Russia reduced imports of high-impact polystyrene by 32%

MOSCOW (MRC) - Imports of high impact polystyrene (HIPS) into Russia decreased to about 16,000 tonnes in the first eleven months of the year, down 32% compared to January-November 2014, according to MRC DataScope.

Styrolution took the first place in the structure of the supply. HIPS imports from Styrolution into the country were 5,000 tonnes in January-November 2015, down 9% year on year.

While in the same period a year ago the leader in HIPS imports into Russia was Polimeri Europa. In January-November 2014. Polimeri Europa's supplies into Russia amounted to 7,120 tonnes, while in January-November 2015 its HIPS delivery fell to 4,500 tonnes. Despite the decline in the volume of imports of Hungarian HIPS, Polimeri Europa keeps the leadership in the context of consumption brands. The greatest demand for eleven months in Russia was seen for the brand Edistir ICE PDR 830D (4,400 tonnes).

Russia's imports of HIPS by LG Chem production fell by 37% and amounted to little more than 3,000 tonnes. HIPS imports from Korean Kumho decreased substantially over the reported period. Kumho's HIPS deliveries fell more than three times to 600 tonnes over the reported period.


MRC

Solvay finalises Cytec acquisition financing

MOSCOW (MRC) -- Solvay announces it has finalized the financing of its acquisition of U.S.-based Cytec, said the company on its site.

This acquisition will significantly boost Solvay’s portfolio of advanced materials with lightweighting solutions for the aerospace and automotive industries, and will furthermore strengthen its formulations know-how in mining chemicals.

Solvay maintains its stable to growing dividend policy. As indicated, the nominal dividend will be adjusted for the value of the rights distributed, the adjustment factor being 93.98%. This adjustment will not affect the announced interim dividend of EUR1.36 per share, payable in January 2016. The total dividend for the year, however, will be adjusted through the balance dividend payment scheduled in May 2016.

Further to completion of the exempt placement of the scrips through an accelerated bookbuilding, an additional 4.98% of the new shares it offered as part of its EUR1.5 billion rights issue has been subscribed at EUR70.83 per share. As a result, 100% of the rights issue has now been subscribed.

Each scrip was sold at a price of EUR4.9175. The net proceeds of the scrips placement due to holders of rights that have not been exercised during the rights subscription period amounts to EUR4.9175 per right. The payment for subscription of shares with rights and scrips is expected to take place on or around December 21, 2015. Delivery of the new shares will take place on or around December 21, 2015. The payment of the net proceeds of the scrips placement is expected to occur on or around December 21, 2015.

As MRC informed earlier, on July 28, 2015, Solvay entered into a definitive agreement with U.S.-based Cytec to acquire 100% of its share capital for USD75.25 per share in cash. On 10 December Solvay completed the acquisition of Cytec.

Cytec Industries Incorporated, based in Woodland Park, New Jersey is a speciality chemicals and materials technology company with pro-forma sales in 2004, including the Surface Specialties acquisition, of approximately USD3.0 billion. Cytec is a result of its spin-off from American Cyanamid Company. It makes resins, plastics, and composite materials, especially for the aerospace industry and other users of specialty materials.

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 - fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.

MRC

Sinopec successfully completed acquisition of 10% stake in SIBUR as strategic investor

MOCOW (MRC) -- SIBUR, Russia's largest gas processing and petrochemicals company, and China Petroleum & Chemical Corporation (Sinopec), a major global petrochemical corporation, announced today the successful completion of Sinopec’s 10% minority investment in SIBUR as a strategic investor, said SIBRU on its site.

The successful completion of the transaction will deepen the cooperation between the two companies and create value for both. The investment will also lead to better sharing of joint expertise and resources, which will strengthen not only the market leading positions of both companies, but also the strategic cooperation between China and Russia. Sinopec will have the right to nominate a representative for SIBUR's Board of Directors as a strategic investor.

"The decision of Sinopec, a major player in the global petrochemical market, to acquire a stake in SIBUR confirms the success of the management's effort to transform the Company into a gas processing and petrochemical leader and comes as a recognition of SIBUR's high growth potential. Getting Sinopec on board as a strategic shareholder will help to build the synergy required to bring SIBUR's growth to a brand new level," said Leonid Mikhelson, SIBUR’s Chairman of the Board.

As MRC wrote before, in September 2015, SIBUR and Sinopec signed a strategic partnership agreement during a state visit by Vladimir Putin, President of the Russian Federation, to Xi Jinping, the President of the People’s Republic of China. The successful completion of the transaction is an important step in the development of the strategic cooperation between the two countries.

