Index of chemical production in Russia rose by 4.6% from January to July 2015

MOSCOW (MRC) -- Production of basic chemicals in Russia increased by 4.6% over the first seven months of 2015. Caustic soda and ethylene accounted for the greatest growth in the output, whereas production of chemical fertilizers decreased, according to Rosstat's data.

According to the Federal State Statistics Service of the Russian Federation, 236,000 tonnes of ethylene were produced in July versus 249,000 tonnes in May. Scheduled outages for maintenance at Gazprom neftekhim Salavat and Ufaorgsintez was the reason for lower production. However, 1.65 million tonnes of this olefin were manufactured from January to July 2015, up by 18.7% year on year. Such a substantial increase was caused by the resumption of ethylene production at Stavrolen.

Last month's production of benzene dropped by 6.6% from June to 92,400 tonnes because of a maintenance turnaround at Gazprom neftekhim Salavat. The overall output of this product reached 709,100 tonnes over the first seven months of 2015, up by 5% year on year.

The July output of xylene grew to 45,700 tonnes from 38,900 tonnes a month earlier. 323,000 tonnes of xylene were produced from January to July 2015, up by 2.3% year on year.

The July production of sodium hydroxide (caustic soda) rose to 96,600 tonnes (100% of the basic substance) versus 85,200 tonnes a month earlier. Production of caustic soda reached 657,000 tonnes over the stated period, up by 8.2% year on year.

1.703 million tonnes of mineral fertilizers were produced last month (recalculated with regard to 100% of nutrients), up by 5.1% from June. Russian companies produced about 11.6 million tonnes of fertilizer over the first seven months of the year, down by 1.8% year on year. Potash fertilizers accounted for the largest decline of the production.
MRC

MOSCOW (MRC) -- Shenyang Chemical has taken off-stream a linear low density polyethylene (LLDPE) plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that the plant was shut early last week. It is likely to remain off-stream till end August 2015.

Located in Liaoning province, China, the LLDPE plant has a production capacity of 100,000 mt/year.

As MRC informed previously, in late July 2015, Sinopec Yangzi Petrochemical shut its LLDPE plant for maintenance. It is likely to remain off-stream for around one month. Located at Nanjing in China, the plant has a production capacity of 200,000 mt/year.

Besides, PetroChina, China's largest oil and gas producer, restarted a high density polyethylene/linear low density polyethylene (HDPE/LLDPE) plant following maintenance turnaround in early June 2015. It was shut on April 10, 2015. Located in Dushanzi, China, the plant has a production capacity of 660,000 mt/year.
MRC

MOSCOW (MRC) -- PPG Industries announced that it has reached a definitive agreement to acquire the remaining interest in Chemfil Canada Limited, a joint venture of PPG and Madinal Enterprises, as per producer's press release.

The transaction is expected to close in the third quarter, subject to customary closing conditions. Financial terms were not disclosed.

Chemfil Canada produces pretreatment products, as well as some general industrial chemicals, for automotive original equipment manufacturers (OEMs) and industrial customers in Canada.

The acquisition will enhance PPG’s pretreatment presence and capabilities in Canada, and after closing the acquired products and services will be offered under the PPG name. Also at the conclusion of the transaction, an affiliate of Madinal Enterprises will own the Windsor production facility and certain non-pretreatment business and product lines that will continue to use the Chemfil name.

As MRC informed earlier, in June 2015 PPG Industries agreed to acquire US-based IVC Industrial Coatings for an undisclosed amount.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Reported net sales in 2014 were USD15.4 billion.
MRC

MOSCOW (MRC) -- Borouge has selected Neste Jacobs, a technology, engineering and project management company, as a front-end engineering and design (FEED) service contractor for its polyethylene (PE) plant modification project, located in the Ruwais industrial area of the UAE, said Hydrocarbonprocessing.

This project is the third FEED project in a row which Neste Jacobs is delivering to Borouge in the UAE under the long-term service contract that was previously signed between the two companies (Tier 1 contract).

"This contract is an important milestone in cooperation and partnership between Neste Jacobs and Borouge," said Jarmo Suominen, CEO of Neste Jacobs. "This project is also a proof that we are generating real added values for our customers and provide high quality services competitively in the Middle East and also globally."

The project scope includes FEED services such as process and plant engineering and project management. The project will be executed by Neste Jacobs' Abu Dhabi office, and it will be delivered within the course of year 2015.

"Neste Jacobs' extensive know-how of our polyethylene process technology and our production plants combined with Neste Jacobs' local presence in the Middle East were some of the most important selection criteria for choosing a FEED contractor," said Abdulla N. Ateya, senior vice president of Borouge's technical group.

"Neste Jacobs is our long-term engineering partner and we are very much looking forward to extending our good cooperation with them," he added.

As MRC informed earlier, Borealis and Borouge, the world's leading providers of innovative, value-creating solutions for the wire and cable industry, continue to deliver on their commitment to driving innovation in the global industry. Borealis and Borouge have developed new products such as Borealis PP4874 for data cables and Borealis LE0563 for submarine power cable jackets, which will be showcased at the 2014 Wire Dusseldorf. Thus, the company is going to launch its two new grades at the event.

Borouge is a joint venture between the Abu Dhabi National Oil company and Borealis.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. Borealis is headquartered in Vienna, Austria, and operates in over 120 countries with around 5,300 employees worldwide.

MRC