PE imports to Russia down 22% in Jan-Mar 2016

MOSCOW (MRC) -- Overall polyethylene (PE) imports into the Russian market decreased in the first three months of 2016 by 22% year on year, totalling 101,500 tonnes. The high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) segment accounted for a major fall in imports, according to MRC DataScope report.

March PE imports to the Russian market grew to 42,100 tonnes from 33,400 tonnes a month earlier, shipments of low density polyethylene (LDPE) and HDPE increased. Overall PE imports decreased to 101,500 tonnes in the first three months of the year, compared to 129,500 tonnes a year earlier. The HDPE and LLDPE segments accounted for a major reductions in imports, whereas imports of LDPE and ethylene vinyl acetate (EVA) rose.

The structure of PE imports by grades looked the following way over the stated period.


Last month's HDPE imports grew to 13,200 tonnes from 8,000 tonnes in February. Producers from Uzbekistan (blow moulding and injection moulding HDPE) and from Germany (PE for extrusion coating of steel pipes) accounted for the growth in imports. However, despite the March surge, overall HDPE imports into Russia fell to 30,000 tonnes in the first three months of 2016 from 42,500 tonnes a year earlier.

March LLDPE imports rose to 13,500 tonnes versus 12,700 tonnes a month earlier. The seasonal increase in demand and lower prices in foreign markets, along with the rouble strengthening, made imported PE more procurable for Russian converters, particularly, for stretch films producers. Overall LLDPE imports reached 34,000 tonnes in January-March 2016, compared to 52,800 tonnes a year earlier.

Last month's LDPE imports rose to 10,600 tonnes from 8,100 tonnes in February. Both purchases in Belarus and in Europe increased. A seasonal rise in demand for film products was the reason for higher imports. Overall LDPE imports grew to 24,900 tonnes in the first quarter of 2016, compared to 22,400 tonnes a year earlier.

March imports of ethylene-vinyl-acetate (EVA) were less than 2,000 tonnes versus 2,100 tonnes a month earlier, films producers reduced their purchasing. However, EVA imports rose to 5,20tonneses over the stated period from 4,400 tonnes a year earlier.

Imports of other polymers of ethylene exceeded 7,400 tonnes in the first quarter of 2016, which equalled the figure of the same period of 2015.

MRC

Formosa restarts cracker No. 1 in Taiwan after maintenance

MOSCOW (MRC) -- Formosa Petrochemical Corp (FPCC) has restarted its No.1 residual fluid catalytic cracker (RFCC) unit, as per Apic-online.

A Polymerupdate source in Taiwan informed that the company has resumed operations at its RFCC unit over the weekend following a maintenance turnaround. The unit was shut in early March 2016.

Located in Mailiao, Taiwan, the No.1 RFCC unit has a propylene capacity of 375,000 mt/year.

As MRC wrote before, on March 22, 2015, FPCC took off-stream the RFCC No.1 unit. The unit remained shut till the end of March. Located in Mailiao, Taiwan, the RFCC unit has a propylene production capacity of 375,000 mt/yr.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

Gazprom said to seek Saipem settlement with Nord Stream 2 deal

MOSCOW (MRC) -- Russia is planning to offer Saipem SpA a contract to lay a natural gas pipeline in the Baltic Sea in an effort to settle a EUR760-million (USD870 million) dispute and strengthen ties with Italy, according to two government officials in Moscow, reported Bloomberg.

State-run Gazprom PJSC may sign a deal with Saipem on a planned 10-billion euro offshore link known as Nord Stream 2 at an economic forum in St. Petersburg on June 16-18. An agreement on a settlement may be reached before then, they said, asking not to be identified as the information is private.

Gazprom and Saipem declined to comment.

The Russian government invited Italy to send a high-level delegation to the summit, Russia’s biggest annual business event and supervised by President Vladimir Putin. The pipeline contract would be first on a list of accords being considered, the officials said.

Italian Prime Minister Matteo Renzi, who Russia says will attend the forum, is seeking improved relations between the European Union and Russia. After cementing ties with Germany and Austria with several energy deals, including an accord on the Nord Stream 2 gas link, Russia now seeks to boost cooperation with Italy, the officials said.

Saipem in December filed a claim against the Moscow-based gas producer over a canceled deal to lay a pipeline in the Black Sea. The project, initially designed to deliver gas to central and southern Europe including Italy, was shelved amid the EU opposition and a worsening relationship with Turkey over Syria.

