for the next five years, as it seeks to develop some of the biggest oil discoveries the world has found in decades. But its ambitions have weighed heavily on its share price in recent years, as production increases have failed to materialize and some projects have been mired by delays and cost overruns.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

Wacker cooperates with Lindberg & Lund in Finland and Sweden

MOSCOW (MRC) -- Munich-based chemicals group Wacker has reorganized its silicone distribution business in the Nordic countries, as per the company's press release.

As of March 1, 2015, Lindberg & Lund Oy AB, a subsidiary of the Norwegian chemicals distributor Lindberg & Lund AS, will market room-temperature-vulcanizing silicone rubber grades in Finland. Kevra Oy was the previous distributor for the business. Distribution responsibilities in Sweden are to remain with ABIC Kemi AB, which is now part of the Lindberg & Lund Group.

As a result of the reorganization, Lindberg & Lund will be assuming a large portion of the distribution business, giving it a key role in the sale of room-temperature-curing silicones in the Nordic region. ABIC, a Swedish specialty chemicals distributor, will act as a regional hub, distributing products to adjacent Scandinavian countries, including Denmark.

Silicone rubber compounds that cure at room temperature are referred to as RTV silicones, as distinct from high-temperature-vulcanizing (HTV) grades. These products are suitable for bonding, sealing and encapsulating, as well as for manufacturing hard-soft composites. Thanks to their versatility, RTV grades are used in an exceptionally wide variety of industrial applications including moldmaking, prototyping, and pad printing, as well as in the mass production of industrial components, such as those for the domestic appliance, automotive or lighting industries.

As MRC informed earlier, Wacker has recently developed a thermally conductive adhesive for electronics applications. The new silicone rubber with the trade name SEMICOSIL 975 TC is characterized by high thermal conductivity and good flow and processing properties. Even light pressure is enough to form an ultrathin adhesive layer between the contact surfaces. This ensures not only good bonding, but also optimum heat dissipation by the heat sink.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

DSM to sell DSM Synres to Standard Investment

MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Materials Sciences company, announces it has reached agreement with Standard Investment for the sale of DSM Synres, said the company in its press release.

Subject to customary approvals and notifications, the transaction is expected to close in Q1 2015. Financial details will not be disclosed at this time.

DSM Synres produces solvent-borne alkyd and acrylic coating resins at its site in Hoek van Holland (Netherlands) for the global coatings, adhesives and graphic arts markets since 1947. DSM Synres realizes sales of approximately €50 million with around 80 employees. All employees will on the closing date transfer to the new owner. Under the new ownership, Synres will continue to focus on solvent-borne coating resins for the global market.

The sale of DSM Synres is in line with DSM’s strategy for its Performance Materials cluster to improve performance via among other things upgrading its portfolio. In coating resins DSM is focusing on sustainable technologies such as water-based, powder and UV-curing coatings for end markets including decorative paints, high-end flooring, industrial wood, graphic arts and numerous metal applications.

Standard Investment, based in Amsterdam, is a hands-on private equity firm focused on small and medium-sized enterprises in the Netherlands and Belgium. Since its establishment in 2004, the firm has acquired a portfolio of 18 companies.

As MRC reported previously, Royal DSM reported a sharp decline in third-quarter net profit, despite strong performance in all segments. Looking ahead, the company said its full-year 2014 outlook is in line with current market expectations. For the third quarter, net profit decreased 21% to EUR93 million from EUR117 million last year. Net earnings per share was EUR0.51, down from EUR0.65 in the previous year.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

Idemitsu Kosan to shut down SM plant in Japan for maintenance

MOSCOW (MRC) -- Idemitsu Kosan plans to undertake maintenance turnaround at the SM plant in April 2015, according to Apic-online.

A Polymerupdate source in Japan informed that the SM plant will undergo maintenance turnaround in April next year. The maintenance is likely to last for around three months. The plant is most likely to resume production in early July.

Located at Chiba in Japan, the SM plant has a production capacity of 210,000 mt/yr.

As MRC wrote previously, Idemitsu SM (Malaysia) shut down its SM plant for maintenance in August 2014. It is likely to remain shut for around one month. Located at Pasir Gudang in Malaysia, the SM plant has a production capacity of 600,000 mt/year.

Besides, Idemitsu Kosan shut down its naphtha cracker in Japan for maintenance turnaround on September 9, 2014 and planned to restart it in November 2014. Located at Tokuyama in Japan, the cracker has an ethylene capacity of 623,000 mt/year and propylene capacity of 450,000 mt/year.

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.
MRC

Reliance Industries announces polymer price revisions

MOSCOW (MRC) -- Reliance Industries has announced the following price revisions for December PE delivery, as per the company's press-release.

Decrease in HDPE & LDPE prices by Rs 2000/MT
Decrease in LLDPE prices by Rs 2000/MT except Rotomoulding and Octene grades where there is no change in prices.
Decrease in prices of EVA by Rs 3000/MT.
Change in DE Prices as per circular attached.

Earlier price protection is withdrawn & new price protection is announced wef 11 Dec 2014 The price protection is applicable on HDPE & LLDPE but not on LDPE, EVA and Deemed exports.

As MRC informed previously, Reliance Industries (RIL) will invest up to USD700 mln in its shale gas venture in the current fiscal and also ramp up spends under the USD13 bln capex programme in the petrochemical and refining business.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC