Evonik to invest over EUR4 billion in research and development

MOSCOW (MRC) -- Essen-based Evonik Industries, a leading specialty chemicals manufacturer, is investing over EUR4 billion in research and development, as per the company's press release.

"Our intention is to turn Evonik into one of the world's most innovative companies," affirmed Klaus Engel, the Chairman of the Executive Board, at today's R&D press conference in Wesseling. "Innovations are a key element of our growth strategy," noted Engel, who went on to announce continued high investments in research & development (R&D) for the future.

Thus, Evonik plans to invest over EUR4 billion in R&D over the next decade. Engel referred to innovations as the ‘elixir of life’ for the specialty chemicals industry: "Innovations open up new business areas and strengthen our leading market and technology positions." In fiscal year 2014, Evonik's R&D spending amounted to EUR413 million, an increase of 5% over the previous year (EUR394 million). The R&D investment ratio was 3.2% (2013 - 3.1%).

Evonik intends to make tangible improvements to its innovative power, as innovations are to make key contributions to revenues and earnings in the future. The company plans to significantly expand its innovation pipeline to keep up a steady flow of new products and solutions. Ulrich Kusthardt, who was appointed Chief Innovation Officer at Evonik earlier this year, presented a three-point plan for this purpose. "We must become more focused in our projects, more international in our research, and more open in our exchange of knowledge," said Kusthardt. The goal is to bring innovations to consumers with even greater speed and efficiency.

The Evonik R&D pipeline is well-filled with some 500 projects, with even greater focus to come from strategic innovation management. Promising innovation areas for Evonik include ingredients for the cosmetics industry, membranes, specialty materials for medical technology, food supplements and animal feed additives as well as composite materials.

The company held over 25,000 patents and patent applications in 2014. Some 250 new patents were filed last year - the equivalent of almost one invention per business day. With some 2,600 Evonik employees working in research at 35 sites, the company has continuously increased the value of its patent portfolio over the past years.

As MRC informed before, in July 2014, Evonik Industries announced 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. Silanes are used in the electronics industry, in the tire industry, for the production of adhesives and sealants as well as plastics, and in the construction industry.

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.
MRC

Solvay to expand peroxides production to serve growing North American markets

MOSCOW (MRC) -- Solvay, the world’s largest producer of hydrogen peroxide, plans to expand its production facility in Longview, WA., to meet growing demands from pulp and paper producers in the Pacific Northwest and other industrial markets around the United States, said the producer in its press release.

Solvay expects to increase its North American production capacity by about 20 percent, supported by a multi-million dollar investment in Longview. This investment will help to ensure that Solvay can continue to supply key markets that rely on Solvay to support their own growth projections.

The investment will be in two stages. Longview construction is expected to begin later in 2015 and completion of stage one is expected in late 2016. Stage two of the expansion will take place in the near future as market conditions require. Plant employment will remain stable, augmented by contract workers during the construction stages.

Solvay’s investment plans signify another substantial commitment to the Longview plant and to the region’s industrial markets including the neighboring North Pacific Paper Corporation’s (NORPAC) production facility. The expansion of Solvay’s North American peroxides capacity will also support internal demand growth for electronic grade peroxide serving the electronics market.

Since the Longview plant opened in 1989, Solvay has more than tripled its local production in a longstanding partnership with the forest products industry. In addition, Solvay’s Longview employees have worked without a lost-time accident for almost the entire history of the site. Capping that commitment to safety, Solvay, since 2002, has consistently earned VPP Star Status from the U.S. Occupational Safety and Health Administration (OSHA), one of the first manufacturing sites in Washington State to do so.

As MRC informed earlier, Solvay Silica is unveiling Efficium a breakthrough Highly Dispersible Silica (HDS), an innovative reinforcing filler which allows for higher productivity and greater flexibility in producing green passenger car and truck tire compounds.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers пїЅ fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
MRC

Russian producers increased April PVC contract prices

Moscow (MRC) - Negotiations on April polyvinyl chloride (PVC) prices began in Russia this week. Expectedly, Russian producers announced their intention to achieve price increases of roubles (Rb) 2,000-3,000/tonne, according to ICIS-MRC Price Report.

