Arkema to exercise its call option to increase its share in Sunke in China

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer and Jurong Chemical have announced they have concluded an agreement regarding the next steps of their cooperation in Acrylics in China, reported Arkema on its site.

This agreement extends, until January 2016, the period for Arkema to exercise its call option to access a total of 320,000 t/year acrylic acid production capacity.

In 2014, Arkema and Jurong Chemical set up Sunke, a manufacturing joint-venture which owns and operates Acrylic Acid and Butyl Acrylate productions lines in Taixing, Jiangsu Province, PRC.

Under the new agreement, Arkema’s call option to increase its share in Sunke and access a total production capacity of 320,000 t/year of Acrylic Acid has been extended until January 2016. According to the terms of the agreement signed in January 2014, the exercise of this option was initially expected during the 1st quarter 2015.

In the meantime, the joint-venture will be jointly operated by the partners and production will be adjusted to market conditions providing partners with all the flexibility needed to optimize performance.

The financial terms of the initial agreement signed in January 2014 have been adjusted to reflect the extension of the option. All other conditions remain unchanged.

Finally, Arkema’s option to acquire the remaining third of the acrylic acid production capacities and fully hold Sunke’s share capital remains unchanged and can be exercised until early 2020.

As MRC wrote before, in early 2014, Arkema, the world’s second leading producer of organic peroxides, announced the construction of a new organic peroxide plant on its Changshu site in China. This investment will help double the site’s production capacity.

Arkema with annual revenue of EUR7.6 billion is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. Arkema operates 11 organic peroxide plants on the three continents.
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MOSCOW (MRC) -- The Lubrizol Corporation and Cleveland Clinic has announced that as part of a new joint collaboration, Lubrizol LifeSciences and Cleveland Clinic Innovations are aiming to identify - and ultimately speed the development of - new, groundbreaking products for the medical device and pharmaceutical industries, as per the company's press release.

The combination of Lubrizol’s manufacturing capabilities and Cleveland Clinic’s clinical expertise sets the groundwork to discover and develop new, meaningful medical innovations that meet the needs of patients and providers. The joint collaboration will connect the chemists and engineers who create the materials with the clinicians who identify unmet clinical needs and seek solutions.

This collaboration will speed up product development and provide both parties with the opportunity to connect complementary perspectives. In addition, Lubrizol will have more opportunities to interact with medical professionals to understand how their products impact the lives of patients, ultimately creating better overall outcomes. Cleveland Clinic will have increased access to polymer scientists, material testing and new component designs.

"As we continually look for new ways to innovate for our OEM customers, collaborations with a leading clinical provider, such as Cleveland Clinic, will help us take the next step in delivering solutions that better address the needs of the healthcare industry," states Deb Langer, vice president and general manager, Lubrizol LifeSciences. "This provides us with a fresh hands-on perspective that will help us focus on the medical problems that really matter to patients and providers."

Lubrizol LifeSciences will provide Cleveland Clinic an in-depth understanding of functional polymer solutions, including components, novel device systems and drug-delivery combination products for the healthcare industry. Lubrizol’s recent acquisition of Vesta, a leading contract manufacturer for the global medical device industry, enhances the collaboration with expertise in precision thermoplastic extrusion and comprehensive capabilities in silicone fabrication. This combination of material chemists, manufacturing engineers and clinical professionals provides an opportunity that can foster rapid new product development.

As MRC informed previously, in 2013, Lubrizol, an innovative specialty chemical company, announced its four-year plan - a USD400 million global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites. With continued strong global demand for the company"s CPVC compounds, Lubrizol"s expansion efforts will be divided into two phase.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol"s advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications. Lubrizol is providing innovative solutions for its customers" high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth.
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MOSCOW (MRC) -- Praxair has signed a 20-year agreement to supply approximately 170 MMscfd of hydrogen and 2,000 tpd of nitrogen to a new 750,000-tpy ammonia complex being built by a new entity formed by Yara and BASF, reported Hydrocarbonprocessing.

To help fulfill the raw material requirements of this world-scale ammonia project located in Freeport, Texas, Praxair is investing more than $400 million to add hydrogen and nitrogen production capacity and extending its Gulf Coast pipeline systems approximately 46 miles from Texas City to the Freeport area.

Praxair’s pipeline systems are supported by multiple hydrogen and air separation plants and product storage capabilities including Praxair’s innovative 2.5 Bscf high-purity hydrogen storage cavern.

The pipeline extensions are scheduled to be in operation in 2016 and the supply to the complex is expected to start in late 2017.

