Braskem explores calling off Comperj cracker

MOSCOW (MRC) -- Brazil-based petrochemical and polymers company Braskem seems keen to drop plans to build the Comperj petrochemical complex in Rio de Janeiro state and is instead exploring a doubling of capacity at its existing gas-based cracker there to over 1 mln tpa, as per Plastemart.

"When the Rio Polimeros project was launched five years ago, it was built to be able to double the current capacity,” as per the source. Capacity at the cracker complex, located at Duque de Caxias in Rio de Janeiro state, is around 540,000 tpa of ethylene and polyethylene (PE). However, the cracker is running at less than full capacity because of a lack of ethane/propane feedstock, said the source.

Braskem’s planned massive Comperj petrochemical project at Itaborai in Rio de Janeiro state, which would include a world scale gas cracker, had been on hold for years, as Braskem was unable to reach a supply deal on ethane/propane feedstock with state-operated oil and gas company Petrobras.

As MRC wrote before, Braskem completed its BRL50m (USD19m) Bahia facility expansion to increase its linear low-density polyethylene (LLDPE) production capacity. Through this initiative, the company intends to increase its polyethylene production capacity of LLDPE by 120,000mt per year to 470,000 mt/yr.

Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).MRC

MOSCOW (MRC) - January imports of linear low density polyethylene (LLDPE) in Russia decreased to 10,300 tonnes, down by 10% compared with the January 2014. The greatest decrease in imports occurred for film polyethylene, according to MRC DataScope report.

January imports of linear PE in the country decreased to 10,300 tonnes, compared with 11,400 tonnes in January 2013, and 19,200 tonnes in December 2014. The reduction in LLDPE imports was expectable and resulted from the seasonal factor and significant weakening of the rouble over the end of last year and early this year. As a consequence, most of the reduction in import volumes occurred for film LLDPE.

January imports of film LLDPE fell to 9,600 tonnes, compared with 10,600 tonnes in January 2014 and 16,000 tonnes in December 2014. Partly such a serious decline in imports resulted from large stock inventories left from December and traditional for January weak demand from the converters. However, to a greater extent import volumes decreased because of the December depreciation of the rouble in line with the rising interest rates.

Imports of LLDPE in other sectors of consumption in January was also seasonally low. Thus, the imports of polyethylene for rotational moulding of overall products were 27 tonnes in January, from 78 tonnes in December 2014. LLDPE imports are expected to increase in February largely because of the stronger demand from key customers - producers of film production.
MRC

MOSCOW (MRC) -- February spot polystyrene (PS) prices grew in the Ukrainian domestic market, following the next depreciation of the national currency, according to ICIS-MRC Price report.

On 5 February, The National Bank of Ukraine once again refused from holding the fixed indicative rate, and, therefore, the hryvnya exchange rate against the US dollar dropped from UAH17.99 to UAH25.92 from 5 February to 13 February. Traders raised their PS prices, following the fall in the national currency.

Prices of Nizhnekamskneftekhim's high impact polystyrene (HIPS) increased to UAH34,000-34,500/tonne CPT Kiev, including. Prices of Nizhnekamskneftekhim's general purpose polystyrene (GPPS) went up to UAH33,000-33,500/tonne CPT Kiev, including VAT. Prices of Russian material grew to UAH53,000-55,000/tonne CPT Kiev, including VAT, in the expandable polystyrene (EPS) market (at the same time, prices in dollar were reduced). Offer prices of Asian PS grades rose to UAH53,000-54,000/tonne CPT Kiev, including VAT.

Concern "Stirol" (Gorlovka, Donetsk region) is the only Ukrainian PS producer. The plant's nominal production capacity of HIPS and GPPS are 25,000 tonnes per year, whereas its EPS production capacity is 50,000 tonnes per year. "Stirol" has not produced PS since March 2014. The needs of the Ukrainian market have been fully met by imports, mainly, from Russia, for a year.
MRC

MOSCOW (MRC) -- Dutch paints maker Akzo Nobel NV reported that its fourth-quarter net income attributable to shareholders fell to 7 million euros from 51 million euros in the prior year, said the company in its press release.

Operating income, excluding incidentals, was 169 million euros up from last year's 55 million euros, due to improved operational performance and lower restructuring charges.

Adjusted earnings per share were 0.33 euros, compared to 0.01 euros in the prior year.

Revenue for the quarter grew to 3.517 billion euros from 3.482 billion euros in the previous year. Revenue was up 1 percent, with 2 percent favorable currency effects offset by 1 percent lower volumes.

The company anticipates that significant developments in raw material prices, combined with relevant exchange rate movements and lower growth rates in high growth economies, will principally determine the dynamics of 2015.

AkzoNobel said it remains on track to achieve its targets for 2015.

As MRC wrote before, Daimler AG has signed an agreement with AkzoNobel Performance Coatings making the company one of the approved suppliers of vehicle refinishes to Daimler dealerships and approved bodyshops worldwide.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- AkzoNobel Performance Coatings has announced plans to invest EUR2.5 million to expand its plant in Cikarang, Indonesia, as per the company's press release.

The investment will add capacity to help meet growing demand for the company’s International brand products, which are supplied by the Protective Coatings and Marine Coatings businesses. The project is expected to be completed by April 2015.

"The local market has been expanding over the last three years," explained Mauricio Bannwart, Managing Director of AkzoNobel's Protective Coatings business. "Further growth is now anticipated as Indonesia seeks to improve its position in the petrochemical and power sectors, while an improvement in marine new build is also anticipated."

News of the expansion comes after AkzoNobel recently invested a total of EUR5 million to add capacity for both its Marine Coatings and Protective Coatings businesses in Singapore and Sunshine, Australia.

Commenting on the new projects, Conrad Keijzer, the company's Executive Committee member responsible for Performance Coatings, said: "Our business in Asia has experienced double-digit annual growth during the last five years. These expansions will ensure that we are well positioned to meet customer demand going forward. By focusing our investment at key sites we are achieving economies of scale, allowing us to continuously improve our operational productivity."

As MRC wrote before, in September 2014, AkzoNobel announced that it would establish a new organization for its Performance Coatings Business Area in order to drive leading performance. The simplified new structure, which became fully operational in January 2015, reduces the number of global management layers. As a result, Performance Coatings is managed through seven Strategic Market Units under the leadership of Executive Committee Member Conrad Keijzer. The seven units are focus on specific customer segments and technologies. They will be: Marine Coatings, Metal Coatings, Powder Coatings, Protective Coatings, Specialty Coatings, Vehicle Refinishes and Wood Coatings.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
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