Moodys sees Russian sanctions entrenched in blow to rating

MOSCOW (MRC) -- Russia will have to contend with sanctions "for the foreseeable future" as the continuing conflict in Ukraine hinders its prospects for regaining an investment grade rating, reported Bloomberg with reference to Moody’s Investors Service.

Moody’s, which in February joined Standard & Poor’s in cutting the country’s debt to junk, is "highly unlikely" to raise Russia to investment grade within the next 12 to 18 months, Kristin Lindow, senior vice president at the rating company, said in an interview on Friday in London. Moody’s rates the country Ba1, the highest speculative level, with a negative outlook.

European Union governments on Monday prolonged sanctions against Russia by six months to the end of January as sporadic fighting intensified between Ukrainian troops and pro-Russian separatists, further rattling a truce negotiated last February in Minsk, Belarus. The curbs on trade and investment have helped push the Russian economy toward its first recession since 2009.

"As long as the sanctions are in place and most of the issuers in the economy have a difficult time refinancing their external debt, it’s unlikely that we would move the rating back to investment grade," Lindow said.

As MRC wrote before, in January 2015, Moody's downgraded ratings of 8 non-financial corporations, including Rosneft, Gazprom Neft, Lukoil, Russian Railways. Moody's Investors Service downgraded the ratings of Rosneft, Gazprom Neft and 6 other non-financial corporations and their subsidiaries after downgrading Russia's sovereign rating.

In particular, Moody's downgraded to Baa3 from Baa2 the ratings of the following companies: Rosneft and its subsidiaries Rosneft Finance SA, Rosneft International Finance Limited and Rosneft International Holdings Limited; Gazprom Neft and its subsidiary GPN Capital S.A., the Federal Passenger Company, Lukoil and its subsidiary LUKOIL International Finance, MMC Norilsk Nickel and its subsidiary MMC Finance Ltd., Russian Railways and its subsidiary RZD Capital Plc. All these ratings have been placed under review for further possible downgrade.

The rating action followed Moody's decision to downgrade Russia's sovereign ratings to Baa3 from Baa2 on January 16, 2015.
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Petronas taps Axens technology on RAPID refining expansion in Malaysia

MOSCOW (MRC) -- Malaysia's national oil and gas company Petronas has selected Axens as a technology provider for its refinery and petrochemicals integrated development (RAPID) project in Pengerang, Johor, reported Hydrocarbonprocessing.

RAPID is part of Petronas' Pengerang Integrated Complex (PIC) development, which includes six major associated facilities. Those are the Pengerang co-generation plant, re-gasification terminal 2, an air separation unit, the raw water supply project, the liquid bulk terminal as well as central and shared utilities and facilities.

Developed within a 6,242-acre site in Pengerang, Johor, PIC forms part of the Johor State’s Pengerang Integrated Petroleum Complex (PIPC), which is under Malaysia’s Economic Transformation Program (ETP) to establish new engines of growth for Malaysia; whilst meeting future energy requirements and strengthening Petronas’ position as a key player in the Asian chemicals market, focusing on differentiated and specialty chemicals.

RAPID is estimated to cost USD16 billion, while the associated facilities will involve an investment of about USD11 billion. PIC is poised for its refinery start-up by early 2019.

Axens was initially selected in October 2010 for a detailed feasibility study, after which their technologies were selected following an open bid in January 2012 on the basis of the best NPV (net present value), as well as proven long-term operating experiences supported by the technology and catalyst’s specific features; hence providing additional benefits to the project.

As MRC reported earlier, in February 2015, Muhibbah Engineering (M) Bhd ( Financial Dashboard) clinched a USD32 million (RM116 million) construction subcontract for the Petroliam Nasional Bhd's (Petronas) Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
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Total to sell German refinery stake to Rosneft

MOSCOW (MRC) -- Total has signed an agreement to sell its 16.67% interest in the Schwedt refinery in northeastern Germany (Brandenburg) to Rosneft, which already holds indirectly an 18.75% stake in the facility, the companies announced on Friday.

The transaction is valued at $300 million, excluding working capital and remains subject to customary approvals.

"The sale of our minority interest in the Schwedt Refinery is in line with our 2017 target to reduce Total’s European refining and petrochemical capacity by 20%, as announced in 2012," said Philippe Sauquet, president of Total Refining & Chemicals.

"Monetizing this non-core asset also contributes to the group’s accelerated disposal program in 2015 and demonstrates Total’s commitment to actively manage its portfolio across all segments," he added.

Located in northeastern Germany, the Schwedt Refinery has a capacity of 12 MMtpy. The refinery is owned by Shell (37.5%) and indirectly by Rosneft (18.75%), BP (18.75%), Total (16.67%) and ENI (8.33%).

As MRC informed earlier, Rosneft and BP signed several agreements strengthening the long term strategic relationship between the two companies, at the St. Petersburg International Economic Forum.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
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Bayer MaterialScience and Geba Kunststoffcompunds developed carbon fibre-reinforced TPU

MOSCOW (MRC) -- Geba Kunststoffcompounds GmbH and Bayer Material­Science AG have jointly ­developed Desmovit DP R CF, a range of ester-based, carbon fibre-reinforced thermoplastic polyurethanes, as per GV.

The TPU is exclusively produced and sold by Geba.

