Sipchem started EVA plant in Saudi Arabie

MOSCOW (MRC) -- Saudi International Petrochemical Company (Sipchem) has started a new ethyl vinyl acetate (EVA) film plant, as per Apic-online.

A Polymerupdate source in Saudi Arabia informed that the plant started production on December 29, 2014.

Located at Hail in Saudi Arabia, the plant has a production capacity of 4,000 mt/year.

As MRC reported earlier, on 26 July 2014, Sipchem commenced trial runs at a new EVA/low density polyethylene (LDPE) swing plant in Saudi Arabia. Located in Jubail Saudi Arabia, the plant has a production capacity of 200,000 mt/year.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
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MOSCOW (MRC) -- Occidental Petroleum Corporation (OXY) announced core income for the fourth quarter of 2014 of USD560 million, compared with USD1.2 billion for the fourth quarter of 2013, said the company in its press release.

The fourth quarter of 2014 had a reported loss of USD3.4 billion, compared with income of USD1.6 billion for the fourth quarter of 2013. The spin-off of California Resources Corporation was completed on November 30, 2014, and its financial and operational results have been classified as discontinued operations.

Domestic core after-tax earnings were USD59 million for the fourth quarter of 2014, compared to USD391 million for the fourth quarter of 2013. The current quarter domestic results reflected lower crude oil and NGL realized prices, higher operating costs from increased workover and maintenance activities and higher DD&A expense, partially offset by higher crude oil volumes. International core after-tax earnings were USD355 million for the fourth quarter of 2014, compared to USD709 million for the fourth quarter of 2013. The current quarter international results reflected lower crude oil realized prices, offset by higher crude oil volumes due to the timing of liftings.

Chemical pre-tax core earnings for the fourth quarter of 2014 were USD160 million, compared to USD128 million in the fourth quarter of 2013. The improvement in the fourth quarter results reflected higher margins for polyvinyl chloride (PVC) resulting primarily from higher PVC pricing and improved volumes for most product lines, partially offset by lower caustic soda pricing.

Midstream pre-tax core earnings were USD168 million for the fourth quarter of 2014, compared with USD106 million for the fourth quarter of 2013. The increase in earnings reflected improved marketing performance and higher gas processing income.

Core income for the twelve months of 2014 was USD3.8 billion, compared with USD4.6 billion for the same period in 2013. Net income for the twelve months of 2014 was USD616 million, compared with USD5.9 billion for the same period in 2013. The full year 2013 and eleven months of 2014 California Resources Corporation results are included in the reported net income and cash flows and have been classified as discontinued operations. Operating cash flow from continuing operations, excluding capital accruals, was USD9.4 billion and the company spent USD8.7 billion for capital expenditures, net of partner contributions.

Chemical pre-tax core earnings were USD569 million for the twelve months of 2014, compared with USD612 million for the same period of 2013. The lower earnings in 2014 were primarily a result of lower caustic soda pricing driven by new chlor-alkali capacity in the industry and higher energy and ethylene costs, offset by higher PVC margins and improved volumes across most product lines. Construction commenced on the Ingleside, Texas, ethylene cracker during the first half of 2014 and commercial operations are expected to begin in early 2017. Spending on the cracker began last year and is expected to peak during 2015.

As MRC wrote before, Ingleside Ethylene Llc, the 50:50 joint venture between Occidental Chemical Corporation (OxyChem) and Mexichem, have announced that construction of its ethylene cracker at OxyChem’s Ingleside, Texas, complex is underway and the project remains on schedule to become commercially operational in the first quarter of 2017.

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America. Headquartered in Houston, Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization. Occidental’s midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities in support of Occidental’s businesses. The company’s wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products and vinyls.
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MOSCOW (MRC) -- Essen-based Evonik Industries, a leading specialty chemicals manufacturer, has invested in Nanocomp Oy Ltd. (Lehmo, Finland) and now holds a minority share in the company, said the producer in its press release.

It was made as part of an investment syndicate with Finnvera Venture Capital. The investment sum was not disclosed. Nanocomp is a leading developer and producer of micro- and nano-optical structures that are imprinted on polymer films. Their functionalities enable optical systems to achieve higher performance - and to become smaller at the same time.

Nanocomp’s innovations in nanophotonics give access to light management techniques that cannot be achieved with conventional optics: Cameras are enabled to recognize gestures even in 3D and surgeons can rely on better image quality for minimally invasive operations. Information on displays is easier to read - even in difficult lighting conditions. Nano-optical structures are also needed in so-called augmented reality, for example in glasses where additional (virtual) information is phased into one’s field of view by an integrated mini-computer.

"Nanocomp’s activities have a high strategic fit with Evonik’s business," explains Dr. Bernhard Mohr, head of Venture Capital at Evonik. "The progress both in digitalization and in the use of human/machine-interfaces calls for the miniaturization of the functional optical elements. With their know-how, Nanocomp is a pioneer in this area. For Evonik this is a door-opener to highly attractive growth markets."

