Solvay buys out Eastman in Tennessee-based cellulose acetate flake joint venture

MOSCOW (MRC) -- Solvay and Eastman Chemical Company have signed a definitive agreement to end their cellulose acetate production joint venture Primester with Solvay acquiring Eastman’s 50% stake in the U.S.-based plant and becoming its sole owner, said Solvay on its site.

"After our partnership of 25 years, this agreement allows Solvay to continue securing the most economical long term supply of cellulose acetate flake for its own tow business in Germany, Brazil and Russia, while adapting capacity to demand," said Philippe Rosier, President of Solvay Global Business Unit Acetow.

Following the transaction, Eastman will provide the long-term supply of basic utilities and raw materials to the plant, based in Kingsport, Tennessee. Closing should occur in Q2-2016, subject to customary regulatory approvals.

Eastman will continue to supply certain services, utilities and raw materials to Primester for Solvay’s operation of the former joint venture assets. The sale is subject to satisfaction of customary closing conditions and is expected to close in second quarter 2016. Terms of the sale were not disclosed.

As MRC informed earlier, Solvay has signed a definitive agreement with Brazilian chemical group Unipar Carbocloro to sell its 70.59% stake in Solvay Indupa.

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

MOSCOW (MRC) -- Integrated Refinery and Petrochemical Co (IRPC), a PTT Plc subsidiary, is in plans to shut its high density polyethylene (HDPE) plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Thailand informed that the plant is likely to be taken off-stream in November, 2016. It is expected to remain shut for around 4 weeks.

Located at Map Ta Phut in Rayong Thailand, the plant has a production capacity of 300,000 mt/year.

As MRC informed previously, IRPC took off-stream its polypropylene (PP) plant in Thailand for a maintenance turnaround in the second half of January 2016. The plant remained shut for around 10 days. Located in Rayong province of Thailand, the PP plant has a production capacity of 300,000 mt/year.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- France's Technip announced an all-stock merger with U.S. rival FMC Technologies to create an oil services group with combined revenue of USD20 billion, said Reuters.

The transaction is expected to deliver annual pretax savings of at least USD400 million as of 2019 and boost earnings per share significantly, the companies said in a statement on Thursday. "We have complementary skills, technologies and capabilities," Technip Chairman and Chief Executive Thierry Pilenko said. "Together, TechnipFMC can add more value across Subsea, Surface and Onshore/Offshore, enabling us to accelerate our growth."

Lower energy prices are driving consolidation in the oil services sector as companies seek savings to boost profits amid an oil supply glut that has been weighing on exploration and production.

Reuters reported in December that Technip had held talks with FMC.

Under the terms of the deal, each Technip share will be converted into two shares of TechnipFMC, and each FMC Technologies share will be exchanged for one share of TechnipFMC, with each company's shareholders owning close to 50 percent of the combined company.

Pilenko will serve as executive chairman of TechnipFMC, while FMC Technologies’ President and Chief Operating Officer Doug Pferdehirt will be CEO, the companies said. The transaction is expected to close early in 2017.

Last year, the two companies formed a joint venture, Forsys Subsea, aimed at reducing the cost of subsea oilfield exploration, a sector that has been badly hurt by the drop in the price of oil.

Technip has a market value of about USD6.2 billion, compared with USD6.5 billion for FMC Technologies. Technip has annual revenue of USD13.5 billion, more than double that of FMC Technologies.

As MRC informed earlier, Technip has been awarded by Tecnicas Reunidas a significant contract to supply three hydrogen reformers as part of the hydrogen production facility at Petronas’ refinery and petrochemical integrated development (RAPID) project located in the state of Johor, Malaysia.
MRC

MOSCOW (MRC) - Imports of polyethylene terephthalate (PET) into Russia increased to 32,300 tonnes in the first four months of the year, up 28% year on year, according to MRC DataScope.

Imports of injection moulding PET chips occurred for 82% from total deliveries into the country over the reported period. Total imports of injection moulding PET chips in to Russia were 26,700 tonnes in January-April 2016, which is up 18% year on year.

It should be noted that imports of amorphous PET chips have significantly grown in the first four months of the year. Russia's imports of amorphous PET chips increased to 2,500 tonnes in Jan-April 2016, up three times compared with the same time a year earlier.
Imports of recycled PET flakes into the country also grew noticeably. External deliveries of them increased to 3,000 tonnes, up 67% year on year. The growth of APET and recycled PET purchases was a result of stronger demand from producers of polyester fibres and tire cords.
The only importer of APET in to Russia continued to be Sibur-Volzhsky.

It worth noting that Sinopec increased deliveries of bottle grade PET in April. Russia's imports of bottle grade PET by Sinopec production were 1,600 tonnes in April compared with 900 tonnes in March.
At the same time, imports PET from Jiangsu Sanfangxiang fell substantially. April imports of PET by Jiangsu Sanfangxiang production were 500 tonnes compared with about 4,000 tonnes in March.


MRC

MOSCOW (MRC) - Russia's imports of polypropylene (PP) decreased to about 49,400 tonne in first four months of this year, down 3% year on year, compared to the same period of 2015. The largest decrease occurred for PP random copolymers, as per MRC DataScope.

Russia's imports of PP increased in April, having reached 13,800 tonnes compared with 13,200 tonnes in March. The main increase in last month's PP imports occurred for PP from Turkmenistan. In general, PP imports into Russia totalled 49,400 tonnes in January-April 2016, compared with 50,900 tonnes year on year. The main decrease in imports occurred for PP random copolymers on the back of a significant increase in domestic production, while imports of other propylene polymers increased.

PP imports in Russia over the reported period looked as follows.

Imports of homopolymer PP increased to 7,000 tonnes in April, compared with 6,000 tonnes in March. Local companies increased procurement of homopolymer PP raffia grade in Turkmenistan because of lower export prices at the local producer. Imports of homopolymer PP raffia grade are also expected to be significant in next few months. Total imports homopolymer PP raffia grade into Russia increased to 22,900 tonnes in January - April 2016, compared with 21,500 year on year.

April imports of PP block copolymers in Russia decreased to 2,000 tonnes against 2,800 tonnes in March. Producers of injection moulding products and PP compounds reduced their purchases last month. Total imports of PP block copolymers into Russia increased to 9,700 tonnes in the first four months of the year, up 4% year on year.

April imports of PP random copolymers into Russia were about 2,500 tonnes, compared to 2,300 tonnes in March on the back of an increase in purchases from the local producers of PP pipes. Russia's imports of PP random copolymers decreased to 8,600 tonnes in January-April 2016, down 19% year on year. Russian pipe producers have significantly reduced imports volumes.

Imports of other propylene polymers for the reported period decreased to about 8,200 tonnes compared with 9,500 tonnes in the same time a year earlier.


MRC