"his is an opportunity for Praxair to build out its presence in Freeport, Texas, one of the largest chemical complexes in the western hemisphere," said Eduardo Menezes, executive V.P., Praxair.

"Praxair’s ability to capture and process by-product hydrogen generated by multiple crackers that are being installed in the Gulf Coast and add this product to the hydrogen produced by our on-purpose steam methane reformer facilities to reliably deliver high-purity hydrogen was critical for this award.

We are excited to be a part of this project and to be working alongside Yara and BASF," Menezes expressed.
MRC

MOSCOW (MRC) -- Less than two weeks after the International Monetary Fund announced a USD17.5 billion bailout loan for Ukraine, the central bank tightened capital controls to prevent the country from running out of foreign currency, Bloomberg.

In spite of what has been pledged, Ukraine hasn’t received a major injection of IMF cash since a USD1.4 billion disbursement on Sept. 3, the lender’s website shows. With its foreign reserves dropping 61 percent to USD6.4 billion in the four months through January, the country’s "cupboard is basically bare," said Timothy Ash from Standard Bank Group Plc.

Central bank Governor Valeriya Gontareva announced new limits on the amount of foreign exchange available to importers and banned banks from lending money for clients to buy foreign currency. More restrictions may follow as the country’s economy contracts amid a deadly conflict with pro-Russian rebels in the country’s east, Gontareva said on Monday. The hryvnia fell as much as 11 percent per dollar and bonds tumbled.

"Aid can’t come fast enough," Richard Segal, head of emerging-markets credit strategy at Jefferies International Ltd. in London, said by phone Monday. "The way things are going, the central bank may need to declare a moratorium on money leaving the country, perhaps through an interruption in debt servicing as Argentina did."

Ukraine’s USD2.6 billion of 9.25 percent bonds due in July 2017, the sovereign’s benchmark security for foreign investors, dropped for a seventh day to an all-time low of 41.5 cents on the dollar at 7:24 p.m. in Kiev, increasing the yield to 56.43 percent. The hryvnia weakened to a record 31.5 per dollar on Monday before recovering to 28, the same level at which it closed on Friday, according to data compiled by Bloomberg.

The IMF-led aid package, announced on Feb. 12, totals USD40 billion when including bilateral deals with nations as well as about USD15 billion in savings expected from negotiations the country is pursuing with bond investors.
The Washington-based lender has stalled payouts under a previous funding plan as the nation held presidential elections in October, lawmakers delayed the passage of this year’s budget and while the sides negotiated the second bailout.

Ukraine’s debt is poised to extend declines as investors are underestimating losses in the country’s planned debt reorganization, analysts at Goldman Sachs Group Inc. and JPMorgan Chase & Co. said on Friday in separate reports.

The hryvnia’s 44 percent depreciation per dollar this year, following a 48 percent drop in 2014, is driving up the prices of imports and energy, while making external debt payments more difficult for Ukraine. Governor Gontereva yielded control of the currency earlier this month, allowing it to weaken in an IMF-backed move which helped eliminate an unofficial street market for currency transactions.
MRC

MOSCOW (MRC) -- In response to growing customer demand for metal replacement, PolyOne Corporation, a premier global provider of specialized polymer materials, is expanding capacity for its OnForce LFT long-fiber specialty thermoplastics, reported the company on its site.

A new, dedicated specialty production line will be added at the company’s existing Avon Lake, Ohio production facility and will be fully operational by the end of February 2015.

PolyOne’s robust glass- and carbon fiber-filled formulations retain aesthetic appeal in metal replacement and structural applications, while also offering higher stiffness, impact strength and surface finish than short-fiber filled materials.

"Demand continues to increase for lighter weight materials and the products made from them. PolyOne has a proven track record of working closely with our customers to develop innovative specialty formulations that meet their specific performance needs," said Craig Nikrant, president, Global Specialty Engineered Materials, PolyOne Corporation. "This investment is aligned with current megatrends to better serve our customers in North America across several industries, including industrial, transportation, oil & gas, and shooting sports."

As, MRC wrote before, in July 2014, PolyOne Corporation services and solutions announced a realignment of its manufacturing assets in Brazil. As part of the realignment, PolyOne will close manufacturing plants located in Diadema and Joinville, Brazil. The company will continue to operate and invest in its facilities in Novo Hamburgo and Itupeva, Brazil, while offering specialty solutions throughout the region.

PolyOne Corporation, with 2014 revenues of USD3.8 billion, is a premier provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
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