Nanocomp uses innovative light-guide films from Evonik for manufacturing micro- and nano-optical structures. The Finnish company owns a unique technology (roll-to-roll-based), where the structures are imprinted onto the films in a highly efficient and precise way. Nanocomp’s products are already used in state-of-the-art display illumination and in laser sensing solutions. Within the consumer electronics market, the company achieves yearly revenues in the medium single-digit million euro range.

Evonik plans to invest a total of EUR100 million in highly promising start-ups with break-through technologies and leading specialist venture capital funds as part of its venture capital activities. These investments will focus on Europe, the US and Asia. Partnering with innovative start-up companies supplements Evonik’s approach of open innovation and creates excellent opportunities for accelerating the development of new businesses and opening up future growth fields.

We remind that, as MRC wrote before, Evonik Industries is making an investment in the double-digit-million euro range in a new research center at the Rheinfelden site. Starting at the beginning of 2016, research into silanes will be carried out in modern laboratories in the four-story building.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.

Nanocomp is a privately-held high-technology company established in 1997 focused on manufacturing of micro- and nanophotonics products for consumer electronics, laser sensing and special lighting sectors.
MRC

MOSCOW (MRC) -- Specialty chemicals company LANXESS expects EBITDA pre exceptionals to be higher than previously anticipated for the fourth quarter and therefore for the fiscal year 2014, said the producer in its press release.

Against EUR 735 million reported in fiscal 2013, EBITDA pre exceptionals for fiscal 2014 is expected to increase to around EUR 808 million.

The fourth quarter 2014 result is expected at around EUR 154 million EBITDA pre exceptionals. Basis for the improved earnings was a stronger than originally anticipated demand in December.

Matthias Zachert, Chairman of the Board of Management of LANXESS AG: "In autumn, we were witnessing restrained orders due to customer destocking in the rubber business in light of falling oil prices. Surprisingly, this development was considerably less strong in December". Additionally, LANXESS profited from lower raw material costs in the Advanced Intermediates segment. Earnings in the Performance Chemicals segment came in at the expected level.

LANXESS will release final results for fiscal 2014 on March 19, 2015. All figures provided in this release are preliminary and unaudited.

As MRC wrote before, LANXESS added two new highly concentrated antioxidants to its existing range of biodiesel stabilizers. The new products - Baynox Ultra and Baynox Cargo - were introduced to the US market at the National Biodiesel Conference & Expo January 19-22 in Fort Worth, Texas.

LANXESS is a leading specialty chemicals company with sales of EUR 8.3 billion in 2013 and about 16,700 employees in 29 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. LANXESS is a member of the leading sustainability indices Dow Jones Sustainability Index (DJSI World and DJSI Europe) and FTSE4Good.
MRC

MOSCOW (MRC) -- Dow Chemical Co. reported stronger-than-expected fourth-quarter earnings, as higher volumes across the board offset price declines in Western Europe related to the impact of the strong dollar, said The Wall Street Journal.

Falling oil prices have sparked investor concerns about Dow and other petrochemical manufacturers in the U.S. Profit margins are bolstered in North America by cheap natural gas and other fuels that Dow and its peers use to make plastics and consumer goods, while foreign competitors tend to run plants on higher-priced oil-based feedstocks. Now that oil prices have fallen, some analysts have questioned whether Dow’s competitive edge may be fading.

But Chief Executive Andrew N. Liveris said falling prices are good for the company. "We believe lower oil prices are a relative positive for Dow and a boost for the global economy," he said. He said the company’s global-cost positions helps it use assets more effectively and sell into higher-value sectors. In addition, the company’s differentiated technologies help it maximize returns in sectors less susceptible to pricing volatility.

Overall, Dow’s profit fell to USD819 million, or 63 cents a share from USD1.05 billion, or 79 cents a share, a year earlier. Revenue was flat at USD14.38 billion, as volume gains in emerging areas were offset by a 14% price declines in Western Europe, including currency headwinds.

The company had expanded volume in most segments, led by a 9% increase in agriculture sciences. Performance materials saw a 7% increase while performance plastics was up 3%.

In recent quarters, Dow has been trying to sell lower-margin business lines to raise USD3.2 billion to USD4.7 billion by the end of this year.

Due to these restructuring efforts, selling and administrative expenses, together with research and development expenses, fell by USD64 million from the year before.

Dow recently faced pressure from activist investor Daniel Loeb of hedge fund Third Point LLC to split off its petrochemicals business from its specialty-chemicals business. In November, Dow agreed to add two directors proposed by Third Point to its board to appease the activist investor.

As MRC wrote before, Dow Chemical signed a long-term ethylene off-take agreement with a new Japanese joint venture that will allow the chemical producer to enhance its performance plastics franchise. The joint venture is being formed between Japanese companies Idemitsu Kosan and Mitsui & Co. to construct and operate a Linear Alpha Olefins unit on the U.S. Gulf Coast.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber.
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