PP production in Russia rose by 40% from January to April 2015

MOSCOW (MRC) -- The overall production of polypropylene (PP) in Russia surged over the first four months of 2015 by 40% year on year and totalled 447,600 tonnes. All Russian plants, except Ufaorgsintez and "Neftekhimia" increased their production, according to MRC ScanPlast report.

The overall April PP output in Russia fell to 107,700 tonnes from 116,000 tonnes a month earlier because of the reduced capacity utilisation at Tobolsk-Polymer, "Neftekhimia" and Stavrolen. Russia's overall PP production totalled 447,600 tonnes from January to April 2015 versus 320,200 tonnes in the same period of 2014. Virtually all plants, with the only exception of Ufaorgsintez and "Neftekhimia" (Kapotnya), raised their capacity utilisation. Tobolsk-Polymer and Poliom traditionally accounted for the greatest increase in production.

The production structure by plants looks the following way over the stated period.

Tobolsk-Polymer (SIBUR), Russia's largest PP producer, slightly decrease its capacity utilisation in April because of the unscheduled shutdown at the end of the month, the plant's production was 35,300 tonnes versus 37,500 tonnes a month earlier. The Tobolsk plant's overall PP output reached 148,500 tonnes over the first four months of 2015 versus 52,300 tonnes a year earlier.

Last month, Omsk Poliom (GC Titan) virtually maintained its March production volume - 16,500 tonnes of PP. The Omsk plant's PP production was 65,300 tonnes over the said period versus 54,500 tonnes a year earlier.

Nizhnekamskneftekhim (TAIF) and Tomskneftekhim (SIBUR) produced 17,600 tonnes and 12,100 tonnes of propylene polymers in April, respectively, versus 18,500 tonnes and 11,900 tonnes in March. These plants' overall production of this polymer totalled 71,300 tonnes and 47,100 tonnes from January to April 2015, up by 3% and 7%, respectively, year on year.

Stavrolen (Lukoil) had to cut its PP production last month because of the resumption of production at its ethylene unit after maintenance works, the plant's production was 7,900 tonnes versus 10,700 tonnes in March. The plant's output of polymers of propylene totalled 36,700 tonnes over the stated period versus 18,100 tonnes a year earlier.

Ufaorgsintez and "Neftekhimia" reduced their PP production to 42,000 tonnes and 36,700 tonnes in the first four months of the year, down by 2% and 7%, respectively, year on year.

MRC

MOSCOW (MRC) -- Iran is reportedly planning to commission three new petrochemical plants by March 2016 at Mahabad, Kordestan and Lorest, as per Plastemart.

These facilities are located along the West Ethylene Pipeline in West Azerbaijan, Kordestan and Lorestan provinces, as per energy-business-review.com. The projects are expected to increase Iran's low and high density polyethylene production by around 900,000 tons.

"The necessary feedstock for these petrochemical plants will be supplied by various phases of South Pars gas field and there will be no problem in this regard," National Petrochemical official Shahedaei added.

As MRC reported earlier, Iran, as one of the main energy hubs in the world, with huge oil and gas reserves, is one of the leading producers of petrochemical products in the world.

In 2006, the total consumption of different polymer products was 202 million metric tons and it is estimated this figure reach to 316 million metric ton by 2016. This means only countries with huge feeding materials can be successful on raising production level, and gladly Iran is among one of those countries.

Currently number of active Iranian Petrochemical complexes are 53, with total production capacity of 59 million metric ton, producing range of polymers, chemicals, aromatics & liquid gas, located mainly at Iranian south region, next to Persian Gulf, called Assaluyeh and Mahshahr Special Economic Zones.

At the moment, there are 67 developments projects in the country which are under construction, adding 61 million metric ton on total production and estimated to fully run till 2018.

MRC

MOSCOW (MRC) -- Sika's founding family has filed a legal challenge to decisions taken at the company's April shareholders' meeting, marking the latest twist in the family's six-month old effort to sell its shares in the Swiss industrial group to France's Saint-Gobain, said the Financial Times.

The Burkard family are appealing against votes in April that the family was not allowed to use its full 52 per cent voting rights, reports Laura Noonan, investment banking correspondent.

If the family had been allowed to vote, they could have elected new board members who would have sanctioned the EUR2.75bn sale of the family's stake.

Sika's management and board oppose the sale.

A spokesman for the family's SWH investment vehicle told the Financial Times an action was lodged with the court in Zug, Switzerland, on May 26.

The family is separately awaiting a judge's decision on whether they can vote with all their shares at a July shareholder meeting.

As MRC informed earlier, recently Sika has achieved outstanding results in this year’s leading brand rating in Switzerland, “Best Swiss Brands 2015” : The brand value of the international specialty chemical company has increased by 78% in the last twelve months and was assessed best improver in the ranking.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its more than 16,000 employees generated annual sales of CHF 5.6 billion in 2014.
MRC

MOSCOW (MRC) -- Valspar has agreed to buy Quest Specialty Chemicals' automotive refinishing business and an industrial coatings business, said the company.

These two business segments finished 2014 with sales of USD190 million, according to a Valspar news release. Terms of the sale, which is expected to close during the third quarter of 2015, were not disclosed.

"The acquisition strengthens Valspar's value proposition in automotive refinish," Valspar CEO Gary Hendrickson said in the release. "Our customers will benefit from expanded distribution of a portfolio of preferred brands they know and trust, a broader range of high-performance products and a stronger service network."

Quest Automotive Products formulates, manufactures and distributes technology paints, coatings systems and accessories to professional refinishers in North America and Europe.

As MRC informed earlier, Valspar completed development of a USD45m manufacturing centre in Tianjin, China, for a range of paints and coatings products in April 2015.

The Valspar Corporation is an American international manufacturer of paint and coatings based in Minneapolis, Minnesota, USA. With nearly 10,000 employees in 25 countries and a company history that spans over two centuries long, it is the sixth largest paint and coating corporation in the world. Valspar was founded in 1806 as a paint dealership in Boston, Massachusetts. The Valspar name emerged in 1903 as a new clear varnish, and became the company name in 1932.
MRC

MOSCOW (MRC) -- Rising demand for polycarbonate (PC) plastics is expected to boost the growth of the global bisphenol A (BPA) market, which is expected to post a CAGR of 5% from 2015-2019, as per Plastemart with reference to Technavio's report.

BPA is a carbon-based synthetic compound used in the production of polycarbonate plastics and epoxy resins. Polycarbonate plastics have high tensile strength and high thermal stability properties, which makes them useful in the packaging industry, as they can be cleaned easily.

"The light weight property of polycarbonate plastics makes them efficient for the production of light vehicles," says Faisal Ghaus, Vice President of Technavio. "Polycarbonate plastics are used in various industries, including electronics, construction and automotive, and demand for this plastic is increasing gradually."

Furthermore, the report also emphasizes BPA products that are increasingly being used for various industrial applications. "BPA is used to make epoxy resins, which can then be made into highly efficient, lightweight wind turbine blades," says Ghaus.

As MRC informed previously, KHPC, a sole producer of polycarbonate (PC) in Iran, has started exporting different grades of PC to Russian market since April 2015. KHPC finished its fundamental maintenance in early April and was operating with 70% capacity utilisation and planning to increase production in a short time. It is planned to produce new PC grades, such as bottle and optical grades, this year and produce at least 25,000 MT varieties of PC grades.
MRC