LLDPE imports to Russia dropped by 12% over the first nine months of 2015

MOSCOW (MRC) -- The overall imports of linear low density polyethylene (LLDPE) into the Russian market decreased by 12% over the first nine months of 2015 and totalled 141,800 tonnes. Lower imports were caused by both the growth of domestic production and weaker demand in certain processing sectors, according to MRC DataScope report.


September LLDPE imports to the Russian market dropped to 16,700 tonnes from 20,000 tonnes in the previous month on the back of weaker demand for polyethylene (PE) for rotational moulding of large items and films extrusion. The overall LLDPE imports into Russia totalled 141,800 tonnes from January to September 2015 versus 161,900 tonnes a year earlier. Lower imports of this PE grade was caused by both weaker demand from certain consumption sectors and the growth of domestic production, particularly, of that of Nizhnekamskneftekhim. Producers of large items accounted for the greatest fall in demand.

The structure of LLDPE imports by consumption sectors looks the following way over the stated period.


The last month's LLDPE imports dropped to 13,700 tonnes from 16,100 tonnes a month earlier. A few major manufacturers of stretch film accounted for the main decline in demand. The overall imports of film grade LLDPE totalled 118,900 tonnes from January to September 2015 versus 139,200 tonnes a year earlier.

September imports of PE for the production of large items by rotational moulding were reduced to 1,100 tonnes on the back of seasonal factors from 2,100 tonnes in August. In general, demand for this PE grade was significantly lower over the said period than the last year's figure: 7,800 tonnes versus 10,100 tonnes a year earlier. Asian producers are the main suppliers of this PE grade.

The last month's LLDPE imports to the other consumption sectors (cable extrusion, lamination of paper, moulding, etc.) were virtually maintained at the level of August and totalled 1,900 tonnes. The overall imports rose to 15,100 tonnes over the first nine months of 2015 from 12,600 tonnes a year earlier because of stronger demand from the local producers of laminated paper, cable products producers, injection moulding and pipes producers.

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Rehau launches 10,000 tonnes/y profiles recycling plant in Poland

MOSCOW (MRC) -- Plastics processor Rehau has launched a new vinyl construction profiles recycling operation in Poland aimed at reinforcing the group’s commitment to sustainability, said Plasticsnewseurope.

The global Rehau, Germany-based manufacturer of products for construction, automotive and industrial applications established a 10,000 tpa waste processing plant at its production site in Srem, Poland.

At the 1,250 square metre plant, employing a dozen, the firm is using a Hamos-supplied precision sorting unit to separate raw materials from used building profile components.

A mix of PVC profile sections and production scrap from the windows industry are providing recycled material for extrusion into the core of new window profiles.

Rehau has a long history of recycling PVC windows and profiles. More recently the firm joined the German recycler Rewindo window recycling service, based in Bonn, which operates throughout the country. Recycling is an integrated part of Rehau’s production processes.

As MRC informed earlier, Rehau opened the first UK facility to produce pre-insulated pipework for district heating and biomass applications at its factory in Blaenau, Gwynedd / North Wales. Sales of the "Rauvitherm" pipework have more than doubled in the UK over the last 12 months, driven by the buoyant biomass and district heating markets, and, more recently, by the impact of the UK"s Renewable Heat Incentive programme. Rehau expects sales to increase further and has established the new production facility as part of a reported GBP 3m (EUR 3.8m) investment programme.

Rehau employs close to 200 staff at its Blaenau site, better known for its production of rigid PVC window systems. It also has a second factory in Wales, at Amlwch in Anglesey.
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Zeon decides to end UK NBR production; will shut down facility by March 2016

MOSCOW (MRC) -- Zeon Chemicals Europe Ltd., a wholly-owned subsidiary of Zeon Corp., has decided to discontinue production at its nitrile butadiene rubber (NBR) plant in Sully, the UK, reported GV with reference to several media reports.

The company announced earlier this year that it was considering closing the facility, due to the uncertainty in long term availability and supply of raw materials to the site, as well as changing market conditions.

Production is expected to end in late December with the site closing at the end of March 2016. Capacity of the plant was not available.

Zeon noted that it has already completed a consultation process with the site's approximate 100 employees.

We remind that, as MRC wrote before, in August 2015, specialty chemicals company Lanxess inaugurated its new EUR200m neodymium butadiene rubber (Nd-BR) plant in Singapore. The new facility is located adjacent to the company's existing butyl rubber plant on Jurong Island, and has a production capacity of 140,000t a year. Set to produce Nd-BR for global markets, the plant will join the nine additional production facilities operated by the company's Tire & Specialty Rubber (TSR) business unit in North and South America and Europe, and will primarily focus on the growing Asian markets.
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Chandra Asri to temporarily shut down in preparation for expanded cracker

MOSCOW (MRC) -- Chandra Asri is planning a 90-day shutdown in order to integrate and tie-in its expanded naphtha cracker with existing facilities at the Banten, Indonesia, site, as per GV.