Negotiations on April polyvinyl chloride (PVC) prices began in Russia on Monday, 23, March. Russian producers expectedly announced their plans to increase contract prices for April PVC on the back of high demand and lack of imported material.

The price rise was discussed at the level of 2,000-3,000/tonne, compared with the level in the early March.
Discussions on April contract prices for for K64 and K67 PVC were done in the range of Rb59,500-62,000/tonne CPT Moscow, including VAT. Deals for K58 and K70 PVC were negotiated up by Rb1,000/tonne.

The demand for PVC from local converters continues to grow, while the capacities of Russian producers are actually at their limit. Some converters said they plan to resume PVC purchasing in China. The relatively low level of export prices in China for acetylene PVC and the current strengthening of the rouble against the dollar did this material actually comparable in price with the Russian PVC. It refers to the Siberian region. In the central part of Russia, where number of consumers is high, the price for Chinese PVC with the delivery continued to be high.
MRC

PE imports to Belarus dropped by 14.3% in January 2015

MOSCOW (MRC) -- The overall imports of polyethylene (PE) into the Republic of Belarus decreased in January 2015 by 14.3% and totalled 5,800 tonnes. Imports of high density polyethylene (HDPE) fell almost by half, reported MRC analysts.

According to the National Bureau of Statistics of Belarus, January PE imports to Belarus were 5,800 tonnes versus 6,700 tonnes in January 2014 and 10,400 tonnes in December 2014. Such a slump in PE imports was caused by both weaker demand and restrictions on the foreign currency purchasing, which were introduced in December to stabilize the exchange rate of the Belarusian rubel. HDPE accounted for the main fall in imports, whereas shipments of linear low density polyethylene (LLDPE) and low density polyethylene (LDPE) increased.

The structure of PE imports to Belarus by grades looks the following way over the stated period.

The overall January imports of LDPE and LLDPE to the local market rose to 4,200 tonnes versus 3,300 tonnes in January 2014 and 5,800 tonnes in December 2014. The producer from Saudi Arabia with imports of 3,200 tonnes over the said period was the key supplier in this segment.

Imports of high density polyethylene (HDPE) fell to 1,600 tonnes in January versus 3,400 tonnes in January 2014 and 4,700 tonnes in December 2014. Russian producers with imports of about 700 tonnes and producers from Saudi Arabia with imports of just over 360 tonnes were the key HDPE suppliers to the domestic market over the stated period.
MRC

PET consumption in Russia decreased by 22%

MOSCOW (MRC) - The market capacity of PET chips in Russia decreased to 83,900 tonnes in January-February 2015, down 22%, according MRC ScanPlast.

The reduction of the consumption from Russian converters was in line with the decrease of import purchases and increased demand for Russian PET. As it was previously reported, PET production in Russia in January-February 2015 was 79,300 tonnes, up 13% year on year.

The growth of the capacity utilisation at Senege and Alco-Naphtha in the season will help to further increase the share of Russian PET consumption.
Russia's PET imports decreased to 8,140 tonnes tonnes in January and February, down 5 times compared to the same period a year earlier.

Russia's imports of Lithuanian PET decreased in January and February 2015. January's imports Lithuanian PET produced by Neo Group were about 600 tonnes. February's imports of PET from Neo Group into Russia reduced to 122 tonnes.

The drop of the euro against the dollar will lead to a temporary increase in the buying interest for European PET. Imports of Lithuanian PET continued to be low so far.
Export shipments to foreign markets in January-February increased by 42% compared to the same period a year earlier, but generally remained low, compared with the total PET production in the country. Russia's exports of PET totalled 3,800 tonnes in the first two months of the year. The main exporter of PET to foreign markets remains Alco-Naphtha, based in Kaliningrad.


MRC