The new material is said to have many of the positive properties of unfilled TPU: It offers high abrasion resistance and is also resistant against various oils and fats, hot air and ­hydrolysis.

Desmovit DP R CF is suitable, e. g., for the production of protectors as well as protective cases for tablets and smartphones. The material prevents penetration by sharp objects, absorbs impact force and reduces the remaining energy. In addition, it can be used, e. g., in sports equipment and in durable housings for various fields of application, such as in watches, tools, and bino­culars.

Furthermore, the material becomes antistatic with a certain level of carbon-fibre reinforcement, which offers advantages for use in rollers, wheels and housings where electrostatic charges are to be avoided. Due to the material’s heat and cold stability it is also suitable for use in various outdoor applications, says the manufacturer.

As MRC wrote previously, following a successful test phase and promising market analysis, Bayer MaterialScience (BMS) plans to invest EUR 15 million in the construction of a production line at its Dormagen site, which will use CO2 to produce a precursor for premium polyurethane foam. The line will have an annual production capacity of 5,000 metric tons. The greenhouse gas carbon dioxide can be used as a basic building block for plastics. The objective of the “Dream Production” project is to launch the first CO2-based polyols on the market starting in 2016. Processors of polyols and polyurethanes have already expressed considerable interest.

Bayer MaterialScience is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. At the end of 2013, Bayer MaterialScience had 30 production sites and employed approximately 14,300 people around the globe. Bayer MaterialScience is a Bayer Group company.
MRC

Arkema appoints new MDs at five divisions

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, has announced appointments of new Managing Directors at its five business units effective 1 July 2015, as per the company's press release.

Thus, the new appointments are as follows:

- Christophe Villain is being appointed Managing Director of the Fluorogas business unit;
- Michelle Williams is being appointed Managing Director of the PMMA (Altuglas International) business unit;
- Manny Katz is being appointed Managing Director of the Hydrogen Peroxide business unit;
- Romuald de Haut de Sigy is being appointed Managing Director of the Organic Peroxides activity;
- Erwoan Pezron is being appointed Managing Director of the Technical Polymers business unit.

Christophe Villain is a graduate of Ecole Nationale Superieure de Chimie in Paris. He began his career at Elf Atochem in 1987 as Polypropylene Development Engineer within the Appryl subsidiary. In 1990, he joined General Electric Plastics to head marketing in the automotive sector. In 1996, he became Head of Elf Atochem’s Polystyrene Department, and in 2001 Head of Atofina’s global Bleaching Department. In 2003, he was appointed Managing Director of Arkema’s Urea Formaldehyde Resins business unit. From 2006 to 2011, he was Managing Director of CECA, and since 2011 had been Managing Director of the PMMA (Altuglas International) business unit.

Michelle Williams holds a PhD in Physical Chemistry from the University of Utah, and completed the Graduate Management program at the University of Pennsylvania. She began her career in 1987 at Rohm and Haas Company as a Research Scientist. During her career with Rohm and Haas Company and Dow Chemical, Michelle also held manufacturing, sales, marketing, strategy, and general management positions. She was General Manager, CMP Technologies, and later General Manager, Adhesives and Sealants. Michelle joined Arkema in 2011 after a 23 year career at Rohm and Haas and Dow Chemical. In 2011 she was named Global Group President of Arkema’s Hydrogen Peroxide business unit.

Manny Katz graduated in Chemical Engineering at Rutgers College of Engineering in Piscataway (NJ). He began his career at M&T Chemicals, a subsidiary of the Elf group, as Process Development Engineer. In 1990 he joined Elf Atochem where he held a number of commercial functions. In 2000, he became Regional Group President for Thiochemicals and in 2006 for Fluorochemicals in North America. From 2009 to 2011, he was Vice President Goods & Services Procurement & Supply Chain at Arkema Inc. Since 2011, he had been Global Group President of the Organic Peroxides business unit.

Romuald de Haut de Sigy is a graduate of Ecole Centrale de Lille and the Massachusetts Institute of Technology (MIT). He joined Deutsche Atochem Werke in 1990 where he held a number of industrial and marketing positions. In 1994 he joined Elf Atochem’s Strategic Planning Division, and later became Director Strategic Planning US based in Philadelphia. In 1998 he became General Manager Functional Polymers Americas, before returning to France in 2001 to run the Organic Peroxides business for Europe and Asia. In 2007, he became Director Functional Additives EMEA and, in 2011, Logistics Vice President Arkema Group.

Erwoan Pezron graduated from Ecole Superieure de Physique et Chimie Industrielle in Paris (ESPCI) and has a PhD in Polymer Science from Universite Pierre et Marie Curie. In 1989, he joined Total’s Resins Division as R&D Research Scientist at the Verneuil-en-Halatte R&D Center. In 1996, he became Vice President Technology at Cook Composites and Polymers (Total’s Resins Division) in the United States. In 2002, he became Business Development Director of Atofina’s Technical Polymers business, and in 2004 became R&D Director for Technical Polymers and Director of Cerdato (Arkema’s R&D center specializing in polymers). Since 2008, he had been Managing Director of the Fluoropolymers business unit.

As MRC informed previously, in early 2015, Arkema successfully completed a bond issue with a 10-year maturity and a 1.50% coupon. Taking advantage of favourable market conditions and supported by a strong oversubscription level the amount of the issue has been fixed at EUR700 million.

Arkema with annual revenue of EUR6.7 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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