The shutdown will affect ethylene, polyethylene and butadiene operations. During the tie-in, the company's other downstream plants, specifically polypropylene and styrene monomer, will continue to operate. The shutdown is set to begin 25 Sept. and be completed in December.

Once the tie-in process is complete, Chandra Asri's naphtha cracker capacity will increase by some 43%, increasing ethylene capacity to 860,000 t/y from 600,000 t/y, propylene capacity to 470,000 t/y from 320,000 t/y, pygas capacity to 400,000 t/y from 280,000 t/y and mixed C4 capacity to 315,000 t/y from 220,000 t/y.

As MRC wrote previously, Barito Pacific's subsidiary Chandra Asri Petrochemical (CAP) is reportedly planning to build a naphtha refinery at its Cilegon complex in Banten, Indonesia, with an estimated investment of USD740m.

Chandra Asri Petrochemical (CAP) is the largest vertically integrated petrochemical company in Indonesia with facilities located in Ciwandan, Cilegon and Puloampel, Serang in Banten Province. CAP is Indonesia's premier petrochemical plant incorporating world-class, state-of-the-art technology and supporting facilities. At the heart of CAP lies the Lummus Naphtha Cracker producing high quality Ethylene, Propylene, Mixed C4, and Pyrolysis Gasoline (Py-Gas) for the Indonesian as well as regional export markets.
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Merck KGaA rebrands, reorganises divisions

MOSCOW (MRC) -- Merck, a leading science and technology company, has announced the relaunch of its brand identity. The fundamental revision of the visual appearance as well as the introduction of a new logo reflect the transformation into a global science and technology company, said the producer on its site.

At the same time, the brand architecture at business level has been simplified. Outside the United States and Canada, the company will operate uniformly as Merck.

"Merck has fundamentally changed over the past ten years," emphasized Karl-Ludwig Kley, Chairman of the Executive Board and CEO. "We have developed from a classic supplier of pharmaceuticals and chemicals into a global technology company. With our unique combination of highly specialized biopharmaceutical, life science and materials businesses, we are in a position today to offer solutions to support global megatrends such as health and digitization. The complete overhaul of our brand identity is to communicate this new direction vis-a-vis our customers, partners and applicants. We want to be recognizable and remain visible as Merck worldwide so as to strengthen our well-known brand name. For this we have deliberately rid ourselves of outdated features and will be focusing on a young and eye-catching image."

The investment in the Merck brand is part of the "Fit for 2018" strategic transformation and growth program, which includes the focus on innovative, technology-driven businesses as well as the modernization and expansion of global headquarters in Darmstadt, Germany. This also involves a more self-confident and at the same time clearer tone of voice, reflecting Merck's character and linking its pride in a nearly 350-year-old culture with scientific curiosity and a passion for research.

With the introduction of the new brand design, the previously independent divisional brands Merck Serono and Merck Millipore will be eliminated. In the future, Merck Serono will operate as the biopharmaceutical business of Merck, and Merck Millipore as the life science business of Merck. "Following the two major acquisitions, the Merck Serono and Merck Millipore brands helped us to position the duality of existing and acquired businesses in the marketplace. We succeeded in doing so. That's why we are returning to the brand that we have been known under for nearly 350 years," Kley added. Product brands such as Erbitux or MilliQ will not be affected by this change.

Merck holds the rights to the Merck name and brand globally. The only exceptions are the United States and Canada. The company will therefore continue to operate in these two countries as EMD Serono in the biopharmaceutical business, as EMD Performance Materials in the high-tech materials business, as well as EMD Millipore in the life science business up until the planned acquisition of Sigma-Aldrich has been completed.

As MRC informed before, German Merck KGaA said last week that the Board of Partners of E. Merck KG had appointed Stefan Oschmann, 58, as new Chairman of the Executive Board and CEO of Merck KGaA. The appointment will take effect with the end of the Annual General Meeting on April 29, 2016.

Merck KGaA is a German multinational chemical, pharmaceutical and life sciences company headquartered in Darmstadt, with around 40,000 employees in around 70 countries. Merck was founded in 1668 and is the world's oldest operating chemical and pharmaceutical company. Merck operates mainly in Europe, Africa, Asia, Oceania and Latin America. It has major research and development centres in Darmstadt, Boston, Tokyo and Beijing.
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