The two parties will continue the dialogue to widen the scope of collaboration. As a next step, both companies are considering the participation of Sinopec in the Amur Gas Chemical Complex construction project as a strategic partner with SIBUR. Sinopec’s integrated upstream and petrochemical capabilities will make a positive impact and benefit both parties.

China Petroleum & Chemical Corporation is a listed company on domestic and international stock exchanges with integrated upstream, midstream and downstream operations, strong oil & petrochemical core businesses and a complete marketing network. Sinopec Corp is one of the largest integrated energy and chemical company in China. The scope of its business mainly covers oil and gas exploration and production, extraction, pipeline transmission and marketing; oil refining; production, marketing, storage and transportation of petrochemicals, chemical fibers, chemical fertilizers and other chemical products; import, export and import/export agency business of crude oil, natural gas, refined oil products, petrochemicals, chemicals, and other commodities and technologies; research, development and application of technology and information.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry. As of September 2015, SIBUR operated 26 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 75 countries worldwide and employed over 25,000 personnel.
MRC

Board of Directors of Total elects Patrick Pouyanne as Chairman and Chief Executive Officer

MOSCOW (MRC) -- At its meeting on December 16, 2015, Total’s Board of Directors elected Patrick Pouyanne, Chief Executive Officer of Total since October 22, 2014 and director since May 29, 2015, Chairman of the Board of Directors, said the producer on its site.

As announced on October 22, 2014, Mr. Pouyanne therefore becomes Chairman and Chief Executive Officer of Total, following the Board’s decision to recombine the two roles.

He succeeds Thierry Desmarest, whose term as Chairman of the Board of Directors expires on December 18, 2015, in line with the age limits specified in the Group’s bylaws. Thierry Desmarest, Honorary Chairman, will remain as a director until the Annual Shareholders’ Meeting on May 24, 2016.

In addition, upon the recommendation of the Chairman and Chief Executive Officer, the Board of Directors has decided to create the position of Lead Independent Director. The Lead Independent Director will in particular oversee the efficient running of the company’s governance structure, will chair the Governance and Ethics Committee and will be a key contact for shareholders on issues related to the Board of Directors’ responsibilities.

Patricia Barbizet, an independent director since 2008, has been appointed by the Board of Directors as Lead Independent Director. In this capacity, she will chair the Governance and Ethics Committee. She will also be a member of the Compensation Committee.

As MRC wrote previously, in late 2014, Total, Europe’s third-largest oil company, permanently shut its high density polyethylene (HDPE) line in Belgium. The plant was shut permanently owing to weak margins which have arisen on account of cheap imports in the region. Located at Antwerp in Belgium, the line had a production capacity of 70,000 mt/year.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

Imports of polycarbonate to Russia continues to shrink

MOSCOW (MRC) - Russia's imports of polycarbonate (PC) decreased to 21,000 tonnes in January-November 2015, down 38% in the same time year on year, according to MRC DataScope report.

There were several factors, contributed to such a decrease in PC imports. One of the main - reducing the total purchasing capacity in the country and the devaluation of the national currency. A seasonal drop in demand after the end of the construction season also weighed in on.

At the same time, producers of PC sheets complained in the autumn about the reduction in demand in the market of finished products, which, according to different sources, decreased from 12 to 30%. This led to a reduction in the total consumption of the extrusion PC market.

Demand dropped both for the imported and the Russian polymer. Thus, imports of PC for sheet extrusion was about 15,000 tonnes in Jan-Nov, down 41% compared to the same time a year earlier. In addition to other factors the main importer - Sabic Innovative Plastics decreased supplies because of the restructuring and separation of business. New prices from Sabic and its new policy of operation in the Russian market will be announced early next year.
As for the injection moulding segment, because of the reduction in car production in Russia and lower buying interest in this sector, the demand for imported polycarbonate decreased 6% to about 3,200 tonnes. The relative stability of injection moulding PC imports resulted from the absence in the market of material with specific properties required by converters.

Segment bottle grade PC is far from last year' level of consumption. Russia's import of bottle grade PC slightly exceeded 1,000 tonnes in Jan-Nov 2015.

Before the spring season in late March - early April, the players of the Russian market will try to optimise stock inventories, reducing expensive imported materials in their warehouses and buying Russian PC granules before its rise in price in the spring.

MRC