Gazprom Chief Executive Officer Alexey Miller said this month the company may sign new accords with Eni SpA, Saipem’s biggest owner, at the June summit, declining to elaborate.

"The Italian theme" will be strong at the event, his spokesman Sergei Kupriyanov said Tuesday, also declining to provide further details.

As MRC informed before, on 1 April 2016, Russian oil major Gazprom signed cooperation deals with Austrian energy group OMV as it tries to secure more lobbying power for its project to expand the Europe-bound undersea gas pipeline, Nord Stream. A preliminary asset swap deal was agreed in September 2015. Under the deal, OMV will acquire a 24.98% of areas IV and V of the Achimov formation of the Urengoy oil and gas field in Siberia.

PAO Gazprom (Russia) is a large Russian company founded in 1989 which carries on the business of extraction, production, transport and sale of natural gas. The company name is a contraction of the Russian words Gazovaya Promyshlennost. The headquarters of Gazprom are in Moscow.
MRC

Treofan streamlines European management structure


MOSCOW (MRC) -- BOPP film manufacturer Treofan is combining the responsibility for its European plants into a single corporate function: Chief Operations Officer Europe (COO Europe), said Packagingeurope.

This role will be filled by Luigi Martinese (49), who has been with Treofan since 1995 and has been responsible for the Group’s Italian sites for over 15 years. As COO Europe, Martinese will be in charge of the German plant in Neunkirchen as well as the Italian plants in Battipaglia and Terni.

This change makes Treofan’s European organization even more efficient. Besides COO Luigi Martinese, the newly created European Board includes Business Unit Managers Carolyn Wagner (Packaging and Labels), Nico Schoeman (Tobacco Packaging and Technical Films) and Dr. Franz Josef Kruger (Treopore Separators), plus a Supply Chain Manager to be appointed soon. The European Board reports to the Group Board in Raunheim.

The realignment removes the need for the Global COO position formerly held by Dr. Hady Seyeda, who is leaving the company. “I would like to personally thank Hady Seyeda for everything he did for us in the past years, and I wish him all the best for the future,” says Group CEO Dr. Walter Bickel.

Alongside CEO Dr. Walter Bickel, Dr. Boris Trautmann (49) becomes the Group’s second Managing Director, a position he already held from 2011-2014. While Dr. Bickel is responsible for all operational areas as well as finance, innovation and IT, Dr. Trautmann as General Counsel oversees human resources, legal, compliance, patents and internal audit.

Comments Dr. Walter Bickel: By adapting our European management structure to the model already used in the Americas division with great success, we can now respond even more flexibly and rapidly to customer and market needs.

As MRC informed earlier, Max India has sold its 50,000 tpa profitable biaxially oriented polypropylene (BOPP) film facility, Max Speciality Films, to Treofan, a German global technology leader for BOPP film, for Rs 5.4 billion (USD97 mln).

Treofan Group is a global technology leader for biaxially oriented polypropylene film (BOPP). Treofan, which develops and sells BOPP films in over 90 countries around the world, has already production facilities in Europe and the Americas. Company offers the most diverse and comprehensive product range within the industry, providing packaging, label and tobacco film applications as well as films for electronic devices, such as capacitors.

MRC

HNA Group makes cash offer to acquire gategroup


MOSCOW (MRC) -- HNA Group Co., Ltd. ("HNA") and gategroup Holding AG (“gategroup”) have jointly announced that the two companies have entered into a definitive transaction agreement pursuant to which HNA will launch an all cash public tender offer for all publicly held registered shares of gategroup, said Gategroup.

The Board of Directors of gategroup has unanimously resolved to support the public tender offer by HNA and to recommend the acceptance of HNA's public tender offer to gategroup's shareholders.

Upon completion of the public tender offer, HNA intends to delist gategroup from the SIX Swiss Exchange and operate the company as an autonomous portfolio company within the HNA group. HNA is committed to retaining gategroup's headquarters in Switzerland and supporting gategroup's Gateway 2020 strategy as a responsible industrial owner with a long-term investment horizon.

HNA is a multinational conglomerate encompassing aviation, airport management, financial services, real estate, retail, tourism, and logistics.

gategroup is an independent global provider of products, services and solutions related to a passenger’s onboard experience. It comprises the following brands: deSter, eGate Solutions, Gate Aviation, Gate Gourmet, Gate Retail Onboard, Gate Safe, Harmony, Performa, potmstudios, Pourshins and Supplair.
MRC